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Gold and What Moves it.
Tracking all things that relate to and affect the price of gold.
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oftwominds-Charles Hugh Smith: Money Down a Rathole: College, Healthcare, Housing

oftwominds-Charles Hugh Smith: Money Down a Rathole: College, Healthcare, Housing | Gold and What Moves it. | Scoop.it

by Charles Hugh Smith:

 

"Households are dumping trillions in hard-earned income down ratholes with marginal returns: costly higher education, healthcare and housing.

 

"What happens when households dump huge percentages of their stagnant incomes down marginal-return ratholes? They get less wealthy, which is exactly what we're seeing. The average American household has been persuaded that pouring money into costly higher education, healthcare and housing are all "investments" that offer high yields.

 

"Sadly, the opposite is true: the returns on these stupendously costly investments is marginal or negative. Let's start with higher education, a topic I have discussed at length numerous times.

 

"In essence, a college degree has lost its scarcity value, and in an era of labor arbitrage (a.k.a. offshoring and international competition), automation and relentless pressure to lower costs, even advanced degrees in law, science and business management that once were perceived as guarantees of secure high-paying employment no longer have scarcity value: the number of people with advanced degrees far exceeds the number of open positions.

 

"Meanwhile, the education cartel has raised ..."

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Legalize Competing Currencies

Representative Ron Paul (TX-14) writes:

 

I recently held a hearing in my congressional subcommittee on the subject of competing currencies. This is an issue of enormous importance, but unfortunately few Americans understand how the Federal Reserve and Treasury Department impose a strict monopoly on money in America.

 

This monopoly is maintained using federal counterfeiting laws, which is a bit rich. If any organization is guilty of counterfeiting dollars, it is our own Treasury. But those who dare to challenge federal legal tender laws by circulating competing currencies-- at least physical currencies-- risk going to prison.

Like all government created monopolies, the federal monopoly on money results in substandard product in the form of our ever-depreciating dollars.

 

Yet governments have always sought to monopolize the issuance of money, either directly or through the creation of central banks. The expanding role of the Federal Reserve in the 20th century enabled our federal government to grow wildly larger than would have been possible otherwise. Our Fed, like all central banks, encourages deficits by effectively monetizing Treasury debt. But the price we pay is the terrible and ongoing debasement of our money.

 

Allowing individuals and business to use alternate currencies, especially currencies backed by gold and silver, would expose the whole rotten system because the marketplace would prefer such alternate currencies unless and until the Fed suddenly imposed radical discipline on its dollar inflation.

 

Sadly, Americans are far less free than many others around the world when it comes to protecting themselves against the rapidly depreciating US dollar. Mexican workers can set up accounts denominated in ounces of silver and take tax-free delivery of that silver whenever they want. In Singapore and other Asian countries, individuals can set up bank accounts denominated in gold and silver. Debit cards can be linked to gold and silver accounts so that customers can use gold and silver to make point of sale transactions, a service which is only available to non-Americans.

 

The obvious solution is to legalize monetary freedom and allow the circulation of parallel and competing currencies. There is no reason why Americans should not be able to transact, save, and invest using the currency of their choosing. They should be free to use gold, silver, or other currencies with no legal restrictions or punitive taxation standing in the way. Restoring the monetary system envisioned by the Constitution is the only way to ensure the economic security of the American people.

 

After all, if our monetary system is fundamentally sound-- and the Federal Reserve indeed stabilizes the dollar as its apologists claim--then why fear competition? Why do we accept that centralized, monopoly control over our money is compatible with a supposedly free-market economy? In a free market, the government’s fiat dollar should compete with alternate currencies for the benefit of American consumers, savers, and investors.

 

As Austrian economist Ludwig von Mises explained, sound money is an instrument that protects our civil liberties against despotic government. Our current monetary system is indeed despotic, and the surest way to correct things simply is to legalize competing currencies.

 

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People Are Frightened, Money Pouring Into Switzerland & Gold

People Are Frightened, Money Pouring Into Switzerland & Gold | Gold and What Moves it. | Scoop.it

With continued volatility in global markets, including gold and silver, today King World News interviewed one of the legends in the gold world, Keith Barron. Barron consults with major gold companies around the world, as well as major brokerage houses, and he is also responsible for one of the largest gold discoveries in the last quarter century, a remarkable 14 million ounces of gold.

