Gold Investments Market Update – Gold to Reach $5000/oz According to Respected Goldcorp Founder

Gold surged a further 3.3% yesterday to $942.45 (as did silver) as worries about the US and global financial system and economy continue to grow and governments print money on an unprecedented scale to combat the economic crisis. Asian and European stock markets are again under pressure this morning.

The strong close above $930/oz yesterday should see us once again challenge the record highs of $1,003/oz seen last March (March 17th) when Bear Stearns collapsed.

We have since had a long period (nearly 12 months) of correction and consolidation and thus a solid foundation has been built from which the next leg…

Gold Investments Market Update – PwC Finds ‘Gold is Serving Its Purpose as a Hedge of Wealth in Uncertain Times’

Gold rallied sharply yesterday, for the fourth day in a row, on sharply higher oil prices (some 10%) and a weaker dollar. Gold gave up some of its gains overnight in Asia as the dollar bounced after recent sharp losses in volatile trade.

Gold’s rally yesterday had nothing to do with an increase in risk appetite. If that was the case, why have stock markets internationally been falling sharply again in recent days and yesterday? Quite the opposite is true, gold has been strong as risk aversion remains heightened (rightly so) as the economic outlook remains very uncertain.

Volatility in currency markets…

Gold Investments Market Update – Premiums Soaring for Physical Bullion as Delayed Deliveries and Shortages Intensify Internationally

COMEX gold continues to surprise to the downside despite the incredibly strong fundamentals of gold bullion itself with increasing shortages, delayed deliveries and premiums soaring for physical bullion in Asia, Europe, the US and internationally. Premiums have soared on smaller bullion products (from 1 ozt to 5 kilo gold bars) and look set to soon rise on the larger 100 and 400 ozt London Good Delivery gold bars.

Large investors and bullion dealers are now looking to take delivery of the December gold contract and there is likely to be a significant number of longs who stand for delivery leading to…

Deep Protracted Recession Coming but Important to Keep Things in Perspective

Irish writer, Joe O’Connor has been appearing on RTE’s (Ireland’s national radio station – akin to the BBC) Drivetime in recent weeks with some witty, inspiring and uplifting poetry.

His beautiful words perfectly illustrate how an economic recession or depression is not the ‘end of the world’ rather simply a period of slower or declining economic growth.

While O’Connor’s poem is focused on Ireland and the end of the Celtic Tiger, the sentiments expressed are universal and have relevance to people throughout the western world suffering from the early stages of the looming recessions.

Unfortunately, recessions can bring hard times to people materially…