Posted May 8, 2010 at 6:36 am
from NewsMax.com:
Gold is jumping again as investors seek safety amid a plunge in stock prices.
Gold gained 2 percent in regular trading Thursday but continued to rise in after-hours dealings.
Investors flocked to gold and other safe assets like Treasuries and the dollar as the stock market plunged. The Dow Jones industrial average sank nearly 1,000 points as the latest worries about Greece escalated, but regained much of those losses to close down about 350.
The dollar gained about 1 percent against a basket of six other currencies, and Treasury yields dropped sharply as their prices shot higher.
Gold for June delivery jumped $22.30 to settle at $1,197.30 an ounce, and later rose above $1,200 in late trading.
Investors have been pulling out of riskier assets like stocks because of…
Filed Under: Market Bytes
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Posted May 6, 2010 at 7:44 pm
On a day when the DOW closed down 430 points after falling 1,000 points and gold closed up $33 to roughly $1,210, Jim Sinclair was kind enough to spend some time making sense out of what is happening in the gold and equity markets for King World News listeners.
Legendary Jim Sinclair known as Mr. Gold for his remarkably accurate timing regarding the gold bull market of the 70′s is the Founder of jsmineset.com.
Click here to listen to the interview…
Regards,
Eric King
KingWorldNews.com
Filed Under: Investing
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Posted April 7, 2010 at 11:26 pm
(Rob McEwen is chairman and CEO of US Gold Corporation (NYSE:UXG and TSX:UXG). In this exclusive interview provided by Hera Research, Mr. McEwen discusses financial markets, the McEwen Junior Gold Index (MJGI) and the junior mining sector, which he believes offers superior growth opportunities, and where the gold market is headed in 2010 and beyond. Mr. McEwen also offers unique insights into his strategy to create the next Homestake Mining Company.)
Rob McEwen formerly founded and served as Chairman and CEO of Goldcorp, Inc. (NYSE:GG), the world’s lowest-cost million-ounce gold producer. Mr. McEwen transformed Goldcorp from a group of small companies into a global, tier-1 gold mining giant whose market cap now exceeds $28 billion. Under Mr. McEwen’s leadership, Goldcorp’s share price climbed at a compound annual growth rate of 31%.
Mr. McEwen’s goal for US Gold Corporation, in which he is the largest shareholder, is for it to become Nevada’s premier exploration company. Since Mr. McEwen took the helm, US Gold’s share price has increased more than 1000%.
HRM: Thank you for taking the time to speak to me today. Before we get started, I wanted to ask you why you created the MJGI when there are other indexes such as the XAU and HUI?
Filed Under: Investing
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Posted April 2, 2010 at 5:02 am
by Adrian Ash:
Wanted to buy China’s growth story but didn’t know how…?
The WORLD GOLD COUNCIL’S excellent new 74-page report on Chinese gold demand – Gold in the Year of the Tiger – contains many graphics, tables and charts.
Time-pressed investors should focus on just two…
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Posted February 27, 2010 at 12:48 pm
Via the Fisher Investments Editorial Staff
When markets take a tumble as they’ve done recently, some investors reach for one of the investing world’s “safety blankets”—gold. Gold fans see the shiny stuff almost as a cure all—an inflation hedge, a stock market correction hedge, and even a weak economy hedge.
But does gold deserve the security blanket mantle? Maybe not. In reality, gold is prone to short-term volatility just like stocks and boasts miserable returns over the long term—practically flat over the last 30 years, even including last year’s big gain.
Gold began trading truly freely in 1973, after post-Bretton Woods controls were removed. Since then, gold’s returned a cumulative 983% (annualized 6.8%), while global stocks returned 2,229% (9.1% annualized) and US stocks 3,552% (10.5% annualized).* Gold’s 2009 run was much hyped in the media, but even then it lagged stocks, returning 24.8% versus 30.0% for the year.
Besides lost opportunity costs, what’s even more dangerous for investors? Gold historically has been a short-term timing game. Much of gold’s long-term gains have come from very short boom periods. Since 1973, there have only been six major gold booms, each lasting from 4 to 22 months—or just 15% of the total time. Meaning gold’s done less than stellar the other 85% of the time.
Gold’s assumed stability and safety is largely a function of sentiment. Remember, gold is a commodity, and thus, its price is driven by supply and demand pressures. Sure, gold may do well during times when there is a high degree of market and economic uncertainty—when fear is high
[ Details / Source: Above is our hand-picked KEY excerpt(s) from this full article: "Gold’s Safety Blanket Myth" ]
* For more insights on gold, from the Fisher Investments staff, read “An Overview of Gold.”
