2010 EDUCATIONAL KIT: DVD, CD & REPORTS ... $20 Gold Rush
BY David Bradshaw ~ Editor, Real Money Perspectives
Gold's Future Bright! -Experts ~ Gold IRAs +20%/year!
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Jan 30, 2010 ~ ((M-F podcast)) ~ gold fraud alert!
In January gold prices held at $1,080/oz. on a firmer dollar as stocks fell despite upbeat GDP. Gold last traded down $5.40 to $1,080.00/oz., silver fell $.07 to $16.16/oz.
* Year-to date gold prices eased back 1.5% while silver slipped 4.4%. Meanwhile, the Dow fell 3.5% for the worst month in nearly a year, disappointing investors who adhere to the adage "As January goes, so goes the year." Precious metals remain a fundamental buy and hold, with their decade-long bull market soundly intact.
* Why gold will keep going up for years: "As sure as death and taxes, continuing excessive money creation by the central banks will lead to accelerating inflation. To this day the central bankers have remained undaunted and have increasingly intervened in all markets, but their influence is waning dramatically in the gold market. Today central banks are discovering to their increasing discomfort at what history has always demonstrated -- that manipulation of the free-market process ultimately fails. No amount of government interference and price manipulation can change the reality of the free market over the long term. It is gold's return as money that is going to be really instrumental in driving gold to prices that would seem fanciful to most at the present time. In reality, it isn't gold that is changing, because it has been a constant store of value for 6,000 years. It is the value of fiat paper money in which gold is priced that is on the slippery slope to oblivion," writes John Embry at GATA.
* "The U.S. economy grew at a faster-than-expected 5.% pace in the fourth quarter, the quickest pace in more than six years, as businesses reduced inventories less aggressively, the Commerce Department said on Friday. Stripping out inventories, the economy expanded at an annual rate of 2.2%, accelerating from the 1.5% increase in the third quarter. For the whole of 2009, the economy contracted 2.4%, the biggest decline since 1946," reports CNBC.
* Experts See Another Global Dip Ahead: "The global economic recovery could lose pace later this year, dashing hopes for a rapid escape from the deepest downturn of the postwar era, economists and investors said at the World Economic Forum's annual meeting in Davos. Heavy debts will weigh on governments and households in the U.S. and Europe for some time, while hopes for global growth will continue to rest on fast-developing countries such as India and China," reports WSJ.
* $1.9 trillion deeper in debt: "The Democratic-controlled Senate has muscled through a plan to allow the government to go a whopping $1.9 trillion deeper in debt. The party-line 60-40 vote was successful only because Republican Sen.-elect Scott Brown has yet to be seated. Sixty votes were required to approve the increase. The measure would lift the debt ceiling to $14.3 trillion. That's about $45,000 for every American," reports AP.
* "Uncertainty is the market's greatest fear. We are in the most uncertain period than at any time in most Americans' memory. Businesses simply are responding accordingly. It is axiomatic that the market hates uncertainty, in a manner akin to the way nature abhors a vacuum. While nature fills its vacuums, business addresses its uncertainty with inactivity," reports WashTimes.
* Bernanke Wins Second Term: "Federal Reserve Chairman Ben Bernanke won Senate confirmation for a second term, ending a bruising political battle that forced the head the world's most powerful central bank to fight for survival," reports CNBC.
* Stocks End 'Mildly Bad Day': The Dow Industrials came off its lows, but with one trading day left in January, the index is poised to record its worst monthly decline since the end of the bear market," reports WSJ.
* "The Federal Reserve maintained its pledge to keep interest rates near zero for an 'extended period' Wednesday and restated its intention to cease buying $1.25 trillion of mortgage-backed securities in March, opening a rift among policy makers for the first time in a year," reports Bloomberg.
* State of Union "A deficit of trust": "Declaring 'I don't quit,' an embattled President Barack Obama vowed to make job growth his topmost priority and urged a divided Congress to boost the still-ailing economy with a new burst of stimulus spending. Obama looked to change the conversation from how his presidency is stalling — over the messy health care debate, a limping economy and the missteps that led to Christmas Day's barely averted terrorist disaster — to how he is seizing the reins. Despite stinging setbacks, he said he would not abandon ambitious plans for longer-term fixes to health care, energy, education and more," reports AP.
* The State of the Union speech Obama would give in a more honest world: "My fellow Americans, the state of our union is . . . well, quite wretched at the moment. As president, I owe you that honesty and candor. It would be bad enough that we're stuck in an endless war against vicious terrorists or that we've just been through a financial crisis that wiped out a quarter of our wealth and left one in six adults without a job or underemployed, to say nothing of the fact that our planet is on the brink of an environmental calamity," reports Steven Pearlstein at WashPost.
