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May 22, 2012
Warren Richey: Can US group challenge overseas surveillance act? Supreme Court to decide
Thomas M. Anderson: Walking Away From a Mortgage
The Kosher Gourmet by Megan Gordon: Enjoy a celebration of the most rich and layered flavors: Black bean, sweet potato and quinoa chili
May 21, 2012
Mark Clayton: Cybersecurity: How US utilities passed up chance to protect their networks
Howard LaFranchi: NATO summit: Who will foot the bill for long-term Afghanistan security?
Chris Farrell : Earn Dividends in Emerging Markets with This WisdomTree ETF
Stephen Whiteside, Ph.D. : Mayo Clinic Medical Edge: Social anxiety disorder --- or just shy?
Guy Jackson : Victim's father regrets death of Lockerbie bomber
The Kosher Gourmet by Mario Batali: Famed chef's veal shoulder farsumagru: A festive meat course for late spring
May 18, 2012
Rabbi Berel Wein: Striving: The People of the Book's Book for (All of) the People
Steven Goldberg: 5 Great Stock Picks and the Exchange-Traded Fund that Owns Them
Mary Pickett, M.D.: Ask the Harvard Experts: Don't be forced into gluten-free lifestyle based merely on a doctor's false-positive test
The Kosher Gourmet by Carolyn Malcoun: DIY healthy lunchbox treats: HOMEMADE FRUIT BARS for kids and brown-bagging adults alike
May 17, 2012
Warren Richey: Teacher fired for being unwed and pregnant can sue religious school, court rules
Josh Mitnick: Netanyahu's 'centrist' coalition is already proving it's anything but
Steven Goldberg: Earn Dividends in Emerging Markets with This WisdomTree ETF
Amina Khan: Research links coffee to lower death rates
The Kosher Gourmet by Faith Duran : Cheesy Potato Breakfast Casserole with Cheddar and Sun-Dried Tomatoes
May 16, 2012
Carmen Terzic, M.D., Ph.D. : Mayo Clinic Medical Edge: A variety of exercises can help improve balance
Melissa Healy: National strategy on Alzheimer's disease aims to halt it by 2025
The Kosher Gourmet by Joyce White : GOODNESS GRACIOUS: GREENS! 4 winning recipes that are no longer just for down-home folks (Includes expert tips & techniques)
May 15, 2012
Kristen Chick: Obama administration resumes arms sales to Bahrain despite serious unresolved human rights issues. Activists feel abandoned
Pat Mertz Esswein: Homes are now affordable again and mortgage rates are low. What you need to know before you buy
Kathy Kristof: Our Practical Investor Fights Inflation with These 6 Investments
Sue Hubbard, M.D.: The Kid's Doctor: Lactose intolerant young child? Check again
The Kosher Gourmet by Kathy Hunt: Spread a Little Excitement with EXOTIC CONDIMENTS (4 RECIPES)
May 14, 2012
Lisa Gerstner: How to Protect Your Identity, Finances If You Lose Your Phone
Harvard Health Letters: Heart disease and dementia
The Kosher Gourmet by Megan Gordon: MANGO COCONUT OAT MORNING MUFFINS are a bright but hearty delight
May 11, 2012
Jessica L. Anderson: Get the Best Deal on a Used Car
Jett Stone: Forget face-lifts and fake knees. Scientists have seen the fountain of youth --- and it's broccoli
The Kosher Gourmet by Chef Mario Batali: The famed chef's vegetable dish that tastes true to the season: FAVAS AND SUGAR SNAP PEAS WITH POTATOES AND TARRAGON
May 10, 2012
Sergei L. Loiko: Putin sends warning to U.S., NATO in Victory Day speech at Red Square
Mary Rourke: How being a 'mentch' got Vidal Sasoon his start and fighting in Israel's War of Independence provided him with confidence and a strong sense of his own identity
Jeff Bertolucci: Get Home Phone Service for Less Than $10 a Month
The Kosher Gourmet by Betty Rosbottom: Gleaming with its golden, crimson, and snowy white hues, this silken smooth and creamy STRAWBERRY ORANGE TRIFLE looks impressive, but is easy to prepare
May 9, 2012
Sharon Palmer, R.D. How you can reduce your risk -- or delay -- chronic diseases associated with aging
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Jewish World Review
March 19, 2009
/ 23 Adar 5769
Gold unlikely to pan out as cure-all
By
Gail Marks Jarvis
http://www.JewishWorldReview.com | (MCT)
Gold is where investors go when they are scared - scared about war, scared about economic meltdowns or scared about runaway inflation.
The metal is repeatedly described as a "safe haven." On late-night radio ads, gold hucksters try to tantalize frustrated investors with the promise of safety and riches.
But just because gold never becomes worthless doesn't mean it won't churn your insides or leave you with a sizable loss in value.
Like any other investment, the price you pay matters. Last March, with investors worried about the potential failure of Wall Street's financial goliaths, nervous investors piled into gold and the price surpassed $1,004 an ounce just before investment bank Bear Stearns failed. The day after the government stepped in to handle the collapse, however, gold started heading down. By late October, it was at $713 an ounce. What looked like a haven in March had turned into a 29 percent paper loss by October.
