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 …
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 …
Turn to any business news channel on TV, or read one of hundreds of websites online, and you’ll find very well qualified experts making predictions about where gold prices are going over the next few days, weeks or months. But the funny thing is, when the next few days, weeks or months arrive, these …
Cazenove is a British stockbroker and investment bank, founded in 1823 by Philip Cazenove. Although the firm won’t confirm or deny its relations to the Royal Family, it is said by many that the company handles investments and wealth management for Queen Elizabeth II. What has this got to do with gold? Well, Robin …
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 …
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 …
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 …