Gold Demand

Weekend: The Key to True Wealth

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. Forty-seven Christmases into this trip, I have learned but one thing… Life is what you make of it. Throw in a wonderful family, some great friends, and a few cold ones, and it doesn’t take you too long to figure out that you’ve got the world on a string. Somehow, I have managed to grab all three. Which is why, despite my sometimes bearishness, my glass could be smashed into a million pieces and I could continue to insist that it’s still half full. All things considered, I have been pretty fortunate. And there’s one thing I wish I’d learned earlier in life: The people in your life are what truly matters. It’s not what you have; it’s who you love. As for money: It comes…it goes… and you can always make more. But the one thing you can never replace is the time you spend with your family and friends. Advertisement CNBC Says It Could Be Energy’s Silver Bullet No one thought it would happen. But one tiny solar company just crushed every obstacle in the industry’s way. It’s 300% more efficient than rooftop panels, can be applied to any glass surface, generates electricity at night, and could hand you 595% over the coming months! Click here for the full story. You realize just how much that matters when your holiday occasions begin to have a few less partiers. At our house this year, that missing place was one that had always belonged to Unc. His real name was Branson, but “Unc” seemed to suit him just fine. Right next to the biggest bowl of gravy, his spot went empty this year. Eight weeks short of the holidays, he moved on to the great table in the sky — leaving us with far more leftovers than we ever bagged before. Not coincidently, the Bud Light also lasted quite a bit longer; although I would have traded it all for one last laugh with him… What he did leave us all with was a gift that you can never put a price on. More valuable than anything found under the tree, he left us with enough memories to last us a lifetime. Sadly, for me at least, Unc is just one of many. Aunts, uncles, mothers, fathers, grandparents, friends, and teammates — I’ve been around long enough to collect my fair share of memories. Christmas or otherwise, they …

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Gold and Silver Prices to Spike Next Week

Gold and Silver Prices to Spike Next Week

Gold and silver prices have remained volatile in both directions since October. But indications from the COMEX show suggest we may see a spike in these precious metals prices next week… As prices moved higher over the past two weeks, strong bouts of profit taking have hit the gold and silver markets in each instance, stalling the next attempt to hit another new high. World Gold and Silver Demand World investment demand for gold has increased 250% in the past ten years. Investment demand for silver has skyrocketed 522% since 2007. Sales of official gold coins (like the American Gold Eagle) have increased 618% since 2007. World governments are hoarding silver; official sales have plummeted 83% in the past three years. Gold demand for ETFs has increased 20,470% since 2002. Above-ground silver supplies dropped 86% last year. Industrial demand for silver has increased over the past decade, despite a 236% increase in prices. On the downside action over the past two weeks, strong buying support has come in as precious metals prices looked like they were going to sell off— thus our current holding pattern in gold and silver prices. This will change to the upside within the next two weeks as major buying of physical metal will need to take place in order to meet contractual obligations on the COMEX before December 31, 2010. Contracts for gold and silver December futures that demand physical metal must be met by then. But there appears to be a significant shortfall in the actual physical metal required to meet these demands — especially in silver… If these contractual obligations are not met by the 12/31/10 deadline, then we could see a default scenario, which would drive the metals prices even higher and cause great instability for other markets as well. This potential default is due to the fact that JP Morgan Chase, the largest fractional stock holder of the Federal Reserve, has been wildly shorting silver and is now caught between a rock and a hard place. Word on the street is that JP Morgan Chase has opted to go massively long copper in an attempt to hedge their losses in silver, which could be enormous. This is…

