Top 10 Best Read Articles of 2016
December 27 2016
We are in the midst of the holiday season. New Year’s Eve is days away. In other words, it is a great moment to relive an eventful year, get the facts straight, and digest the impact of this year's important events yet again. Our top ten best read articles of 2016 might help you with that. I present to you our top ten of 2016 with a brief introduction.
1) 10 Terrifying Charts
Apparently, our average reader is very much visually oriented. Indeed, this article was by far the most read in 2016. The ten charts that I listed were clearly popular among our audience. Do you recall the charts that I showed? Or haven't you seen the charts yet? Click here to go to the charts.
2) Do Not Worry about Gold Confiscation
Surprisingly, this article was not published in 2016, but in 2015. Yet, it remained one of the most popular articles on our website. Gold confiscation is, of course, a hot topic among gold investors. While some opt to bury their gold next to their oat tree, I argue that there is no need (for now) to worry about a possible gold confiscation. Since central bankers and government are no longer bound by the gold standard, they do not need to confiscate gold to devalue their currency. See what my originals argument were right here.
3) This Is How Independent Central Banks Are
With central banks expanding the size of their balance sheets, their role in the economic sphere is becoming increasingly important. However, they are managing assets that were purchased with money created out of thin air. There is no accountability; (apparently) no rules. According to modern rhetoric, central banks ought to be “independent.” This, however, is mostly a myth. Central banks are government institutions, and in this article I show why.
4) Three Reasons Why ABN AMRO Is Wrong about the Gold Price
Another article published in 2015 made it to the 2016 list. I listed three reasons why ABN AMRO was wrong about their gold price forecasts. At the time, Georgette Boele of ABN AMRO forecasted a further drop in gold prices to $800/oz. Gold prices rallied at the beginning of the year, and made ABN’s prediction seem ludicrous. ABN later flip flopped, raising their gold price target to $1,500/oz if Donald Trump would win the elections, before adjusting down their gold price target toward $1,000/oz, even after Trump won the elections. This article is a great introduction to the dynamics in the gold market the past few years.
5) Gold Mining Stocks: Pros and Cons
Another subject that is able to withstand time. Some investors swear by investing in mining stocks instead of physical gold. In this article, I tried to answer this returning question: should I invest in (physical) gold or gold mining stocks? My conclusion boiled down to the fact that investing in commodities shows higher historic returns than investing in commodity businesses. Although I am the first to admit that gold mining stocks were extremely cheap approximately a year ago, I am convinced that my defense of investing in physical still stands. Read the article to discover why.
6) How Passive Index Funds Set Us Up for the Biggest Crash in History
In September, I read an article in the Financial Times about recent gold prices. Gold, despite its recent drop, has been one of the best investments in 2016. But the gold price is still way below its record high of September 2011, when the gold price reached an intra-day high of $1,921.15 dollar per troy ounce. Obviously, we are still far removed that 2011-high. The true question at stake is therefore: why is the gold price so low?
7) Why Is Gold Not at $2,000/oz?
In September, I read an article in the Financial Times about recent gold prices. Gold, despite its recent drop, has been one of the best investments in 2016. But the gold price is still way below its record high of September 2011, when the gold price reached an intra-day high of $1,921.15 dollar per troy ounce. Obviously, we are still far removed that 2011-high. The true question at stake is therefore: why is the gold price so low?
8) Comex Will Not Go Bankrupt!
There is a lot of nonsense being written about the gold market. One myth is persistent: the Comex — London’s 'paper gold market' — is thought to be on the brink of collapse. For example, Zero Hedge, in one of their articles, stated that “there is now an unprecedented 228 ounces of paper claims” (futures contracts) in circulation for every troy ounce of physical gold 'in the Comex vaults." Myth or reality?
9) I Talked with Jim Rogers and This Is What He Said (Don´t Miss This)
Earlier this year, I had the privilege to spend a few days with renowned investor Jim Rogers and later interview him. Here you find an article about the things that surprised me most, including the most important takeaways. When I asked Jim Rogers where he would go to live if he were my age, he answered: North-Korea. Courageous, but for most of us not an option. Jim Rogers continues to be very optimistic about gold prices in the mid/long term.
10) Buy Stocks or Gold? The Dow/Gold Ratio
From a portfolio perspective, how much should you invest in stocks and how much in gold? Or when should you invest in stocks and when in gold? You have probably heard one of the billion asset allocation´ rules of thumb before: “Put 25% in stocks, 50% in bonds and 25% in real estate,” or something similar. These asset allocations then become something sacred to investors. Almost every investor has its own favorite asset allocation. But, even the banks say that a fixed asset allocation is absurd. What should you do then? Should you invest in stocks or gold?