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

What if the analyses we use are wrong?
October 29, 2010, 12:00 PM
I’ve heard that the main driving force of the markets comes from investors who are trying to predict the government policies. If this is right could quantitative, technical, and statistical analyses be completely overruled and become ineffectual? If someone has enough cash, they can trigger a huge rally or a significant selloff in any market. Does this mean that there are no sure bets and we shouldn’t invest in anything?
- Read more
What if the CFTC makes an intervention on the derivatives market?
October 29, 2010, 12:00 PM
What if the CFTC (U.S. Commodity Futures Trading Commission) takes action on the derivative market? Should one still use gold and silver options?
- Read more
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.
- Read more
What impact will the new oil deposit in North Dakota have on gold prices?
December 21, 2012, 12:00 PM
I'm curious how the new apparently endless oil deposit in North Dakota influences global economies, gas prices, and of course if it will have any influence on the US economy. Could it help America to reduce its debt? What impact will it have on gold prices?
- Read more
What impact would the nationalization of mining in Bolivia have on silver?
April 29, 2011, 12:00 PM
What impact would the nationalization of mining in Bolivia (the world's sixth largest producer of silver) have on short term and long term silver prices?
- Read more
What is a cyclical turning point?
January 4, 2013, 12:00 PM
Please explain "cyclical turning point." I am new and do not understand this term. Thanks.
- Read more
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%)?
- Read more
What will be the role of China in the precious metals market?
August 17, 2012, 12:00 PM
With hedge funds and others very negative on gold, it seems that gold and silver have had many buyers at certain levels and it is no secret that the primary suspects for those buyers are far eastern entities. Somewhat like “Hail Mary” saves on important S&P levels in the last few minutes before the market closes.
The 800 pound gorilla has been planning an active role in precious metals and all metals trading for a long time. They bought the LME (even though it's a lousy business based on returns) to control more of the metals trades, establish warehouses in China for the LME, etc. They have planned the Shanghai gold exchange for a long time and will open it at the end of August, apparently. With China it's all about becoming a major player in this area and also about saving face. It would not gain new customers, nor would it look good for the idea and their timing if leveraged investors were handed large losses right off the bat. They need new tonnage to support any physical deliveries through the exchange. A fraudulent scheme in China recently attracted $60 billion or over 1,000 tons worth of gold futures (that's how much was lost!) so there is a lot of demand out there. For this reason it is highly unlikely the Chinese will allow gold to crash, or (perhaps) in the event of a major world market crash, to perform much worse than other investments. Something like the 'Chinese put' under the price of gold.
Perhaps a fast trip down. Western vaults would be emptied pretty quickly at low bargain levels. This is not technical, but fundamental.
- Read more