China Gold

Weekend: 2011 Stock Market Forecast

Weekend: 2011 Stock Market Forecast

Welcome to the Wealth Daily Weekend Edition— our insights from the week in investing and links to our most-read Wealth Daily and sister publication articles. It’s not often that Bloomberg’s headlines give me much pause, but this one sure did. Bullish to the max, it quoted an analyst named Brian Barish from Cambiar Investors who believes the S&P 500 will gain 17% from here. In fact Barish believes the S&P 500 will rise to 1,300 by June 30, and to 1,380 by the end of year based on the weighted average of estimates by Cambiar’s nine analysts. Advertisement The Video Footage that has Electric Companies Terrified They won’t announce it yet, but your utility company is shaking in its boots… That’s because one tiny engineering firm just demonstrated a technology that could put every last utility out of business— by harnessing your own solar energy at any time, from any window ! Before the first big ticket contract comes through — doubling the share price — click here to see exclusive footage. Propelled by energy and industrials, 2011 will be marked by a “multi-speed recovery” that will completely lay waste to the “new normal” thesis put forward by the likes of PIMCO and your humble analyst. Instead, Barish believes, “the bleeding has stopped” as low market multiples will give way to an environment where multiples expand. In short, it’s the classic bullish argument, since the price-to-earnings ratio is now 15— below the 16.4 average for the index going back to 1954. But as every market watcher knows, Barish’s thesis eventually comes to rest where all of them do. In the end, it will always be all about earnings. That’s why we aren’t so eager to help ourselves to all of this bullish Kool-Aid talk of late — especially as Goldman Sachs boosts their outlook to 1450 (!!) for 2011. Now for those of you keeping score at home, Goldman’s latest forecast would put the S&P 500 right back within a whisper of its 2007 highs, going back to the days of the housing bubble peak. How they arrive at that figure, I’ll never know… After all, is there anything that leads you to believe we are going see to the type of real economic activity we witnessed before it all fell apart? A return to the 2007 peaks? I would even argue the two-year peaking cycle — circled in the chart below — was nothing more than an illusion brought on by cheap credit and the bubble atmosphere it created. Without them, in other words, that peak encompassed by the circle never would have happened. In many ways, it really was mirage. Simply put, the market overshot at the top the same way it overshot at the bottom. It was, in the purest sense, a function of our bubble-based economy — similar to the market action after the dot-com bust. Of course, that doesn’t mean another stock market bubble cannot form anew. The FED is actually working overtime…

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China Gold Demand Soars

China Gold Demand Soars

The Chinese saw the writing on the wall over a decade ago. They realized the ultimate fate of the U.S. dollar and the fiat currency system. So in 2003, the government of China began an aggressive campaign to secure resources of gold. They began by increasing the country’s gold reserves. Since that time, the People’s Bank of China has added 21.2 million ounces to the country’s gold holdings. China now has the fifth largest national gold reserve, with over 1,054 tonnes in reserves. While boosting reserves, the Chinese government also began to deregulate the gold mining industry and invite foreign investment for the development of domestic resources. The measures were a runaway success; China is now the world’s largest gold producer with output increasing 70% in the past decade. Chinese government even began encouraging its 1.3 billion citizens to own gold. And today, the country has become the second-largest consumer of gold in the world. The government’s efforts to stimulate and expand the domestic gold market has been highly successful. Chinese citizens have embraced gold as true wealth in all economic seasons. And now new concerns over the future of the U.S. dollar and domestic inflation has prompted the Chinese to recently begin acquiring gold on a epic scale. China’s gold imports to jump 457% this year The Shanghai Gold Exchange recently revealed China’s gold imports jumped almost fivefold in the first 10 months of this year. And even though China is the world’s #1 producer, the country is expected to import 9.2 million ounces of gold this year as inflation concerns lifts investment demand. Consumer prices in China rose 4.4% in October— the fastest pace in two years — and above the government’s full-year target of 3.0%. The People’s Bank…

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Barrick (NYSE:ABX), Goldcorp (NYSE:GG), Newmont (NYSE:NEM) as China Increased Gold Imports

