Category Archives: Gold

A one-ounce gold bar could be yours

Attention Canadian traders!  The current stock broker that I’m using – Questrade – has an interesting promotional offer that you may wish to know about. Apparently if you open and fund a new Questrade account by December 17th you could win a one-ounce gold bar, provided by Kitco, Canada’s premier precious metals supplier. Want more chances to win? Every time you trade gold in your account you get another entry. Pretty cool!

Also, if you move an account with a minimum of $25,000 from another broker, they will pay your transfer-out fees up to $150 and you qualify for yet another entry for the contest.

So basically you have 3 different ways to win the one-ounce gold bar:

  • Open and fund a Questrade standard or registered account by December 17th, 2010.
  • Trade gold in your account by December 17th, 2010.
  • Transfer an account with a minimum of $25,000 from another broker.

Also, I guess it may be helpful to mention that Questrade deals in physical gold – ie REAL gold bullion- NOT certificates or shares. I for one recommend outright ownership of gold bullion as the best method of investing in gold.

To open an account with this broker or to find out more details about them, see this link:

http://www.questrade.com/campaigns/democratic.aspx?refid=83ddc8f8

Anyways, I wish you all luck in winning that free one ounce gold bar!

Cheers,
Alan

Has the Fed Manipulated Gold Prices? Ron Paul Exclusive Interview

gold money

Hey everyone. I’ve just posted a very interesting article over at my finance blog that I think you should all check out.  Bob Bauman JD from the Sovereign Society conducted an interview with Ron Paul and I think it’s important to have a listen because if Ron Paul has his way gold prices could soar as a result. Checkout the blog posting here:

http://alansfinanceblog.com/2010/09/09/exclusive-interview-with-ron-paul-reveals-major-concern-about-u-s-gold-supply/

The link to the interview can be found at the bottom of the post.

Wishing you all the best!

Alan

Is it time to buy gold?

It would appear that the euphoria over gold has quickly diminished and many of gold’s
greatest proponents, who were calling for gold to go over $2,000 an ounce, appear to
be disheartened and shell-shocked by the recent sharp downturn in gold.

http://www.ino.com/info/589/CD3336/&dp=0&l=0&campaignid=3

There’s an old adage in trading and it goes like this, “they slide faster than they glide.”
This is true of all markets and what it means is they go down faster than they go up.

In my new video on gold, I share with you some of the thoughts I have right now on
this market. We could be looking at some great buying opportunities if just a few
components fall into place.

http://www.ino.com/info/589/CD3336/&dp=0&l=0&campaignid=3

You are more than welcome to watch this video there is no charge and no registration
requirement.

All the best,
Adam Hewison
President of the INO.com
Co-founder of MarketClub

Secret History Of Gold

Hi everyone. I just came across a free video documentary about the history of gold and I thought I’d share it with you folks. As far as I can tell this documentary was done by National Geographic, but I could be wrong. Overall it’s an enjoyable video and I hope you like it. The video comes in two parts unfortunately, but I’ve embedded both within this post.

Enjoy!

You can watch part 1 below:

Part 2 is available below:

Why Governments Hate Gold

This past week several emerging and ongoing crises took attention away from the ongoing sovereign debt problems in Greece.  The bailouts are merely kicking the can down the road and making things worse for taxpaying citizens, here and abroad.   Greece is unfortunately not unique in its irresponsible spending habits.  Greek-style debt explosions are quickly spreading to other nations one by one, and yes, the United States is one of the dominoes on down the line.

Time and again it has been proven that the Keynesian system of big government and fiat paper money are abject failures in the long run.  However, the nature of government is to ignore reality when there is an avenue that allows growth in power and control. Thus, most politicians and economists will ignore the long-term damage of Keynesianism in the early stage of a bubble when there is the illusion of prosperity, suggesting that the basic laws of economics had been repealed.  In fact, one way to tell if a bubble is about to burst is if economists start talking about how the government and the Central Bank have repealed the business cycle.

The truth is the laws of economics are constant and real, no matter how inconvenient they might be to politicians and bankers.  This reality is setting in and the bills are coming due.  In the mean time, countries that have no money have bailed out other countries that have no money, except for the phony money created by politicians, bureaucrats, and their partners-in-crime at the central banks.  This may be preventing big well-connected banks from having to take on massive losses, but it is all at the expense of the taxpaying citizen.

As governments and central banks continue the cycle of spending and inflating, the purchasing power of their currencies is constantly being degraded.  These currencies are what the people are working for and saving.  This inflation guts the savings and earnings of the people, who have very limited options for protecting themselves against these ravages.  One option is to convert their fiat currency into something out of reach of central banks and government spending, such as gold or silver.

