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How to Buy Yukon Gold Stocks

Filed in BP, Ford, Gold, Gold Exploration, Gold Market, gold-stocks, Lear, New Gold, o, target by on February 18, 2011 0 Comments

For the past few weeks, I’ve been urging investors to take a close look at a quality gold exploration companies working in Canada’s Yukon Territory… But with so many Yukon gold stocks to choose from, it can be difficult for investors to determine which companies deserve the most attention. And that’s exactly why I put this article together for you today. For the first time ever, I’ll be publishing some of the guidelines I’ve been personally using to buy Yukon gold stocks. The very first thing investors should know is that the Yukon gold story is just getting started. Last year, nearly 80,000 new gold claims were staked in the Yukon. But this represents only 4% of the Yukon’s total land mass. There is still plenty of staking potential. In 2011, however, it’s very likely we’ll see several companies make big gold discoveries. In an average year, only about $20 or $30 million is spent exploring for gold in the Yukon. Now that the price of gold is breaking record highs, about $100 million is spent in an average year. But in 2011, the Yukon Geological Survey estimates almost $330 million will be spent for work programs and drilling this summer in the Yukon. With so much exploration going on, someone will no doubt find gold. Almost 20 million ounces of placer gold have been taken out of the Yukon Territory over the century. The Yukon overall has the biggest placer gold signatures in the world— meaning there are very large sources of gold in the Yukon from whence this gold sprang. Geologists generally agree that the source of the placer deposits is typically 10 times larger than the amount of placer gold discovered in an area. In the case of …

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Urban Magnets for Disaster

Filed in BP, deflation, economy, Ford, Gold, inflation, o, silver, ubs, US Dollar by on February 18, 2011 0 Comments

When it comes to bad stuff the sky’s the limit. It’s gonna happen, eventually…one way or another. And it could be real bad. And when bad stuff happens, you’re better off being somewhere else. Where? Generally, bad stuff seems to happen most often in cities. Why is that? Cities are where most people live. It is where governments are. And it is where the labor force is most specialized. There are no subsistence farmers living in cities. Nor do urban populations “live off the land.” Instead, they depend on complex networks of commerce. The typical city dweller produces neither food nor energy. He sits all day in an office — completely dependent on others to provide power and food. Then, he goes home — still completely dependent on the division of labor for his most important needs. Progress can be described as the elaboration of the division of labor. In man’s most primitive state, specialization is extremely limited. From what we’ve been told, the early man was the hunter. Early woman gathered…that’s about the extent of it. As the tribe grows larger, specialization increases. One person might tend the fire. Another might be in charge of making clothes or arrows. The advent of sedentary agriculture and towns caused a big leap forward in human progress and, not coincidentally, the division of labor. Some townspeople went out to tend the fields. Others began to focus on woodworking…or iron mongering…or making weapons…or clothes. Some played cards and hung around at bars. There was soon a homebuilding industry…and, not long after, merchants, prostitutes and bankers…and even shyster lawyers and tax collectors. As the division of labor expanded, the average person became richer…and more dependent on others. In order to eat, someone else had to plant…and till…and harvest…and hunt…and gather. And then, when agriculture became mechanized, he depended on faraway people who produced oil and gasoline…and people who built …

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Market Wrap-Up for Feb.17 (WTW, DPS, CLF, WMB, KO, LO, SJM, more)

Filed in AMAG, Apple, dividend, earnings, Ford, Gold, Gold Bullion prices, lead, o, shares by on February 17, 2011 0 Comments

