safe-haven

2011 Gold and Silver Predictions

2011 Gold and Silver Predictions

Gold prices are off to an expected pullback for the year. But this short-term dip won’t last long… After forming a triple top pattern at the very end of 2010, the price of gold has fallen nearly 5% to about $1,350 an ounce. Take a look: We may continue to see a bit of downward pressure on gold prices in the near term; but as economic problems continue to drive investors into safe-haven hard assets, the price of gold will be headed higher later this year. That means if you’ve been waiting for an opportunity to make a little money in gold, the market may be carving out a nice little spot to make some bullion purchases at a decent price to prepare for the next leg up. There are many who estimate gold will top the $1,500 level this year. But I think we’ll see gold make a heart-stopping race to $1,700 an ounce by the end of the summer. Silver is also going to be a big winner for us in 2011. The demand for silver as an investment has increased dramatically over the past several years as the retail market has become more accepting of silver as money and a store of wealth. And as gold prices approach $2,000 an ounce, I believe silver will be preferred by many — if not most — retail customers as a cheaper alternative that provides the level of wealth protection investors might be looking for. With that in mind, I think the price of silver will break $50 an ounce this year. Both gold and silver will be highly profitable for investors this year. But the real money will be made from the junior companies that explore for new resources and develop new projects to mine for these precious metals… Shares of junior gold and silver exploration companies can often skyrocket overnight — especially when they make new discoveries. And making new discoveries is their specialty… You’d think that the most talented precious metal prospectors work for the major gold companies like Barrick Gold (NYSE: ABX) and Newmont Mining (NYSE: NEM), but that isn’t the case. You see, the most talented mine finders stand to make a lot more money if they go out on their own. A top geologist with a major that makes a big discovery might get a sizable bonus and bigger …

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Gold Jumps to a New Record High

Gold Jumps to a New Record High

Filed under: Forecasts , Market Matters , Commodities , Oil , Agriculture , Federal Reserve , Currency Gold prices jumped to a new record high as spot gold in London was fixed at $1,291.05. Traders interpreted the Federal Reserve’s statement that it were ready to provide more stimulus as bullish for commodities, Reuters reported . More stimulus means printing more money. The U.S. dollar did not respond well at all. The December futures contract fell 0.65 to 80.20 (8:00 am EDT), which in turn had investors running for safe-haven assets such as gold and other commodities. Continue reading Gold Jumps to a New Record High Gold Jumps to a New Record High originally appeared on BloggingStocks on Wed, 22 Sep 2010 10:00:00 EST. Please see our terms for use of feeds . Read | Permalink | Email this | Comments

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Is the Bond Bubble About to Burst?

Filed in Gold Prices, safe-haven by on August 25, 2010 0 Comments

Bonds have provided a welcome safe-haven for investors seeking shelter from the financial maelstrom of the past two years. But now many analysts fear bonds have entered bubble territory and pose a rising threat to their holders. The amount of money flowing into bonds is ” probably not sustainable on a consistent basis ” Joel Levington, managing director of corporate credit at Brookfield Investment Management Inc., told Bloomberg News . “Eventually it won’t be sustainable. Whether that means five years from now or five weeks is a little difficult to tell.” Bond funds have attracted more investment than stock funds for 31 straight months, which matches the record streak that ran from 1984 – 1987. Bond funds attracted $559 billion in the 30 months through June, according to the Investment Company Institute (ICI). Meanwhile, investors withdrew $209.4 billion from U.S. stock funds and $24.4 billion from funds that buy foreign stocks.

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China’s Gold Bull Market

China’s Gold Bull Market

The Chinese government is making strategic moves that could have dramatic effects on gold’s delicate supply/demand balance. This maneuver could force gold prices screaming higher as hordes of new Chinese gold investors come clamoring into the market. For investors today, the new measures promise at least two things: The gold bull market is secure with prices expected to continue marching higher. Companies with Chinese gold assets may be well-leveraged to take advantage of soaring domestic demand. Here’s how China’s new gold strategy could fundamentally alter the global market… Plus two small gold companies that are hoping to profit with well-established positions in Chinese gold assets… Advertisement BP Changes Oil Forever… and Hands You a Shot at 508% Gains Thanks to the catastrophic Gulf oil spill, the oil industry is being transformed before our eyes. Oil is about to make a huge move back onto land… and these 3 small American companies are already in prime position to lead the charge. Find out how you can piggy bank their good fortune all the way to 508% gains by July 2012. Gold: The China Impact The Chinese government just announced that it will allow more of its domestic commercial banks to import and export gold. Up until now, the international trading of gold was restricted to only five of China’s largest commercial banks. These include the Chinese divisions of HSBC and Standard Chartered. But new regulations will allow smaller financial institutions to freely trade on the Shanghai Gold Exchange and internationally. The liberalized trading rules will eventually give hundreds of millions of Chinese citizens new access to gold-linked investment products. And this creates the perfect scenario for gold’s price to finally soar over its inflation-adjusted record high of $2,500 an ounce. China’s gold market liberalization sends a strong demand signal and it’s very positive for the price of gold. It is a structural demand shift which must result in higher gold prices as the global equation has changed now significantly with more gold consumers and investors. – LGT Capital Management , voted “Private Equity Manager of the Year” 2007-2009 The international gold market is now paying a lot more attention to China’s gold demand, not just from an official reserve asset perspective, but also private demand. Behind India, China is the second-largest physical consumer. Therefore any step to integrate, liberalize, and expand this market should, in time, foster a rising appetite for gold. – UBS , the world’s second largest manager of private wealth assets. The demand for gold in China has already increased during the first half of this year as concerns over the global economic recovery spurred investment. China National Gold Group Corp., the country’s largest state-owned gold producer, even reported a 40%…

