Where Next?
By Lawrence Roulston
With gold well into record territory, investor enthusiasm is boiling over.
There is a wide range of opinions on the outlook for metals, reflecting the uncertainty in nearly all of the variables that impact metal prices.
The sovereign debt and worries and fears of a double dip recession still cloud the outlook for some investors. Another round of quantitative easing will inject another $600 billion into the global money supply. The announcement of QE2 built confidence that the American economy will remain in positive territory. It also re-ignited inflation concerns, pushing gold to a further record high.
Investors were already buying gold for its safe-haven status. The gold market enjoyed a further boost as investors seek cover from looming inflation (read “currency devaluation”).
The high price of bullion has attracted a significant amount of media attention and drawn in a great many investors who might not otherwise be investing in gold. Many gold companies have followed gold higher: certainly, the big producers and the better-known among the developers and explorers have enjoyed big gains.
As the present gold rush is driven largely by investors seeking safety, the majors and the mid-tier producers trade at premium prices. An inordinately large discount is applied to the next level down. A development-stage gold company clearly carries more risk than an established producer. The flip side is that the developers and advanced explorers offer a great deal more upside. The higher potential rewards arise in part from the higher leverage to the gold price offered by the smaller companies. A second benefit is that select companies will appreciate in value as their projects evolve toward production.
Gold is capturing the headlines, but other aspects of the mining industry deserve a share of the attention. North American and European investors continue to shun the base metal juniors for fear of further economic slowdowns. Those investors seem to have missed copper’s stealth march toward its previous record highs. Tin is now at an all-time record high. Other metals have also moved higher. That strength in the base metal markets is being propelled by demand from the developing world. The Asian mining companies are scouring the planet in search of metal deposits on which to develop new mines. The takeover activity is set to accelerate and to become far more visible.
The United States government continues its efforts to push down the value of the dollar. On one level, a cheaper dollar would benefit American exporters. Secondly, devaluing the currency reduces the real value of the multi-trillion dollar debt owing to foreigners. Of course, downward pressure on the dollar is quickly matched by other nations seeking to keep their export industries competitive.
On any given day, pundits could put together a string of headlines to support a case for any direction for any of the metals. Instead of simply speculating on metal prices, investors can instead put their money into companies that are adding value for shareholders. The gains from successfully executing mineral development projects far exceed any realistic outlook for moves in metal prices.
Lawrence Roulston
|
|
| GOLD |
| 24
hour $US Dollar price per ounce |
![[Most Recent Quotes from www.kitco.com]](http://kitconet.com/charts/metals/gold/t24_au_en_usoz_2.gif)
|
|
Weekly Commentaries |
Arabian Money
Marcus Grubb, managing director of investment research at the World Gold Council, talks about the decline in the gold price and the demand outlook for the precious metal.
Watch Video >>
by Jim Sinclair
Dear CIGAs,
The implications of China paying for Iranian oil in gold is the most important event in the modern history of gold
[Read More]
by Brittany Stepniak - Wealth Wire
Beijing's plan to avoid newly implented U.S. financial sanctions may be why this is the best time in the world to buy gold.
[Read More]
by Brittany Stepniak - Wealth Wire
Age isn't stopping these miners from engaging in Mongolia's lucrative gold rush to support the black market demand for gold in China. Young adults, middle-aged men and women, and seniors alike are taking advantage of the surging gold demand in Asia.
[Read More]
By Forrest Jones - MoneyNews.com
Stocks in gold mining companies have lagged behind the price of bullion, but that's going to change thanks to Chinese hoarding of the precious metal, Wall Street Daily reports.
[Read More]
Posted by Mike Tirone
Since gold's peak back in the fall of 2011, investors have been trying to let us know what the yellow metal is going to do next.
Some forecast a plummet in price immediately, others played it safe.
But since that time one investor has had the same mentality throughout, Marc Faber.
The publisher of the Gloom, Boom and Doom report says that investors should be selling stocks and gradually stocking up on gold.
