Investor: CASE FOR GOLD
PLEASE NOTE THAT THIS INFORMATION EXPRESSES THE VIEWS AND OPINIONS OF SEABRIDGE GOLD MANAGEMENT AND IS NOT INTENDED AS INVESTMENT ADVICE. SEABRIDGE GOLD IS NOT LICENSED AS AN INVESTMENT ADVISOR.
The Gold Market
Tuesday, 9th April 2013
As we write this, the gold price is weak and sentiment has never been more negative. Measures such as the Daily Sentiment Indicator have recently hit lows last seen in 1994 and 1997 while MarketVane's bullish consensus and Hulbert's HGNSI index of gold portfolio managers have broken to lows below those recorded in 2008. The major banks have cut their price forecasts and some have declared an end to the bull market for gold which has tallied 11 straight years of higher closing prices. Could all these people be wrong?
The Gold Market
Wednesday, 14th November 2012
Gold has now been in correction mode for more than a year. The fundamentals are strong...one central bank after another has embraced monetary expansion, sovereign debt continues to grow, the world economy continues to slow and enormous amounts of public and private debt need to be rolled over at very low interest rates. This back drop supports ongoing devaluation of paper currencies and a rising gold price, but the market seems hesitant to believe it and embrace the one reliable store of value that can protect against an organized assault on the value of money.
The Gold Market
Tuesday, 14th August 2012
Since 2002 we have argued in these pages that: (1) the world's developed economies were floating on an historic sea of credit which was mimicking an economic boom; (2) the credit bubble would burst; (3) the result would not be a deflationary bust because central bank policy would be to expand the money supply and weaken currencies rather than allow a pandemic of defaults; and (4) financial assets and fiat currencies would suffer a crippling loss of confidence, making gold the best performing asset of the next decade or more.
The Gold Market
Monday, 16th April 2012
It sometimes seems to us that no investment attracts more negative commentary than gold. In the past six months, investors have been treated to yet another round of high-profile analyses declaring that the gold bull market is dead. Since these analysts are not on record as having predicted the gold market's consecutive 10 year bull run and its gain of more than 600%, why would anyone listen to them? But investors do listen to this nonsense and so it needs to be addressed.
The Gold Market: Making sense of chaos
Friday, 11th November 2011
The third quarter began well for gold and proceeded to get better until September 21 when it seemed to step into space, falling 20% ($280) in just a few days. This event demonstrated how sensitive gold is to perceptions of central bank policy. What happened?
Why is the gold price down when there is so much financial turmoil?
Friday, 30th September 2011
It is never easy to say with certainty what is happening day-to-day in the gold market. By nature, this is a private market which is opaque by design...those who own gold do so in part because it affords anonymity and independence from the conventional financial system. That said, here is our best guess as to the reasons behind the 20% decline in the spot price of gold from its recent high above $1900 to a low of $1535.
Does gold hedge against inflation?
Tuesday, 27th September 2011
Yes, depending on what you mean by inflation. Most people assume it means increases in the CPI - Consumer Price Index. Using this argument, gold's high of USD$852 per ounce in 1980 should equate to an inflation-adjusted high of about $2,400 today.
BASIC FACTS ABOUT GOLD
Thursday, 8th September 2011
There are about 5 billion ounces of above ground gold supply worth about USD 9 trillion at current prices. Less than half of this is in deliverable, investment-grade form. The above ground gold supply is growing at about 1.5% annually, the 300 year average.
The Gold Market
Wednesday, 10th August 2011
In our last report in early May, we suggested that investors buckle up in preparation for a run in the gold price. Events have unfolded as expected. Gold has now established its own path as the premier vehicle for the preservation of wealth independent of currencies and other asset classes (whether commodities, equities or bonds). The decision in early August by the Swiss and Japanese central banks to intervene in the markets to weaken their currencies has served notice that strong currency alternatives to gold will not be tolerated. And gold is once again the preferred reserve asset of the world's central banks: South Korea, Thailand and Kazakhstan joined the ranks of buyers in the last 30 days.
The Gold Market: Time to Buckle Up?
Wednesday, 11th May 2011
Is the gold market now approaching its moment of truth? The mainstream continues to ignore the relentless rise of the gold price, proclaiming each new high to be a 'bubble' top, noting again and again that gold has no real use, cannot be eaten and pays no dividend or interest. But in our view, beneath the surface, confidence in the current monetary order is being eaten away by the twin cancers of rising debt and reckless monetary expansion. Are we approaching a major market dislocation which fundamentally changes the perceived value of gold?
