Commodity Trade Mantra

Posts Tagged ‘Hedge against Inflation’

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.

Gold, A Natural Hedge Against Both - Inflation & Negative Interest Rates

The main reason people buy gold is as a hedge against inflation. But uncertainty & fear contributed undoubtedly to gold’s stellar first quarter rise. Analysts remain focused almost exclusively upon the major historical influence of inflation & possible rate hikes. Negative rates are now looming so large that precious metals could become an alternative form of cost-free cash.

Gold Prices are Consolidating, Instead of Correcting - Pulling back for a Bigger Leap?

Gold has now spent two full months trading between US$1,210 and US$1,270 per oz. The lowest point of that range still has the yellow metal up 12% compared to the start of the year. Instead of correcting, gold is consolidating. You can think of that as correcting through time rather than price. Doing so proves the move was valid. Gold equities have also held their ground.

What Drives the Price of Gold? Myths About Gold That Just Won’t Die

A number of gold’s fundamental price drivers are currently gold bullish or in the process of turning bullish, and others are not, or at least not yet. However, the great monetary experiment that central bankers have launched is certainly a very good reason not only to hold gold, but to actually overweight it relative to other assets – especially after it has already corrected quite a bit from its 2011 peak.

Why Gold Investors Should Love Central Banks

The ECB’s announcement last week is not a good test because it announced additional monetary stimulus as well as lower interest rates. Is gold going up because of negative interest rates, or because of monetary inflation? It is probably a combination of both, but it is hard to know which is the dominating factor. At least it is a bright spot for gold investors, if nothing else.

Gold and Silver Supply and Demand Report 26 July

Conventional techniques for analyzing supply and demand are inapplicable to gold and silver, because the monetary metals have such high inventories. In normal commodities, inventories divided by annual production (stocks to flows) can be measured in months. With gold and silver, stocks to flows is measured in decades.

If Gold Is Seasonal, Which Is the Best Month to Buy?

Many investors, especially those new to precious metals, don’t know that gold is seasonal. For a variety of reasons, notably including the wedding season in India, gold prices fluctuate in fairly consistent ways over the course of the year. Can you guess which is the best month for buying gold?

India's Temples Guard Their Gold From Government

India’s temples are resisting divulging their gold holdings – perhaps nearly half the amount held in Fort Knox – amid mistrust of the motives of authorities who are trying to cut a hefty import bill that is hurting the economy.

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