All Posts Tagged With: "gold price"

The movement in the price of gold seems to be heading up again — almost no matter what else is happening. So, let’s look at what might be going on…

While stocks lost 12%, gold rose about 10%. For the 11th year in a row (we’ve lost track) our “sell stocks/buy gold” formula paid off. Between falling stocks and rising gold there’s a spread of 22%. Not bad.

Hey…what’s going on with gold? The dollar up, gold down. When we checked yesterday the price was crashing through the $1,550 level.

With the whole world economy in a bit of a funk you wouldn’t expect oil to be over $100 and gold to be over $1,700. Or would you?

Here at Casey Research, we eagerly awaited the release of quarterly reports from the companies in our favorite sector. Why? The gold price was substantially higher last quarter than during the comparable meltdown quarter of 2008, so we were anxious to find out if it would lead to a spike in profits.

India’s central bank is now the proud owner of 557 tonnes of gold. That gives it the tenth largest gold holdings among central banks. But it probably isn’t finished. Gold makes up just six percent of India’s foreign exchange reserves. There’s plenty of room for that to grow.

But don’t forget China. China has $2.3 trillion in foreign exchange reserves…

Still, our friend Peter Cooper recalls a time in his own family history when Dubai was nothing but a backwater of the British Empire, a port full of smugglers, nomads and thieves.

The burden of today’s Daily Reckoning , then, is to remind these nattering nabobs of negativism that gold is not anyone else’s debt. It is not anyone else’s liability. It cannot be created with a few keystrokes. And for thousands of years, millions of people from all walks of life have been happy to use it as money because of its unique features…