Posts Tagged ‘timing buying gold’

What’s More Important: Price Per Ounce or Ounces Owned?

What’s More Important: Price Per Ounce or Ounces Owned? 

By Jeff Clark, Casey’s Gold & Resource Report 

Coins in a Cash Box

In a recent conversation with a fellow gold analyst, he was emphatic that the price one pays for physical gold should be ignored. “What’s far more important,” he insisted, “is how many ounces I own in relation to the total value of my assets.” 

Building a core position in gold bullion is a smart goal, to be sure, and a strategy Casey Research has been advising for years. However, ignoring the price you pay for gold could be seen as foolhardy; sure, it’s insurance, but isn’t price part of the consideration when you shop for insurance? 

So, who’s right?  

The World Gold Council just released their 2009 annual report on gold trends. From the densely populated pages of interesting data, there’s one compelling tidbit I gleaned that may shed some light on the buying behavior of gold investors. 

Overall investment in gold was 7% higher in 2009 than 2008. This is significant when you consider that demand in the fourth quarter of 2008 – during one of the worst financial meltdowns in history – was so great that shortages of physical metal abounded everywhere. And yet investors bought more gold in 2009 when investor fear about global financial uncertainty was subdued.

Further, 2009 total funds invested in all forms of gold exceeded 2008 by 20%, and the average price was 11.6% higher. In other words, investors were buying gold even though the price wasn’t necessarily “low.” To be sure, that’s a broad statement. But the fact remains that year-on-year, more gold was purchased at higher prices when the markets were less scary, than when the price was lower and Hank Paulson was on CNBC every 15 minutes pontificating on how to save America’s financial system. 

This isn’t to suggest one shouldn’t pay attention to price. And the data doesn’t identify how many of those who purchased gold last year were first-time buyers, as certainly there were newcomers to the sector that contributed to higher demand. But it begs the question, who would continue to buy gold when the price is higher? 

Whoever doesn’t own enough, that’s who. The gold I bought last month was certainly higher priced than what I paid in 2008. But I’m trying to position my assets for protection from eventual dollar debasement and…
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Ending the pandemic will take global access to COVID-19 treatment and vaccines - which means putting ethics before profits

 

Ending the pandemic will take global access to COVID-19 treatment and vaccines – which means putting ethics before profits

Indian health workers doing health checks in Mumbai, June 17, 2020. AP Photo/Rafiq Maqbool, File

Courtesy of Nicole Hassoun, Binghamton University, State University of New York

As COVID-19 surges in the United States and worldwide, even the richest and best insured Americans understand, possibly for the first time, what it’s like not to have the medicines ...



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Biotech/COVID-19

Ending the pandemic will take global access to COVID-19 treatment and vaccines - which means putting ethics before profits

 

Ending the pandemic will take global access to COVID-19 treatment and vaccines – which means putting ethics before profits

Indian health workers doing health checks in Mumbai, June 17, 2020. AP Photo/Rafiq Maqbool, File

Courtesy of Nicole Hassoun, Binghamton University, State University of New York

As COVID-19 surges in the United States and worldwide, even the richest and best insured Americans understand, possibly for the first time, what it’s like not to have the medicines ...



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Kimble Charting Solutions

Is the Nasdaq 100's Out-Performance Nearing a Top?

Courtesy of Chris Kimble

Is the latest ramp higher and Large-cap tech stocks have been the clear market leader, out-performing the broad market for months.

In today’s chart, we look at the Nasdaq 100 to S&P 500 performance ratio in an effort to answer the question: Is the ramp higher in tech stocks and severe out-performance sustainable?

While we may not be able to answer that question today, the ratio IS at an inflection point. And following today’s ratio chart should help us answer that question.

As a reminder, the ratio rises when the Nasdaq 100 is out-performing the S&P 500. Note also that it is a longer-term “monthly” price chart.

Important Br...

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Zero Hedge

Homebuilder Optimism Explodes Higher As Mortgage Rates Plunge To Record Lows

Courtesy of ZeroHedge View original post here.

US Homebuilders’ Confidence index soared higher in July (to 72 from 58 last month), back to March (pre-COVID) levels.

  • Measure of present single family sales rises to 79 vs 63 last month

  • Future single family sales gauge rises to 75 vs 68 last month

  • Prospective buyers traffic measure rises to 58 vs 43 last month

...

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ValueWalk

Whitney Tilson Is Bullish On Bank Stocks

By Jacob Wolinsky. Originally published at ValueWalk.