It was an overall steady day for the markets, along with a decent number of dividend payouts coming over the wires. Earnings boosted several dividend names, but the biggest winner of the day was Weight Watchers ( WTW ) after the company just stunned analysts with the size of its 2011 earnings estimates. Shares of WTW rallied over $20 this morning on that news. Other earnings plays that had a good day included recently-recommended name Dr. Pepper Snapple Group ( DPS ). Cliffs Natural Resources ( CLF ) and J.M. Smucker Company ( SJM ) traded in the green as well following earnings results. Williams Co. ( WMB ) was up on news the company will be splitting in two. The company also announced a dividend boost. Late in the morning, beverage giant Coca-Cola ( KO ) announced a 7% increase in its dividend payout. Tobacco play Lorillard ( LO ) announced a 16% increase in its dividend payout to lift shares almost 2%. We had removed shares of Lorillard from our recommended list recently on concerns we have surrounding the coming FDA judgement/opinion on use of menthol in cigarettes, which accounts for the majority of Lorillard’s sales. I have to admit, I am a big fan of American Idol. My kids and I really enjoy the whole “dreams can come true” mindset for the contestants. Last night was another episode of “cut-downs” as singers needed to perform as part of groups. It’s always interesting to see the type of friction this can cause as egos are clashing everywhere you turn. What amazes me is that often times the individual performers that we thought were amazing on their own, begin to crumble when taken into a different situation. They lose sight of what needs to be done to get through to the next rounds. You see some completely unravel and throw the opportunity they had once cherished right down the drain. This phenomenon isn’t unlike the investing world in that many individuals know what needs to get done to build wealth, but for some reason or another, can not seize the moment. Whether it is just putting some extra coin to the side every month, spending some money to find quality research and investment ideas, or swallowing their pride when an investment idea doesn’t pan out, investors consistently make big mistakes. I know the market continues to move higher and some people may be waiting for a pullback. There is nothing wrong with doing so, but don’t skip your monthly investments you can be making because of that. There are plenty of good yield plays that you can still find to put money to work in, even after the nice run the market has had. Taking financial responsibility and knowing what you can afford to do is the key. I talk about investing in quality dividend-paying stocks as a great way to build up your future income, but if you are spending like there’s no tomorrow as well, then that is a risk that could eventually negate all the good you might be doing on the investment side. Saving is a mantra that needs to also be adopted…

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Gallup: The Unemployment Rate is 10%

Gallup:  The Unemployment Rate is 10%

Jobs…jobs…jobs… I’m beginning to sound like a broken record but it’s true: This economy is going nowhere unless we start creating some jobs. As for the recent drop in the unemployment rate to 9.0%, I’m not buying it since it comes from Uncle Sam. The real figure is likely closer to what Gallup is reporting today… From by Dennis Jacobe entitled: Gallup Finds U.S. Unemployment Up to 10% in Mid-February “Unemployment, as measured by Gallup without seasonal adjustment, hit 10.0% in mid-February — up from 9.8% at the end of January. Underemployment, in which Gallup combines part-time workers wanting full-time work with the U.S. unemployment rate, surged in mid-February to 19.6% — mostly as a result of the sharp increase in those working part time but wanting full-time work. Underemployment now stands at basically the same place as it did a year ago (19.8%). The unemployment rate in mid-February is 0.8 percentage points lower than it was at this time a year ago, compared with a 1.1-point improvement at the end of January. This suggests that jobs are less available now than they were in January. More troubling, however, is the surge in underemployment. On this broader basis, current job conditions are barely improved from what they were at this time last year. Essentially, what has happened over the past year is that some people who were unemployed got part-time jobs but are still looking for full-time work. This is not much to show for a year in which many macro-economic indicators showed improvement. This is likely why Gallup’s self-reported spending

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Edwards Lifesciences: A Heart-Felt Buy

Filed in Bank Gold, Ford, o by on February 17, 2011 0 Comments
Edwards Lifesciences: A Heart-Felt Buy

Filed under: Products and Services , Stocks to Buy “Edwards Lifesciences ( EW ) is a potential winner; based in Irvine, California, Edwards makes and sells replacement valves for advanced heart disease,” says growth stock specialist Alexander Green . The editor of The Oxford Club explains, “Edwards has a breakthrough product called SAPIEN, a transcatheter valve that allows doctors to replace a heart valve without open chest surgery. “The traditional method of replacing heart valves requires a surgeon to cut through the chest, stop the heart, remove the valve and replace it. Continue reading Edwards Lifesciences: A Heart-Felt Buy Edwards Lifesciences: A Heart-Felt Buy originally appeared on BloggingStocks on Thu, 17 Feb 2011 10:00:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