Gold vs. The Great American Debt Machine: "Gold is not in a bubble but undervalued. As long as the US monetary and fiscal policies remain debt-based fueling future inflation, gold's bull market run has only just begun. Money is no longer money. Wall Street may have just discovered gold, but gold's role has withstood thousands of years of history. We remain convinced that gold will soon trade at $1,300 an ounce and in the long run push beyond over oft-stated $2,000 an ounce target," reports John Ing at SafeHaven.
* Since September 2008 the FED and central banks worldwide have flooded the markets with liquidity, causing the money supply and their balance sheets to triple. During the same period gold prices shot up from a 2008 low of $750/oz. to 12/2/09 high of $1,215/oz., a 62% price rise. Gold's 11% correction last month could expand, perhaps to 15%, even 25%, like we saw in 2006 and in 2008 from $1,000/oz. to $750/oz., but the secular bull market remains strong and healthy as we look ahead into the next decade. (more... Time to buy, sell or hold?)
* "Gold remains in fundamental uptrend due to negative outlook of debt and government deficits, said Martin Murenbeeld at DundeeWealth. Sentiment is cautious ahead of COMEX option expirations and the Federal Reserve's interest rate decision on Wednesday," reports Reuters.
* "The U.S. dollar touched the highest in more than a month Tuesday, on news that China wanted to rein in bank lending and that Japan's debt rating is in jeopardy. President Obama will propose a spending freeze for some federal departments, on concerns about growing deficits unsustainability," reports Marketwatch.
* "Stocks erased their gains on Tuesday as news that the Senate has scheduled a hearing on President Obama's bank proposal for next week rattled the market. Stocks had opened lower as China weighed on the market after tightening bank-lending requirements then rebounded after a report showed consumer confidence rose for a third straight month," reports CNBC.
* "The dollar slipped against the euro and higher-yielding currencies on Monday as some investors took profits on the U.S. currency's broad gains last week which had been fueled by risk aversion. Reports that embattled Fed Chairman Ben Bernanke was edging closer to winning confirmation to serve a second term also calmed markets, tarnishing the dollar's safe-haven appeal, after his prospects were seen to be shaky last week," reports Reuters.
* Stock market on alert over commercial real-estate exposures: "FDIC: commercial loans losses behind majority of bank failures so far this year. Regulators on Friday shut down five more banks in New Mexico, Oregon, Washington, Florida and Missouri, more than doubling the count for the year so far. Commercial real-estate losses were responsible for a majority of those nine banking failures, according to the FDIC, which insures deposits at nearly 8,200 institutions," reports Marketwatch.
* China's Real Estate Bubble Unprecedented: "There are about 30 billion square feet of space in construction only in China's commercial property sector. If the bubble were to burst, it would hurt the building materials sectors and the commodity plays in the Western world, the sectors where demand depends on the Chinese construction market, according to James Chanos, president of Kynikos Associates, reports CNBC.
* Both gold and silver prices ended last week about where they began the year, falling nearly 4%. Does this spell the end of the bull market? Don't count on it, for many fundamental reasons. In fact, savvy individual and institutional investors who bought precious metals on the dips have been richly rewarded over the last decade. Welcome to "gold's bucking bull market" of 2010. Hold on tight partner.
* Billionaires Still Love Gold: "One of the most interesting trends amongst billionaires as they look at the next 12 months is their continuing obsession with gold. Of those who completed our survey, 67% said that gold was either a buy or a hold, while only 22% said gold was a sell. So, if billionaires are still in love with gold despite it's massive run up in the past 12 months, they must be still scared of what the economy looks like in the near term. My take on this: we're in for a double dip recession," reports Forbes.
* Is Ben Bernanke on brink?: "President Barack Obama said Friday he's confident that Ben Bernanke will win a second term as chairman of the Federal Reserve Board, despite some concern that Democrats may withdraw their support for Bernanke -- one of the principal architects of the government's bank-bailout plan," reports Marketwatch.
* Is Tim Geithner Next?: "Barbara Boxer just announced she will not vote for Bernanke's confirmation for another term.That means the Republican threat of a filibuster to prevent his confirmation is in play. Rumor has it Fed governor Dr. Donald Kohn or Senator Chris Dodd will be nominated if Bernanke is not confirmed. Given Obama is playing the class-envy card by beating up on the banks, this is not a good time to change Fed chairman. Financial markets hate uncertainty and this development is uncertainty on steroids. Treasury secretary Tim Geithner is eerily silent on this change of events. I believe he may be on his way out as well," writes Swiss America Chairman Craig R. Smith in an email to brokers of the firm.