The broader gold market today was soaring up till about noon, as news China has significantly increased its gold imports over the last year caused most gold miners, including large-caps Barrick Gold (NYSE:ABX), Goldcorp (NYSE:GG), and Newmont Mining (NYSE:NEM) to make nice upward moves, although as happens many times, speculators moved in and out of the market in that time frame and gold prices

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China’s Gold Production Drops in July

China’s Gold Production Drops in July

Chinese miner holds gold-bearing ore The production of gold in China fell to 31.059 tonnes in July according to the country’s Ministry of Industry and Information Technology. Gold production in China was 2.7% lower than June’s record production of 31.897 tonnes of gold, but was still 17.8% higher than production in July 2009 and the third highest month total ever. Output of gold from China during the half of 2010 totaled 159.240 tonnes, about 10% higher than the same period of last year. Here are China’s gold production figures for the first half of 2010 and July: China has been able to increase the output of gold each year since 2004, producing a total of 313.980 tonnes last year. But skyrocketing Chinese investment demand is quickly outstripping supply. In an effort to help the gold market meet rising demand, the Chinese government recently made further steps toward to the complete liberalization of the gold sector in China. In a recent free Wealth Daily report, I discuss how relaxed regulations on China’s gold industry could have dramatic effects in the fragile world supply/demand balance for gold, which could send gold prices surging higher. I also briefly talk about two junior gold stocks that are hoping to strike it rich with some very prospective gold properties in China. You can read my latest free report by clicking here or finding it on the Wealth Daily website called: China’s Gold Bull Market Good Investing, Luke Burgess Editor, Wealth Daily Investment Director, Hard Money Millionaire and Underground Profits P.S. To learn even more about China’s rapidly developing precious metal industry, check out another of my recent Wealth Daily articles called China’s Silver Bull Market . China’s Gold Production Drops in July originally appeared in Wealth Daily . Wealth Daily is a free daily newsletter featuring contrarian investment insights and commentary.

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China’s Gold Demand Increases 26%

China’s Gold Demand Increases 26%

The World Gold Council reported that Chinese gold demand increased 26% in the second quarter amid booming interest in retail investment demand for gold. During the second quarter, 48% of China’s gold demand came from the retail investment market, which increased 25% from the previous year. As a result, the country retained its position as the world’s second-largest consumer of gold as the demand for gold in China from April to June was 112 tonnes. China outperformed all other countries in the world in terms of the growth rate in the retail investment volume for the metal. Wang Lixin , General Manager of the World Gold Council in China In the long-term, gold demand in China is expected to balloon as mounting inflation concerns and a faltering global economic recovery has recently caused an increase in retail investment demand. The government recently released new guidelines to encourage the development of the domestic gold market. This will spur interest for gold as an investment and boost liquidity in China’s domestic gold market. These new regulation also strongly support foreign investment in China’s gold industry. And companies with well-established Chinese gold positions may be well-leveraged to take advantage of sharp increases in domestic demand. In a report report for Wealth Daily , I discuss how the liberalization of China’s gold industry could have drastic effects on the delicate supply/demand balance for gold and send the price of gold skyrocketing higher as millions of new gold investors in China bust into the global gold market. Plus, I discuss two junior gold stocks that are looking to profit with gold projects in China. You can read my latest free report by clicking here or finding it on the Wealth Daily website called: China’s Gold Bull Market Good Investing, Luke Burgess Editor, Wealth Daily Investment Director, Hard Money Millionaire and Underground Profits China’s Gold Demand Increases 26% originally appeared in Wealth Daily . Wealth Daily is a free daily newsletter featuring contrarian investment insights and commentary.