It is fairly typical in the midst of economic crises like these for gold to come under attack from Keynesians economists and their amen corner in the media.  The arguments against gold are usually straw men, based on a fundamental misunderstanding of the purpose of buying gold.  Gold is not a typical investment.  It is a defense against the predictable behavior of governments to debase a fiat currency under its absolute control.  The people who run the printing presses have trouble shutting them off.  In order to limit one’s exposure to this reckless behavior, it is wise to exchange unsound assets for sound ones.

As the foundation of their power, their fiat currency, is rejected or avoided, government power is compromised.  Fiat currencies trade the people’s freedom and security for the government’s freedom to squander the wealth of the nation on wasteful pet programs, wars, and corruption.  This is why the freedom of the people is so intertwined with a sound monetary unit.  This is also why the founders liked gold and silver, and supporters of big government hate them.

Ron Paul

Brought to you by Alan’s Money Blog:

http://alansmoneyblog.com

What’s REALLY Behind the Record Rise, Bull or Bubble?

By Nico Isaac

When prices in a financial market go from Sea Level to Outer Space in a relatively brief time, two scenarios are at work — and they both start with the letters “B-U.”

When a precious metal goes from being a popular long-term investment of buy-and-holders to the quick, get-away “vehicle” of day-traders, two scenarios are at work — and they both start with letters “B-U.”

And when the majority of mainstream pundits see a “new paradigm” in which prices continue to rise indefinitely, two scenarios are at work – and, you guessed it, they both start with the letters “B-U.”

Enter: the recent Gold Rush of 2009, when ALL of the above conditions apply. Everyone from hedge funds to housewives now hustle to hitch their asset wagon to the rising gold star. Which begs this question: Which of the possible two scenarios are at work: B-U-ll
— Or B-U-bble?

Here’s the difference: A genuine bull market is driven by a self-sustaining internal dynamic that’s reflected by a host of technical indicators. A Bubble, on the other hand, is the result of untenable psychology that could shift at any moment and bring prices plummeting down.

For long-term forecasts and more in-depth, historical analysis for precious metals, download Prechter’s FREE 40-page eBook on Gold and Silver.

It goes without saying into which category the mainstream experts put Gold: namely, a new bull market that has years, if not decades more to soar. “Gold Will Hit $2,000 an ounce,” reads an October 8 Market Watch. And — “Gold Has More Upside… The metal’s bull run is just getting started,” adds a same day Barron’s.

I found hundreds of news items which agree about the long-term potential for gold’s uptrend. But not a single one could tell me why the rally would continue, other than because the experts say so.
To know whether a diamond is real, it must cut glass. And, to know whether the bull market in gold is real, it must encompass at least one of these FOUR traits:

  1. A surge in demand that outpaces supply
  2. A falling stock market, which raises the “safe haven” appeal of precious metals.
  3. A real (not imagined) threat of inflation
  4. An increase in value relative to major foreign currencies

Right now, the Gold market can NOT check off a single one of these items. Case in point:

Supply: Demand for gold from jewelry makers – which comprises 60%-70% of the market – has plummeted to its lowest level in 20 years.

“Safe haven” appeal: From its March 2009 bottom, the U.S. stock market has soared 50% right alongside rallying gold prices.

Inflation: As the October 2009 Elliott Wave Financial Forecast (EWFF) notes: An increase in money supply is only inflationary if it is used to RAISE the total amount of credit. This is NOT happening, as both bank credit and consumer credit levels are contracting for the first time since World War II.

A gold rally in other currencies: Again, the October 2009 EWFF presents the following close-up of Spot Gold prices VERSUS Gold denominated in foreign currencies such as the Canadian dollar, the Australian dollar, the euro, franc, pound, and yen since 2007.

The major non-confirmation between these two markets is clear, as is the overlying message: IF demand for gold truly outweighed supply, then its value as measured in other currencies would increase.

The rise in gold is primarily the result of speculation and a falling U.S. dollar. These are exactly the “untenable” forces that contribute to a Bubble, not a genuine Bull market. The difference is only a matter of time.
For long-term forecasts and more in-depth, historical analysis for precious metals, download Prechter’s FREE 40-page eBook on Gold and Silver.


Robert Prechter, Chartered Market Technician, is the world’s foremost expert on and proponent of the deflationary scenario. Prechter is the founder and CEO of Elliott Wave International, author of Wall Street best-sellers Conquer the Crash and Elliott Wave Principle and editor of The Elliott Wave Theorist monthly market letter since 1979.