Experts predict that September will be gold’s best month this year. Since 1973, when gold began trading freely, September has been the best month of the year, on average, for the yellow metal. Billionaire John Paulson believes the stars are once again beginning to align for the precious metal. He told Kitco News that he feels inflation will climb higher than the estimates – largely due to a rising money supply – and that gold is poised to benefit.

 

Market Watch via MSN/Mike Hulbert
Why some lucky investors are likely to be as good as gold in September

September is shaping up to be a good month for gold. That’s because there’s an additional factor in bullion’s favor in September: seasonality. Since 1973, when gold began trading freely, September has been the best month of the year, on average, for the yellow metal.

The chart below plots the data. Gold’s average September return has been 1.8%, more than double its all-month average of 0.8%.

There is no guarantee that gold will gain in September, of course. Because of the significant variability in the month-by-month results, gold’s historical pattern of better-than-average performance in September is statistically significant at the 93% confidence level, according to my calculations.

While shy of the 95% level that statisticians often use, it still may be high enough to justify including it in the range of factors to consider in a gold-trading strategy over the next month.

You can read the full story, here.

 

Kitco News/Gerelyn Terzo
Billionaire John Paulson knocks bitcoin, touts gold

Famous hedge fund manager John Paulson might not be taking outside money these days, but he has plenty to say about the state of the markets. In an interview with Bloomberg, Paulson, who reached billionaire status on the heels of his doom-and-gloom call on the subprime housing market in 2007, didn’t mince words when he said that he was “not a believer in cryptocurrencies.” He went on to call the cryptocurrency market a “bubble,” one whose value will eventually go to zero.

Even though bitcoin’s supply is capped at 21 million coins ever to be mined, Paulson, whose firm Paulson & Co was shuttered last year and converted into a family office, took a shot anyway, calling the broader cryptocurrency market a “limited supply of nothing.” He turned to the argument that as long as demand outpaces the supply, the price will rise, but when demand falters, the price will fall with it.

“There’s no intrinsic value to any of the cryptocurrencies except that there’s a limited amount,” said Paulson to Bloomberg’s David Rubenstein.

Since that the dollar is off the gold standard, however, its intrinsic value is similarly in the eye of the beholder.

Continue reading, here.

 

Reuters via CNBC
Gold prices edge back towards 1-month peak as dollar, yields slip

Gold prices were underpinned by a subdued dollar on Tuesday, with investors looking ahead to U.S. non-farm payrolls data, which could be key to the Federal Reserve’s tapering decision.

Spot gold rose 0.1% to $1,812.27 per ounce by 0116 GMT.

U.S. gold futures were up 0.2% at $1,816.00.

The dollar hovered near two-week lows against a basket of currencies, steadying from falls after Fed chief Jerome Powell gave no signal regarding the central bank’s tapering timeline except that it could be “this year.”

Gold is considered a hedge against inflation and currency debasement in the wake of massive stimulus measures.

Cleveland Fed President Loretta Mester said the U.S. economy is recovering strongly but she is not yet convinced that recent inflation readings will be enough to satisfy the price stability goal the central bank revamped a year ago.

Read the full story, here.

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