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Gold Stocks Drop Opens Opportunities Steven Butler, senior precious metals analyst at Canaccord Genuity, didn't expect mining equities to fall as hard as they did after the gold price tumbled from a high of $1,900/oz. But the unexpected plunge has created some welcome bargains in the space. In this exclusive interview with The Gold Report, Butler talks about some equities unfairly bullied by the market that have promising projects underway. The Gold Report: Gold is down $100/ounce (oz.) and I think investors want some salvo. Is this a buying opportunity? Steven Butler: Yes, it is. We set a 12-month target at the end of July suggesting a peak of $1,750/oz. for gold and $45/oz. for silver. Gold shot up to $1,900/oz.—a little bit too far, too fast in August given the unchanged macro conditions. The world hasn't changed dramatically in terms of all the macro conditions affecting Europe and the U.S. We predicted that there could be a chance for gold to pull back, but we didn't think that equities would pull back as much because they hadn't followed the gold price as high. Yet, in many cases the equity pullback was harsher than what we saw in the gold price. |
October 4th, 2011 |
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Gold Is the True Reserve Currency The reliance upon the U.S.
dollar as the world's reserve currency and "safe haven" asset has
created a perverse, but deeply entrenched, mindset among global investors. In
fact, many believe the major financial players have no alternatives to owning
U.S. debt and dollars. They argue that the market for U.S. dollars and
Treasuries is the only financial pool large enough to handle the massive
liquidity that sloshes around the globe on a daily basis. This idea makes a
mass exodus from U.S. debt holdings seem impossible. This provides a nice
explanation why the U.S. Treasury bonds can rally even while the government
openly flirts with default and ratings agencies issue downgrades. But just
because an illogical event occurs habitually does not mean it is logical or
tenable. |
August 7th, 2011 |
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Gold: the only analysis you need to read The dwarves of Terry Pratchett’s satirical fantasy Discworld books have a song about their principal interest which runs ‘gold, gold, gold, gold, gold, gold, gold.’ Investors have scarcely been less mesmerised by the metal in recent weeks. As the euro zone slid ever more inexorably toward crisis, and Republican US policymakers spurned a deal on the deficit, the commodity/currency/unique asset class - there is little agreement on how it should be defined in portfolios - appeared to be one of the world's only remaining safehavens of genuine value. |
July 19th, 2011 |
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Gold and Silver Poised to Surge on Ticking Debt Bombs Gold and silver are threatening to break new ground driven by one simple fact: Nearly all wealthy nations are labouring under one form of debt/monetary inflation issue or another. Ireland and Greek bonds have now been reduced to junk, Japanese bonds became safer than Chinese as reports of China’s massive deficits internally offset the rosy picture supported by 9.5% performance in the Chinese economy. Italy is looming large as the next bailout candidate, and the United States prioritize political brinkmanship over problem solving. Gold and silver are seeking new highs and threaten to break out strongly – especially now that the Fed has acknowledged a willingness to launch QE3. |
July 14th, 2011 |
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$1850 gold still possible this year; don't rule out $10000 long term - Hommelberg Eric Hommelberg has called a few in his day. In 2009, he predicted gold to reach $1300 the following year - and it did. But $1850 gold by the end of this year? Gold Report interview. The Gold Report: Metals and commodities guru, Jim Sinclair, says that gold is acting as a barometer of economic anxiety at the moment. Do you agree with that assessment? Eric Hommelberg: I am more apt to call gold a barometer of our financial system's health. When things get out of control and people start losing confidence in what governments and central banks are doing, then gold will start to outperform all fiat currencies in the world. That's the transition from gold as a commodity to gold as currency. Today, gold has already reasserted itself as currency of choice since gold has outperformed all world currencies already for quite some time now. |
July 10th, 2011 |
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Gold Cash In, Not Out at $1,500 Some pundits are yelling for investors to take profits in junior resource stocks now. In this exclusive interview with The Gold Report, Richard (Rick) Mills, host of Ahead of the Herd online and editor of Ahead of the Herd newsletter, explains why $1,500 gold means investors should be cashing in, not cashing out. The Gold Report: Last week, gold reached above $1,540/ounce (oz.) as fears escalated over Greece defaulting on its sovereign debt, most of which is owed to European banks. One telling figure is that the risk of default is so high that the interest rate on two-year Greek bonds is about 29%. Should we expect a continuing upward trend for gold throughout the rest of the year as Greece's debt story and the fears of contagion play out in Europe? |
June 28th, 2011 |
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