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The Incredible Shrinking Middle Class

Filed in BP, Debt, economy, Ford, Gold, GOld juniors, inflation, Lear, o, recession, silver by on February 16, 2011 0 Comments
The Incredible Shrinking Middle Class

Here’s a copy of the chart of the day.As you might have suspected, the rich get richer while everyone else basically gets to tread water. The article that follows once again drives home a point I have been harping on for years now: The Middle Class in a state of terminal decline. And when it vanishes for good, America will be a very different place. If you ask me, in a lot of ways it already is…. From CNNMONEY by Annalyn Censky entitled: How the middle class became the underclass “ Are you better off than your parents? Probably not if you’re in the middle class. Incomes for 90% of Americans have been stuck in neutral, and it’s not just because of the Great Recession. Middle-class incomes have been stagnant for at least a generation, while the wealthiest tier has surged ahead at lighting speed. In 1988, the income of an average American taxpayer was $33,400, adjusted for inflation. Fast forward 20 years, and not much had changed: The average income was still just $33,000 in 2008, according to IRS data. Experts point to some of the usual suspects — like technology and globalization — to explain the widening gap between the haves and have-nots. One major pull on the working man was the decline of unions and other labor protections, said Bill Rodgers, a former chief economist for the Labor Department, now a professor at Rutgers University. International competition is another factor. While globalization has lifted millions out of poverty in developing nations, it hasn’t exactly been a win for middle class workers in the U.S. Factory workers have seen many of their jobs shipped to other countries where labor is cheaper, putting more downward pressure on American wages. “As we became more connected to China, that poses the question of whether our wages are being set in Beijing,” Rodgers said. Finding it harder to compete with cheaper manufacturing costs abroad, the U.S. has emerged as primarily a services-producing economy. That trend has created a cultural shift in the job skills American employers are looking for. As a result, the disparity between the wages for college educated workers versus high school grads has widened significantly since the 1980s. In 1980, workers …

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Gold, Silver, Copper, Nickel and the Slow Death of Money

Gold, Silver, Copper, Nickel and the Slow Death of Money

A huge opportunity to hedge against both inflation and deflation is lying out there in the open. There are no transaction costs and right now there’s even a built-in discount. But most people will never realize any of this. In 1933 President Franklin Delano Roosevelt signed Executive Order 6102, which made it illegal for U.S. citizens to hold gold bullion. Prior to that, the $20 bill was essentially a warehouse receipt for a one-ounce gold coin. Prior to the Federal Reserve Act of 1914, the $20 bill actually told you this. After Executive Order 6102, $20 notes weren’t allowed to be exchanged for gold anymore. Americans couldn’t legally own or trade gold as money and savings, only as jewelry or collectible coins. A year after making monetary gold ownership illegal, FDR revalued gold from $20.67 per ounce to $35 an ounce with the Gold Reserve Act. The Act also required all gold and gold certificates to be turned over to the Treasury. The dollar was debased. A chunk of the gold it used to be good for was legally removed. Instead of  “containing” 1/20 an ounce of gold, each dollar now only contained (or represented) 1/35 an ounce. And of course you couldn’t actually own the gold itself. In 1971 Nixon severed the last official ties between gold and the dollar. The dollar quickly sunk to its real value, which had been debased by years of money supply inflation. By 1975 Americans were allowed to own bullion gold again, but during the roughly 40 years bullion gold ownership had been illegal, the dollar had been drastically debased. At its former lowest point in the summer of 1980, the dollar …

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Weekend: The Fool Proof Retirement Plan