* Why we have to change capitalism: "There is an obvious solution to the too-big-to-fail banks: break them up. If they are too big to fail, they are too big to exist. It has become a cliché to observe that the Chinese characters for crisis reflect "danger" and "opportunity". We have seen the danger. The question is, will we seize the opportunity to restore our sense of balance between the market and the state, between individualism and the community, between man and nature, between means and ends?" writes Joseph Stiglitz at Telegraph.
* "Gold fell to a three-week low last week on speculation that the US dollar will extend a rally. 'The dollar is just incredibly strong, and that's forcing gold lower,' said Leonard Kaplan, the president of Prospector Asset Management. 'China was the driving engine behind commodities. You have a wave of asset liquidation coming through that triggered more sales,' said Frank McGhee, at Integrated Brokerage Services LLC in Chicago reports SMH.
* "Despite bullion's losses, underlying strength seen in the metal considering the magnitude of dollar's rise. A pullback is needed in the metal for new buying to emerge. The latest decline is seen as minor downtrend in bull market," said George Nickas at FC Stone reports Reuters.
* Scared of falling Gold prices? - Survey: "Here is a list of things that would support gold and things that point to a lower gold price: Reasons for Gold to rise: 1. Central banks around the world continue to print money without end in their attempt to keep the financial system solvent. For example in December alone, Freddy and Fanny were given an infinite checkbook by the government. 2. None of the excess that caused the financial crisis appear to have been solved. Reasons for Gold to fall: 1. The stock market has been climbing without any improving fundamentals long enough to be due for a significant correction and the gold price has followed the DOW down 51% of the time in the last half of 2009 (gold stocks followed the DOW down 71% of the time) 2. China has indicated that they plan to begin monetary tightening," reports StockReflex.
* "Stocks fell sharply last week, led by financials, as President Obama spoke about his planned crackdown on Wall Street's risk taking. The Dow dropped more than 200 points, or 2%. The Nasdaq and S&P were both down more than 1%. President Obama proposed new limits on the size and trading practices of big banks, saying he wanted to prevent a return to the 'old practices' that led to the financial meltdown," reports CNBC.
* "According to a Bloomberg survey, 77% of U.S. respondents believe Obama is too anti-business and four-out-of-five are only somewhat confident or not confident of his ability to handle a financial emergency," reports Yahoo.
* Cash for gold firms a 'shockingly bad value': On average, TV gold buyers offered around 6% of the retail price for gold, while high street retailers paid around 25%. "The poor value for money that these TV gold buyers are providing is simply shocking. The cash for gold market is unregulated, and this investigation has raised some serious concerns about the fair treatment of consumers. People should be wary of buyers’ advertisements as they could almost certainly get more money for their gold elsewhere," said Peter Vicary-Smith, chief executive of 'Which?' consumer champions to LonTelegraph. [Read CASH FOR GOLD: Are You Kidding? ]
* "The euro fell to a five-month low versus the U.S. dollar Wednesday as fears that Chinese efforts to rein in lending led investors to shun risky assets and ongoing worries about Greece's budget problems sent kept pressure on the European single currency. U.S. stock index futures pointed to a lower opening for Wall Street ahead of a raft of earnings data from major banks," reports Marketwatch.
* "The Dow tumbled over 150 points Wednesday -- wiping out all of Tuesday's big gains, as Wall Street experiences its biggest selloff of 2010. Wednesday's wave of selling was sparked by a range of factors, including negative reactions to IBM's earnings beat, a steep, dollar-induced selloff in the commodities complex and worries about China's ability to continue to lead the global economy," reports FoxBiz.
* Boston Tea Party: "In an epic upset in liberal Massachusetts, Republican Scott Brown rode a wave of voter anger to defeat Democrat Martha Coakley in a U.S. Senate election Tuesday that left President Barack Obama's health care overhaul in doubt and marred the end of his first year in office. Brown will become the 41st Republican in the 100-member Senate, which could allow the GOP to block the president's health care legislation and the rest of Obama's agenda," reports AP.
