Can you really compare a global financial crash with an airplane crash? I think you can. Modern commercial aircraft are high-tech flying machines, flown most of the time by their onboard computer systems. But sometimes, as was the case with the Air France flight off the coast of Brazil, these planes crash. In …
Who is John Paulson? He is the founder and president of Paulson & Company. He made billion of dollars for his hedge fund by betting against the U.S. housing market. Some of his key investments were shorts against U.S. and European banks with exposure to toxic mortgages. He had had successes before that. But …
Before we get into why they matters, and actually influence gold prices globally, here are seven interesting facts about gold. 1. There are only 165,000 metric tonnes of gold in existence above ground. Gold is rare. If every single ounce of this gold were placed next to each other, the resulting cube of pure gold …
The Banco de Mexico bought 93.3 tonnes of gold bullion in February and March, according to data released by the International Monetary Fund. It had previously held 6.9 tonnes. “We want to get the best risk-return balance in our investments,” Said Agustin Carstens, governor of Bank de Mexico. “Given the performance gold has had …
Is there anything unusual about central banks buying gold? Historically, if you go back far enough, no. In fact, the gold that central banks used to store in their vaults was the physical security they held for the paper money they printed and put into circulation. But for almost a generation now, central banks …
The thing about buying gold is that it takes money out of circulation, particularly when you are buying physical gold which you then store in a safe or vault. Both the government and Wall Street dislike money being spent on gold bullion and taken out of circulation for at least three reasons.And the purchase of …
I’m reading an excellent book by Shayne McGuire right now. It’s called Hard Money: Taking Gold to a Higher Investment Level. In the introduction he raises an obvious, but little-discussed topic. The managers of the world’s largest investment funds and pension funds generally allocate the money they invest into equities, bonds and “other”. The equities …
If you feel your confidence slipping, you’re not alone. Here are a couple of excerpts from commentary on a recent New York Time/CBS News poll: “Americans are more pessimistic about the nation’s economic outlook and overall direction.” “Amid rising gas prices, stubborn unemployment and a cacophonous debate in Washington over the federal government’s ability …
With the price of gold rising to record levels, and with those levels being broken on a regular basis, many people are wondering whether we are due for a major correction. Well, there are always corrections after an extended rise in gold prices. Investors sell to take profits, and then buy again at the low …