BUY Signals - Gold Could be $5000 to $10000 Or $250? Or $13,756?

Eric Sprott Blog: Gold Could be $5000 to $10000:

I'm only looking at 1 year in this conversation, but 4 years from now you could be somewhere in the $5,000 to $10,000 range with the ...

When you are dealing with any speculative asset you are dealing with unknown random events that could move its price. They could be big moves too. In light of this, gold has as much a chance of going up, as it does down. So under this reasoning gold could go to any number - the key word is could. 

Putting mathematical and linguistic concerns aside, the investing (upside betting) environment for gold is now looking better, given the large collapse in price over the past 12 months, but mostly because global geopolitical, disaster and climate events are accelerating; creating the potential for a "Black Swan Event" that would be very good for gold prices in the near term.

In the long run, we still do not ascribe much intellectual or "real physical economic" value to this metal. It is a value that primarily depends and appeals to people's inner brains' sensory and emotional cognitions based on the allure it earned in ancient times. However, our rational frontal cortex is  not so allured or intrigued by its largely superficial attributes.

INVESTORS' INSIGHTS 
First Financial Insights 
September 4, 2013 

Of Two Minds...

The Jim Rogers Blog : Financial Calamity US Dollar Collapse?

The Jim Rogers Blog

Financial Calamity - US Dollar Collapse? 
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Just cannot see eye to eye with Jim on the collapse of the US dollar, albeit the financial calamity is more or less a hangover from the 2008 Meltdown and remains plausible. Indeed we had  forecasted such a collapse two years back, by 2020. Bonds yes; but a currency short is fraught with too many pitfalls.

There are many reasons behind the likely stability embedded in the US dollar in such times. Two are big ones. One,  it will simply win by default because other currencies that are competitive, in any significant way, should be that much worse off in the turbulent economic times ahead. Remember, the US is a Hegemony with about 60 -70% of the world's resources and economies within its influences and/or control. There is little else in terms of a viable surrogate exchange media that could handle the global financial volume and liquidity needs as well. Former communist countries have huge credibility issues to overcome to garner any trust for this role.

But most importantly - they have bigger GUNS! In the end, that may be all that matters. 

INVESTORS' INSIGHTS

First Financial Insights

August 22, 2013 

Pentagon 2020 Outlook:
 Continues to See Strong US Dollar

Faber Buys #Sprott - Is On-Going Disclosure Required?

Faber Buys #Sprott - Is On-Going Disclosure Required? 

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"BUY GOLD???"

While we have long held a position that in the long-run there is no legitimate or logical reason based on sequential forward events, and both historical asset-class performance and purchasing power losses over the past thirty-three years to own this object, yet this psychotic placebo continues to attract the attention of speculators.  Nouriel Roubini had candidly referred to it as a "barbaric relic" - his kind diplomacy is respected. 

So why do promoters such as Dr Doom continue with there promotions despite all this? We can presume that they understand the psychosis of small investors attracted to such a cure all placebo and operate to take advantage of their fantasy. The above purchase of Sprott affirms the possibility of such a tactic by promoters. 

But the most important issue is not whether to buy or sell this object - the real issue is disclosure. That is will the promoters advise the public of subsequent sales before they are effected or will they cleverly front-run them in various de facto forms ahead of small investors, underneath the radar of a complex myriad of international rules, laws and regulations?

Funny thing, we really don't expect  answers to these questions any time soon.

INVESTORS'  INSIGHTS

First Financial Insights 

August 20, 2013  

Just Keeping them ... 

 

The Eric Sprott Blog: HA! HA! -There is a Serious Shortage of Gold

The Eric Sprott Blog: HA! HA! - There is a Serious Shortage of Gold - (Read More)

 "I think it’s just been one big scheme to try to get people dissuaded from owning gold and to cause supply to come out. As you mentione...

So do want to buy our new book - with over 1 million pre-sold copies? The title is "The Secret to How to Make a Lot of Money Real Quick"; - write a book like this.

Sarcasm notwithstanding, Eric is basically a promoter and should disclose his personal, corporate and managed positions, so it is clear where he is coming from and fair to everyone who listens to his pitch. As well, to make this relevant for serious investors - sources, numbers and opposing views should be brought forward for objective analysis. We strongly believe, moreover, that if this was such a great investment, folks like Buffet, Bogle, Gates, Goldman and many others, would all be quietly chasing this huge home run. There is little evidence suggesting they are swinging at the plate.

In the meantime, we will continue to support the belief that gold is a psychotic placebo, that has lost substantial real purchasing power over the past 33 years, as well as being the one of the worst asset classes over that time. Making it just a speculative relic used by barbarian traders that holds none of the attributes true investors desire - like expected or defined returns.

Bottom line, we are not putting much faith in the rhetoric of gold promoters like Faber, Sprott and Rogers. For as Charlie Monger would say, "if its too good to be true, it usually is "

INVESTORS' INSIGHTS 

First Financial Insights

July 31, 2013

Our Message..

These wise guys are not "Gold bugs" for a reason -