How to Invest in Gold Using Stocks and ETFs

In a recent article, I said that you shouldn’t invest in gold ETFs but bullion instead. Here I’d like to qualify that statement. Gold stocks and ETFs aren’t always a bad idea. They can be a great investment, but only if you’re planning to hold them in the short term.

Gold ETFs are usually a bet against the market or – more specifically – the dollar. Of course, this is true of gold in general. If the dollar goes down then gold (usually) goes up and vice versa. ETFs are sometimes better than gold, though, because they’re easier to buy and sell.

This is because:
* High liquidity: Nowadays you can trade ETFs with a few clicks. That means … read more ->

Advantages to Buying Physical Gold Instead of ETFs

There is a lot of uncertainty in the world right now. The US has a new president that nobody can predict. Britain is leaving Europe. Le Pen, who has vowed to do the same with France, looks almost certain to make it to the presidential run-offs. And North Korea – called by Trump the US’s greatest foreign threat – is testing missiles and murdering family of Kim Jung-un on foreign soil.

With this much insecurity about it is only natural to want some kind of financial safety. Gold has long been that safe haven. Even better, when the world is less secure, the price of gold often rises. That’s exactly what’s been happening. From the New Year till the end … read more ->

The Dow vs. Gold – A technical reading of the Dow Jones vs. Gold Prices as “Sell in May”

A technical reading of the Dow Jones vs. Gold Prices as “Sell in May” applies again…

USING THE nom de plume “Traderrog”, Roger Wiegand writes the popular Trader Tracks newsletter, giving investors short-term buy-and-sell recommendations and insights into the political and economic factors that drive major markets.

For more than 17 years, Roger has devoted intensive research time to the precious metals, currency, energy and financial markets. Now the ‘Sell in May’ situation could arrive right on time this year, Roger Wiegand tells the Gold Report in this interview, anticipating the next larger, extended rally in gold this fall.

The Gold Report: Roger, last week in your newsletter you talked about seeing two “flying wedges” in the Dow in … read more ->

Why Own Gold? – 6 Reasons Why Investors Own Gold

There are six primary reasons why investors own gold:

  1.  As a hedge against inflation.
  2.  As a hedge against a declining dollar.
  3.  As a safe haven in times of geopolitical and financial market instability.
  4.  As a commodity, based on gold’s supply and demand fundamentals.
  5.  As a store of value.
  6.  As a portfolio diversifier.

Gold is a monetary metal whose price is determined by inflation, by fluctuations in the dollar and U.S. stocks, by currency-related crises, interest rate volatility and international tensions, and by increases or decreases in the prices of other commodities. The price of gold reacts to supply and demand changes and can be influenced by consumer spending and overall levels of affluence.

Gold is different from other precious metals … read more ->

Gold vs. Euros: The Non-Dollar Choice

Gold has now doubled since the Euro first got where it stands against the Dollar today…

SINCE THIS decade’s Dollar Decline first pushed the Euro above $1.35 in late 2004 – a level it reclaimed this week – the price of gold has gone on to double for both US and Eurozone citizens.

American investors and savers would have been much better off Buying Gold instead of Euros, in other words, as would everyone else. And looking ahead, “These days, currency weakness, relative to other currencies, matters less for gold,” reckons Standard Bank’s Walter de Wet.

“All major currencies are being devalued, and as a result – and on a relative basis – currencies are trading in the same ranges … read more ->

Gold Investment Demand – What’s driving Gold Investment demand today?

BACK IN 2001, writes Byron King for the Rude Awakening, gold traded as low as $250 per ounce.

Then, over time, gold rose slowly, but steadily, as investment demand rose, reaching just over $1,000 per ounce early in 2008. Gold pulled back and hovered in the range of $800-900 for much of 2008 and then climbed back up to the $1,000 mark again in February 2009.

Despite a pullback in March, it looks like gold wants to break the $1,000 mark again…and stay there. Indeed, the Gold Price may see $2,000…even $3,000 I believe…in the next two years.

But before we get to that, let’s explore a few of the driving forces behind Gold Investment and its once and future … read more ->