Filed under: Major Movement , Competitive Strategy , Barrick Gold (ABX) , Commodities , Federal Reserve Back in the late 1970s, the Hunt brothers from Texas tried to corner the silver market . That drove prices to $48 an ounce. Now, 31 years later, silver is shooting higher again. The March silver futures contract closed at $32.296 per ounce , up 72 cents. Since gold is expensive, investors are turning to silver to hedge against inflation. Many fear that the Federal Reserve will not be able to control the spike in commodity prices. The Fed is buying $600 billion of treasuries and keeping interest rates near zero. Continue reading Silver Near a 31-Year High Silver Near a 31-Year High originally appeared on BloggingStocks on Sat, 19 Feb 2011 12:50:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments
Lear
What’s Really Wrong With America
Here’s a wonderful video I came across visiting Washington’s Blog this morning. It’s a great read if you haven’t discovered it already. As the video reminds us…. “The Funders” are not “The People”. You have to act to get it back. There is a reason everything is so screwed up. The further you stray from our beginnings the worse everything becomes. Related Article: NEWSFLASH: The Meltdown Didn’t Have to Happen Bill Black: Fire Holder, Geithner and Bernanke The No Spin Zone: Bill Black Calls BS Epic Fail: Brooksley Born Demolishes Alan Greenspan Matt Taibbi: Goldman is “Re-creating the conditions for another crash” To learn more about Wealth Daily click here Advertisement 21st Century Medicine … Is exactly what you thought it would be. An AIDS vaccine has been tested. New organs are being grown. Limbs are being created from scratch. But humanity isn’t the sole motivator… Serious cash stands to be made by curing diseases. One small biotech firm — featured on 60 Minutes — is on the path to even wilder medical breakthroughs. To see what I mean and learn about this company, watch this brief presentation . What’s Really Wrong With America originally appeared in Wealth Daily . Wealth Daily is a free daily newsletter featuring contrarian investment insights and commentary.
How to Buy Yukon Gold Stocks
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 …
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
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 …
Inflation in (Mostly) the Wrong Places
It is often claimed that inflation is a benign, even positive, force. People assume that prices, wages, and assets will all rise together… In the real world, inflationary episodes don’t play out that way. Wages don’t keep up, and bubbles form in unexpected (and unwanted) places. In America, compensation is clearly stagnant. And the outlook for future pay raises is not good, as this chart from David Rosenberg shows: Contrast that with this next chart, which shows the percentage of companies planning to raise prices: Combine stagnant wages and slow growth with high unemployment and rising prices, and you get a recipe for stagflation. This scenario is being played out around the world. In the UK, consumer prices rose 4% in 2010. As noted by the Financial Times , wages aren’t keeping up: The prices of everyday goods and services are rising about twice as rapidly as average wages, Tuesday’s inflation figures confirmed — which means that the standard of living of many Britons is already falling. According to the Bank of England, average pay at the end of this year will be able to buy no more than it could in 2005. It is the first time that the purchasing power of earnings has fallen so far since the 1920s. I expect this trend to continue as long as the Fed’s mad experiment is ongoing. The thing about Central Bank “easing” is you never know where inflation will pop up… Easy money will always fuel speculators, who have little skin in the game, to find another bubble to “invest” in. Silver, gold, oil With printing presses switched “on” for the foreseeable future, we remain bullish on precious metals. Silver is holding above $30 today and could hit $37.50 on the next leg up. Coal, oil, and natural gas investments should continue to do well. And as my colleague Nick Hodge of Energy and Capital says, “Buy it if it burns.” If you’re not yet convinced that Fed printing is directly related to rising commodity prices, examine the following chart. (The solid blue line represents the Austrian Money Supply (AMS), and the solid teal line represents commodity prices ( IMF Commodity Index )): Note: The version of money supply shown
Is Warren Buffett Heading for the Exits?
