LIVING OFF DIVIDENDS & PASSIVE INCOME

St Gaudens Double Eagle 1 Oz Gold Coin

Today Gold hit an intraday price of $1005/ounce. While not a record, it’s definitely a historical moment, with this event occurring for only the sixth time in history.

We can only speculate as to why the run up to a $1000 so quick but some of the likely reasons are:

• The continued monetization of US debt and resulting devaluation of the dollar
• The ability for 1/6th of the world’s population (the Chinese) to now buy gold
• The Indian Wedding season is about to begin soon and this is when Indian’s start buying gold jewelery
• The Chinese government has been buying gold on the sly. Well maybe not so secretly. They even encouraging their citizens to buy silver and gold
• The Chinese government just agreed to buy $50 Billion of IMF Bonds denominated in SDR (Special Drawing Rights), a mixture of various currencies, which might be a signal that the US Dollar is losing its status as the world’s reserve currency

The only question is whether this rally can last. In the long term, the answer seems obvious, but the short term is anyone’s guess. However, I think $1000 gold is here to stay.

• The End of Cheap $1000 Gold? Today’s guest post comes from Bruce, CEO of Superior Gold. Last year I wrote an article for Living Off Dividends & Passive Income outlining 10 reasons why gold would break $1000. It was a conservative estimate at the time, which was achieved later in the year. Since then the Dow......
• Another Case For Gold Today's post is an excerpt from What If Stocks Were Priced In Gold? posted at Experience Is Everything.  While the post is incredibly interesting it is rather long. The portion I've quoted explains why gold will likely outperform the dollar and stocks over the next few years. It follows that......
• The Sun Sets On Dollar Supremacy According to a quote in the Telegraph, HSBC has issued a new report stating that the Federal Reserve's ultra-loose monetary policy is forcing China and other emerging countries to create a new global currency "order". According to David Bloom, HSBC's currency chief, the dollar looks like the sterling did after......

• Silver Bullion Coins Coins & Paper Money -> Bullion -> Silver People buy silver bullion coins for a few different reasons. Some buy them because of the precious metal content as an investment and buffer against inflation. Some people buy them because they fear that one day our popular currency will become worthless,......
• Can China Affect Gold Prices? The Chinese government has been advising its citizens to buy gold and silver. Typically, there is a large abyss between what the government wants and what the people actually do. However, in this case at least, it seems that the Chinese people are happy to be buying both these commodities.......
• Gold and silver hitting two-decade highs Both gold and sliver cracked highs that they hadn't seen in two decades today.  Gold hit the high $580s and silver was above $11.50.  (Disclaimer: I own a little of both.) Some reasons why the shiny metals are getting shinier, according to the news: Buying by funds Speculation surrounding a......

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