 

Here is what Barron had to say about the ongoing crisis in Europe: “Well, there are a lot of scared people here. There is a lot of money that’s been pouring into Switzerland and the Swiss franc. As you are aware, the Swiss National Bank has pegged the Swiss franc to the euro, so there is tremendous pressure on the franc.

 

“They (the Swiss) have to take these euros and go and buy other currencies. So they have actually been sending the Norwegian kroner and other currencies such as the Canadian dollar higher, just because of these massive inflows into Swiss francs. Eventually that peg is going to break, but they are doing whatever they can right now to keep it in place.

 

"There is a headlong rush into getting out of the euro and into other currencies...."

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Embry - Gold To Spike As Physical Market Is Shockingly Tight

Embry - Gold To Spike As Physical Market Is Shockingly Tight | Gold and What Moves it. | Scoop.it

John Embry tells King World News:

 

“... I think it’s clear there is a steady buyer in the market, but the price is being controlled in the paper market. The charts for both gold and silver are looking better and better with each passing day. It should look better because the fundamentals are spectacular.

 

"It’s just a matter of time before gold and silver break out aggressively to the upside. The short-term price movements are being influenced by the paper pushers, but that has nothing to do with how these two metals will trade down the line. ..."

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Deutsche Bank: QE3 Could 'Do More Harm Than Good For Gold Prices'

Deutsche Bank: QE3 Could 'Do More Harm Than Good For Gold Prices' | Gold and What Moves it. | Scoop.it

Matthew Boesler writes:

 

"Gold bulls often argue that the yellow metal will only go up as long as central banks continue to employ easy monetary policy.
However, this thesis has been around so long that it might not even work anymore.


"That's the gist of what Deutsche Bank suggests in their most recent outlook for precious metals prices. ..."

 

Read more: http://www.businessinsider.com/deutsche-bank-qe3-gold-prices-2012-8#ixzz23RKW44xz

 

[I don't know about you but I smell a rat. Gold has risen during the QE phase, but I don't think it's wise to claim that rise was because of QE. Has QE affected the price of gold? Certainly. But gold has been rising in my mind a function of the increasing debt levels as well. I expect both QE and Debt to increase. And unless they artificially hold gold's price down, it will increase as well.]

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Greyerz - We Are Headed Right Into A Global Financial Crash

Greyerz - We Are Headed Right Into A Global Financial Crash | Gold and What Moves it. | Scoop.it

Egon von Greyerz tells King World News:

 

“... Gold’s rise has reflected some of the money printing up to now, it’s up 150% in dollar terms over the last five years. Over ten years gold is up 450%. This is because of the destruction of paper money, which will only accelerate over time.

 

"But gold has risen with only slightly more than 1% of the world’s assets in gold. Right now the world’s assets are about $150 trillion. Of that number, $60 trillion is in cash, $40 trillion is in bonds, and $40 trillion is in stocks. But, remarkably, only $2 trillion or just a bit over 1% is in gold.

 

"With inflation headed higher, institutions, which have virtually no allocation to gold today, they will have to increase their allocation to gold. There have been several studies over the last few months that have suggested that institutions will need to put part of their funds in gold.

 

"If you look at world financial assets, a 1% increase in allocation to gold of the world’s financial assets would require 12 years of gold production at today’s prices. There simply isn’t the gold ..."

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Nigel Farage - They Will Collapse The System & Enslave People

Nigel Farage - They Will Collapse The System & Enslave People | Gold and What Moves it. | Scoop.it

[To King World News, Nigel] Farage had this to say about discussions in Europe where they are looking to cap the interest rates on the debt of both Italy and Spain: “On a financial level it’s comical because it’s the same money that swirls around the system, which we know in the end doesn’t work.

 

"But the sinister aspect of it is that the intention of men like (Italian Prime Minister) Mario Monti, and my old friend Mr. van Rompuy, is they actually want to enslave and imprison the peoples of these countries inside their ‘New European Order.’

