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DISCLAIMER

The opinions expressed in this blog are for informative purposes only. To the best of our knowledge, the information presented in the blog are accurate, however, we do not guarantee the accuracy of information. The views conveyed do not constitute investment advice and readers should seek professional advice when making financial decisions. Readers should not rely on the information, and those who do, do so at their own risk. Paramount Gold Nevada Corp. is not licensed as an investment advisor.

BUBBLE WATCHING

As we have noted here before, we believe that financial markets have generated the biggest bubble in history. There are many supporting facts for this view, from extreme measures of market sentiment to prolonged record low volatility, unprecedented low interest rates, record levels of leverage and historic over-valuation.

The bulls will try to tell you that earnings, economic growth and low […]

GOLD ON THE MOVE

Gold on the Move

Since bottoming on December 11, 2017 at $1242, gold has tacked on nearly $100 to its price. What’s going on?

Clearly, one reason for the move in gold is the weakness in the U.S. dollar. The black line tracks the U.S. dollar index over the past two months while the gold line tracks the gold price. The dollar […]

GETTING BULLISH ON GOLD

Gold is up nine of the last 12 Januaries with an average gain of over 4% and the trend has continued in 2018 with gold reaching an intraday high of $1327 so far this year.  From December 19 of last year, gold rose 10 trading days in a row. Is this another rally destined to disappoint investors or the resumption […]

THE BIG PICTURE FOR GOLD

The Big Picture for Gold

This is a very frustrating period for gold investors. Global financial and geopolitical risks appear to be very high but gold has not responded. Gold and gold stocks are range-trading and have been since early March of this year. Gold is in a roughly $150 range (about 15%) while the HUI, a gold stock index, is […]

Gold v.s. Bitcoin

Since the birth of bitcoin, one question has repeatedly grabbed headline: will bitcoin replace gold? Comparing the two is inevitable as both are forms of money that are not issued by government and both offer anonymity to their owners.

Three differences are immediately evident. Gold is more stable (up 12% this year) while bitcoin is much more volatile, up six-fold this […]

Where to Hide in an S&P Bear Market?

Where to Hide in an S&P Bear Market?

Are you concerned that the major stock indices may finally correct, leading to the next equity bear market? That’s your call. But one thing is fairly certain based on history; when the next bear market in equities begins, gold stocks will rise.

Below is a chart put together by Palisade Global. The blue represents […]

GOLD IS NOT A COMMODITY

Many gold analysts fall into the trap of treating gold like a commodity. So they analyze demand and supply to try to determine what the price should be, the same way they would look at copper or lumber.

Here’s the problem with that view. There are approximately 5.5 billion ounces of gold above ground and available to buy today. Nearly all […]

The Golden Season

Does it make a difference when you buy gold? There is a saying in the investment community that gold is stronger in the second half of the year. Is it true?
Below is a seasonal chart of the gold price. Unlike normal charts, this seasonal chart illustrates the average performance of an asset price in the course of a year. The […]

Is Gold Cheap?

To answer the question you need to know what you are measuring against. Cheap against what? Let’s compare it to the world’s current favourite asset…stocks.

Stocks are just off their all-time highs and looking a little tired. Has the stock market topped out? That’s not for us to say. But is it a good time to switch a little of your […]

The Trump ‘Reflation’ Trade

Today, markets are driven as never before by momentum, not fundamental analysis of the economy and earnings. The key to momentum is what we call the narrative, the story investors tell each other to generate the herd behaviour that drives momentum trades.

Gold is just as much affected by narrative as any other asset class, if not more so. Gold is […]