Gold

Gold

Midas Metal
Precious Metal

Gold is a precious metal that is commonly considered the purest form of money

More About Gold

Events

Bretton Woods

Terms

Gold Bug

Mentioned by the Following

Entities

Adamant Capital
Advantage Gold
Black Snow Capital
Central Bank Gold Agreement
Goldmoney
Katusa Research
Shanghai International Energy Exchange
Sprott US Holdings, Inc
Tocqueville Bullion Reserve

Events

1933 Gold Ban
2011 Ron Paul Fed Monetary Report Grilling
Bretton Woods
Petroyuan
The Mississippi Bubble

Locations

Central Lapland Greenstone Belt
Charlotte
North Carolina Gold Fields

People

Adam Baratta
Alan Greenspan
Alex Gurevich
Amine Bouchentouf
Bill Shaw
Bob Moriarty
Doug Eberhardt
Doyle Shuler
George Milling-Stanley
Gregory Crouch
Hunter Riley III
Jim Bianco
Jim Grant
John Doody
Josh Crumb
Matthew Carr
Matthew Hart
Peter Schiff
Rick Rule
Ron Paul
Sam Sommer
Simon Mikhailovich
Tom Denham
Trey Reik

Publications

Basic Investing in Resource Stocks
Building Wealth with Silver
Buy Gold and Silver Safely
Commodity Derivatives
Commodity Supercycles
Crisis Investing
Currency Wars
Elliott Wave's Flash Services
Extraordinary Popular Delusions and the Madness of Crowds
Financial Forecast Service
Fry's Investment Report
GeologyForInvestors.com
Gold
Gold
Gold Is A Better Way
Gold Past $10,000
Gold Production from Beginning to End
Gold Rush 2020
Gold Trading
Gold, Silver and Rare Coins
How To Invest In Gold And Silver
How To Invest In Gold… and Profit!
Investing Megatrends 2020
Investing in Gold and Silver
Investment Opportunities
Metals Pro Service
Mining.com
Precious Metals Investing For Dummies
Risk Ranges
Safely Buy Gold and Silver
Sovereign Man: Confidential
Stack Silver Get Gold
Stansberry Gold & Silver Investor
Super-Easy Investing in Real Gold and Silver
The Bonanza King
The Great Crash Ahead: Strategies
The Great Devaluation
The Little Book of Market Myths
The Quick & Dirty Guide to Gold & Silver
Ultimate Wealth Report
Visual Guide to Financial Markets
Your Broker's Worst Nightmare
Zero Hour

Terms

Crisis Currency
Gold Bug
Gold to Silver Ratio
NYSE Arca Gold BUGS Index
Treasury General Account


Reasons to Own Gold
  • It provides and option on the unexpected (typically goes up during crisis)
  • Can provides protection from adverse monetary and credit events
  • Can provide protection from low, negative or otherwise artificially low rates
  • Gold tends to preserve wealth and value over time
  • Has been used by multiple civilizations over Millenia
  • Consider to be a "crisis currency" - retains value when other markets are in a crisis
  • Gold is an investment in failed monetary policies (monetary disorder)

Negative Aspects of Gold (What Gold Bears Say)

Gold Price
There are many gold price drivers that all reflexively interact
  • Gold tends to move inversely to real interest rates
  • Tends to mover inversely with the base money supply (more money = more inflation = higher gold price)
  • Can also be impacted in the short-term by paper trading of gold futures
  • Demand for physical gold also drives the price
    • Even if other macro factors are negative (rising rates, rising dollar), the price of gold can go up if there is sufficient demand from physical buyers.  Only a small amount is mined each year, so purchases of physical gold can drive the price up. 
    • Gold mining output is relatively flat - it takes years/decades to increase it in times of high demand
  • Gold does well when investors lose confidence in the future returns offered by stocks, corporate bonds & other paper assets
    • Tends to do well when the Fed is cutting rates
      • 35% gain during 2000 - 2003 rate cut cycle
      • 43% gain during 2007 - 2008 rate cut cycle
  • Conventional thinking says gold thrives under inflation and declines under deflation
  • Also need about gold in regards to it's purchasing power of consumer goods
Another Way to Think About Gold
  • People usually think about gold as to how much it is worth in their home currency
  • Instead, investors may want to think of gold in terms of physical quantity
    • This gives gold the priority instead of the US dollar
    • Helps remove worries about the ups and downs gold has with currency changes
    • At the end of the day, the physical amount of gold you have is most important\
  • Example: Instead of thinking that you have $1,000 worth of gold in US dollars, think that you have 1 ouce of gold out of a slowly growing world supply
Major Gold Purchasers

Gold Characteristics (that make it valuable and a good form of money):

Fun Gold Facts:

Real World Gold Lessons
  • The gold from shipwrecks that took place hundreds or thousands of years ago is still very very valuable and coveted.  What other asset could hold it's value like that while under the ocean for hundreds of years?

Ways to Hold Gold

There are multiple ways one can hold gold an asset:

  • Purchase and store coins/bars at home
  • Purchase and store coins/bars with third party vaults
  • Invest in ETFs, Funds and Trusts that hold gold (allocated or un-allocated)
  • Etc, etc. etc.

Gold During Equity Bear Markets

  • Gold & gold mining stocks tend to fall along with equities as holders are forced to sell gold due to margin calls or panic
  • Gold then tends to rebound and do better as Central Banks reduce interest rates and/or increase quantitative easing.


2011 - 2015 Gold Bear Market

  • Began in Sep 2011 with gold at $1,900 per ounce
  • Ended in Dec 2015 with gold at $1,050 per ounce
  • One of the biggest drops in gold price (over a short time)
  • May be a "correction" in a longer-term bull market


1980 - 1999 Gold Bear Market

  • Price dropped from $800 per ounce to $200 per ounce over 20 years
  • Some minor rallies in the middle

Gold Production Levels

  • New gold deposit finds are becoming rare (2018)
  • Gold mining output has been relatively flat the last few years (2016 - 2018)


Gold & Central Bankers