Both gold and silver ended nearly even steven, despite a strong day from the dollar. Trading on both continues to be about inflation hedging and speculation. Demand is of course low as the economy struggles, but the shadow of inflation continues to lurk.
Combined with the struggling dollar, high US debts and inflation; investors continue to see gold and now silver as a safe move. The question is, if inflation is not seen and the economy begins an uptick, how quickly will gold and silver correct? That is as they say the million dollar question. However, with China clearly making a push against the dollar, the Obama administration which holds the spend to get out of the recession theory and the continued world turmoil, any uptick may be short lived and minor at best.
As of right now, most people recommend holding steady, buying on any form of correction and continue watching very closely.
Showing posts with label investors. Show all posts
Showing posts with label investors. Show all posts
Tuesday, November 17, 2009
Monday, November 16, 2009
Gold Bull Market Continues:
Gold's bull run continues to be nothing short of stunning. Driven by the continued concern over the dollar, inflation and the almost non-existent interest rates, gold is running wild.
As I have said a thousand times, the question is when, not if, the correction will hit? It is getting to the point where the run up on gold is becoming a bit scary. Like anything, people jump in to just jump. This creates an unsustainable upward drive, that will force the logical out of the market and the price down. When it does correct, the same people that jumped in so irrationally, will jump out.
The best advice for investing in gold is to simply hold steady or take some profits. Secondly, begin looking for other commodities that may be undervalued.
Gold Quote>>>>
Also, for any investor, knowing human behavior is as important as knowing the indicators. Despite the constant bantering of selling high, buy high. many people cannot do this. When they see a market such as gold driving upward, they are instantly drawn in. Watch and listen to what people are saying around you, what they are writing and look for news medias beyond the mainstream, this can often present keys to where a market is going.
As I have said a thousand times, the question is when, not if, the correction will hit? It is getting to the point where the run up on gold is becoming a bit scary. Like anything, people jump in to just jump. This creates an unsustainable upward drive, that will force the logical out of the market and the price down. When it does correct, the same people that jumped in so irrationally, will jump out.
The best advice for investing in gold is to simply hold steady or take some profits. Secondly, begin looking for other commodities that may be undervalued.
Gold Quote>>>>
Also, for any investor, knowing human behavior is as important as knowing the indicators. Despite the constant bantering of selling high, buy high. many people cannot do this. When they see a market such as gold driving upward, they are instantly drawn in. Watch and listen to what people are saying around you, what they are writing and look for news medias beyond the mainstream, this can often present keys to where a market is going.
Tuesday, November 10, 2009
Profit Taking Day for Gold?
Gold is starting the day up, but barely. Don't be surprised if the next couple of days are profit taking corrections. Those who got in gold last year or before would be silly not to peel off some profits. This should do little to stop the bull market in the long run. All indicators remain pointing towards a bull market in gold as the dollar continues to struggle, businesses show no signs of growth and the US deficit will only grow two fold, especially if the Senate passes health care reform.
As always, watch the correction and feel free to jump in. However, with prices this high the risk goes up almost daily. A major correction could happen any day, not because of financial indicators, but because of investor fears. Many people have been burned by holding too long and they have become jitter to corrections. Thus, if one appears to be starting a flood of gold sellers could drive the price downward in one shift swoop.
As always, watch the correction and feel free to jump in. However, with prices this high the risk goes up almost daily. A major correction could happen any day, not because of financial indicators, but because of investor fears. Many people have been burned by holding too long and they have become jitter to corrections. Thus, if one appears to be starting a flood of gold sellers could drive the price downward in one shift swoop.
Tuesday, October 27, 2009
Barney Frank Driving Down the Dollar
It is comments such as the one made by Barney Frank on the following video that is helping to drive investment money out of the United States; not to mention the dollar down.
Visit msnbc.com for Breaking News, World News, and News about the Economy
Wednesday, October 14, 2009
Stock Market Pushing Towards 10,000 but is Another Bubble Builiding
The market is moving upward and there have been positive signs. Retails sales, minus cars were up in September. JP Morgan reported high profits as did Intel. The question remains, with so many negative indicators is another bubble building?
Investors seem ready to jump back in the market, which is certainly a positive, but any prudent investor must ask one simple question; Are these real improvements in the market or just the expected caffeine rush from the government influx of cash? The game of investing grows cloudier with each passing day. Whistle blowers in the accounting world have been decrying the tactics used by publicly traded companies. Showing profits and a solid company on the surface, ignoring the cracks in the foundation. Now with the government and politicians firmly tied to the success of a financial institutions, pressure for profits has never been greater.
I am no expert, but I would caution all investors to stay safe at this point and watch the market carefully. Learn from the recent financial debacle and take a moment to at listen to this sounding the warning sirens.
Wednesday, September 16, 2009
Gold Price...Where's It Going?
If I could answer the question of where gold is going, well then I wouldn't be posting on this blog. Instead I would be sitting on the beach, with my lovely wife, sipping a Corona. However, all indications are pointing to up, up and up for gold prices.
Now here are some reasons to start buying gold.
Let's take a look at the world around us. First, the banking system remains unstable at best. The problems which hounded the financial system remain in place. No, not lack of regulations, but the continued increase of it. Barney Frank is insistent on keeping Freddi Mac and Fannie Mae alive and kicking. This in essence allows the government to continue pressuring or allowing banks to continue making the borderline loan an easy transaction. So long as these two government entities are buying up bad loans, banks will continue giving them, keeping the entire situation unstable. Secondly, as the dust continues to settle, look for the financial sector to be monopolized by a select few; aided by the government.