Filed Under: High Jinks
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Posted February 9, 2010 at 12:16 am
From MineWeb.com:
Deutsche Bank started coverage of four North American gold companies, favoring those that have higher free cash flow, and said U.S.-based Newmont Mining (NEM.N) was its top pick in the sector.
The brokerage sees gold averaging $1,150 an ounce in 2010 and $1,250 per ounce by 2011, and said institutional investment in the sector remains strong.
Analyst Jorge Beristain, who started Newmont and Canada-based Kinross Gold (K.TO) with “buy” ratings, said “growth versus value” was the key trade-off for North American gold equities, which could offer leverage and optionality as compared to gold.
The analyst also started Canada’s Barrick Gold (ABX.TO) (ABX.N) and Goldcorp Inc (G.TO) (GG.N) with a “hold” rating.
“On both valuation and free cash flow yield Newmont appears the cheaper alternative vis-a-vis Barrick, while Kinross trades at a substantial discount to Goldcorp,” Beristain added.
(Reporting by Gowri Jayakumar in Bangalore; Editing by Anil D’Silva)
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Posted January 2, 2010 at 3:35 pm
By John Lansing
Editor, Parabolic Options
Where will some of the biggest profits of the year come from? Gold stocks. That’s right, gold is the No. 1 sector to invest in for 2010.
Gold has risen for nine years straight — not a single year of negative returns! Do you know of any other asset class that can make that claim? And this year will be no different.
In fact, the profits to be had in this sector will blow last year away, especially if you invest in the five gold stocks that I think will double (or better!) in 2010.
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Posted December 14, 2009 at 11:10 am
By Jeff Clark, Editor, Casey’s Gold & Resource Report
Long-term readers know that gold moves inversely to the dollar, meaning if the dollar drops, gold tends to rise (and vice versa). This happens with about 80% regularity. But what many gold writers haven’t acknowledged is the leveraged movement our favorite metal has demonstrated this year to the world’s reserve currency.
The U.S. dollar index, a six-currency gauge of the greenback’s value, has dropped 7.8% so far this year (as of December 3). Meanwhile, gold is up 38.7% year-to-date. In other words, for every 1% drop in the dollar index, gold has risen 4.9%. If that approximate percentage holds over time, one can begin to estimate what the gold price might be if you know what the dollar might do.
While the dollar is likely to bounce at some point, making gold correct, the long-term fate of the dollar has already dried in cement. If the dollar were simply to return to its March 2008 low of 71.30 next year – a 4.6% drop from current levels – this would imply a rise in gold of 22.5% and a price of about $1,478 an ounce.
The long-term scenario is more dramatic. If you believe the dollar will lose half its value from current levels, this would imply a gold price around $4,164. If you believe it will lose 75% of its value, gold would reach about $5,642. Doug Casey has called for a $5,000 gold price; if he’s right, guess what that implies for the dollar?
And think about this: these calculations ignore what else might “show up,” such as when price inflation shows up in the economy, the greater public shows up to buy gold, or the Chinese don’t show up at an auction. Could $5,000 gold be too low?
Unless you think the dollar’s problems are solved, its eventual demise is gold’s eventual glory. Prepare, and invest, accordingly.
And keep up on the gold and precious metals markets in Casey’s Gold and Resource Report. Each month I’ll bring you the best research and investment recommendations in the business. And until December 18, you can get a subscription for 50% off the regular price and receive a free gift worth $79.
Filed Under: Market Bytes
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Posted November 25, 2009 at 8:32 pm
By Jeff Clark, Editor, Casey’s Gold & Resource Report
As you read this, the Chinese government is doing an extraordinary thing… something nearly unheard of in the modern world.
It is encouraging citizens to put at least 5% of their savings into precious metals.
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Posted November 3, 2009 at 11:34 am
by Sheldon Liber
In general, I distinguish bad advice, misleading or misguided information from that regarding a stock idea that simply did not pan out, of which I have been guilty too — all of us have hits and misses. However, a post I read on Seeking Alpha promoting gold, with suggestions of doom by tailoring the data to fit the theory. The author supported his point by back-testing only ten years to a known low water mark.
This is not to say that there is not something of value to be gleaned from the story which is about more than gold, but the author chooses to give space to extreme views and some suspect data points.
There is a simple reason that over long periods of time gold under performs a broad based basket of equities available in the stock market. The price of gold fluctuates with demand that is created by fear, and the perception of scarcity.
Like stocks, gold may be a good value at times, and not others. Is it really wise to invest in anything when it is at an all-time high, and driven by fear?
A review of history indicates that the price of gold fluctuates wildly and has not even kept up with inflation over the past 35 years.
[ Details / Source: Above is our hand-picked KEY excerpt(s) from this full article: "Serious Money - Is Gold an Investment" ]
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