* "Yesterday's election was more than just a Republican win and Democrat defeat, it was a major victory for American conservative values. It proves that Americans have gotten their voice back and that it is NOT too late to turn this great nation around. The U.S. dollar strengthened on the view that political gridlock may help slam the brakes on Obama's socialistic spending spree," said Swiss America Chairman Craig R. Smith said Wednesday on The Derry Brownfield radio show.
* "U.S. stocks climbed Tuesday as health-care stocks soared on hopes that congressional legislation may be subject to new compromises after Tuesday's special election in Massachusetts. A defeat for the Democrats in a state as liberal as Massachusetts would also underscore the unpopularity of the health legislation," reports Marketwatch.
* Obama to meddle with your retirement account?: "The Obama administration appears to have come up with a novel way of financing trillion-dollar budget deficits – demanding IRA and 401(k) holders buy trillions of dollars in Treasury bonds. Assistant Labor Secretary Phyllis C. Borzi and Deputy Assistant Treasury Mark Iwry are planning to stage a public comment period before implementing regulations that would require private investors to structure IRA and 401(k) accounts into what could amount to a U.S. Treasury debt-backed government annuity. Spokesmen from both the U.S. Treasury and Department of Labor confirmed to WND that the federal agencies about to enter a pre-regulation public comment phase on the proposed rule change," reports Dr. Jerome Corsi at WND.
* Dollar Crisis Looms if US Doesn't Curb Debt: "The U.S. must soon raise taxes or cut government spending to curb its debt, and failure to act will risk a crippling dollar crisis as investor confidence ebbs. The national debt has risen above 50% of GDP (gross domestic product) from 40% two years ago, and within 20 years will blow past a previous record above 100% of GDP set after World War Two without stern official steps," reports Reuters.
* Forecast: Debt to dwarf GDP: "With the recession and the huge stimulus package added to the beginning of the baby boomers retiring, U.S. debt is already at 50% of gross domestic product, or GDP, and is projected to grow to 80% of GDP by 2019, according to Congressional Budget Office. In an alarming chart, the study projected that federal debt would be more than seven times the nation's GDP in 75 years if no action is taken to constrain or offset the growth of Social Security, Medicare and Medicaid and if tax rates stay near their current level," reports WND.
* "By far, the metal we are most bullish on this year is gold, as we see continuing weakness in the U.S. dollar driving the yellow metal to new all-time highs, probably in the first quarter of this year. All metals should fair reasonably well in 2010 as investors move to hedge themselves against inflation and U.S. devaluation, which will be major issues," said Sam Kirtley, CEO of SK Options Trading," reports Marketwatch.
* "Wednesday gold prices rose on speculation that the Federal Reserve will hold U.S. lending rates low for an extended period, eroding the value of the dollar. The greenback dropped as much as 0.5% percent against a basket of six major currencies," reports Bloomberg.
* "The US government’s deficit grew to $122 billion in December 2009, the largest monthly deficit so far. The gap, which was $62.1 billion in January 2009, nearly doubled. If the US government cannot attract enough savings to meet its borrowing needs, it has to 'print' the dollars. But this printing comes with a cost. It is the cost of inflation, and eventually, hyperinflation," reports James Turk at FMGR.
* "One of the key drivers for higher commodity prices this decade was a devastating secular bear market in commodities in the 1980s to 1990s. my projection for an end to the secular bear market in stocks that began in 2000 by 2013-2015 should roughly coincide with the end of the secular bull market in commodities," reports Chris Puplava at FinSense.
* "Investors who bought gold at the beginning of the decade tripled their money. The next 10 years could yield similar results, With several trillion dollars in circulation now compared to ten years ago, the outlook for gold must be compelling as the dollar continues to devalue," the South African Gold Coin Exchange said Wednesday to BizDay.
* "News of China's tightening monetary policy curbed economic optimism, triggering heavy technical gold selling Tuesday. China's banks' reserve requirements hike dampens bullion investor sentiment," reports Reuters.
* "The Chinese announcement has the potential to be this week's most important currency market driver and the market reaction over the next 24-48 hours bears close watching," said Nick Bennenbroek, head of currency strategy at Wells Fargo Bank in New York. The announcement underlined the risk tied to those currencies which, along with commodities, rallied for much of 2009 on the view that the global economy was on a path toward recovery," reports Forex.
* "Comments by Peng Junming, of China Investment Corp, triggered a rally in the U.S. dollar. 'I think the dollar is at its bottom now. There will be very limited space for the dollar to drop further. Although the dollar belongs to the U.S., China has a role to play in determining the dollar's exchange rate," reports Globe&Mail.
