Tag Archives: M2

...When the USD starts to rise many assume that this is negative for paper gold ETFs such as GLD as well as physical gold. I'm sure you have heard it before, if the USD goes up then gold goes down, and vice versa...but, in reality, this "rule of thumb" isn't the case and, in actuality, it would be impossible for the USD and gold to trade inversely with each other. Let me explain.

When there is lots of economic activity, there is lots of money changing hands. When there is not very much economic activity, the pace at which money circulates through our system slows down. That is why what is happening in the U.S. right now is so troubling. Let me explain.

Since 2012 is rapidly coming to a close, I’m fielding questions about what the future holds for 2013. My hope? That my answers will be both informative and instructive, and ultimately profitable, of course. Words: 1588; Charts: 2

For the past decade gold has been "catching up" to the amount of money (M2 and M3) in the system to make up for understatement of the gold price due to U.S. price fixing on its way to an inflation-adjusted value of approx. $2,300 - and that is just the beginning. If, and when, we see a release into the market of the trillions of U.S. dollars being stored on balance sheets of banks, companies, and other countries around the world then the price of gold should explode upward. Let me explain why that would be the case. Words: 850

If the U.S. dollar is being devalued so rapidly, then why does it sometimes increase in value against other global currencies? It is because there are times when one particular global currency will fall faster than the others but the reality is that they are all being rapidly devalued. As the 6 charts below illustrate, the UK, the EU, Japan, China and India, as well as the U.S., have all been printing money like there is no tomorrow. Unfortunately, this is a recipe for a global economic nightmare. Words: 1102

Many investors are struggling to understand the ramifications of the recently announced quantitative easing (QE) plan. The bottom line is that: QE (2) has major future implications for inflation and price of gold and silver. Words: 668