Global Economic Intersection
Advertisement
  • Home
    • 카지노사이트
  • Economics
  • Finance
  • Politics
  • Investments
    • Invest in Amazon $250
  • Cryptocurrency
    • Best Bitcoin Accounts
    • Bitcoin Robot
      • Quantum AI
      • Bitcoin Era
      • Bitcoin Aussie System
      • Bitcoin Profit
      • Bitcoin Code
      • eKrona Cryptocurrency
      • Bitcoin Up
      • Bitcoin Prime
      • Yuan Pay Group
      • Immediate Profit
      • BitQH
      • Bitcoin Loophole
      • Crypto Boom
      • Bitcoin Treasure
      • Bitcoin Lucro
      • Bitcoin System
      • Oil Profit
      • The News Spy
      • Bitcoin Buyer
      • Bitcoin Inform
      • Immediate Edge
      • Bitcoin Evolution
      • Cryptohopper
      • Ethereum Trader
      • BitQL
      • Quantum Code
      • Bitcoin Revolution
      • British Trade Platform
      • British Bitcoin Profit
    • Bitcoin Reddit
    • Celebrities
      • Dr. Chris Brown Bitcoin
      • Teeka Tiwari Bitcoin
      • Russell Brand Bitcoin
      • Holly Willoughby Bitcoin
No Result
View All Result
  • Home
    • 카지노사이트
  • Economics
  • Finance
  • Politics
  • Investments
    • Invest in Amazon $250
  • Cryptocurrency
    • Best Bitcoin Accounts
    • Bitcoin Robot
      • Quantum AI
      • Bitcoin Era
      • Bitcoin Aussie System
      • Bitcoin Profit
      • Bitcoin Code
      • eKrona Cryptocurrency
      • Bitcoin Up
      • Bitcoin Prime
      • Yuan Pay Group
      • Immediate Profit
      • BitQH
      • Bitcoin Loophole
      • Crypto Boom
      • Bitcoin Treasure
      • Bitcoin Lucro
      • Bitcoin System
      • Oil Profit
      • The News Spy
      • Bitcoin Buyer
      • Bitcoin Inform
      • Immediate Edge
      • Bitcoin Evolution
      • Cryptohopper
      • Ethereum Trader
      • BitQL
      • Quantum Code
      • Bitcoin Revolution
      • British Trade Platform
      • British Bitcoin Profit
    • Bitcoin Reddit
    • Celebrities
      • Dr. Chris Brown Bitcoin
      • Teeka Tiwari Bitcoin
      • Russell Brand Bitcoin
      • Holly Willoughby Bitcoin
No Result
View All Result
Global Economic Intersection
No Result
View All Result

The Price Floor That’s Key to Gold Mining Profits

admin by admin
May 1, 2014
in Uncategorized
0
0
SHARES
3
VIEWS
Share on FacebookShare on Twitter

by Matt Insley, Daily Reckoning

Chocolate milk isn’t my ice-cold beverage of choice. But the “brown milk” holds an important lesson for us in the gold market – as you’ll see.

Chocolate milk, however, is my 11-year-old nephew’s favorite – and lemme tell you, that boy can put away some chocolate milk!

Recently, we were hanging out drinking our brown milk, and when the taste hit my lips, I instantly teleported through the wormhole to the last time I had a chocolate milk – back in grade school. It’s amazing what a once-forgone taste or smell can do to you.

Ah, I remember the good old days of school lunch. Sitting at a table with friends, getting a break from the drone of teachers and generally living the easy life! Heck, I even had an affinity for the school menu.

Frankly, I don’t know why school lunch got such a bum rap. I loved it – every day was different. You could mix and match your pizza or steak sub with a pretzel or apple – and of course, you got the choice of regular or chocolate milk. Mmm. Mmm. Mmm.

…lunch prices in Baltimore County have surged 87% in just 16 years!

Plus, 16 years ago, my last soiree of school lunchdom, you could get all of that for just $1.60.

That’s when I turned to my nephew and asked, “Hey, how much is school lunch these days?”

“Three dollars,” he said.

Holy cow. Three bucks? I was incredulous. Sure, three bucks is a steal for a normal, outside-of-school lunch. But comparing apples to apples, that means lunch prices in Baltimore County have surged 87% in just 16 years! That’s insane.

It also brings us back to the topic of today’s article – no, not chocolate milk – I’m talking about gold!

According to the U.S. inflation calculator, the rate of inflation over the past 16 years was a “mere” 44.9% – which accounts for about half of the 87% surge in prices. I guess the other reason for increased prices comes down to local/state/federal bureaucracy or just good old shadow inflation.

That being said, a 45% drop in your purchasing power in 16 years is the hefty cost of holding U.S. dollars. That’s a losing bet if I ever saw one – and it’s written plain as day on the government’s CPI inflation calculator.

But had you paid for the same school lunch in gold, the price wouldn’t have risen at all. In fact, it would have dropped.

That’s the lesson we can learn from a small carton of chocolate milk. (And I shouldn’t need to remind you that the same buffoons that allow 45% inflation in 16 years not only affect the price of school lunch but could also have an impact your Social Security checks. Ugh.)

Needless to say, gold should still be a part of your investment philosophy. And today there’s reason to believe gold is still a worthy place to stash some cash – particularly the miners look appealing.

And – shocker alert – in case you haven’t noticed, Janet Yellen is a strong dose of the same medicine at the U.S. Federal Reserve.


What is the Income Play Rich Investors Love? (Hint: It’s Tax-Free)


The same inflationary forces at work for years are continuing to play a large role going forward. That is, the Fed is spinning cash and holding interest rates low to try to goose the economy. To an extent, it’s working, too!