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China Appetite for Gold Increasing as They Battle Property Inflation

The battle by China against property inflation in the first half of 2010 has increased demand for gold in the country, according to the Shanghai Gold Exchange. For the first half of the year, the amount of gold traded on the exchange increased by 59 percent, equal to about 3,174.5 metric tons. It’s cousin silver also performed much stronger, increasing by five times over last year. “I expect

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How China Will Corner the World’s Gold Supply

This post initially appeared on EnergyandCapital.com June 1st, 2010. With the Eurozone looking about as stable as a burning deepwater oil drilling platform — and the partisan American media propping up President Obama’s jobless domestic “recovery” — the U.S. dollar has seemed to get a temporary stay of execution in the court of global economics… But let’s not allow the buck’s spring bloom to erase the memory that for years now, as the dollar declined against the euro and other currencies, many have been gunning for its replacement as the de facto world reserve currency — and the monetary unit in which oil, gold, and other commodities are priced. In the heat of the dollar’s descent in 2007, our own beloved (not) Alan Greenspan said that it was “absolutely conceivable that the euro will replace the dollar as reserve currency, or will be traded as an equally important reserve currency.” His voice presaged or echoed the sentiments of many important nations, among them well-known dollar-bashers China and Russia — but also to varying degrees India, Iran, Brazil, Venezuela, and others… Advertisement An Airplane Mechanic’s 843% Profit Secret By sheer luck, one working class man from Minnesota discovered a “kickback” strategy that turned his $35K retirement fund into a hefty $295,050 nest egg in a little under 2 years… But now his secret is ours — and our readers have already started to make 100% legal “kickbacks” of as much as 793%, 846%, even 3,475% or more from this reliable strategy. Click here now to learn why we’re no longer keeping this profit trick hush-hush… And let’s not forget that the U.N., IMF, OPEC, and G20 have all recently pondered or publicly called for some form of decoupling of the U.S. dollar from commodities — or its replacement as the gold standard (no pun intended) of world reserve currencies. None of these bode well for the buck. One doesn’t have to be economist, monetary historian, or even an investing ace (I’m none of these, to be sure) to see that nothing about America’s current monetary policy could arrest the dollar’s ultimate decline against other currencies of the world. Even after the Eurozone gets its act together, we’ll still be printing dollars by the truckload, artificially fending off inflation with a bunch of book-cooking hocus pocus — and pressuring (or begging) other nations to underwrite our overspending by purchasing dollar-based debt. That’s not how a strong, stable global reserve currency is maintained. …

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Barrick Gold (NYSE:ABX) Newmont Mining (NYSE:NEM) Agnico-Eagle Mines (NYSE:AEM), Gold Fields (NYSE:GFI) Jump on China, Sovereign Debt Fears

Concerns over the sovereign debt crisis and China austerity measures have gold mining companies like Barrick Gold (NYSE:ABX) Newmont Mining (NYSE:NEM) Agnico-Eagle Mines (NYSE:AEM) and Gold Fields (NYSE:GFI) jumping today, as they have been up from 4 to 5 percent today, while gold prices today are closing in on all-time records. After the euphoria over the almost $1 trillion being provided to

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China Running Out of Gold?

China’s Gold SupplyChina has increased gold production in the country in a relatively few years to become the largest gold producer in the world in 2007. That surprised everyone at the time because to do it China’s output grew at an extraordinary annual rate of 84 percent. At that rate of production, the question must be raised as to whether China is going to run out of gold any time soon.If they

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China Giving Gold Prices Support

China and Gold Price SupportEven though there has been a pull back in gold prices lately, leading the usual clueless commentators to question gold prices going forward, China remains a solid customer of gold, and recent changes in their laws had freed up its citizens to acquire more jewelry and hold a bunch of physical gold.Of course this is small potatoes compared to the inflation and safety

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China Tightening Weighing on Gold

China and Gold There is a lot of speculation swirling around out there which could have a strong impact on gold if any of them turn out to be true, with one of those being China could end up tightening its money supply to cool down its economy. With China it is believed they may raise their interest rates, which could result in not only a downward pressure on Gold prices, but possibly on other

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China Tightening Weighing on Gold

China and Gold There is a lot of speculation swirling around out there which could have a strong impact on gold if any of them turn out to be true, with one of those being China could end up tightening its money supply to cool down its economy. With China it is believed they may raise their interest rates, which could result in not only a downward pressure on Gold prices, but possibly on other

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