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Millionaire Now! by Larry Nusbaum

This blog is based on the organizational principles found in my new book, "Millionaire Now! - A Financial Toolbox with Seven Steps to Wealth".

Dollar Breakdown to Ignite Gold Market

Posted on 11/17/2006 11:12 AM | Link | Post Comment
The latest Gold Demand Trends figures have been released by the World Gold Council and the study reports that after a subdued start to the quarter, demand surged during September, in response to a stabilisation in price movement and then the fall in price to below $600/ounce at the start of the month. The study describes the third quarter as a quarter of transition, with Asian and Indian consumers shifting their ground and accepting prices of between $570 and $600/ounce, but with high and volatile prices over $600 appearing to constrain demand.

from the Gold Guru: "The Street just published an article entitled Dollar on Path for a Crisis. We couldn’t agree more. The timing of this crisis should coincide nicely with wave III of the current bull market and may very well be the fuel to ignite gold’s next big run. "

Read entire article here

From Rueters: Are commodities still an inflation hedge?
Commodities are unlikely to protect investor portfolios against rising inflation over the next few years because the market is flooded with speculative money and prices are too high, fund managers say.

But for investors with an outlook of more than five years, the case for including natural resources in a portfolio is intact.

Platinum ETF Speculation Continues to Circulate
"The success of gold and silver exchange-traded funds (ETFs) has prompted increasing speculation that they could be followed by platinum or palladium ETFs. ETFs are a derivative product underpinned by physical metal holdings that track the price of those metals and are aimed at investors looking to add diversity to their portfolios. "

Investment drives Silver price
The market has in fact shifted quite dramatically in the last few years from one where investors' bullion stocks (in aggregate) were running down to one where these stocks are being added to on a net basis. That's what has drive up the silver price.

The silver price has risen 16% in the last two months and 30% so far this year. The price has averaged $11.30, up 58% year-on-year.
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