The Gold Economy

Gold is surging above $1,400 per ounce, so it seems like a good time to evaluate gold’s run along with its relative value versus other precious metals. The first item to note is that gold did not become an exciting investment until Nixon put the kibosh on the dollar’s peg to gold on August 15, 1971. What this means is that inflation adjusted gold prices did not vary much in dollar terms until about 1970. We can see that directly in an inflation adjusted price chart. It is interesting to note that even though gold increased in

This fall I commented more than once (1, 2) on how frothy the gold craze has gotten and explained why I think the metal equivalent of a tulip bulb in 1636 is in a bubble that could result in a dramatic crash — but due to a lack of necessary resources (software and manpower), I haven’t been able to provide the quantitative analysis to back up my observations. Fortunately a team from the Research Institute of Mining Geomechanics and Mine Surveying (VNIMI) and the Russian Academy of Sciences (PAH) has taken up the

Financial advisors always compare the advantages of one stock, ETF or mutual fund over another and write articles explaining their position. Gold dealers are no different. It’s important to understand the advantages and disadvantages of each type of metal you purchase before making the decision to buy.

Add to this the fact that the price of silver has risen remarkably in the past few years and investors are wondering the best way to take advantage of this price movement.

For this analysis, I have left out any comparisons to silver bars, as I believe investors should own silver coins

The blizzard that socked the East Coast certainly hasn’t socked gold prices or the ETFs that track them. In fact, they’re bucking the trend.

It’s been a big day for the yellow metal, which surged past $1,400 an ounce thanks to a down-trending dollar. The dollar’s weakness was the result of the government selling $35 billion worth of two-year bonds. Gold didn’t even budge when China announced interest rate hikes, so many believe that the news had already been factored in, says Yahoo Finance.

Silver – considered a leveraged play on gold because its price