Gold is a monetary metal. As such, it trades in line with the world’s other major currencies. When the US dollar — the global reserve currency — declines, gold will usually rise…and vice versa.
Over the past 100 years, the financial establishment has done its best to remove gold from the financial system. That’s because, in its ultimate representation as debt-free money, gold represents an existential threat to government-controlled fiat currency.
Despite gold no longer being a part of the commercial banking system, it still plays an important role in the larger, central banking system. It represents the ultimate form of trust, and it has no counterparty.
For that reason, The Rum Rebellion strongly advocates that gold should be a part of all investor’s portfolios. However, we are not gold bugs. We believe there is a time to own gold and gold stocks and a time to stay away.
We’ll write on the topic of gold and currencies (including the Aussie dollar) often, and keep you up to date on where we think gold is sitting within the bull/bear cycle.
At time of writing, the share price of Saracen Mineral Holdings Limited [ASX:SAR] is up 2.97%, trading at $3.47. After hitting an all-time high of $4.75 on 6 August, the Saracen share price has slumped…
You can see today what they’ve already done to the financial sector. In 1971, the Dow was about 880 — in old US dollars, which were tied to gold at a fixed rate of…
The Federal Reserve announced it would continue pumping up to $75 billion into the money markets until early November. The Fed is also injecting money into the system as part of its ‘reserve management’ program…
At time of writing, the share price of Evolution Mining Ltd [ASX:EVN] is down 1.7%, trading at $4.35 apiece. It is important to remember the variety of factors impacting the Evolution share price.
Stocks soared. Gold plunged. Gold futures fell 0.8%. But it was the gold stocks that took a beating on Friday. The Feds changing the mix of cash in the system in order to boost bank…
Those who accept on face value that cash is dead and go seeking higher yielding alternatives to breathe life into their money, may well find their actions unwittingly sign the death warrant on their capital…
Gold miners Saracen Mineral Holdings Ltd [ASX:SAR] an Northern Star Resources Ltd [ASX:NST] are up 4.05% and 1.38% respectively today at time of writing. While gold prices have only edged slightly higher, remember, gold is…
Just nine months after confiscating gold from its citizens in exchange for fiat currency, the government devalued that currency by 40%. It was the largest theft in history. Moreover, it was a major blow for…
At time of writing, the ASX 200 has dropped by 155.5 points (or 2.34%) to 6494.4. The only green shoots there are mostly coming from the gold stocks. Saracen Mineral Holding Ltd [ASX:SAR] is up…
At time of writing, the share price of Newcrest Mining Limited [ASX:NCM] is up 1.55%, trading at $36.78. Along with the Newcrest share price, a number of other ASX gold stocks are in the green…