 

"And it’s horrifying because ultimately what it means is that people are going to reject and rebel against this. They will rebel against it with violence, and they will rebel against it with political extremism. ...”

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14 Questions People Ask About How To Prepare For The Collapse Of The Economy

14 Questions People Ask About How To Prepare For The Collapse Of The Economy | Gold and What Moves it. | Scoop.it
How in the world is someone supposed to actually prepare for an economic collapse?  What should you do with your money?

 

There's some good advice here I think. 

 

Here are the questions, I'll let you click through for the answers:

 

#1 How Do I Get Started?

#2 What Should I Do With My Money?

#3 Should I Invest In Precious Metals?

#4 Should I Get Out Of Debt?

#5 What If I Don't Have Any Money To Prepare?

#6 Should I Rent Or Buy?

#7 What About My Health Condition?

#8 Should I Be Storing Food?

#9 Should I Be Storing Water?

#10 Other Than Food And Water What Other Supplies Will I Need?

#11 What Happens If The Power Grid Goes Down?

#12 Should I Leave The Big Cities?

#13 Should I Get Some Self-Defense Training?

#14 What Should I Do If My Family And Friends Won't Listen To Me?

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THREE PREDICTIONS SOON TO SEND GOLD HIGHER - The Prospector Blog

THREE PREDICTIONS SOON TO SEND GOLD HIGHER - The Prospector Blog | Gold and What Moves it. | Scoop.it

TheProspectorSite.com gives a list of three things that he believes could send gold higher.

 

They are:

 

1: Conflict
2: Awakening

3: Panic

 

Click through for the full discourse.

 

Here's a snippet on what he said about "Awakening":

 

"... The word “austerity” equals awakening in my mind. Most won’t connect austerity as an admission of a failed society and fiat economy because most citizens are just trying to protect what they’ve worked for, or not worked for. The price of silver and gold will awaken before most Americans (the world as well) leaving ones needing protection the most outside looking in. But some can afford precious metal, regardless the cost, and are soon willing to pay whatever the few holding physical metal demand. How can such an awakening not drive precious metal prices? ..." 

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More Than 100 Million Americans Are On Welfare

More Than 100 Million Americans Are On Welfare | Gold and What Moves it. | Scoop.it

"There are more Americans dependent on the federal government than ever before in U.S. history. According to the Survey of Income and Program Participation conducted by the U.S. Census, well over 100 million Americans are enrolled in at least one welfare program run by the federal government. Many are enrolled in more than one. That is about a third of the entire population of the country. Sadly, that figure does not even include Social Security or Medicare. Today the federal government runs almost 80 different "means-tested welfare programs", and almost all of those programs have experienced substantial growth in recent years. Yes, we will always need a "safety net" for those that cannot take care of themselves, but it is absolutely ridiculous that the federal government is financially supporting one-third of all Americans. How much farther do things really need to go before we finally admit that we have become a socialist nation? At the rate we are going, it will not be too long before half the nation is on welfare. Unfortunately, we will likely never get to that point because the gigantic debt that we are currently running up will probably destroy our financial system before that ever happens. ..."

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Richard Russell - Has A Massive & Historic Bubble Popped?

Richard Russell - Has A Massive & Historic Bubble Popped? | Gold and What Moves it. | Scoop.it

Richard Russell tells King World News:

 

"... The yield on the bellwether ten year note gapped up on the chart, and I'm thinking that the massive rally in bonds may be over. If so, this could mean the beginning of higher rates all around. In other words, has the great bond bubble popped? ..."

 

In regard to Gold he says:

 

"... Gold broke out at the apex of this triangle; it fell back into the triangle, and then as the chart shows, gold rallied to a high for the formation -- and cleanly above the descending trendline. Gold's next upside target should be to close at 1700 which would take it above the preceding peak. ..."

 

You should click through and read the full piece.

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Have You Seen These Absolutely Shocking Charts Of Inflation

Have You Seen These Absolutely Shocking Charts Of Inflation | Gold and What Moves it. | Scoop.it

"With global leaders today expressing tremendous fear and concern about one of the worst droughts in history, the world is holding its breath and expecting a massive spike in inflation. The problem is the inflation spike is not isolated to food. Here are a plethora of charts and text that will shock KWN readers around the world."

