Gold Fever Strikes the Über-Rich

Source: Daily Finance, Douglas McIntyre (10/5/10)

"One super-rich couple bought 1 ton of gold, >$42M at today's prices."

Stock prices have been volatile since the credit crisis hit. The market hit multiyear lows in early 2009. The May "flash crash" showed that even the technology that allows markets to operate can be a danger to equity investments. Bonds have peaked in value, according to Goldman Sachs. And while U.S. real estate values have begun to recover in some regions, they're still failing in others.

So the rich (i.e., the very rich) have begun to hedge what they see as a dangerous financial world by buying gold. In some cases, they've begun to stock up on gold literally by the ton. Reports from Reuters' Global Private Banking Summit show several banks, led by Swiss giant UBS, have begun suggesting their wealthiest individual-investor clients put as much as 10% of their assets into gold. One banker said a super-rich couple bought a ton of gold—worth >$42M at today's prices—and moved it to another country. Others are buying gold by the bar.

One banker said inflation concerns and global economic instability pushed the rich into hard assets.

For the buyers, the most dangerous aspect of this gold fever is that numerous experts don't expect its value to go much higher. However, central bank (CB) actions like the Bank of Japan's move to cut its benchmark rate to near zero may lift gold's value further. As CBs in the EU, Japan and U.S. change monetary policy, currency values could drop and extremely low interest rates could eventually cause runaway inflation.

Still, the gold price has risen from a 52-week low of $1,026/oz. to a recent all-time high of $1,329—a tremendous run that raises the logical question: How long it can last? But for now, the richest of the rich appear to be banking on it continuing.

Announcing Streetwise Live! Events
Source: Streetwise Reports (07/13/2020)

Streetwise Reports is offering 100 investors—at no charge—the opportunity to meet via Zoom with executives of precious metals companies as they discuss recent developments at their companies and upcoming catalysts.

"China's export quota could be opportunity for Canadian miners"

Latin America: Six Gold Juniors Amass 100M+ Ounces
Source: Marc Davis, BNW News (05/25/2010)

Latin America, the world's last great mineral frontier for prolific gold discoveries, is proving a godsend for some lucky investors.

Mexico: Gold's Next Powerhouse Player
Source: Marc Davis, BNW News (11/03/2009)

As the world's key gold producing nations struggle mostly in vain to replenish dwindling below-ground supplies, Mexico is bucking the trend in a big way.

Where Have All the Gold Mines Gone?
Source: Brent Cook, Exploration Insights (04/14/2009)

Given the declining global gold production, mining companies’ demand for reserve replacement and the acute dearth of new gold discoveries, there is no doubt that real economic discoveries will be exceptionally valuable. . .the opportunity for stellar profits is the best it has probably ever been. Identifying the few successes, however, will require vigilant and constant technical assessment of geology and drill results, always with an eye to mine economics.

Congo Completes Mining Review, Says Majors Quit Talks
Source: Reuters (12/20/2008)

"Review process is extended an additional 45 days to allow six companies to return to the negotiating table for direct talks with government ministers."

I haven’t spoken to my old mining stock friend, noted and universally respected gold stock guru, Bob Bishop, about Rare Element in a year, but I hear he is still a supporter and very large shareholder. I don’t believe he will hold it against me to remind you that this was one of his favorite holdings when he left the newsletter writing business. . .

It's Only the Beginning for Uranium
Source: www.financialinsights.com (06/03/2005)

Dr. Richard S. Appel, author of Financial Insights, first became bullish on uranium in mid-2003, when it appeared obvious that its supply versus demand equation was fated to seriously drive higher its price. Since then, a series of events in the uranium industry has led Appel to believe that uranium prices will reach never before seen levels.

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