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Gold Jumps to a Four-Week High

Gold Jumps to a Four-Week High

Filed under: Commodities Gold is back in the news. December gold futures were up $17.20 to $1,215.10 per ounce. Gold buying is spurred by safe-haven demand . Investors simply want to buy gold. The SPDR Gold Trust ( GLD ) the world’s largest gold-traded fund, added 3.04 metric tons to 1,285.79 metric tons. Demand also rose after the Federal Reserve announced another bout of quantitative easing. The Fed is using the proceeds from its previous purchases to buy additional Treasuries. This in an effort to keep interest rates low. Continue reading Gold Jumps to a Four-Week High Gold Jumps to a Four-Week High originally appeared on BloggingStocks on Fri, 13 Aug 2010 09:30:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

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Junior Gold Stocks and the Global Financial Crisis

Junior Gold Stocks and the Global Financial Crisis

Summer market doldrums are leaving investors of junior mining stocks with a tough road to hoe. General pricing and trading volumes are down, and there’s little interest in the junior exploration market— except for special news regarding new discoveries. But this won’t last long… I expect the junior mining stock market to rebound stronger than ever. And I expect to see another monster bull market for gold and silver exploration shares. But before the party starts, we might experience a little pain. And for the next few weeks at least, it might be best to shy away from the whole market and go enjoy the rest of your summer while we wait for signals of a rebound for junior mining stocks. Advertisement Surest Way to Profit from the Natural Gas Surge … Backed by two of the richest men in the world, Forbes just called this play a true “game changer.” Already, it’s paid investors like you over 101% since last August. But after you see what these two energy geniuses have up their sleeves, you’ll understand why this little gem could wind up handing you more than ten times your money! Click here to find out more. Robust physical buying supports gold and silver markets Precious metals remain strong in the big picture with a long-term trend of rising prices. Right now, gold is just under $1,200 while silver is at $18.30 an ounce. If you notice, market dips are not lasting as long as they have in past years. This is due to a robust physical gold and silver buying market, thanks to the recent bout of safe-haven investing. Many large buyers of physical metals have marching orders to buy on any technical dips. (This is why we continue to see gold prices spike back shortly after a dip.) Richard Russell, editor of the Dow Theory Letter , had a great comment last week: Gold bullion continues to lead the gold mining shares, although I wish it was the other way around. Somewhere ahead, gold is going to go parabolic. Safe-haven physical gold buyers will soon be jumping back into the junior exploration market— the investment gains are just too fantastic not to have at least some exposure to the so called “legendary gains” of the junior mining stock market. And when these investors start to come around again, it will …

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Gold Prices Close Down Below $1,200 an Ounce

In somewhat of a past pattern, gold prices today have been moving downward, mostly on what is perceived as slowing demand in India. Recent lower gold prices has began to create demand in physical ownership in gold rather than investing in the yellow metal. Typically this part of the summer is considered a slow time for gold prices, and they usually will rebound later in the year. I don’t

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With "Risk Off" Trades Waning, U.S. Stocks Could Be Ready to Reverse Course

Filed in commodities, euro, Gold, Gold Investing, safe-haven by on July 7, 2010 0 Comments

There are new signs that institutional traders are preparing for a change in direction of the U.S. dollar and European euro that may have big implications for U.S. stocks. For months, the winning trade was to short stocks, the euro, and commodities, while buying gold, bonds and the dollar. Commentators labeled this the “risk off” trade since gold and bonds were seen as safe-haven assets. But when crowd mentality is at work, and sentiment – not fundamentals – is driving the bids, there really isn’t such a thing as a “safe” trade. It’s all speculation. Take yesterday (Tuesday), for example: After surging 131 points, or 1.4%, out of the gate, the Dow Jones Industrial Average relinquished most of its advance to close just 16 points higher at 9,702.98. Meanwhile the Standard & Poor’s 500 Index , which had climbed 1.5% to 1,038 in early trading, ended the day just 0.18% higher.

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IAMGOLD (NYSE:IAG) Drops Over 5 Percent, Even with Starting Production at Essakane Mine Six Months Early

IAMGOLD Corporation (NYSE:IAG) participated in the gold sell-off Thursday, as their recent good news of beginning production six-months ahead of schedule at their Essakane gold mine wasn’t enough to overcome the punishing trend. Gold prices fell below $1,200 at one point in the trading session as investors decided to go with Treasury’s for a safe haven, although that is sure to change soon.

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Gold gains on mixed data, rises 12% on quarter Metals Stocks …

Filed in Bank Gold, Gold, Indonesian Gold, safe-haven by on June 30, 2010 0 Comments

Gold inches higher on mixed macroeconomic news. Bullion notches 7th straight quarterly gain, rising 12% in the 2nd quarter. View all Metals Stocks ›. ‹ Previous Column. Gold ends higher on safe-haven buying. Latest Column › …

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Marc Faber, Jim Rogers Continue to Hold Gold

Confusion over the daily fluctuation of the markets based on little snippets and tidbits of news can drive even the most astute trader or speculator batty, but in the case of gold, investors and pundits like Marc Faber and Jim Rogers aren’t confused at all, and they both say they have no intention of selling their gold, and are always on the lookout for dips so they can acquire more.Without

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