 

click over to King World News post by Tom Fitzpatrick and check out all the charts.

 

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/8/8_Have_You_Seen_These_Absolutely_Shocking_Charts_Of_Inflation.html

 

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The CFTC Silver Investigation | SilverSeek.com

The CFTC Silver Investigation | SilverSeek.com | Gold and What Moves it. | Scoop.it

Ted Butler writes:

 

"... The truth is that the silver investigation was a ruse from the start in that the CFTC could never have moved against JPMorgan or the CME in any circumstance. The proof of that is evident in the many other specific instances of price manipulation in silver that have occurred after the soon to be dropped investigation began. The most obvious instances were the two separate 30% and 35% price smashes in a matter of days that occurred in silver in 2011. There never were such blatant price declines in such a short time in any world commodity in history, to say nothing about there being no obvious supply/demand changes to account for the declines.

 

"In other words, the CFTC started their third silver investigation four years ago as a way of avoiding having to explain how JPMorgan could be allowed to hold a clearly manipulative concentrated short position and then ignored the two greatest manipulative price events in commodity market history while the phony silver investigation was under way. Think of how devious and dishonest the CFTC has been; it announces a formal silver investigation to avoid having to answer bedrock regulatory questions, then ignores the two most manipulative prices events in history claiming it can’t comment on them because there is an active investigation under way. If government officials could ever be horse-whipped for malfeasance and for failing to protect the public interest, surely the CFTC’s performance in silver would permit it. ..."

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Five years on, the Great Recession is turning into a life sentence - Telegraph

Five years on, the Great Recession is turning into a life sentence - Telegraph | Gold and What Moves it. | Scoop.it

Ambrose Evans-Pritchard, International business editor writes:

 

"... Investors were pulling money out of America’s $2.5 trillion money market industry in panic. This was the long-feared heart attack in the credit system, even if the economic malaise behind it did not become clear for another year.

 

"The original trigger for the Great Recession has since faded into insignificance. America’s house price bubble -- modest by European or Chinese standards -- has by now entirely deflated. Warren Buffett is betting on a rebound. Fannie and Freddie are making money again.


"Five years on it is clear that subprime was merely the first bubble to pop, a symptom not a cause. Europe had its own parallel follies. Britons were extracting almost 5pc of GDP each year in home equity by the end. Spain built 800,00 homes in 2007 for a market of 250,000. Iceland ran amok, so did Latvia and Hungary. The credit debacle was global. If there was an epicentre, it was Europe’s €35 trillion banking nexus. ..."

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Trader Dan's Market Views: Gold Retreats from the Top of its Trading Range

Trader Dan's Market Views: Gold Retreats from the Top of its Trading Range | Gold and What Moves it. | Scoop.it

by Dan Norcini: [be sure to click through for the charts and the full post]

 

"Nothing doing on gold being able to break out from its consolidation pattern. Last week I showed a chart with gold right at the very top of that range and working into a heavy resistance level. Today it failed to better that resistance and was shoved back lower meaning that the odds favor it working lower within that range from here as we wait for the next round of buying support to surface. It should be able to garner buying near $1600 initially on down towards $1585 should that not hold it.

 

"Keep in mind that this market must have a spark to take it up and out of this range. Until it does, the consolidation pattern remains in effect. ..."

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Gold must break $1,630 resistance to push higher

Gold must break $1,630 resistance to push higher | Gold and What Moves it. | Scoop.it

by Jan Harvey:

 

"We are still the this range-bound trading area, with the upper limit being $1,630," LGT Capital Management analyst Bayram Dincer said. "Technically speaking, (a break of) $1,633 is really the trigger that is needed to push gold higher."


"He said talk of growth-boosting moves from China on Friday had triggered the latest move but that buyers were awaiting clearer signals on policy from other central banks including the ECB and Federal Reserve for a more decisive move.

 

"The euro was up 0.3 percent against the dollar. The correlation between gold and the euro/dollar held near 0.6 on Monday, having averaged 0.53 so far this year, with 1 representing a perfect positive correlation.

 

"Jitters over the global economy weighed on stock markets, with Japan the latest country to post weak second-quarter growth data on Monday, after readings from the United States, China and the UK showed either slowing or stalling expansion. ..."

