Wednesday, September 22, 2010

What's the Hot Topic at the United Nations General Assembly? Gold

First was word that Alan Greenspan was advising John Paulson to buy gold for his hedge fund.

Then you have former Plunge Protection Team member, Phillipa Malmgren, warning on inflation.

Then you have a Council on Foreign Relations member, Benn Steil stating that gold as the world currency is not science fiction anymore.

Now, I'm hearing that the hot topic at the United Nations, in the corridors, is not Iran or Afghanistan, but gold. The United Nations General Assembly is in session and friends told me last night and this morning that all eyes are on gold.

Bottom line: We may be having a major shift in the demand curve for gold. The old demand curve was based on only goldbugs buying gold (until serious inflation kicks in). If we do indeed have a new demand curve, the goldbugs are joined by hedge fund managers and even more important the international elite. This moves the demand curve much higher, and I don't think their is a forecast out there yet reflecting how high this demand curve may have moved.

I am doing some very aggressive, extensive research to get a sense for how pervasive the "buy gold" mentality has expanded (especially among the power elite) and will be out with a full report within the next 7 to 10 days---on both changes in the demand curve and also the supply curve. I suspect that my forecasts will not be humble for either gold or silver.

That said, I expect gold and silver to be much more volatile as the strong price activity will attract many more short-term traders that will be in and out of the metal on a moments notice.


  1. So is this the point where gold shoots up, or are you still bearish short-term?

  2. Bob -

    You know I'm still not convinced.

    Bob Chapman, who has an intelligence background, and called the move down in the dollar last year correctly, thinks it might be the beginning of the big unfurling...

    Says the downtrend could test 71 on the DX

    But if that were the case, and with silver shooting above 21, why is it that gold got to 1295 but backed off from 1300?

    I don't see anyone manipulating the price down. It seems everyone is trying to boost it as much as possible.

  3. Get in NOW, if you aren't already. Daily, there are experts proclaiming the rise,how much more convincing do you need?

  4. well what's a $5 move in one afternoon, in either direction, really? in this case, usually the answer is profit-taking, no? this compounded with the psychological barrier of round numbers, as well.

  5. You better own the real thing, not paper. Paper gold and silver will be exposed, and then that's when the price skyrockets...

  6. Outside of owning physical gold/silver what is the best way to invest in gold??? Would it be better to own individual mining companies (assuming due diligence is done), gold mining ETF's, or gold funds??

  7. What better way to get nationalistic patriotic Americans who believe in a sovereign US to accept a new world currency! Have it back on a metals standard. If my conspiricy theory was correct would be manipulated down?