Gold Q&A: Answers to our Subscribers' Most Pressing Questions

• Can you suggest a book for learning how to read gold and silver charts?

  August 10, 2012, 12:00 PM

  I am a new subscriber and new trader. Can you suggest a book for learning how to read charts such as the ones presented on the site? Thank you.

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• Is gold correlated with the US debt ceiling?

  August 1, 2012, 12:00 PM

  You often discuss the correlation between the price of gold and a number of other factors. Here's an interesting thing to use for correlation: the US debt. Some charts imply we can project gold's price if we can estimate the future US debt and debt ceiling.

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• Why is your analysis of gold heavily influenced by the US dollar?

  July 20, 2012, 12:00 PM

  I appreciate greatly your regular analysis, but cannot help but have doubts on one aspect of your technical analysis. It is significantly influenced by the USD index movement, in which when the euro falls, the Index rises and risk assets fall off, including gold (in an environment where inflation is for tomorrow and global growth is slowing).

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• What if the Fed devalued the dollar by 40%?

  June 15, 2012, 12:00 PM

  What change would occur to credit card debts if the Fed devalued the dollar by 40%? I have utilized the extremely low or no interest rate offers on fixed credit card promotions to buy precious metals for almost a decade now. I’m aware of Ben Bernanke’s speech claiming his last move in a depression would be devaluing the dollar. I’m thinking the time is at hand.

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• How has the purchasing power of gold increased since 1900?

  June 15, 2012, 12:00 PM

  Since the year 1900 the real purchasing power of the USD has eroded massively. It appears today to have lost 99% in its purchasing power. This is staggering if correct. Assuming it is true, has the corresponding real purchasing power of gold over this time increased by more than, less than, or equal to 99%?

  To what extent has gold kept track with the fall in the real purchasing power of the USD? Of course gold also acts as a safe haven, making a perfect calculation is difficult. But the answer to this question is perhaps useful to better understand why gold has been behaving more like a risk asset of late.

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• How can I hedge my junior silver miners portfolio?

  June 7, 2012, 12:00 PM

  I have the junior silver miners in my portfolio. Suppose they have a value of $100k. How can I hedge this using ZSL? Do I need to purchase the same amount, $100k? I don’t have enough money for that strategy!

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• What to do when I lost 90% of my speculative capital with a huge bet on precious metals?

  May 25, 2012, 12:00 PM

  What should one do if, because of a previous unsuccessful trade that was done with a significant amount of speculative capital (90%), one's capital is now only a tiny fraction of its starting value (10%)?

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• Does it make sense to stay in the gold market if it is manipulated?

  May 10, 2012, 12:00 PM

  It's all a waste of time. The Fed still exists, JP Morgan still exists. What's likely to change that? Ron Paul is out. Metals are done along with the dollar and the Constitution. Sell your gold, silver and dollars and use the proceeds to purchase vacuum packed food, jarred water, guns, ammo, and a bunker. Those items may buy you a little time unless you'd simply prefer to just die sooner. In that case no action is necessary.

  People like Mike Maloney and Max Kaiser are bearish on gold and silver by stating gold should be at $15,000.00/ounce. That's a no-brainer. Gold should probably be at $40,000.00/ounce but it's going nowhere as long as JP Morgan-Chase and the Fed dominate.

  It would take an insurrection to remove them. Americans are far too complacent. They don't have the courage of the Libyans. They're watching the Kardashians on TV. Gold and silver will periodically have their little explosive breakouts, then be collapsed again by the naked shorting of the banksters. I mean bankers. Nothing will stop this pattern.

  I laugh when I hear people talk about Buffet and Bill Gates being the richest guys. The $50 or $60 billion they each have in their second rate companies is chump change. It's pocket money to swing by Dunkin' Donuts for an Iced Coffee. The real money is with people like the Rothschild heirs. Conservatively we're looking at over $100 TRILLION and perhaps much, much more. Perhaps in excess of one quadrillion.

  Bill Gates and Buffett qualify for food stamps. The true wealth – not chumps like Buffett and Gates – will NEVER permit gold and silver to reach even one tenth of one percent of their true value. Give this nonsense up already. (…)

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