Why Are We Certain that Gold Producers Will Soar?

By Jeff Clark, Casey Research

For the past eighteen months, gold stocks have been pummeled.

They showed some life from mid-May to mid-June – GDX, the gold miner's index, was up 21%, while gold rose 5.5%. That bounce was exciting, but they've still got a lot of lost ground to make up. Since January 1, 2011, GDX is down 28%, while gold is up 10%.

So what's going to move these darn stocks? Will their day ever come? Could our research – gulp – be wrong? Jokes have even started circulating… Continue reading "Why Are We Certain that Gold Producers Will Soar?"

How Does Gold Fare During Hyperinflationary Periods?

By Jeff Clark, Casey Research

Inflation is a natural consequence of loose government monetary policy. If those policies get too loose, hyperinflation can occur. As gold investors, we'd like to know if the precious metals would keep pace in this extreme scenario.

Hyperinflation is an extremely rapid period of inflation, but when does inflation (which can be manageable) cross the line and become out-of-control hyperinflation? Philip Cagan, one of the very first researchers of this phenomenon, defines hyperinflation as "an inflation rate of 50% or more in a single month," something largely inconceivable to the average investor. Continue reading "How Does Gold Fare During Hyperinflationary Periods?"

How to Invest Your Mother's Money – And Keep Your Peace of Mind

By Jeff Clark, Casey Research

I manage one of my mother's IRA accounts, and when it comes to investing, she doesn't like to take a lot of risks. I guess the same would be true for most of our mothers – and maybe for many of us as well.

Unfortunately, after surveying today's investment landscape, I see numerous risks – stock markets seem propped up and vulnerable, many major economies have low or suspect growth, and many currencies are being actively devalued or weakened by government actions. Even the number of options to park money is limited since investors can't earn a reasonable interest rate. Continue reading "How to Invest Your Mother's Money – And Keep Your Peace of Mind"

Is the Table Set for a Mania in Precious Metals?

By Jeff Clark, Casey Research

It may feel like I'm out of touch with the precious metals markets to broach the subject of a mania today, but I think the table is being set now for a huge move into gold and silver.

There are, however, very valid reasons to reasonably expect a mania in our sector. For one thing, manias have occurred many times before, but the main issue is that a mania in gold and gold stocks is the likely result of the absolute balloon in government debt, deficit spending, and money printing. Continue reading "Is the Table Set for a Mania in Precious Metals?"

Tupperware and ATMs – Gold Goes Mainstream

Today's guest post is by Jeff Clark, editor for the gold bugs over at BIG GOLD. Leave us a comment and let us know what you think, has gold gone mainstream? Are we finally going to see the huge move in gold we keep hearing about?

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Are we there yet? Are we there yet? We gold bugs are like little kids on a trip to the zoo; we just can’t wait to get there. “There” being the elusive point in time when the gold mania (no, make that Gold Mania) hits and everyone and their cat will want to invest in the yellow metal. Which of course will propel its price to dizzying heights. $1,500… $2,000… $5,000 an ounce – the sky’s the limit. At least that’s how the theory goes.

But it’s not just a theory anymore: in the past year, we’ve been seeing unmistakable signs that gold indeed may be going mainstream.

For example, we have always said that when the Mania phase of this gold bull market really got underway, mobs would break down the doors of pawn shops and coin dealers in order to get their fill of the yellow metal. Continue reading "Tupperware and ATMs – Gold Goes Mainstream"