Hyperinflation is a dynamic process — much like a positive feedback loop that, once entered, is almost impossible to exit. The process can go on for years. In the feedback cycle, the more central banks print money and buy bonds, the less other entities want to hold bonds.
The mere hint of a short-term fix to avoid default next Thursday knocked gold prices below $1,300 this week, with a further plunge as U.S. trade opened on Friday. For long-time investors, the irony looks so thick you could butter your toast with it.
Precious metal prices were unchanged in what dealers called "thin, quiet" Asian and London trade Monday morning, despite increasing fears the U.S. government will fail to meet its obligations in only 10 days' time.
The United States government is to rigorously enforce a ban on gold sales to Iran from July 1. They are planning to block sales of gold to Iranians in order to undermine the Iranian currency, the rial, and to step up pressure on Tehran over its nuclear program.
As looming inflation, currency wars and a possible run on gold threaten to derail markets, Leonard Melman is setting his sights on the midtier and near-term producers that he wants to scoop up when the blood is in the streets.
Call it wishful thinking, but a small part of me thinks that the real reason why German officials are starting to ask tough questions about their gold reserves is because they are losing confidence in our monetary system.
While he owns both bullion and certificated bullion, many investors are better off buying bullion says the founder of Sprott Global Investments and president of Sprott Asset Management USA. Certificated bullion may be more convenient while bullion provides assurance.
I despise the interventionist ways of the Federal Reserve. But as a gold investor, I appreciate the Federal Reserve’s “help” in boosting my portfolio. Fed policy right now can only lead the gold price in one direction: higher.