This is nothing more than one symptom of an infested economy. Perhaps the looming 800 pound gorilla is the policy of printing money to pay for the debt. This practice can have devastating effects on the economy, creating hyper-inflation. The theory is simple, more money dilutes the value of the dollar, pushing up the prices of goods and services at a rapid price.
The strain on the investment class or rich, is growing to a breaking point. As the policies of this nation create more and more debt, taxes must and will be raised. This will drain money from those who can create wealth and place it squarely in the hands of the government, which cannot create wealth.
Finally, America's debt is no longer an in-house debt. Folks, our debtors are foreign nations specifically, China. This has in essence created a situation where our actions must be explained, at the least, to a foreign government. This situation is self explanatory.
The foundations of the American economy are rattled and this means one thing; gold. The top investors will continue running to gold, so as common investors, follow them. I am not supporting a complete pull out of the stock market, but instead shift a percentage of investment money into gold. It is the wise and prudent action until we have clarity to the direction of the new economy.
Now here are some reasons to start buying gold.
Let's take a look at the world around us. First, the banking system remains unstable at best. The problems which hounded the financial system remain in place. No, not lack of regulations, but the continued increase of it. Barney Frank is insistent on keeping Freddi Mac and Fannie Mae alive and kicking. This in essence allows the government to continue pressuring or allowing banks to continue making the borderline loan an easy transaction. So long as these two government entities are buying up bad loans, banks will continue giving them, keeping the entire situation unstable. Secondly, as the dust continues to settle, look for the financial sector to be monopolized by a select few; aided by the government.
This is nothing more than one symptom of an infested economy. Perhaps the looming 800 pound gorilla is the policy of printing money to pay for the debt. This practice can have devastating effects on the economy, creating hyper-inflation. The theory is simple, more money dilutes the value of the dollar, pushing up the prices of goods and services at a rapid price.
The strain on the investment class or rich, is growing to a breaking point. As the policies of this nation create more and more debt, taxes must and will be raised. This will drain money from those who can create wealth and place it squarely in the hands of the government, which cannot create wealth.
Finally, America's debt is no longer an in-house debt. Folks, our debtors are foreign nations specifically, China. This has in essence created a situation where our actions must be explained, at the least, to a foreign government. This situation is self explanatory.
The foundations of the American economy are rattled and this means one thing; gold. The top investors will continue running to gold, so as common investors, follow them. I am not supporting a complete pull out of the stock market, but instead shift a percentage of investment money into gold. It is the wise and prudent action until we have clarity to the direction of the new economy.
Friday, September 4, 2009
Gold Racing to New Highs
Gold is racing towards $1000 per troy ounce an amazing early September run. Silver is matching that run going up $16 per troy ounce. Now, don't look for either to sustain these highs. However, the floor isn't going to drop out either.
Clearly investors are quickly losing, assuming they ever had it, confidence in the central banking system and the current administration. The constant talk of health care, cap and trade and now a tax on traders, is fueling this doubt and creating even greater concern about the health the dollar. Toss in the fears of a jobless recovery and what we have are jittery investors running towards gold.
So what does this mean for the common gold investor? If you are heavy in gold snag some profits, if not hold off buying. Wait for the correction which could come anytime and then jump in. The price will go back to somewhere between $950-900 mostly because the demand for gold jewelry is not there. But, as the economic troubles continue, unemployment hitting a 26-year high, gold will continue the climb upward.
Clearly investors are quickly losing, assuming they ever had it, confidence in the central banking system and the current administration. The constant talk of health care, cap and trade and now a tax on traders, is fueling this doubt and creating even greater concern about the health the dollar. Toss in the fears of a jobless recovery and what we have are jittery investors running towards gold.
So what does this mean for the common gold investor? If you are heavy in gold snag some profits, if not hold off buying. Wait for the correction which could come anytime and then jump in. The price will go back to somewhere between $950-900 mostly because the demand for gold jewelry is not there. But, as the economic troubles continue, unemployment hitting a 26-year high, gold will continue the climb upward.
Friday, July 3, 2009
Recession Continues to Loom
Folks here are the facts; the recession continues and the economy is struggling. Unemployment reached a 25 year high in June and there's really no end in sight. Despite the talk of a recovery, one needs only to look around; businesses are in a holding pattern. There is no growth now or in the near future. Critical economic segments such as real estate and resort/gaming industry are floundering.
Housing (apartments) prices in Manhattan dropped nearly 50 percent. Saying well that's New York, not so fast. In Dayton OH, prices dropped nearly 4 percent in the last year, while foreclosures are up 10 percent. There is little doubt the real estate market remains staggered.
The gaming/resort business has been crippled by the downward tick of the economy and it doesn't appear to be changing.
The American dollar has been mostly down, a signal that the investment world is loosing trust in it. Foreign investors have been shying away from US Bonds and in essence the American dollar. The reason is the rapid growth of deficit spending, that has put on the world on notice.
Most if not all signals continue pointing to a staggered economy. Keep moving towards gold and silver and keep a sharp on eye on this ever changing situation.
Housing (apartments) prices in Manhattan dropped nearly 50 percent. Saying well that's New York, not so fast. In Dayton OH, prices dropped nearly 4 percent in the last year, while foreclosures are up 10 percent. There is little doubt the real estate market remains staggered.
The gaming/resort business has been crippled by the downward tick of the economy and it doesn't appear to be changing.
The American dollar has been mostly down, a signal that the investment world is loosing trust in it. Foreign investors have been shying away from US Bonds and in essence the American dollar. The reason is the rapid growth of deficit spending, that has put on the world on notice.
Most if not all signals continue pointing to a staggered economy. Keep moving towards gold and silver and keep a sharp on eye on this ever changing situation.
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