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Most analysts agree that a well-balanced portfolio should allot a certain amount, somewhere between 5-15%, to gold , depending on your outlook for the economy in the near, mid, and long-term future.  One decision you need to make is how to allocate this portion amongst the several options for owning gold.  You can invest in the physical yellow metal , buy gold mining equities , or buy gold ETFs . Let’s look at some of the basic strategies for each of these types of gold investing. Inves
The Daily Reckoning ‘Gold is money and nothing else’ – JP Morgan, testifying to the Pujo Committee, 1913. Gold’s recent breach of the symbolic US$1,000 level has elicited a predictable amount of commentary from mainstream analysts. The problem is, much of it is ill-informed. Due to the general amnesia of most market analysts, of all asset classes gold remains the most misunderstood. In order to comprehend why gold is rising and why it will continue to rise in the years ahead, we need to re
Bob Chapman The International Forecaster September 14, 2009 Almost all important, pertinent data reflects continued weakness in the economy, especially retail sales and unemployment. There are small signs of inflation in spite of bogus government figures. In the flight to quality we see stronger gold, silver and commodities despite heavy market manipulation by the government. Bernanke will soon be forced to choose between saving the dollar and bond
Reality Gap is announcing that it has launched an open beta test today for its sci-fi online game Battleswarm: Field of Honor , the first in what could be a series of games with an interesting monetization scheme. The game combines a unique style of game play with combat between humans and bugs, but we’ll get back to that later. While Battleswarm is an interesting game on its own, the big deal is that it’s the first major game to show off Reality Gap’s MetaTix universal virtual goods system,
John Browne submits: In the second quarter of 2008, when it became clear that bankrupted financial institutions would be bailed out by the federal government, gold did a funny thing. In the wake of a financial crisis of that magnitude, one normally would have expected asset prices, including gold, to plummet. Most observers expected the metal to dip from the $800 level down to $600, or below. Instead, gold held up well during the teeth of the crisis, and has recently increased to just over $1
China, Russia, et al. are talking about shifting their monetary reserves out of U.S. dollars. Gold has hit $1000 per ounce, even though wholesale and retail prices exhibit a deflationary bias. The United Nations has called for a new world currency to replace the dollar. What’s going on? All of these phenomena are early death throes of Federal Reserve notes. I balk at saying “the U.S. dollar,” because a “dollar” is still defined in law as a certain quantity of silver or gold, whereas t
It’s been made clear that you needn’t have any expectation that recent bailouts and stimulus spending are going to loosen consumer credit markets or reduce rates… so unless employment figures jump, get ready for the next credit crisis. Flashback: The next cellphone trick: transferring money | Canadian households $1.3-trillion in debt | Digital Money Forum Pushes For Electronic Currency | Obama signs U.S. credit card reforms into law | Credit card changes benefit families, Flaherty say
Lost in the developing cap-and-trade industrial train wreck (with the Rudd government trying to shame the rest of the country into following America's foolhardy lead), no one is paying attention to the risk posed to asset values by deleveraging in the commercial real estate sector. Be warned! Standard & Poor's is preparing to downgrade some $235.2 billion of commercial mortgage-backed securities (CMBS), according to our friend Dan Ferris. When these downgrades occur, the banks and insuranc
What it has banned is spending virtual currency for real world items. In other words, it is more about defending the real world currency than anything else. I have mentioned in the past that many people in China regard the QQ coin (Tencent’s virtual currency) as solid enough to put savings in. Sounds like maybe the government thinks that is a bad idea. This is a government restriction on the use of the quasi-Paypal-like currencies (mainly QQ coins) that are used extensively in China to pay fo
Citizens can be easily coerced into using the government's currency. Usually it is enough to demand that taxes be paid in that currency. Today, most governments make it illegal to use a foreign currency within their borders. People in other countries are beyond such simple mechanisms of control. For an international currency, there must be reasons to use the currency voluntarily. The best currency is the one that is most stable in value. Historically, the premier international currencies, wh