Nobody ever rings a bell at the top. That’s why sometimes it is instructive to keep an eye on so-called “smart-money”—especially when they make a move towards the door. All of which, strikes me as curious since just a few months ago the grandfatherly Buffett said, “I am a huge bull on this country. We are not going to have a double-dip recession at all. I see our businesses coming back across the board.” Hmmmm…I wonder if he has changed his mind on this one. From Bloomberg by Andrew Frye entitled: Berkshire Exits BofA ‘a Loser’ on Three-Year Holding. “Warren Buffett’s Berkshire Hathaway Inc. sold its stake in Bank of America Corp., ending an investment that spanned three and a half years in which the lender’s stock lost more than two-thirds of its value Buffett’s firm had no shares in the Charlotte, North Carolina-based bank at the end of 2010, compared with 5 million shares three months earlier, Berkshire said late yesterday in a regulatory filing that lists the company’s U.S. stockholdings. Berkshire, where Buffett serves as chief executive officer and head of investments, entered the Bank of America stake with the purchase of 8.7 million shares in the second quarter of 2007. The lender’s CEO at the time, Kenneth Lewis, was expanding through acquisitions and telling investors that the U.S. housing slump would be over within months. “He’s closing out a loser,” said Jeff Matthews, author of “Pilgrimage to Warren Buffett’s Omaha,” whose Ram Partners LP invests in Berkshire and Bank of America. “We bought it during the crisis. But its earnings power coming out the crisis has been reduced.” Berkshire also eliminated its stakes in Nike Inc., Comcast Corp., Nalco Holding Co., Fiserv Inc., Lowe’s Cos. and Becton, Dickinson & Co. in the fourth quarter. In November, Berkshire disclosed that it had sold holdings of Home Depot Inc., trash hauler Republic Services Inc. and Iron Mounta”in Inc., a provider of records management. Buffett’s U.S. portfolio had 25 stocks and a value of about $52.6 billion at the end of December.” Maybe there is nothing to see here, but I don’t think so. You just can’t trust a guy that plays a ukulele. Related Articles: Warren Buffett’s Dividend Stock Strategy The Good Works of Bill Gates and Warren Buffett Ben Graham’s Winning Investment Advice Warren Buffett: The Investor of the Year To learn more about Wealth Daily click here. Advertisement Samurai Super Alloy It was the secret ingredient that turned an ordinary sword into the legendary Samurai Katana — the deadliest weapon before the arrival of modern rifles. Today, it’s crucial to the $987billion/
Brent Crude at $104 per Barrel on Spreading Mideast Unrest
Filed under: China , Middle East , Commodities , Oil When it comes to the biggest threat to world economies, oil scarcity is second only to nuclear war. What started in Tunisia, then spread to Egypt has now spreading to Bahrain and Iran, where protesters are clashing with police. In Iran, lawmakers are threatening death to protesters. The fear of chaos spreading across the Middle East has sent the oil market into overdrive. Brent crude traded at $104 per barrel Tuesday. Continue reading Brent Crude at $104 per Barrel on Spreading Mideast Unrest Brent Crude at $104 per Barrel on Spreading Mideast Unrest originally appeared on BloggingStocks on Tue, 15 Feb 2011 11:00:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments
Tech Expert Eyes QuickLogic (QUIK)
Filed under: Newsletters , Stocks to Buy “QuickLogic ( QUIK ) recently reported fourth quarter revenue slightly below its revised guidance, and forecast that Q1 new product revenue would be down roughly $100K,” notes tech sector specialist Paul McWilliams . In his Next Inning newsletter, he explains, “Both are clearly disappointing pieces of news. However, as I see it, the disappointment ends there, and I continue to own these shares. “The semiconductor company makes products that enable customers to add new features, extend battery life and enhance images on mobile and consumer products. Continue reading Tech Expert Eyes QuickLogic (QUIK) Tech Expert Eyes QuickLogic (QUIK) originally appeared on BloggingStocks on Tue, 15 Feb 2011 10:30:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments
Would Ben Graham Buy Apple (AAPL)?
Filed under: Apple Inc (AAPL) , Newsletters , Stocks to Buy “Is Apple (( AAPL ) undervalued? We expect the company’s earnings to grow at a rapid 24% pace during the next five years,” says J. Royden Ward who believe the tech stock meets the criteria for a long-term value investment. The editor of Cabot Benjamin Graham Value Letter explains, “At 14.7 times our one-year forward EPS estimate, shares are clearly undervalued. Indeed, we consider AAPL to be low risk. “Apple develops, manufactures and markets personal computers and consumer electronic products. Exciting new products portend continued rapid growth in future years. Continue reading Would Ben Graham Buy Apple (AAPL)? Would Ben Graham Buy Apple (AAPL)? originally appeared on BloggingStocks on Mon, 14 Feb 2011 10:20:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments
How Savings and Investment Increase an Economy’s Output
Everyone who has held a job and a bank account understands the potential benefit of postponing consumption today in order to enjoy greater consumption in the future. However, many people — if pressed — would explain this increase in saver’s income by an offsetting reduction in the income of a borrower in the economy. This is certainly a possibility. For example, if Bill (the borrower) forgets his lunch money on Monday, he might ask his coworker Sally (the saver), “Can you lend me $10 and I’ll pay you back $11 tomorrow?â€Â If Sally agrees, then it is clear that her $1 in interest on the personal loan was paid out of Bill’s reduced income for that month. In other words, if Bill’s take-home pay that month were $5,000, then he would actually only have $4,999 to work with, because of his $1 expenditure in “buying a loan†from Sally. At the same time, if Sally’s normal paycheck were also $5,000, then this particular month she would actually have $5,001 to work with, after earning $1 in providing “lending services†to Bill. In the scenario above, what basically happened is that Bill financed his consumption with an “advance†made by Sally. On the Monday morning is question, …
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…