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The Armageddon Hedge

The Armageddon Hedge

The world is an orchestra. And it’s under the complete control of the international banking cartel. They’ve conspired the orchestration of a hostile consolidation of power and control for themselves at the expense of you, me, and everyone you know. They have total control over the world’s governments, media, religions, corporations, and organized crime — pulling the strings tied to every major organization and institution that yields considerable power. Every day in the financial news, we witness the small steps of a global banking crusade that has been designed to bring us to our knees economically, socially, and politically. Whether you want to believe it or not, the world banking syndicate has a plan. And their plan doesn’t involve our best interests. Fortunately, there is still a little time for the unprepared to secure their personal financial futures… ~~SIGNUP_WD~~ Gold is the only Armageddon hedge The absolute best way to store value is gold. Plain and simple. And investors worldwide are starting to wake up to this fact. Over the past several months, we’ve watched gold investment demand skyrocket in places like China, despite rapidly rising prices. These new investors have become aware that something is wrong. And they’re taking action. The global investment demand for gold is the most reliable barometer of what’s really going on behind the smoke-and-mirrors routine of banks and their minions. Global Gold Investment Demand World investment demand for gold has increased 250% in the past ten years. Sales of official gold coins (like the American Gold Eagle) have increased 618% since 2007. Gold demand for ETFs has increased 20,470% since 2002. And the recent spike in gold investment demand foreshadows the consequence phase of the world bankers’ devious scheme for control of power. Knowledgeable investors can see this, and are increasingly turning to gold as the only true wealth preserver. They will be the lucky ones. Those who still don’t get it and avoid or miss ownership of gold will be financially devastated due to devaluing currencies worldwide and economic distortions of all kinds. I wish them luck. Right now, the price of gold is taking a breather after three weeks of major gains. However, no market goes up in a straight line, and it’s expected to have these kinds of broad sell-offs. That means for those who are looking to buy the physical precious metals, these are the moments to take notice and make your purchases. Based on the patterns of the last eight months, this dip won’t …

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I Want Me Gold

I Want Me Gold

The price of physical gold hit a three-month high in London this morning on news that the Chinese were not going to hike interest rates. Most traders were expecting the Chinese to hike rates to stave off inflation, which is now at a 28-month high of 5.1%. In an effort to hedge against this inflation, Chinese retail investors are turning to gold. In Friday’s Wealth Daily , Luke Burgess wrote: 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. Albert Cheng, managing director of the World Gold Council’s Far East department, said at a recent conference in Shanghai that China’s gold investment demand may reach 150 tons this year — a 42.9% increase compared to 2009. New renminbi gold contract Demand is so high in China that the Hong Kong bullion exchange will launch the first international gold contract denominated in renminbi in the spring of 2011. According to The Financial Times , “The new contract comes as China pushes for greater international use of the currency and as Hong Kong’s precious metals industry seeks to take advantage of booming gold demand on the mainland.” The exchange expects trading volume will see a 20% increase when the renminbi gold bars hit the market. Currency flees China In light of Chinese inflation fears, the renminbi is flowing out of the mainland and into Hong Kong. Deposits jumped 45% in October from September to US$32.5 billion— helped along by currency restrictions, which were lifted in July. Demand is expected to increase so much that the Hong Kong government set up a high-security gold vault for overseas investors to store their gold. The tale of three charts The combination of currency wars and inflation in China means that both gold and oil are on the verge of breaking out. The U.S. Dollar Index is at a crossroads… As you can see, the Dollar Index against a basket of currencies is in a long-term downward trend and below its 200-day moving average. At the same time, there is support at 76. I expect it will trade in this range for the rest of 2011 as the fight between global flight to safety and the bond vigilantes work themselves out. Oil pushing a breakout We have a new range for crude as it is bouncing between $87 and $91 a barrel. As the global economy gets back on track, we should see oil breakout above $91. The Wall Street Journal ‘s survey of economists raised their projection for GDP growth to 2.6% for 2011, up from 2.4%. Both FedEx and UPS are gearing up for their busiest day ever today; UPS expects to ship 16 million packages up 13% from last year. Shipping companies are leading indicators. I want me gold The price of gold continues to stair-step higher. There are a number of things that could drop the price of gold: A massive new discovery on the scale of Spain’s discovery of South American gold mine could swamp demand; Or governments could tie…

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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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News to Sarah Palin: The Middle East Goes Nuclear

Filed in BP, Debt, G 20, Gold, Gold Demand, Gold Market, Gold Prices, miners, o, obama, shares by on November 21, 2010 0 Comments

