The Gold Blog

Cramer is an over-the-top wind bag who I would not trust with a ten foot barge pole (he uses sound effects!) but he is observed and followed by many on Wall Street and his recommendations will lead to increasing speculative and investment demand and his prediction of gold over $1,650 per ounce is conservative.

He does make the interesting point, however, that when the IMF talks about selling gold it is really buying paper currency; “and I don’t want to stock up on paper currency right now.”

It is important to emphasise that gold mining stocks are not gold bulion and are considerably more volatile. They are more speculative, and hence more risky.

Psychological research shows that people are systematically biased in their assessments of future
events; not only will the future be good, it will be especially good for oneself in particular.

All investors should have an understanding of risk based on an analysis of both their capacity for risk and their willingness to accept risk.

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Excuse our cynicism, but shouldn’t this story be dead already?

The IMF, which has the worlds third largest holdings of gold bullion, has announced yet again plans to sell some of their gold holdings. As we reported before, in our Feb 29th Gold Market Update:

Our belief that the latest International Monetary gold proposal story was more spin than reality is seen in the fact that the IMF said on Thursday that no timetable has been set for the sale of a limited portion - about 12.9 million ounces (403.3 tonnes) - of the IMF’s gold stocks of 103.4 million ounces. The news was not widely reported unlike the previous ‘news’. In a background paper, the IMF said if the gold was sold on the market, as opposed to off-market transactions, the sales would be phased over time to avoid market disruptions, as recommended by an independent panel.

Factsheet - Gold in the IMF : http://www.imf.org/external/np/exr/facts/gold.htm

What is more interesting here, is not the obvious rehashing of an old story, but the changing spin it is given this time around. Continue Reading »

The London Independent leads with the headline “The Great Depression” today.

1.1 million Ohio residents alone recieve food stamps, nearly 10% of the Ohio population, and more are elegible.

…and this is no April Fools.

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