Wall Street Journal on gold investing

[BigBagel]

Article on gold investing:

http://online.wsj.com/article/SB1000...Tabs%3Darticle

[blazespinnaker]

Re: Wall Street Journal on gold investing

Individuals’ bullion purchases almost doubled last year, amid apocalyptic panic over the financial system, to 862 metric tons.

That doesn't sound like inflation to me.. it just sounds like a bubble.

It has since drifted down to $909, thanks to such factors as India’s recent doubling of import taxes on gold.

Interesting..

[Master Shake]

Re: Wall Street Journal on gold investing

A different take from a guest of Rick Ackerman.

http://www.rickackerman.com/2009/07/...ect/#more-7791

Any Bulls Here?
Friends and Family: How many people do you know personally who own gold or gold mining shares? Have any of them called you to buy gold as they most likely had, to buy tech stocks in the late 1990s? Also, how many of them do you know that didn’t buy or refinance a home?

Financial Advisors and Institutions: Why do so few people or institutions own or even recommend gold in any form? If you have a broker or adviser, you probably know what I mean. If you mentioned gold to your broker, what was his reaction? Was it supportive or negative? Also, if you own a mutual fund check out how much of their assets are invested in gold shares.

The Financial Media: Most investors form their opinions from the coverage and advice given in the financial media. But why is it that so few of the regulars on CNBC or Bloomberg talk favorably about gold? In fact, when is the last time you heard Jim Sinclair or Jim Puplava, two of the staunchest and most articulate gold advocates, interviewed on CNBC?

European and U.S. Governments: This includes our illustrious congressmen and senators. Why is the West so opposed to the role of gold? Why do they always seem to wish only to sell it? Ironically, the actual recent bottom in gold in 1999 was nailed almost to the penny by the current Prime Minister of Great Britain, but then Exchequer, Gordon Brown. Through his shrewd sale Great Britain summarily liquidated its entire gold reserves. What is amazing is that even very recently, Mr. Brown, unrepentantly, is still pressuring the IMF to sell its gold.
At the same time, why are the fastest growing nations, all to the east — Russia, China, India and the Middle East oil nations, all very favorable towards gold? Consider this: If the anti-gold, Western nations are faltering and selling their gold while the pro-gold countries are accumulating reserves and buying gold, what should be the logical future effect on its price?

[nero3]

Re: Wall Street Journal on gold investing

All this is related to the death of the US consumer.

Fertilizer stocks is probably the best play on the trend: http://finance.yahoo.com/echarts?s=P...urce=undefined

That is, emerging market's consume more, especially food, while our consumption is "sticky", that cause a huge demand supply imbalance going forward as interest rates comes down in emerging market's (giving room for credit expansion), while the west suffers with some of the problems of Japan (in expanding credit) (emerging market's have no liquidity traps , and now their central bankers are pulling out all the stops).

At this price I like Monsanto, they are hitting a double bottom formation now, and they have for a long time been one of the blocks of the legendary Magellan Fund. Potash (of the Quantum fund), and of course Gold, of Hedge fund star John Paulson.

[pwcmba]

Re: Wall Street Journal on gold investing

"Any Bulls Here?
Friends and Family: How many people do you know personally who own gold or gold mining shares? Have any of them called you to buy gold as they most likely had, to buy tech stocks in the late 1990s? Also, how many of them do you know that didn’t buy or refinance a home?"

This statement makes a good point. People I know that no longer look at me in a crazy way for talking about investing in gold still do not own any as best I can tell. While seeing the article certainly makes a gold bull pause and wonder if it points to an end of the bull like a cover story on time but I don't think we are there yet. In fact, a cover of Time with "Gold, man of the year" will certainly nail it.