Look at a chart for gold in NZD compared to USD priced gold over the past week and there is a noticeable difference. Locally priced gold has actually risen due to the weaker kiwi dollar after the NZ Govt credit down grade. While USD priced gold has basically gone sideways. So as always just a reminder that you have to track the local currency when buying.
I don’t know about you but it really is hard to keep up with all the news at the moment. Every day there seems another announcement. Whether it be the establishment of the European Financial Stability Facility (EFSF) (which in our opinion means a license for the European central bank to print money) or bubbly Ben as reported in the NY Times…
“described the nation’s economic health in bleak terms, saying that “the recovery is close to faltering,” and suggested that avoiding another recession might require fresh government action. “We need to make sure that the recovery continues and doesn’t drop back,” he said…
Mr. Bernanke has repeatedly called on Congress to adopt a plan for paying down the federal debt, as well as for reducing inequities and loopholes in the corporate tax code, two ideas that enjoy wide support among economists. On Tuesday he also focused on housing policy, suggesting that the government could help underwater homeowners refinance and also improve the availability of mortgages for potential buyers.
The central bank, he said, “is prepared to take further action as appropriate to promote a stronger economic recovery in the context of price stability.”
At times like these it’s worth taking a step back and looking at the big picture we reckon. Perhaps you don’t need to follow all the headlines? Instead just ask yourself – Has your premise for buying or considering buying gold and silver changed materially in the past month?
So reading the NY times blurb above and so many others what’s the common thread running through them? It’s that it’s all about the powers that be needing to do more, whether they be the governments or central banks, and whether they be in USA, Europe or even here in New Zealand. So as long as they keep doing more of the same, i.e. spending more than they’ve got, printing more to make up for it, then the status quo remains. And we don’t need to pay so much attention to the minute by minute, blow by blow details. That’s how we survive the overload anyway.
Gold and silver have taken a massive tumble but we believe this is merely a chance to get more at cheaper prices. Nothing has really changed in the past month except the outlook for fiat currencies has actually gotten worse!
Gold and silver in our opinion are even more attractive now for this reason – not to mention that they are now significantly cheaper than a month ago.
But it’s funny how the human psyche works. When the price is rising everyone seems to want to buy. After a big drop the mind wonders “could it fall further”?
But look at it logically. The risk to the downside today is much less than it was a couple of weeks ago. Could gold and silver fall more – yes they could but if you took a position today and then waited on a further pull back you’d be in a much better position than only buying on the rise.
We’ve got 3 articles today and 1 excellent video interview of Doug Casey which is a must watch/listen.
I had it on while I ate my lunch today – who says men can’t multi task?!! While Doug does touch on Gold, the chief benefit of watching something like this interview is that it stretches your beliefs. And in today’s risky environment it pays to challenge the conventional way of looking at things economically and politically we reckon.
Actually it’s a bit of an interview fest this week and a DougFest too.
As we’ve also got another interview with Doug Casey in written format if you prefer to read than watch.
And we also have an interview with Mike Maloney who wrote the “Guide to Investing in Gold and Silver”. This is brilliant because it covers an awful lot in one page of what’s in his book or in the recent 90 min video presentation of his we posted.
Anyhow plenty to sink you teeth in to.
One of our suppliers has just secured some great pricing on Canadian Silver Maple 1oz Coins which are actually very comparable in pricing to the local Silver Fern 1oz coin. The Canadian Silver Maple Coins come in tubes of 25 coins so give David a call on 0800 888 GOLD or an email firstname.lastname@example.org for a quote if one of the most recognizable and tradable silver bullion coins in the world interests you.
Or visit our products page to see the full list of available products.
And as always we welcome your questions on anything gold and silver related.