"The Supply and demand of gold is very important. That is why it is money, because gold is used elsewhere and it is commodity. The supply and money of paper is the culprit. That is the one that is causing all the trouble. People ignore the supply and demand of paper."
Gold Investing and Gold Stocks News
"What we just witnessed in the gold market, in my opinion, was a panic liquidation that has no predictive value and which occurred in the teeth of the most wildly gold-friendly fundamentals the world has ever seen. Unfortunately, this is a lesson of markets sometimes being perverse and doing whatever they want to."
Anskar Belke, chairman of macroeconomics, University of Duisburg-Essen, talks with Bloomberg's Mark Barton about an alternative to gold reserve sales for Cyprus. He speaks on Bloomberg Television's "Countdown."
Jim Rogers, chairman of Rogers Holdings, talks about global commodity markets and investment strategy. Rogers also discusses the outlook for the U.S. dollar. He speaks with Rishaad Salamat on Bloomberg Television's "On the Move."
Interest Rate Observer Founder and Editor Jim Grant discusses the economy and the price of gold on Bloomberg Television's "Money Moves."
Every hedge fund in the gold trade was down and every investor who bought gold themselves since then was too. Losses lead to panic. That is why the 1550 level was so important - and why it has led to this current gold crash. Every computer program yelled sell once the 1550 level was breached and the selling built up into a crescendo - into a crash.
This isn't to endorse all of his beliefs, but skip to the six minute mark and you can see why this person sent me this video - and why its relevant for the struggle gold investors are facing today.
What you are witnessing in the gold market right now is the final liquidation of the gold bug. On Friday gold fell $84 an ounce for a 5.38% drop while the HUI gold stock index fell 6%. Big bad moves. What is worse these drops have come after months of falling gold prices all while the S&P 500 has gone higher.
"$1300. Nobody knows for sure but I think the fundamentals for gold are still intact. I would like to make one additional comment."
Jordan sees plenty of signs that sentiment for gold has reached an extremely bearish level which typically comes at key bottoms. He also explained how he thinks gold and gold stocks will play out over the next few months.
In this podcast Dave and I talked about gold and gold stocks and their current action. Gold stocks have fallen so much that now Newmont is paying a 4% dividend!
Frank Holmes, the CEO of US Global Investors presents his outlook for 2013 at Cambridge House International's Vancouver Resource Investment Conference held in January 2013.
40 Minute interview with famed investor Jim Rogers.
The right gold stocks have the potential to go up even more than the price of gold does over the next few years.
I want to talk to you about using gold to build real wealth. Very few people end up rich and wealthy when they retire. That's because most people make two really big blunders that they never recover from. For you that means if you want to build real wealth you have to what most people don't do. You gotta be a bit of a contrarian and go against the masses.
Gold on the other hand made a major secular bear market bottom in 2001. Since that bottom it has gone up year after to new highs with three short-term one year plus pauses. After each pause gold took off like a rocket.
There are literally hundreds of them out there and you only need to use the best one. I decided that I wanted to do more than use one to buy bullion for myself, but to find one that I could build a real business relationship with too.
Today after weeks of falling gold stocks finally rallied strongly as the HUI gold stock index went up 3.95%. Ironically last week marked the biggest one week outflow of money out of gold and commodity funds ever recorded.
The price of gold has been kept down by hedge fund redemptions. These redemptions will end in a week and after that a nasty hand that has been holding the price of gold down will be lifted. As we begin this new year news is starting to trickle out demonstrating that hedge funds as a whole have had a horrid performance last year.
According to incoming data nine out of ten hedge funds failed to beat the S&P 500 last year. According to a recent report by Goldman Sachs their average return was 8% while the S&P 500 posted a 13% gain for 2012.
One of the stocks I own, SCCO, recently announced that it is going to pay a dividend of $2.75 to shareholders on record on November 7th. Of course the stock has gone up on this news and the dividend is so large that it gives the company an annual dividend rate of 28.9%. Incredible.
The company is one of the largest copper produces in the world with operations in Mexico, Peru, and Chile.
Yesterday the DOW went up about 100 points in the morning and then closed down 20 points. The S&P 500 and Nasdaq also went up in the morning and then dumped in the afternoon. The markets have been in a corrective phase for the past few weeks and action like yesterday suggests that they have not bottomed yet.
My guess is that we will see an end to this correction after a little more selling in the US markets. The bottom may come next week on a bad earnings release that causes a gap down.
Every day I get at least a half dozen emails from people asking me if I am worried about stocks. Usually they send me an article that has a reason to think a new bear market is coming. The reason might be that psychology is bullish, the market has gone up a lot so it has to drop, the economy will never recover, Elliot Wave nonsense says everything will fall, or we are in deflation. What is going on is that the person sending the email is usually simply worried and wants some reassurance.
So if you are worried all I got to say is STOP BEING SO SCARED!!!!
There are seasonal patterns to most commodities and that includes gold. You can see gold's historic seasonal pattern for the last 30 years in this chart. Now last year was different, because gold peaked around this time of year and then went into a mini-bear market consolidation phase. But in most years it has a tendency to have its best months overall from August till spring.