It’s amazing how that works, right? Apparently, when you increase the money supply at an alarming pace and stomp interest rates to the curb, the prices for stocks, houses and everything else seem to rise.

The great inflation continues!

Not to mention, at the rate the government is spending (think Obamacare, ever-rising Social Security benefits, out-of-control congressional spending, etc.) the only way to pay back all of these greenbacks is to print ’em.

All said and done, you and I can count on the status quo at the U.S. Fed for months and years to come.

All of this inflation – and the same force that jabs the price of chocolate milk higher – is going to support the gold market. So even though right now it seems like the price of gold and gold miners are walking on ice, rest assured that there will be demand for the “once and future money”!

From my perch, we’ve found a sturdy floor for gold prices above $1,200.

Whether that support is based on inflation, money supply, supply/demand or any other fundamental factor is still up for debate. But looking at the chart, I’m confident saying it’ll take a large force to push gold below $1,200 and keep it there.

Take a look at the all-important three-year chart for gold:

Gold Price May 2011-Present

I say that this chart is all-important because it tells the tale of the short- to medium-term gold market.

After hitting a high of $1,900, gold prices marched lower and continued to fall until we found support at $1,200. That is, twice since mid-2013, gold prices tried to push below $1,200, and twice, prices sharply rebounded. The second time this happened, in December 2013, we can consider this “confirmation” of that price support level.

By no coincidence, once the $1,200 price support was confirmed in December, miners got a boost.

I’ve shared this opinion before in these pages. The reason that miners caught a bid was simple: Up until that point, analysts simply couldn’t get a good read on where the price of gold was heading. Without a reliable commodity price, it was impossible for anyone to grade a miner.

But with price support at $1,200, the calculators start humming.

All things considered, I like gold miners here. I think the price of gold will stay above $1,200, and well-run miners can turn a profit.

Previous Post

Twitter Timeline Views See 15% Year-Over-Year Growth in Q1

Next Post

How The Fed Fixed Housing

Related Posts

Addresses With Over 1 Bitcoin Surge To New Highs: Investor Optimism Soars
Econ Intersect News

Addresses With Over 1 Bitcoin Surge To New Highs: Investor Optimism Soars

by John Wanguba
September 29, 2023
Unlocking the Future: Google's Game-Changing Move to Advertise NFT Games Starting September 15th
Business

Unlocking the Future: Google’s Game-Changing Move to Advertise NFT Games Starting September 15th

by John Wanguba
September 8, 2023
Bitcoin Is Finally Trading Perfectly Like 'Digital Gold'
Economics

Bitcoin Is Finally Trading Perfectly Like ‘Digital Gold’

by John Wanguba
August 5, 2023
Can Worldcoin Overtake Bitcoin?
Economics

Can Worldcoin Overtake Bitcoin?

by John Wanguba
August 4, 2023
Bitcoin Is Steady Above $29,000 Awaiting US NFP Figures
Economics

Bitcoin Is Steady Above $29,000 Awaiting US NFP Figures

by John Wanguba
August 4, 2023
Next Post

How The Fed Fixed Housing

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Browse by Category

  • Business
  • Econ Intersect News
  • Economics
  • Finance
  • Politics
  • Uncategorized

Browse by Tags

adoption altcoins bank banking banks Binance Bitcoin Bitcoin market blockchain BTC BTC price business China crypto crypto adoption cryptocurrency crypto exchange crypto market crypto regulation decentralized finance DeFi Elon Musk ETH Ethereum Europe Federal Reserve finance FTX inflation investment market analysis Metaverse NFT nonfungible tokens oil market price analysis recession regulation Russia stock market technology Tesla the UK the US Twitter

Archives

  • September 2023
  • August 2023
  • July 2023
  • June 2023
  • May 2023
  • April 2023
  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • August 2010
  • August 2009

Categories

  • Business
  • Econ Intersect News
  • Economics
  • Finance
  • Politics
  • Uncategorized
Global Economic Intersection

After nearly 11 years of 24/7/365 operation, Global Economic Intersection co-founders Steven Hansen and John Lounsbury are retiring. The new owner, a global media company in London, is in the process of completing the set-up of Global Economic Intersection files in their system and publishing platform. The official website ownership transfer took place on 24 August.

Categories

  • Business
  • Econ Intersect News
  • Economics
  • Finance
  • Politics
  • Uncategorized

Recent Posts

  • Addresses With Over 1 Bitcoin Surge To New Highs: Investor Optimism Soars
  • Unlocking the Future: Google’s Game-Changing Move to Advertise NFT Games Starting September 15th
  • Bitcoin Is Finally Trading Perfectly Like ‘Digital Gold’

© Copyright 2021 EconIntersect - Economic news, analysis and opinion.

No Result
View All Result
  • Home
  • Contact Us
  • Bitcoin Robot
    • Bitcoin Profit
    • Bitcoin Code
    • Quantum AI
    • eKrona Cryptocurrency
    • Bitcoin Up
    • Bitcoin Prime
    • Yuan Pay Group
    • Immediate Profit
    • BitIQ
    • Bitcoin Loophole
    • Crypto Boom
    • Bitcoin Era
    • Bitcoin Treasure
    • Bitcoin Lucro
    • Bitcoin System
    • Oil Profit
    • The News Spy
    • British Bitcoin Profit
    • Bitcoin Trader
  • Bitcoin Reddit

© Copyright 2021 EconIntersect - Economic news, analysis and opinion.