Owning gold, Central Banks, and ships in stormy weather.
First, what are “central banks”? According to Wikipedia: “A central bank, reserve bank, or monetary authority is a public institution that usually issues the currency, regulates the money supply, and controls the interest rates in a country. Central banks often also oversee the commercial banking system of their respective countries. In contrast to a commercial …
If you are hoarding cash, it’s time to convert it to gold.
For generations people have hoarded cash in times of economic uncertainty. For some that has meant hoarding cash in their bank accounts, while others have taken the more literal route and have stashed bank notes under their mattresses or in shoe boxes. Why do people hoard cash? It’s about feeling safe and prepared. The cash …
What the heck do summer vacations have to do with the price of gold?
If you have been following world economic news of late, you know there are lots of scary questions on the table right now. Will Greece default on its debts? What will happen if and when the U.S. hits its debt ceiling? Will the Federal Reserve announce a QE3? (Otherwise known as printing hundreds of …
How buying by China alone could push gold prices to $5,000 or more.
In my last post I wrote about how scarcity of supply, combined with potential movements into gold from stocks and bonds, could drive gold prices as high as $10,000. Well, here is another reason why prices could reach some pretty lofty heights. At a time when central banks have become net buyers of gold …
How the “multiplier effect” could push gold prices to $10,000 or higher.
As I have mentioned in previous posts, gold is unique among investment vehicles because of its scarcity. Most investments, like stocks, bonds and real estate can respond to a sudden increase in demand. For example, if there is a surge in demand for residential real estate (not likely right now), more and more homes can …