Whitney Tilson’s email to investors disucssing him being bullish on bank stocks; the bear case; Doug Kass with the bull case.

Q2 2020 hedge fund letters, conferences and more

Earnings Season For The Big Banks

1) It's earnings season for the big banks this week.

Citigroup (C), JPMorgan Chase (JPM), and Wells Fargo (WFC) reported this morning... Goldman Sachs (GS) is up tomorrow... and Bank of America (BAC) and Morgan Stanley (MS) round things out on Thursday.

The sector has been decimated this year. The Invesco KBW Bank Fund (KBWB) is down 35% year to date, vast...



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Digital Currencies

Bill Gates, Elon Musk, Jeff Bezos, Bloomberg, Kanye, Apple Twitter Accounts All Hacked In "Nigerian" Bitcoin Scam, Over $100,000 Stolen In Minutes

Courtesy of ZeroHedge

The twitter accounts of two of the world's richest men, Bill Gates and Elon Musk (and perhaps others) were hacked late on Wednesday, in what appears to be a version of a "Nigerian" bitcoin scam.

At 440pm ET, Musk tweeted the following:

Microsoft founder Bill Gates had a similar tweet.

As did Jeff Bezos:

...



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The Technical Traders

Second Phase Real Estate Collapse Pending

Courtesy of Technical Traders

Real estate, especially commercial real estate, is likely to be the first segment of the real estate market to enter the second phase of an extended collapse.  The COVID-19 virus has created an atmosphere where continuing operations for retail, restaurants, and many other business segments is virtually impossible to maintain.  Without the ability to earn sufficient income, thousands of restaurants and other retail businesses have already closed or are in the process of closing.  This has pushed the commercial real estate market into turmoil.  We believe the residential real estate market will follow the commercial market because consumers are going to suffer as commercial real estate collapses....



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Chart School

Dow 2020 Crash Watch - Update

Courtesy of Read the Ticker

Like 1929 the markets have bounced. This time it is on the back of the FED $6.5T money printing.

Previous Post: Dow 2020 Crash Watch 

But can the FED blow $6T every time the market rolls down to test support.

Yes, maybe before the US 2020 elections the FED will do 'what it takes'. But post elections not so much, the year 2021 is a long way from the next election (presidential or congress) and defense of the markets may not be so supportive at $6T or $10T per market smash. The FED may hesitate, and that will be window for stocks to break lower.

The 36 month simple moving a...

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Lee's Free Thinking

These Charts Show COVID 19 Is Spreading in the US and Will Kill the Economy

 

These Charts Show COVID 19 Is Spreading in the US and Will Kill the Economy

Courtesy of  

The COVID 19 pandemic is, predictably, worsening again in much of the US. Only the Northeast, and to a lesser extent some Midwestern states, have been consistently improving. And that trend could also reverse as those states fully reopen.

The problem in the US seems to be widespread public resistance to recommended practices of social distancing and mask wearing. In countries where these practices have been practi...



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Members' Corner

Coronavirus, 'Plandemic' and the seven traits of conspiratorial thinking

 

Coronavirus, 'Plandemic' and the seven traits of conspiratorial thinking

No matter the details of the plot, conspiracy theories follow common patterns of thought. Ranta Images/iStock/Getty Images Plus

Courtesy of John Cook, George Mason University; Sander van der Linden, University of Cambridge; Stephan Lewandowsky...



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Insider Scoop

Economic Data Scheduled For Friday

Courtesy of Benzinga

  • Data on nonfarm payrolls and unemployment rate for March will be released at 8:30 a.m. ET.
  • US Services Purchasing Managers' Index for March is scheduled for release at 9:45 a.m. ET.
  • The ISM's non-manufacturing index for March will be released at 10:00 a.m. ET.
  • The Baker Hughes North American rig count report for the latest week is scheduled for release at 1:00 p.m. ET.
...

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Promotions

Free, Live Webinar on Stocks, Options and Trading Strategies

TODAY's LIVE webinar on stocks, options and trading strategy is open to all!

Feb. 26, 1pm EST

Click HERE to join the PSW weekly webinar at 1 pm EST.

Phil will discuss positions, COVID-19, market volatility -- the selloff -- and more! 

This week, we also have a special presentation from Mike Anton of TradeExchange.com. It's a new service that we're excited to be a part of! 

Mike will show off the TradeExchange's new platform which you can try for free.  

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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

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