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. This may come as news to Sarah Palin, but the nuclear genie has been out of the bottle for a long, long time. The “mad mullahs” of her nightmares are just the tip of the iceberg. All across the oil-rich Middle East, Muslim nations besides Iran are about to go nuclear as well. You see, the power of the atom works the same everywhere it’s tried — even if it keeps her up through a long Alaskan night. That’s true, no matter how many planes you send to bomb it. Advertisement $1 Mining Company Takes Delivery of a $273 Billion Mineral Reserve This 500-square-mile chunk of land might be the most valuable property on Earth… And it just became the sole property of a tiny mining exploration company. To get the name and the story on this miraculous “country-making” stock… Click here. A nuclear Middle East Like it or not, a Middle East with a nuclear-powered future is one that cannot be stopped. Not even in Iran. Because while these countries may be flush with oil, the same is not true for natural gas. The primary source for electricity generation, natural gas production in the Middle East has begun to lag — opening up the door for nuclear power. So while Iran works to start up its long-dreaded plant in Bushehr, 12 other countries in the region are taking steps toward joining them: Saudi Arabia, Syria, Kuwait, Qatar, Morocco, Algeria, Tunisia, Egypt, Lebanon, and United Arab Emirates are among them. And according to the World Nuclear Association, at least 15 new reactors are expected to be built in the volatile region by 2025. Even the often violent African nation of Sudan is on the list. A noted ally of Iran, the troubled nation announced in August it intends to build a nuclear reactor for peaceful purposes by 2020. The driver for it all is increased electricity demand as places other than the West continue to modernize. That increase takes more power — even in places with an abundance of oil. But this trend is hardly confined to the Middle East… Around the world, nuclear energy is experiencing a global power surge. Worldwide, 52 reactors are already under construction — with 344 more reactors planned. That’s almost four times the number of reactors already producing 20% of the power in the U.S. With 104 sites, the U.S. operates the largest fleet of nuclear power plants in the world. That also includes plants being built in Korea, where our own Nick Hodge has set his sights on another big nuclear power winner. Three power plays And you can expect this trend to continue. According to the International Energy Association (IEA), world electricity demand is likely to grow 2.7 percent a year from now until 2015, and then at 2.4 percent annually until 2030— giving…

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Gold Prices to Rise Through 2010

Gold Prices to Rise Through 2010

Despite record-smashing prices, world gold demand is expected to remain robust. That means consumers are adapting to higher gold prices. It also suggests that investors are still optimistic the yellow metal will reach its inflation-adjusted high of over $2,500 an ounce as world gold production levels remain stagnant. Some even say that gold could reach $8,000-$10,000 an ounce; that means at the current level of about $1,350 an ounce, the bull market might only be less than 14% complete. And in just a second, I’ll tell you exactly how to squeeze the most from your gold investments in this bull market… World gold demand to remain strong through 2010 The global demand for gold is expected to remain vigorous throughout the rest of the year for three key reasons: Robust demand for gold jewelry in Asian markets; Strong gold investment demand as a result of economic and paper currency concerns. Heavy industrial gold demand for consumer electronics; and Gold jewelry demand is expected to increase approximately 11% this year despite record-breaking prices, lead by buying in India. In fact the demand for gold jewelry in India during the first three quarters of this year have already exceeded last year’s level. And the fourth quarter will offer seasonal support as Indians celebrate the traditional gold-buying festivals of Diwali and Dhanteras. Robust jewelry sales demonstrate the fact that consumers are becoming accustomed to higher price ranges. This could mean a new long-term price floor for gold above $1,000 an ounce. Increasing demand for gold for industrial applications also indicates a new price floor for gold. Industrial gold demand has returned to long-term trend levels and is expected to remain strong as economic growth …

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Five Gold Investment Alternatives

