Analysis Of Gold Is Much Ado About Nothing

Any analysis of gold must have a correct premise.  And terms used in that analysis must be clearly understood.  For example…

“Are you pro-gold?”  Just exactly what does that mean?   Is it a political or moral issue?  In other words, does someone’s position on gold indicate ideology or lifestyle choice?  Can a political liberal be pro-gold? And if someone answers the original question in the affirmative, does that mean they are anti-something else?

Continue reading “Analysis Of Gold Is Much Ado About Nothing”

Gold And Interest Rates – A Mass Of Confusion

Over the past several months there have been numerous articles referencing a relationship between gold and interest rates. Most of them are well-meaning attempts to convey information about recent changes in the markets as interest rates head higher.

In several instances, however, the author(s) have tried to explain a ‘perceived’ correlation between rising interest rates and the value of the US dollar – in a very positive manner. And they have imputed a similar correlation – albeit negative – in other statements with respect to Gold.  In both cases they are incorrect.   Continue reading “Gold And Interest Rates – A Mass Of Confusion”

Gold Price US$700? Or US$7000?

Does either of the above preclude the other?  In other words, if we expect gold to reach $7000 per ounce, and we are correct, does that mean that we can’t reasonably expect gold to go as low as $700 per ounce? Conversely, if we are predicting or expecting gold to continue its current decline, and even breach $1000 per ounce on the downside, can $7000 per ounce, or anything even remotely close to that number, be a reasonable possibility?   Continue reading “Gold Price US$700? Or US$7000?”