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Will the Crop Crisis Trigger Inflation? - Casey Research

Will the Crop Crisis Trigger Inflation? - Casey Research | Gold and What Moves it. | Scoop.it
By Bud Conrad

 

"Our news media have not given enough attention to the very serious heat problems of this summer's growing season for grains. The heat and drought have seriously damaged the corn crop during the early July period of tasseling. The price of corn at $8 per bushel is a new record high. Similarly, $9 per bushel of wheat and soybeans at $16 a bushel are a record high. Soybeans are in the middle of their crucial pod filling stages in August and are looking vulnerable. The decline in the quality of the corn crop over the growing season shows just how serious this year's drought has been. ..." click through for the rest. You also might find interesting the piece at the link titled: "Lip Service to Liberty".

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US Treasury's $2.4 Trillion Secret

US Treasury's $2.4 Trillion Secret | Gold and What Moves it. | Scoop.it
Watch the video 'US Treasury's $2.4 Trillion Secret' on Yahoo! News.

 

Video:

Details are emerging about a secretive Treasury Department program backing nearly $2.5 trillion in money market mutual funds, with CNBC's John Carney. 

 

Hat tip to http://www.jsmineset.com 

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TALKING_HEADS burning down the house.mpg

another gem from 1983...one of the first ever digital audio recordings by SONY...

 

Let's get the week started!

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Who Could You Call if Civilization or the Financial System Collapsed? | Uncommon Wisdom Daily

Who Could You Call if Civilization or the Financial System Collapsed? | Uncommon Wisdom Daily | Gold and What Moves it. | Scoop.it

Sean Brodrick writes about what is essentially, in my mind, the growing bartering system in the United States.

 

"Don’t you hate how the Fed keeps throwing money at the big banks and, yet, Wall Street banksters don’t pass that money along to regular folks?

 

"Well, if you’re sick of money being tight and jobs being scarce, you can do what some people around the country are doing and start your own time bank, or hour exchange.

 

"It’s basically a local currency and, best of all, it’s tax-free.

 

"I recently visited a time bank in Portland, Maine, that has become a model for time banks across the nation. I talked to Orion Breen, coordinator of Hour Exchange Portland.

 

"He told me the Hour Exchange came about as an answer to the question, “How can we get people working when money isn’t flowing?” The Hour Exchange is one way to do just that.

Here’s How it Works

 

"Let’s say you’re good at fixing computers. You help a neighbor or resident of the same town for an hour with their computers. Doing that earns you an hour credit that you can use toward an hour of someone else’s time, whether it’s health care or home repair. ..."

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Got Physical Gold?

Got Physical Gold? | Gold and What Moves it. | Scoop.it

Byron King writes:

 

"As you can figure out, especially if you’re a longtime reader, you had better have your stash of physical gold and silver.

 

"Furthermore, if you haven’t noticed lately gold is on sale. The shiny stuff trades at a 17% discount to last year’s highs.

 

"Today, with gold prices heading higher — $2,000, 3,000 or even $5,000 — holding the physical metal is more important than ever. That’s why I want to make sure you know the ins and outs of the physical gold market. Consider this your entry level “101” college course on gold.

 

"Before we get to the specifics of holding physical gold, let’s take a look at the reasoning behind this trend with a brief overview of gold’s legacy …"

 

"... Indeed, gold is risky today. From its current level gold could decline. That would be if there’s a massive market crash, and people have to sell gold to raise cash to pay off their margin calls.

 

"Remember 2008? Gold sold down from about $1,000 to about $750. Still, that 25% haircut was mild, compared with what happened to the rest of the market. And through it all — the crash and turmoil — gold remained liquid. Somebody bought that gold. So gold is good, especially when people need fast cash. … "

 

Click through for the rest.

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oftwominds-Charles Hugh Smith: A Common-Sense View of the Stock Market

oftwominds-Charles Hugh Smith: A Common-Sense View of the Stock Market | Gold and What Moves it. | Scoop.it

Charles Hugh Smith writes:

 

"Common sense leads us to the "obvious" conclusion that the U.S. stock market is a rigged skimming operation that is essentially a form of legalized, officially sanctioned fraud.