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. As I wrote earlier in the week, dividend reinvestment plans — or DRIPs — are a great way to secure your financial future. All you need is the time and patience to stick to the blueprint… The best part is these plans are offered by more than 1,100 companies and are available to investors of all stripes, making it possible to purchase shares of stock without using a broker. This allows investors to buy stock directly from the company in very small amounts— something that can be more difficult and costly when compared to buying shares through your broker. In fact most companies don’t charge a fee, and the minimum investment can be as low as $10. Advertisement 60 Minutes Reports on Growing Body Parts Call it what you want: biotechnology, tissue engineering, cell therapy, regenerative medicine. The famous newsmagazine has reported on one doctor about to make multiple medical problems disappear forever. Lucky for you, that same doctor sits on the board of a $3.00 company that will bring these solutions to market— making shareholders rich in the process. Check out the 60 Minutes clip to learn the name. The plans also reinvest all or partial dividends paid into more stock, thus the name “Dividend Reinvestment Plan.” And in this case — since the investment is based on dollar amounts — you can purchase fractional shares. In addition, investors can choose to add a monthly contribution to the plan, boosting the amount of wealth the DRIP can create. That means you can start out with as little…

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A Self-Employed Carpenter’s Thoughts on the Future

The world is changing. Currently, as a nation, we have a large and well-trained section of our work force dedicated to residential construction. Unemployment within the construction industry now exceeds 20%. That number takes into account only workers getting unemployment compensation. There are also many self-employed individuals, ineligible for unemployment compensation, who have simply run out of customers and work. That is the bad news. Now the worse news: Not only are those jobs not coming back, but the construction industry will continue to diminish for the foreseeable future. The real estate glut is not on hold; it is over. Waiting for its return is similar to waiting for next the big surge in typewriters, 35mm cameras, and home phones. Why are the construction jobs not coming back? There are three main reasons, the first of which is inflation. Decades of credit expansion and the recent printing of money (quantitative easing) have increased the overall volume of our fiat currency: dollars. Therefore, the value of each dollar unit has been reduced, causing prices to rise. This results in increased costs in construction of new homes. Higher new construction costs make staying in and repairing older structures, or renting, more attractive. The second reason is fuel costs. Living rurally and working in urban areas is becoming very expensive. Reasons one and two will keep an increasing number of younger workers and couples living and renting closer to work. Why take the financial and mobility risks associated with homeownership? The third reason is we are broke. Who are “we”? Western civilization, comprised mainly of the U.S. and Europe. Consider this…there are gold and silver coins and bullion: actual wealth storage vehicles. There are paper dollars: temporary wealth storage vehicles. And there are also trillions of “dollars” represented as pixels on screens in accounting software programs. When I say that we are broke it is because I don’t believe those pixel dollars represent anything. All of the wealth supposedly held in those pixels does not exist. It is a classic Ponzi scheme. If you go today and convert your pixels to actual dollars, everything is just fine. But if 10% of us go today and try to convert our pixels into dollars, the banks will shut down…Why? Because the money doesn’t exist. There is no actual wealth stored in any of those pixels. Spain and Portugal may require financial bailouts in 2011. Part of the fallout from the Greek financial crisis last year was the creation of a eurozone bailout fund of $1.01 trillion. That fund could be used to assist Spain and Portugal if necessary. Where did that $1.01 trillion come from? Was it removed from another sector of Europe’s economy? Supplied in gold bullion to EU headquarters in The Hague? Removed from the savings accounts of earnest Europeans? No, none of those could supply …

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Why Economists Are Not Popular

Filed in BP, deflation, Ford, o, silver, US Dollar by on February 7, 2011 0 Comments

One of the many reasons why economists are unpopular is that they keep reminding people that things have costs, that there is no free lunch. People already know that — but they like to forget it when there is something they have their hearts set on. Economists don’t have to say anything when people are buying things at a shopping mall or at an automobile dealership. The price tags convey the situation in unmistakable terms. It is when people are voting for nice-sounding things which politicians have dreamed up that economists are likely to point out that the costs ignored by politicians are going to have to be paid, one way or another — and that you have to weigh those costs against whatever benefits you expect. Who wants to put on green eye shades and start adding up the numbers when someone grandly proclaims, “access to health care for all” or “clean air” or “saving the environment”? Economists are strictly party-poopers at times like these. They are often gate crashers too, since usually nobody asked them how much these things would cost or even thought about these issues in such terms. Some of the more persistent or insensitive economists may even raise questions about the goals themselves. How much health care at the taxpayers’ expense? In Britain, a 12-year-old-girl was given breast implants. That much health care? Meanwhile, Britain’s skyrocketing medical costs of taking care of things that people would never have spent their own money to take care of forced cutbacks and delays in more urgently needed medical treatments. One woman’s cancer operation was postponed so many times by the British health service that, by the time the system could take her, the disease was now too far gone for medical help — and she died. Economists could have told anyone in advance that making things “free” causes excessive use by some, leaving less for others with more urgent needs that have to remain unsatisfied. Rent control, for example, has led to more housing being occupied by some, who would not have paid the …