And when people lose 29 percent, it often feels miserable regardless of whether the loss is in stocks, bonds, gold or anything else.
Now, with gold topping $1,000 an ounce again last month before pulling back a bit, investors are asking themselves once again if they missed their opportunity to buy gold cheaply in the $700s. They wonder if they should follow the gold bugs into the metal now as some predict $2,000 an ounce or higher.
Gold bugs are the perpetual doom-and-gloomers who distrust paper money and always tout the value of gold. Their case for gold now is that with governments spending huge amounts to try to rescue their economies, inflation will run out of control in a few years and gold will be the savior as money loses value.
Outside the gold-bug circle, however, there is apprehension about the grandiose forecasts.
"We had a bubble in gold fueled by exasperation and the inability to make money in stocks," said Brian Dolan, chief currency strategist for Gain Capital, which offers individuals the opportunity to trade gold and currencies. "Investors were hit by all the bubble sales pitches that suggested gold was a 'can't-lose proposition.'"
Gold has fallen sharply of late as investors began to imagine the financial system ultimately stabilizing and the stock market reaching bottom.
Because it's unclear when the crisis will end, Dolan thinks gold will drift down to a trading range between $835 and $880, but eventually go below $700 as investors become more hopeful about stocks and bonds.
If he is correct about a downturn, gold stocks as well as gold exchange-traded funds will drift lower.
Even without a sharp downturn, Standard & Poor's metals analyst Leo Larkin last week removed his "buy" recommendations from gold stocks, such as Barrick Gold, claiming prices were high by historical standards.
Dolan thinks the five-year uptrend for gold will be replaced by a five-year retreat back to the $300 to $400 range that existed before this decade's surge. He sees the rally as a departure from gold's typical range.
Although gold is a hard asset and can't become worthless, it falls out of favor among investors when they become more optimistic and can earn dividends and interest in a wide range of stocks and bonds.
Psychology will influence the price of gold. If investors see governments struggle unsuccessfully to stabilize the financial system and reverse the recession, there could be another move into gold for safety. And if inflation expectations pick up, the gold rally could re-emerge.
"Governments are committing themselves to high levels of public expenditure and taking on risky assets from the private sector, while tax revenues collapse and public debt reaches record levels," said Merrill Lynch commodity strategist Francisco Blanch. As a result "sovereign bonds are increasingly being seen as risky assets even in developed markets" and emerging market currencies "are showing a high probability" of depreciating.
Blanch expects gold to rally as investors seek alternatives to weak currencies.
Still, that doesn't mean savvy investors will flee entirely into gold as a haven. Rather, professionals tend to put small amounts of money into gold when they want a buffer in rough times. For example, William Bengen, a Cajon, Calif., financial planner, has about 3 percent of clients' portfolios invested in the SPDR Gold Trust exchange-traded fund (GLD). Most of their money, however, is in bonds backed by the U.S. government - investments that earn interest.
Every weekday JewishWorldReview.com publishes what many in the media and Washington consider "must-reading". Sign up for the daily JWR update. It's free. Just click here.
Gail Marks Jarvis is a personal finance columnist for the Chicago Tribune and author of "Saving for Retirement without Living Like a Pauper or Winning the Lottery." Comment by clicking here.
Previously:
02/29/09: Housing credit could provide sizable boost
02/19/09: Rebalancing being put in different light
02/04/09: Diversification doesn't always offer insulation
01/27/09: Taking steps can help regain some control
01/20/09: How to save for college during a recession
01/12/09: Bonds still risky option to stocks
12/24/08: Some predict mid-2009 for return to investing joy
12/09/08: A small dose of short funds may be useful
11/11/08: Mutual funds can get caught in downward spiral
10/27/08: Investors can bounce back from even the worst of times
10/20/08: Want to sell? Look at 401(k), but don't leap
10/16/08: Want to be like Buffett? There are ways
09/29/08: Money protection only goes so far, so know the risks
08/26/08: Retail stocks may not be best fit for investors
08/20/08: Rear-view mirror investing can be dangerous to a portfolio
07/01/08: What do we do? My daughter didn't get a scholarship
02/25/08: Before abandoning your mutual fund
02/14/08: Dirty little secret of some funds may be haunting
01/29/08: Sorting out the stock market
01/03/08: One word for 2008 crystal-ball gazers: Caution
12/11/07: Buy and hold isn't necessarily tried and true
11/26/07: Translating the falling dollar's implications for investors
11/13/07: Gradual retirement may not be key to happiness
11/05/07: Rate cut won't offer immunity to investors
10/29/07: Employers set to help workers save in 401(k) accounts
10/22/07: Playing bounce may be costly to stock investors
10/10/07: Investors find boring often can be fruitful
10/01/07: Make up lost time with swift, smart action
09/24/07: Balance is key for investing by retirees
09/18/07: Homeowners who wait see options fade
09/04/07: Easy matter to rate fund's performance
08/27/07: Mortgage mess could be good for savers
08/17/07: Small stocks are coming with large caveats
© 2007, Chicago Tribune Distributed by McClatchy-Tribune Information Services
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