Tag: Guest Bloggers

Why TIPS Won't Protect You from Inflation... and Other Government Lies

Posted on by The INO.com Team

If the "World Snake Oil Salesperson Society" had a hall of fame, good old Uncle Sam would be a charter member. When it comes to smooth-talking folks into buying debt instruments, he's the slickest around.

And Treasury Inflation-Protected Securities (TIPS) are one of his slickest gimmicks.

Here's how the federal government describes TIPS:

Treasury Inflation-Protected Securities (TIPS) are marketable securities whose principal is adjusted by changes in the Consumer Price Index. With inflation (a rise in the index), the principal increases. With deflation (a drop in the index), the principal decreases. Continue reading "Why TIPS Won't Protect You from Inflation... and Other Government Lies" →

Leonard Melman Finds the Fiscal Cliff a Boon for Precious Metals

Posted on by admin

The Gold Report: Leonard, what are the most pressing issues facing investors today?

Leonard Melman: Let's start with the fiscal cliff. If America falls into this abyss, the combination of tax increases and spending reductions will slow down economic growth. Interestingly, political leaders in Europe are calling for increasing taxes and decreasing spending in order to solve their problems. I find it amusing that the solution to economic problems being proposed by leaders on the European side of the Atlantic is thought to be the problem on the American side of the Atlantic.

TGR: How do you account for the disconnect?

LM: It is due to a philosophical inconsistency and a lack of economic understanding on the part of the world's political leaders, most of whom are not well qualified as economic thinkers, nor as philosophers for that matter.

TGR: How important is a philosophical stance to making a cogent economic analysis? Continue reading "Leonard Melman Finds the Fiscal Cliff a Boon for Precious Metals" →

Doug Casey on the Morality of Money

Posted on by The INO.com Team

Editor's note: Doug Casey is known around the world for many very good reasons. Among investors, he's well known for being a very successful speculator and author. More broadly, his unwavering support of human liberty and his criticism of institutions based on coercion as well as those who support them have made Doug a hero to many... and perhaps public enemy number one to some of those whom he criticizes.

Whether one agrees with him or not, Doug almost always has a singular take on issues and ideas, making his essays and talks highly stimulating. As we approach the end of the year – a time when people often reflect on their progress or lack thereof over the past year across all areas of life – this February 2011 interview of Doug Casey by Louis James on the morality of money seems especially trenchant. We hope it helps you reflect on your relationship with money and investing, and brings a renewed sense of clarity and purpose to your financial activities in 2013. Continue reading "Doug Casey on the Morality of Money" →

Gold Chart of the Week

Posted on by The INO.com Team

Each week Longleaftrading.com will be providing us a chart of the week as analyzed by a member of their team. We hope that you enjoy and learn from this new feature.

Weekly Gold Report (December 24 through December 28th)

What a week in the Precious Metals! While the drop in Gold and Silver caught me off guard, I suppose I was not totally surprised. Every year around this time, global markets get thin and it leaves price action vulnerable to unexpected, directional movement.

There were a few factors outside of light volume that may have played a role in the drop. First of all, Washington continues to overpromise and underperform on their Fiscal Cliff negotiations. One of the main points that will remain in limbo without a compromise is taxes. I believe that a large part of the selloff in the Metals was due to traders and investors continuing to book gains on long positions ahead of a potential tax hike next year. Furthermore, these drops invite new sellers to the market that are hoping for a larger scale setback. Second, it was rumored that a large position in the Metals was adjusted after Morgan Stanley decided to drop Paulson and his Metals based investment strategies. Continue reading "Gold Chart of the Week" →

Silver Slides into the Holiday Season, but Upswing Expected in New Year

Posted on by admin

The feeling of Christmas may be in the air, as the classic holiday jingle goes, but silver bells are definitely not ringing this holiday season. The spot price of silver started off the week on a downward slide that by Thursday had led it to its lowest level in four months. That was the result of the white metal playing up to its precious metal side, tracking gold and ignoring the industrially positive third-quarter US GDP (up 3.1 percent on an annualized basis); it followed its yellow cousin’s lead in a sharp sell-off Thursday morning, touching a low of $29.51 an ounce to close near the psychological level of $30 an ounce, down nearly nearly 4 percent on the day. Continue reading "Silver Slides into the Holiday Season, but Upswing Expected in New Year" →