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Aetna Shares Surge as Q4 Results Beat View, Dividend Boosted (AET)

Filed in dividend, Ford, Gold Investing, o, revenue, shares by on February 4, 2011 0 Comments

Health insurance provider Aetna Inc. ( AET ) on Friday said its fourth quarter profit jumped 30% from last year, and the company significantly raised its dividend payout, sending its shares soaring in premarket trading. The Hartford, CT-based company reported fourth quarter net income of $215.6 million, or 53 cents per share, compared with $165.9 million, or 38 cents per share, in the year-ago period. Excluding one-time items, adjusted operating profit was 63 cents per share. Revenue fell 2% from last year to $8.54 billion. On average, Wall Street analysts expected a slightly smaller profit of 62 cents per share, on lower revenue of $8.32 billion. The company also announced a new 15 cent per-share quarterly dividend payout, up significantly from its prior payout of just 4 cents annually. The new dividend will be paid on Apr. 28 to shareholders of record as of Apr. 14. Aetna shares rose $4.86, or +15%, in premarket trading Friday. The Bottom Line Shares of Aetna ( AET ) will now have a 1.80% dividend yield, based on the new higher dividend payout and last night’s closing stock price of $33.27. The stock has technical support in the $30 price area. If the shares can firm up, we see overhead resistance around the $36-$38 price levels. Aetna Inc. ( AET ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

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Answering Krugman on Austrian Economic Theory

Answering Krugman on Austrian Economic Theory

I still get the sense that Krugman truly doesn’t understand the Austrian position. For example, he asks, “Why is there overwhelming evidence that when central banks decide to slow the economy, the economy does indeed slow?” But because the Austrian theory says the bust occurs when the central bank backs off and allows interest rates to rise toward their “correct” level, this is hardly a problem. In fact, if central banks couldn’t slow the economy, as an Austrian economist I would be worried about my theory. Krugman also poses questions concerning (price) inflation rates and the connection between nominal and real GDP. But I think he is conflating the Austrian theory with a purely “real” business-cycle theory. Austrians understand that monetary influences can have real effects. To repeat, that is the very essence of the Mises-Hayek theory. Although most of Krugman’s objections are due to his unfamiliarity with the actual Austrian theory, I think one source of confusion came from the particular illustration I used in my article. First let’s set the context by quoting Krugman : “So what is the essence of this Austrian story? Basically, it says that what we call an economic boom is actually something like China’s disastrous Great Leap Forward, which led to a temporary surge in consumption but only at the expense of degradation of the country’s underlying productive capacity. And the unemployment that follows is a result of that degradation: there’s simply nothing useful for the unemployed workers to do. “I like this story, and there are probably other cases besides China 1958–1961 to which it applies. But what reason do we have to think that it has anything to do with the business cycles we actually see in market economies?” First, I should say I’m glad that Krugman at least concedes that (his understanding of) the Austrian explanation both is theoretically possible and actually happens in the real world — coming from the guy who referred to it in 1998 as equivalent to the “phlogiston theory of fire,” this is progress! However, Krugman still doesn’t have quite the right understanding of the Austrian view of the “capital consumption” that occurs during the unsustainable boom. As I said above, on this particular issue the fault lies with the necessarily simplistic “sushi model” I used in the article that Krugman read . In that article, in order to make sure the reader really saw why Krugman (and Tyler Cowen) were overlooking something basic, I had the villagers boost their daily sushi intake even while they developed a new technology to help augment their fishing. So during their “boom,” it would have seemed to a dull villager that both consumption and investment were rising. In my fable, this was physically possible because the villagers neglected the regular maintenance of their boats…

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