 

"Active traders and professional money managers already know how the U.S. stock market actually works, but Joe and Jane Citizen, whose pensions generally depend on the market in some way, typically do not. This entry is for them. Today's financial markets are endlessly complex, and this complexity implicitly serves to mask the true nature of market operations.


"Most of this complexity can be boiled away with zero loss of understanding. Indeed, manipulating this complexity is what earns the big bucks on Wall Street, while boiling it away earns the big bucks for commentators and analysts. Thus complexity serves the financial industry extremely well.

 

"The first and most important thing to understand about the U.S. stock market is how few humans are actually involved in the decision to buy or sell large blocks of shares. ..."

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A High Frequency Attack on Gold | Dimitri Speck | Safehaven.com

A High Frequency Attack on Gold | Dimitri Speck | Safehaven.com | Gold and What Moves it. | Scoop.it
On June 7th, 2012, the price of gold dropped by $22 in less than a second, guided by a computer algorithm during late trading. Sharp price drops in gold, for example $10 within a few minutes, can be observed frequently.

 

Interesting piece by Dimitri Speck.

 

Here's a snippet:

 

"... High frequency programs which now account for a significant share of trading activity have rightly fallen into disrepute in recent times. They might be useful in some cases such as avoiding market impact while placing large orders. However, unequal access to the market is questionable as are highly technical efforts which are ultimately done only to pull money out of the pockets of slower market participants. At the very latest, limits of legality are touched when high frequency programs are used for front running or to manipulate prices. Such a price manipulation took place on June 7, 2012, at 9:21 PM and 20 seconds in form of a high frequency attack on gold. One second was enough to manipulate the price of gold down by more than one per cent for the duration of several hours. ..."

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Man Sentenced to 30 Days for Catching Rain Water on Own Property Enters Jail | CNSNews.com

Man Sentenced to 30 Days for Catching Rain Water on Own Property Enters Jail | CNSNews.com | Gold and What Moves it. | Scoop.it

CNSNews.com: "Gary Harrington, the Oregon man convicted of collecting rainwater and snow runoff on his rural property surrendered Wednesday morning to begin serving his 30-day, jail sentence in Medford, Ore.


“I’m sacrificing my liberty so we can stand up as a country and stand for our liberty,” Harrington told a small crowd of people gathered outside of the Jackson County (Ore.) Jail.

 

"Several people held signs that showed support for Harrington as he was taken inside the jail. ..."

 

[Does this bother anyone else, besides me? Goodness. What we are becoming.]

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Importance of holding physical #gold as part of portfolio: Hathaway

Importance of holding physical #gold as part of portfolio: Hathaway | Gold and What Moves it. | Scoop.it

by JT Long:

 

The Gold Report: "... When we spoke at the Casey Conference, you bemoaned the fact that even gold-producing companies were trading at a discount compared to the commodity price itself. What will change that trend?

 

"John Hathaway: A higher gold price. You need a change in the perception of what gold is doing. You only buy a gold stock if you are bullish on gold prices.

 

"Since there has not been that kind of encouragement from the bullion market, I am not surprised that the stocks are dogging it. You need a lot of patience and tolerance to go through a period like this.

 

"Everything else you hear about-the arguments about political risk, cost pressures and the competition from the exchange-traded funds-goes away pretty quickly once the perception of the gold market turns and gold starts advancing, as I am certain it will.

 

"TGR: You also said that physical precious metals have a place in a diversified portfolio. What percentage do you usually recommend?

 

"JH: In today's world, I think 5% to 10%. By physical, I do not mean an exchange-traded fund (ETF) or commodity contracts, which are really paper gold, but actual physical gold that you can touch-gold that is outside of the banking system, that you know where it is stored and what your bar numbers are

 

"TGR: Are more institutional and individual investors including physical metal in their portfolios?

 

"JH: More and more people are thinking strategically about gold. Owning physical gold should not be viewed as a way to make money. Rather, it is way of saving capital that creates optionality for future spending power and investment resources.


"The impetus to get into gold is not because someone like me says the next step is $2,000/oz. The real reason is safety of capital. ..."

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