[Read More]
Posted by Wealth Wire
There are nine prevalent myths and false arguments that bankers and their puppet commercial investment firms have used to keep people from buying physical gold and physical silver over the years (remember the paper GLD and the paper SLV is NOT a proxy for physical gold and physical silver and from the information in the prospectuses, very likely nowhere near 100% backed by physical gold and physical silver as they claim).
[Read More + Video]
Emirates NBD’s gold chief Gerhard Schubert explains how Iran and other factors are driving
precious metal prices.
Watch Video >>
Posted by Brittany Stepniak : Wealth Wire
The latest story regarding the problem with fake gold bars was released yesterday. A gold bar in the U.K. was discovered to be filled with an element other than gold...
[Read More + Video]
Gerald Celente GoldSilver Radio
by JAN SKOYLES
Jan Skoyles asks why Germany and Switzerland are requesting their gold from the United States considering their monetary policies. The repatriation of gold is a growing topic of interest since Venezuela demonstrated how much value they place on their gold reserves. With escalating gold prices, growing gold investment demand and faltering Western economies is it any wonder German and Swiss politicians are asking where their gold is.
[Read More]
We've heard it all from the Dr. Doom, economist Marc Faber. He likes to buy physical gold... And what's not to like about the yellow metal? We've seen highs in prices consistently throughout the past ten years, including last year's $1,900/oz. spike. But, as Faber warns, there is a catch: the U.S. government can and may seize privately held gold.
[Read More]
By Jeff Clark, Casey Research
Have you ever had any doubts about gold? Does it sometimes feel like it should be performing better? Are you concerned about its volatility? Do you worry about how it might perform in the future? Have you ever wondered about its true purchasing power? Maybe you're nervous about a big drop in price again? I decided to go directly to the source to address these concerns: Gold himself. He put his arm around me and asked me to tell you a few things…
[Read More]
Adrian Ash, BullionVault
So those militant crazies known to the mainstream media as "gold bugs" – and to the FBI as subversives – got the headline they've been longing for, apparently, last week.
"China central bank in gold-buying push," declared the Financial Times. "It does appear the People's Bank of China has been a significant buyer," agreed a Reuters columnist.
[Read More]
(CBS News)
India's love for gold is almost a religion. Beyond being a symbol of wealth and status, gold is part of worship and culture - a tradition that goes back thousands of years. From birth to death, for men and women, among rich and poor - acquiring gold is a goal for the people of India.
[Read & Watch Video >>]
By Bob Kirtley
www.gold-prices.biz
This year our screens, radio and the media in general will be dominated by politics as electioneering goes into overdrive in a massive attempt to convince us that their man has all the answers. Alas, the political machinery has long since lost our respect, but that will not deter them and so we must endure this attack on our senses from all directions.
[Read More]
By Frank Holmes,
After prices fell 10 percent in December, many investors wondered if the bull market in gold was running out of steam. That was before Federal Reserve Chairman Ben Bernanke swooped in with a “red cape” and fired the bulls back up. Since the Fed reassured the world that interest rates will remain at “exceptionally low levels” for another two years, gold has jumped more than three percent.
[Read More]
by Brittany Stepniak: Wealth Wire
Due to the latest phenomena in China, some experts are calling this the “Gold Era”.
The Chinese are buying gold in record numbers and the trend has been increasing exponentially within the past year as the race for wealth-guarding picks up pace.
[Read More]
By Eric McWhinnie
On Tuesday, China reported GDP growth of 8.9 percent in the last quarter of 2011, which is the slowest growth increase in more than two years. Although analysts were only expecting growth of 8.7 percent, the slowdown gave investors hope that the world’s second largest economy will inject more stimulus into its economy to fuel growth. As a result, gold jumped $24 to climb above $1,650 per ounce, while silver surged 60 cents to settle above $30 per ounce. However, investors should reign in expectations of more stimulus being unleashed in China during the early part of 2012.
[Read More]
Giuseppe L. Borrelli
Right now you need to understand that gold is beginning the twelfth year of major bull market; perhaps the most unprecedented bull market in our lifetime. Here's a quick snapshot of what that bull market has looked like since the 1999 bottom and the 2001 retest of that bottom:
[Read More]
|
Follow Us On:
CONTACT US | ABOUT US
|