* Passport Capital Favors Physical Gold: "Owning physical gold is an insurance policy against such financial catastrophe because it involves no contracts. In contrast, gold futures and ETFs are just types of paper contracts that could be broken in a crisis," according to Passport Capital, a San Francisco-based hedge fund. Passport favors physical gold because it's cheaper than investing in the metal through an ETF," reports WSJ.
* "Gold surged 24% in 2009 and is set to rise 30% in 2010 in a volatile market, according to Ross Norman of BullionDesk.com. Norman said that spot gold prices will average $1236 with possibility of prices touching $1425 and reaching a low of $1080. Silver prices will average $19.55 with a high of $21.50 and low of $17.17," reports CommOnline.
* Precious metals rose nearly 3% during the first week of 2010 trading as investors and funds positioned themselves for economic uncertainty and the strong possibility of rising inflation and a weaker dollar. Gold's next stage will likely be exciting as the public begins to understand gold as the ultimate form of money worldwide.
* "Oil prices jumped to a 15-month high above $83 a barrel Monday amid signs of strong Chinese demand for crude and a weakening U.S. dollar. Crude prices have spiked 20 percent in the last month as a rash of cold winter weather in parts of the U.S., Europe and Asia boost demand. A weaker dollar also helped boost oil prices, as investors buy commodities as a hedge against inflation," reports AP.
* Fed Seeks to Block Release of Bailout Secrets: "The Federal Reserve will ask a U.S. appeals court to block a ruling that for the first time would force the central bank to reveal secret identities of financial firms that might have collapsed without the largest government bailout in U.S. history. Bloomberg argues that the public has the right to know basic information about the 'unprecedented and highly controversial use' of public money. Banks and the Fed warn that bailed-out lenders may be hurt if the documents are made public, causing a run or a sell-off by investors. Disclosure may hamstring the Fed’s ability to deal with another crisis, they also argued," reports Bloomberg.
* Why Gold Will Maintain Its Luster: "Gold hit an all-time high in 2009, marking the ninth straight year that prices increased. Some suggest its uptrend will come to an end, however, there are numerous forces indicating the contrary. The first supporting force behind gold's strength is the unconventional policies of the Federal Reserve, expected to maintain its short-term nominal interest rate target near or at zero through 2010. Secondly, gold has turned into more than just an insurance policy against a falling stock market; it has turned into an enhanced returning investment vehicle. Gold has been rallying alongside the general market. Lastly, as the economy in the U.S. rebounds, inflation will likely be inevitable, further bolstering gold's appeal," reports Thestreet.
* "A late round of buying nudged the stock market to a slight gain Friday, despite disappointing jobs data, ending a week of gains to begin 2010. The government reported 85,000 jobs were lost last month, more than expected," reports Marketwatch.
* America slides as Wall St. revels: "December was the worst month for US unemployment since the Great Recession began. The labor force contracted by 661,000. This did not show up in the headline jobless rate because so many Americans dropped out of the system. The broad U6 category of unemployment rose to 17.3%. That is the one that matters. Wall Street rallied. Bulls hope that weak jobs data will postpone monetary tightening: a silver lining in every catastrophe, or perhaps a further exhibit of market infantilism," reports Telegraph.
* 'End US dollar dominance', urges France: "President Nicolas Sarkozy urged an end to the US dollar's global dominance, warning that its weakness poses an 'unacceptable' threat to European competitiveness. The world is multipolar, the monetary system must become multi-monetary. 'A dollar-based system ... might have made sense in the 20th century but doesn't make sense in the 21th century,' said Prof Stiglitz, an adviser to former US president Bill Clinton," reports AFP.
* Consumer Credit Makes Record Drop: "Americans borrowed less for a 10th consecutive month in November with total credit and borrowing on credit cards falling by the largest amounts on records going back nearly seven decades. The dramatic declines raised new worries about whether consumers will cut back further on spending, making it harder for the economy to mount a sustained rebound," reports CNBC.
* "China's central bank unexpectedly raised a key interbank market interest rate Thursday for the first time in nearly five months, signaling a change in its policy focus toward pre-empting inflation risks in the new year. The tightening move came after the People's Bank of China hinted its priorities had shifted toward managing inflation expectations and away from single-mindedly supporting economic growth," reports WSJ.
* "Everything about gold is booming across China. There are increased sales in jewelery shops for gold ornaments, coins and bars. Many people are now convinced that gold is the best investment asset. This increased buying spree is the main reason why China is overthrowing India as the largest gold consumer in the world," reports CommOnline.
