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Posts Tagged ‘Gold is Money’

Gold is a Misunderstood Metal - Don't make the Mistake of Ignoring it

Gold was once a common form of payment around the developed world, but after World War II it’s influence began to wane. In 1971, when the US finally put an end to the gold standard, the role of gold changed for good. But that doesn’t mean gold is just an antiquated relic or a bad investment; you need to understand its place in the world & your portfolio. Here are five myths about gold debunked.

Here's The Fundamental That Matters Most To The Price Of Gold

There are the positive geopolitical fundamentals & positive economic fundamentals (that we all know about) for the price of gold. In relative terms, none of these fundamentals count. There is one more important fundamental for the price of gold. Not only is it the most important fundamental, but it involves a variable which dwarfs all other fundamentals in magnitude — combined.

No Arguments - Every Investor Should Own Physical Gold

The main arguments mainstream economists make against gold are simply nonsense. I believe the primary way every investor should play the rise in gold is to own the physical metal directly. At least 10% of your investment portfolio should be devoted to physical gold — bars, coins and the like. But you can also up the risk to potentially profit from gold too.

World's Biggest Hedge Fund Manager: Bitcoin Is A Bubble, Gold Is Money

There are two things that are required for a currency. The first thing is that you can transact in it, it’s a medium of exchange. The second thing is it’s a store of value. Bitcoin today…you can’t spend it very easily. Unlike gold, let’s say, which reflects the value of money, its more stable than the value of money, bitcoin is a highly speculative market. – Ray Dalio.

What are You going to put Greater Faith in Now - Stocks or Gold?

The world currently seems to believe more in companies and all the enterprise that comes with them than it does in gold. Have we reached a turning point here, with the S&P 500 at two times the price of an ounce of gold? That’s a question we all need to think about. What are you going to put greater faith in from current levels given the current state of the world – stocks or gold?

Irrefutable Reasons for Gold Price to Rise to Unthinkable Levels

The gold price is primarily a reflection of the change of value of the paper money. If paper money is debased due to money printing or credit extension, the gold price measured in dollars or euro will increase. Thus, gold as a rule doesn’t go up in price but the value of paper money goes down. Here are some factors that will push the gold price to unthinkable levels measured in paper money.

Can't Afford to Miss Buying Physical Gold Now, Soon Most Won't Really Afford It

The conditions that are favorable for gold, will prove fatal for overvalued stocks that are looking for a trigger to tumble. Remember, diversification is crucial to any investment strategy. As a fraught 2017 unfolds, consider re-balancing your portfolio to accommodate the likely economic, business and market volatility ahead. You can hedge your bets, with physical gold.

Gold is Good as an Inflation Hedge, but Better as a Crisis Hedge

Whether there is hyperinflation or a banking collapse, Gold has historically been the asset to own in times of turmoil. Given its intrinsic value and safe-haven status, there is no doubt that Gold will remain a wealth preservation tool during financial crises. Crises do not come along often, but when they do, it is better to be safe than sorry. Gold is the perfect crisis insurance.

5 Timeless Reasons Why Gold Is the Best Form of Money

The proper definition of money is as something that functions as a store of value and a medium of exchange. Government fiat currencies can, and currently do, function as money. But they are far from ideal. Aristotle defined five reasons why gold is money in the 4th century BCE. Those five reasons are as valid today as they were then. Here are the reasons why gold is the best money.

Gold And Silver Will Have to Struggle to Rise - Says the Fiat Dollar

It appears that gold and silver prices will continue to be kept low. Our take on the precious metals charts strongly suggests that gold and silver may work higher, over time, but it will be labored and not without intense effort to overcome the unlimited ability of the Federal Reserve [controlled entirely by the elites] to create an infinite supply of debt that poses as “money.”

How will the US Elections Affect Equities and Gold?

The experience of losing money is common in investing. But where is the certitude of loss even before your check clears? That’s the situation with sovereign debt right now. Gold is money and money is sterile. It does not pay dividends or earn income. I don’t suggest that it is the only thing that people should have their money in. But to me, gold is a very timely way to invest in monetary disorder.

Buy Silver, Not Gold, if You are a Big Time Player

On the face of it, it may seem a bit odd. Gold is the traditional store of value. But for long-term investors, it’s important to understand that silver prices have an 84% correlation to gold prices over time. One big thing silver has going for it moving forward is it has growing industrial uses that gold doesn’t have. It could well be the key strategic metal for the 21st century.

Why You Need Gold and Silver - The Real Money Like Never Before

Gold and silver is first and foremost money. It has been chosen as money for a lot of reasons and those reasons are still in existence today. We now have, really a competition going around the world to devalue fiat money. You should have gold and silver as a part of your asset allocation because when everything else falls apart, gold and silver typically do very well.

Alarming Evidence of Gold Supply Tightness, Chinese Hoarding

China and Russia are acquiring thousands of tons of gold. The Chinese have a huge pile of U.S. Treasury Securities of about $3.2 trillion. They can’t dump the treasuries, but they are worried about inflation destroying the value of the treasuries. So what the Chinese are doing instead is, they’re acquiring gold as a hedge. Where they lose on paper, they make it up on gold.

The Sooner You Realize That Gold Is Money & Not Investment, The Better

We’ve noticed there are quite a few myths and misconceptions about gold out there. Probably the biggest misconception investors have about gold is that it’s an investment. People check the price quote every day to see how their “investment” in gold is performing. The sooner investors realize that gold is money & not a conventional investment, the better off they’ll be. Here’s why.

China needs a lot of Gold to make-up for the Loss Expected on Treasuries

Right now, China’s reserves are about $3.2 trillion, of which about $2 trillion is denominated in US dollars, and most of that are U.S. Treasury Securities. They can’t dump them. So what the Chinese are doing instead is they’re acquiring gold as a hedge. China is going to be in this position where they lose on the paper, but they make it up on the gold.

A Long-Standing Love Affair Between India And Gold

India has never experienced a bear market of any consequence in gold. Since 1970 the Indian rupee has lost 88.7% of its purchasing power compared to the U.S. dollar. But the people’s purchasing power has been maintained thanks to gold. Maybe that is why people are reluctant to give up gold for a piece of government paper. Westerners may have something to learn from India’s love affair with gold.

Why Gold Is Winning The Money Competition

We’re now getting into negative interest rates on bank accounts / deposits. These are breaking out around the world & Yellen has talked about the possibility of having them in the US. If gold has zero yield & bank deposits have a negative yield, gold is the high yield asset, zero is greater than negative 40 basis points. So gold is the high yield asset; zero is more than negative.

Is Gold a Commodity, an Investment, or Money? - The Golden Chameleon

At times, gold behaves like a commodity. The gold price tracks the ups and downs of commodity indices. Sometimes, gold is viewed as a safe haven investment & competes with stocks and bonds for investor attention. On occasion, gold assumes its role as the most stable long-term form of money the world has ever known. Like a chameleon, gold also changes its nature depending on the background.

Gold is Money - But Where Does This Leave Silver?

No doubt the principal focus will always be on gold as the ultimate metallic money, but the temptation to overlook silver’s monetary credentials is a mistake. Arguably, it could even have a greater claim than gold to be the people’s money, because for all of commercial history it has been more widely circulating for that mundane purpose.

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