Silver And Gold – Keeping A Perspective
This is an interesting article from insidefutures.com that gives a traders perspective of gold and silver.
Silver And Gold – Keeping A Perspective
Sunday, December 04, 2011
by Michael Noonan of Edge Trader Plus
We have mentioned cognitive dissonance several times, so starting with a definition would be in order, and this one is provided by Frantz Fanon:
“Sometimes people hold a core belief that is very strong. When they are presented with evidence that works against that belief, the new evidence cannot be accepted. It would
create a feeling that is extremely uncomfortable, called cognitive dissonance. And because it is so important to protect the core belief, they will rationalize, ignore and even deny
anything that doesn’t fit in with the core belief.”
You can read the rest of the article here.
Explaining Central Banks’ Gold Purchases
Explaining Central Banks’ Gold Purchases
Mises Daily: Friday, December 02, 2011 by David Howden
The last two years marked a significant shift in central banks’ attitudes toward gold. Since 1988, central banks have been net sellers of the precious metal. Lacking convertibility of their paper currencies into the commodity, this occurrence makes perfect sense. Why hold a physical asset with costly storage fees when there is no risk that it will ever be needed? Better to hold an interest-bearing (and easily stored) asset like a government security to earn a profit in the interim. So goes the typical explanation for why central banks load their balance sheets with financial assets instead of physical ones.
Yet over the last two years a dramatic shift in gold purchases has occurred. In the third quarter of this year alone, net gold purchases by central banks amounted to 150 tons — more than double the amount of the whole yearly total of 2010. For the first time in over 20 years, central banks of the world are buying more gold than they are divesting themselves of.
Yet if central banks deal exclusively in nonconvertible (and fiat) money, what explains the sudden change of heart?
Read the rest of this article here.
This article is about the ‘small’ run on the Australian banks back in 2008 but it’s still pertinent globally.
The Secret Aussie ‘Bank Run’ is a Sign to Buy Gold
by Shae Smith on 3 December 2011
Ratings agency, Standard & Poor’s this week downgraded the big four Aussie banks.
How did the markets react? Was there massive selling? More ‘short sells’ than normal?
No. By lunch time yesterday, all four big banks were higher.
It was as if traders shook off S&P’s bank ratings cut. And saw it as a reason to buy, buy and buy some more.
Maybe that’s no surprise. We’re always told that Australian banks are the safest in the world.But there’s an old story the Aussie media overlooked.
And it could mean the banks aren’t as safe as you think… Read the full story here.
Why You Should Buy Gold ASAP
Dec 3, 2011
Matt McCall, Penn Financial Group, on why he is buying gold right now, and why he believes global inflation is here to stay.
The Golden Age of Gold
I can’t believe it’s taken me this long to see this… (not living in the States might have something to do with it)… but the CNBC did an excellent series earlier this year. It was called The Golden Age of Gold and for anyone wanting to learn about the history of gold, how it became a currency, how it is mined, refined, used and invested… this is an excellent starting point.
It’s not necessarily a series about how you can get started investing in gold, but it’s a great overview about the gold market in general and all the different aspects of gold.
How, Where & Why To Buy Gold Coins
Okay this one is for the newbies… below is an article by Mark Ferguson, a cold coin dealer who has been in the business for more than 40 years.
But he doesn’t seem to be like many other experts, in that he talks in a language that the average human being can still understand. Yes, most of us know that we ‘should’ buy gold but he explains why and he makes it sound sensible, affordable, wise … and not too difficult.
The Gold Bullion Market from a Coin Dealer’s Perspective
We’ve been around the market for gold bullion all that time and have been buying and selling gold as physical assets. We’ve all handled rare coins, collected for their numismatic attributes, such as high grade or rare date gold coins, and we’ve bought … Click here to visit the original source of this post
Didn’t that make it all so much less daunting?
Glittering prospects
In India it’s common practice to buy gold in preparation for your daughter’s wedding, but also as an investment vehicle. Now the post office system also sells gold and it seem to be a whole lot easier to invest in gold. I wish I could go down to my local post office to buy gold coins!
Click here to visit the original source of this post
Rosenberg: Buy Gold, Bonds Amid Weak Economy
Even in these uncertain times it seems that gold just keeps on impressing us. The following article talks about the state of the gold within the suffering U.S economy, but as we know, it’s not just the U.S economy that’s suffering. But gold and bonds are the recommended route at this stage…
With the U.S. economy in stagnation mode, interest rates are going to keep sliding, predicts David Rosenberg, chief economist at Gluskin Sheff + Associates.
www.moneynews.com/StreetTalk/gold-bonds…/417681
It’s encouraging to see economists predicting a surge in gold prices before the end of the year.
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