Continue reading Gold soars as dollar continues to weaken

Gold soars as dollar continues to weaken originally appeared on BloggingStocks on Tue, 13 Oct 2009 13:50:00 EST. Please see our terms for use of feeds.

In a bizarre twist, central bankers actually want the price of gold to rise because it would be an indication that attempts to stave off deflation were working. Why do we have all of this upside down thinking?

In the past year, we've seen gold go up on fears of inflation, then it rose on fears of deflation. Analysts who follow gold say that it may be entering a structural bull market. Why is this? For one thing, gold has held firm mainly due to the problems in the banking industry.

Continue reading Is "gold mania" on the way?

Is "gold mania" on the way? originally appeared on BloggingStocks on Thu, 19 Feb 2009 15:50:00 EST. Please see our terms for use of feeds.

The mythical lore of gold dates to the dawn of man. Whether for jewels, religion or currency, gold's place in history is quite secure.

In the modern day, gold has become more about safe havens for fear mongers ready to declare the end of the world.

These folks will have you believe that the U.S. dollar will be worthless due to inflationary pressures arising out of a printing-press monetary policy. And that the collapse of U.S.-style capitalism necessitates a return to the one thing that we can count on to hold value no matter the circumstances.

Hogwash! Why not just make granite or bricks the de facto currency of choice. Ridiculous, right? But seriously, tell me the difference.

Of course, gold means so much more to the lunatics that believe the precious metal will solve all of their problems. What a joke. The only real utility for gold is aesthetic. The stuff looks nice in the form of baubles and chains. Beyond that, there is little true value.

Continue reading Don't be a fool -- stay away from gold

Don't be a fool -- stay away from gold originally appeared on BloggingStocks on Tue, 13 Jan 2009 13:45:00 EST. Please see our terms for use of feeds.

Continue reading Gold prices drop and take several gold stocks to new 52 week lows

Gold prices drop and take several gold stocks to new 52 week lows originally appeared on BloggingStocks on Thu, 23 Oct 2008 16:40:00 EST. Please see our terms for use of feeds.

Minutes ago the Federal Reserve Board cut the overnight discount rate to 2.25%. At first, this did not meet with the expectations of Wall Street traders, or perhaps their imaginations. The Dow, which was up about 300 points during morning trading as reported earlier, moved a bit lower. However, it soon recovered and is moving up again.

Where we will end up is strictly guess work but this market is not one of conviction, so I expect the retreat to continue at least to a level such that the fearful will not want to be over-weighted overnight. Nobody wants to fall victim to news headlines and many will want to lock in whatever profits they can for the day.

Lower rates mean a lower dollar, and most likely more upward pressure on gold prices, which topped $1,010 an ounce today. I am not a gold expert but I would not be surprised to see the precious metal higher going forward, given the Fed's abandonment of inflation concerns -- at least for now.

UPDATE: Dow FINAL up 420.41 points to 12,392.66 (3.51%)

Sheldon Liber is the CEO of a small private investment company and the design and research principal for an architecture and planning firm. He writes Chasing Value and Serious Money columns.

Fed cuts overnight rate 0.75% to 2.25%, market holding steady originally appeared on BloggingStocks on Tue, 18 Mar 2008 14:52:00 EST. Please see our terms for use of feeds.

It was only yesterday that I wrote about Freeport McMoRan Copper & Gold (NYSE: FCX), noting the favorable metrics and that I put it on my watch list. And this morning I find that Gold & platinum prices soared to new highs, with gold futures setting a new record of $952.40 an ounce.

It seems investors the world over are rediscovering the precious metal after years of neglect. How could you expect anything else with social unrest, war and recession fears on the front pages of every newspaper, with China and India growing rapidly, placing high demand on all commodities, and with a head-in-the-sand administration just now lifting itself up to take a gander at the last few months of its dubious leadership.

Despite recession fears, there is also the serious possibility of dramatic inflation in the next few years based on deficit spending, the ever expanding federal government and lack of concern for the value (buying power) of the currency. It's pitiful. Gold has been an historic hedge against inflation, so why should now be any different?This has ignited one of my 2008 picks Chasing Value: Anglo American (AAUK) is down...but!, which has moved up sharply in the last week.

I do not know where the ceiling is on gold prices, but it does not seem historically high, and I still think AAUK and FCX belong on everyone's watch list.

Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. He writes the columns Chasing Value and Serious Money. Disclosure: I own shares of AAUK.

Serious Money: Gold & platinum hit new highs originally appeared on BloggingStocks on Thu, 21 Feb 2008 10:45:00 EST. Please see our terms for use of feeds.

There are two main reasons why people are quickly moving into the precious metal. One is the fear a possible recession on the horizon. Any time you enter into a period of economic uncertainty gold becomes a favorable avenue for people's money. The more obvious and in your face explanation for the recent gold rush is the weak U.S. dollar. The weaker the dollar gets, the more favorable gold will be to investors.

Will gold continue to move higher? I think so. Right now America is facing a pretty discouraging mortgage situation. How bad things are going to get is anyone's guess, but you can be sure of one thing: the Fed will do anything it can to keep the economy in "good shape".

Continue reading The modern day gold rush

The modern day gold rush originally appeared on BloggingStocks on Thu, 03 Jan 2008 12:18:00 EST. Please see our terms for use of feeds.