* "The gold price will hit $1,500 an ounce - or higher - during 2010 up more than 35% from its 2009 close," writes precious metals market analyst Jeff Nichols. "An ongoing bull market will carry the price to a cyclical high of $2,000, $3,000 or more in the next few years as the U.S. is, in his view, heading for years of stagflation," reports Mineweb.
* Commodity Super Cycle Ready to Rumble in 2010: "Traders are plowing billions of dollars, Euros, and yen into commodities and precious metals, betting on the debasement of all paper currencies. The resurgence of the "Commodity Super Cycle" is kicking into high gear, with G-20 central bankers fueling asset bubbles, by refusing to lift short-term interest rates," reports SafeHaven.
* "Gold rose to its strongest level since mid-December Monday as an appetite for risk returned to commodities and equities. Analysts cited a willingness of funds to put investment money back to work at the start of a New Year after previously selling gold to square old positions and book profits before 2009 wound down," reports DowJones.
* "The last decade is now often referred to as 'the lost decade' for both Wall St. stocks as well as Main St. jobs. No wonder individuals, institutions and governments are turning to gold once again as the only trustworthy foundation to build a brighter financial future upon," reports Swissamerica.
* "Gold ended 2009 with the biggest absolute annual gain in three decades. Gold rose due to bullion's role as a hedge against economic uncertainties after the worst economic crisis since the Great Depression," reports Reuters.
* It's was an exciting year for precious metal investors. Gold prices rose 24.5% after starting the year at $880/oz., while silver prices climbed up 50% from $11.32/oz. Despite the "great recession", and the subsequent government spending gone wild, metals have demonstrated to the world they are the safest haven for reserve capital.
* "Gold has been outperforming not just the dollar since 2000, but also most developed currencies as well as most developed bond markets and most developed equity markets. Going forward, it will be an alternative to paper money. A currency, rather than a commodity, and that's what it's been doing so far," Tom Fitzpatrick, chief technical analyst at CitiFX, told Reuters.
* "It appears that 2009 will end much the way it started in the financial markets, a dollar story. For gold the catalyst in 2010 will be inflationary pressures," said Brian Kelly, chief executive of Kanundrum Research, a commodities and macroeconomic research firm," reports Marketwatch.
* Gold: the commodity of the year: "In fact, it's probably the investment of the decade. If you bought gold at the millennium, you would be sitting on gains of about 280%. An investment in the FTSE 100 over the same period would have lost you more than 20% of your capital. When dividends and inflation are taken into account you would have barely broken even," reports Telegraph.
* Adjusted for Inflation, Dow's Gains Are Puny: "Many investors realize that stocks have been among the worst investments of the past decade. Despite its 2009 rebound, the Dow Jones Industrial Average today stands at just 10520.10, no higher than in 1999. And that is without counting consumer-price inflation. In 1999 dollars, the Dow is only at about 8200 and would have to rise another 28% or so to return to 1999 levels," reports WSJ.
* "The bull market in gold has a long way to go - both in magnitude and direction. Looking ahead to 2010, don't be surprised to see gold the yellow metal's price will continue its long-term upswing for at least a few more years, very likely reaching $2,000 an ounce . . . and possibly hitting $3,000 or more before the gold price cycle begins its next long-term cyclical 'bear' phase," reports Mineweb.
* "This secular bull market remains strong and healthy. Gold is again exhibiting to the world how a healthy bull market correction works. Gold's 11% correction this month could expand, perhaps to 15%, or even 25%, like we saw in 2006 and in 2008 from $1,000/oz. to $750/oz. I hope prices drop further because then India, China, central banks, hedge funds and individual investors will view this dip as a rare buying opportunity," reports Swiss America Chairman Craig R. Smith in Asset of the Century. (Request Mr. Smith's "2010 Economic Realities")
* Gold: the decade's best performer: "Happy holidays wishes to all, with a special season's greetings to the permanent gold skeptics. There are many commentators out there who see no value in gold and who denounce it as an investment at every opportunity. They are certainly entitled to their opinions, but it's hard to argue with the numbers over the past 10 years - investors on average would have been better off with a gold allocation than having no exposure. We consider gold a legitimate asset class and consistently suggest that investors consider a maximum 10% allocation to gold-related assets," reports Frank Holmes at Mineweb.
* "Despite its recent decline, gold will continue to serve as an investors' 'insurance policy' in 2010. In case something does go wrong and there's unintended consequences, we feel gold will act as insurance for those events," said Rachel Benepe, portfolio manager of five-star rated First Eagle Gold Fund to CNBC.