Just when I thought I would go berserk at such horrific economic news, I see John Stepek at Money Morning newsletter had a subhead that caught my eye, which was “Three sound reasons to own gold.”
May 26th, 2009 | Mogambo Guru | 1 comment | ContinuedAll Posts Tagged With: "industrial production"
How to Prepare for the Coming Devaluation
Well, yesterday the government said the fall in revenues from the global black swan dive will lead to a $115 billion decline in government tax takings (what the government likes to call revenue). That’s a pretty big hole in the budget. It suggests that we’ve entered an era of regular government budget deficits and, if the RBA holds to form, lower interest rates. These lower rates, and not just in Australia mind you, represent the coming devaluation of paper money against real goods…
February 3rd, 2009 | Dan Denning | 20 comments | Continued
A Worst-Case Commodity Scenario
Mind you, even in such a bearish argument for commodities, you might find an exception in gold producers, although not the explorers. The junior gold explorers are fast, like everyone else, running out of finance. Our forecast? Gold production is going to fall this year at the same time gold prices rise. We’ve focused so much on the demand side for gold as an inflation-hedge that it’s easy to forget gold is a mining business. You have to find it and dig it up. It is hard to increase the mine supply of gold…
January 15th, 2009 | Dan Denning | 7 comments | Continued