By Gaurav S. Iyer, IFC • Sunday, August 23, 2015As tumbling gold prices eat away at mining profits, a key metric shows that miners are more underpriced than at any point in the last decade. There are signs that the extended period of low prices will cause a supply contraction, causing both mining stocks and the yellow metal to skyrocket. Gold has fallen a long way from 2011, losing more than 40% of its value in the past four .
By Gaurav S. Iyer, IFC • Tuesday, August 18, 2015Despite lackluster gold prices, billionaire investor George Soros is holding steady on his bet that the yellow metal will rise again. Gold has dropped significantly in the face of incessant money printing by the Federal Reserve, which also inflated a stock market “recovery.” Soros is cleverly hedging against an economic collapse by going long on Barrick Gold Corporation (NYSE:ABX). Soros is a mythical figure of financial markets. After spending his .
By Gaurav S. Iyer, IFC • Saturday, August 15, 2015Despite a few years of weak gold prices, China’s currency depreciation could be the tipping point that drives gold above $5,000. The yellow metal skyrocketed between 2001 and 2011, and another decade of similar growth is not unfeasible. Let me explain. A series of events in China have me convinced that gold prices are set to explode. The yellow metal has lost more than 40% since peaking near $1,900 in .
By Gaurav S. Iyer, IFC • Tuesday, August 11, 2015Despite stagnating prices in recent years, gold is set to explode as pessimism sets into the market. Excessive printing by the Federal Reserve has embedded fragility into financial markets, building a house of cards that will buckle under the pressure of an interest rate hike. The resulting stock market crash will send investors running back to safe haven assets. Since 2008, the Fed has engaged in a range of “easy .
By Jing Pan BSc, MA • Tuesday, August 11, 2015Precious metals lost their shine in the past year. Silver has been the hardest hit as its price plunged even more than gold. However, if you take a look at the supply and demand of the grey metal, you’ll see that the trend is about to reverse. And when that happens, expect silver prices to shoot through the roof. Silver Price Forecast Shows Higher Spot Rates Ahead Silver mining companies .
By Gaurav S. Iyer, IFC • Friday, August 7, 2015Gold prices have tumbled a long way from their peak in 2011, but there’s new evidence to suggest a turnaround for the yellow metal. The conclusion you inevitably arrive at after combing through the data is this: a stock market crash is coming, and gold is one of the few places left to hide. There are several causes for an eventual upswing in gold, but you’re unlikely to hear about .
By Gaurav S. Iyer, IFC • Thursday, August 6, 2015Silver investors have suffered enormously over the last few years. But a key indicator reveals the grey metal may finally be due for a comeback. The last time investors followed this metric over the bellyaching of bearish analysts, they made 420%. The time before that, silver prices tripled, earning huge profits for those who timed the market. You won’t get rich overnight—that’s a fool’s errand. This is a buy-and-hold strategy .
By Michael Lombardi, MBA • Wednesday, August 5, 2015Gold prices are down and the pessimism towards the precious metal is increasing daily; this is great news! If you bought gold bullion when it was beginning its bull-run—and kept it—you are doing much better than people owning stocks during the same period. Look at the chart below. It plots gold’s price (grey area), gold’s price performance (golden line), and the Dow Jones Industrial Average performance (red line) from 2001 .
By John Whitefoot • Thursday, July 30, 2015There’s no polite way to spin it; precious metals have been getting hammered. And none more so than platinum. Platinum is roughly 15-20 times scarcer than gold and has always sold for more than gold. Since 1970, platinum has, on average, commanded a 30% premium over gold. Between 2000 and 2008, platinum traded over 1.8 times the price of gold. Not anymore. Gold is trading at around $1,100 an ounce .
By Gaurav S. Iyer, IFC • Wednesday, July 29, 2015By raising interest rates later this year, the Federal Reserve may accidently incite a stock market crash, driving investors to safe haven assets like gold. Janet Yellen has repeatedly suggested improving economic conditions would justify a long overdue rate hike, but the Fed may be underestimating the market’s addiction to cheap money. Historically, low interest rates have effectively reduced the cost of borrowing to zero, a move designed to spur .