Five Gold Investment Alternatives

Gold prices are soaring. Last month, the price of gold breached a new all-time record high of over $1,387 an ounce. But with gold increasing almost 20% in three months, speculators concerned with a correction in prices may want to consider other hard asset commodities as an alternative investment. So with that in mind, today I bring you five hard asset alternatives to gold to consider. Five gold investment alternatives Gold is a commodity. As such, the yellow metal derives a large part of its value from the balance of supply and demand. The majority of the world’s supply of gold comes from mining (58%) and recycling (42%). Meanwhile, global gold demand is dominated by the jewelry and investment sectors. The applications, market, and dynamics of its supply-demand balance make the first investment alternative to gold obvious. Gold Investment Alternative #1: Silver and other precious metals Like gold, world supplies of silver and other precious metals — including platinum and palladium — are dominated by mine production and recycling. In the case of silver, 80% of global supplies are mined while 19% are recycled. Meanwhile, worldwide supplies of platinum and palladium are more dependent on recycling and stockpiles. Unlike gold, the demand for silver, platinum, and …

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Goldcorp Doubles Dividend Payments

Goldcorp Doubles Dividend Payments

Canadian gold miner Goldcorp (NYSE: GG ) increased the company’s dividend payment for the first time ever as third-quarter profits surged. The company reported net earnings in the third quarter attributable to the shareholders of $466.5 million (or $0.63 per share), an increase of 309% from $114.2 million (or $0.16 per share) in the third quarter of 2009. Adjusted net earnings were $231.5 million (or $0.31 per share), compared to $140.6 million (or $0.19 per share) in the third quarter of 2009. Revenues increased 28% to $885.8 million, from $691.9 million in the same quarter last year. As a result Goldcorp increased their annual dividend from $0.18 per share (or $0.015 monthly dividend) to $0.36 per share (or $0.03 monthly dividend). Goldcorp’s President and CEO commented on the third-quarter results saying, “Continued strong gold demand in the third quarter, along with Goldcorp’s lowest quarterly cash costs in over two years resulted in record cash margins of $979 per ounce, generating significant growth in both cash flow and earnings.” The company also reaffirmed 2010 production guidance of approximately 2.55 million ounces of gold. Despite the jump in dividend payment, Goldcorp remains one of the lowest-paying dividend gold stocks on the market. In my recent report for Wealth Daily, titled The Definitive Guide to Gold Dividend Stocks , I give investors a current perspective of gold dividend stocks and reveal the top three highest-yielding gold dividend stocks on the market today. You can read this report right now for free by clicking here or copying and pasting the following link into your internet browser’s address bar: http://www.wealthdaily.com/articles/the-definitive-guide-to-gold-dividend-stocks/2788 Good Investing, Luke Burgess Editor, Wealth Daily Investment Director, Hard Money Millionaire and Underground Profits Goldcorp Doubles Dividend Payments originally appeared in Wealth Daily . Wealth Daily is a free daily newsletter featuring contrarian investment insights and commentary.

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Barrick (NYSE:ABX) Sees $1,500 Gold in 2011

The largest gold mine in the world, Barrick Gold (NYSE:ABX), said it sees gold prices in 2011 “easily” surpassing $1,500 an ounce. Barrick CFO Jamie Sokalsky cites the underlying supports which should ensure gold continues to rise, as the reason for his optimism. Those supports include the European sovereign debt crisis which won’t go away, geopolitical circumstances, macroeconomic issues, and

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Gold, India, Silver, Tech and Mongolia

Gold, India, Silver, Tech and Mongolia

Today I give you five sectors in which I suggest you put your money now. Gold breaks out! Charts that hit new highs tend to continue to hit new highs. With 60% of trading now done by computer modeling, support and resistance points carry even more weight. There are fundamental reasons for putting your money in gold as well. The majority of countries have spent themselves into a fiscal hole. There are major currency imbalances that must be corrected. If and when the dollar takes a hit, gold will go up. At the same time, world production of gold is around 2,500 metric tons. This is 25 percent higher than it was in 1990… But during the second quarter of 2010, gold demand rose 36 percent over 2009; supply growth, meanwhile, was only 17 percent. Advertisement Your IRA and 401(k) are in Washington’s sights… But you’ll never hear about it in the mainstream media until it’s too late to save your retirement assets . Click HERE for the “guerilla wealth” secret to keeping your hard-earned nest-egg in your own hands – and perhaps even growing it by 378% every five months . Lastly, during times of great political, economic, and social strife, gold tends to go up. There have been a slew of violent strikes in France…

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