Stock Traders Flock Back To Gold

Investing in Gold
By Adam Hilton

Summary

  • American stock investors and speculators started pouring capital back into gold this week in a serious way, aggressively buying GLD ETF shares.
  • This buying was so massive that GLD had to shunt enough stock capital into physical gold bullion to grow its holdings by their fastest pace in about 5 years.
  • And this is likely just the beginning, as American stock investors remain woefully underinvested in gold and not prudently diversified.

Year of the Horse Historically Poor for Stock Market

Chinese Zodiac and Stock Market

Credit:CNBC’s Giovanny Moreano and Pradip Sigdyal.

The Chinese New Year is symbolized by an animal from the zodiac calendar, rotating through a 12-year cycle. Last year, for example, was the Year of the Snake and 2012 was the Year of the Dragon.

Since 1928, Horse years have been cautiously optimistic for the S&P 500 and Dow, posting average annual returns of 2.41 percent and -0.09 percent, respectively.

In fact, the Year of the Horse ranks as the second-weakest year for both the

24 Facts on Printing Money & The Price of Gold

gold-projections-2012

  1. Worldwide money printing continues unabated
  2. Just In 10 years $120 trillion have been printed making global debt $200 trillion
  3. World GDP has gone from $32 trillion to $70 trillion 2001-2011
  4. Thus $120 trillion debt is required to produce a $38 trillion annual increase in GDP
  5. The marginal return on printed money is negative in real terms
  6. Thus the world is living on an illusion of paper that people believe is money
  7. This illusionary paper wealth will implode in the next few years
  8. The initial trigger will be the collapse of the world’s reserve currency – the US dollar