Zinc

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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Single Trader Dominates Copper in London Metals Exchange

Filed in commodities, copper, New Gold, o, silver, South African Gold, Spot Gold, Zinc by on December 24, 2010 0 Comments
Single Trader Dominates Copper in London Metals Exchange

Filed under: Market Matters , Commodities , ETF Over the years there have been some strange goings on in the commodity markets. One episode that comes to mind is the attempt by the Hunt brothers of Texas to corner the silver market in the 1970s. Now we have another strange occurrence. The Financial Times reported that one trader holds 80% to 90% of the copper in the London Metals Exchange (LME) warehouses, valued at about $3 billion. We do know that JPMorgan Chase ( JPM ) is a big player in the copper market. Whether JPMorgan increased its holdings is not known. Continue reading Single Trader Dominates Copper in London Metals Exchange Single Trader Dominates Copper in London Metals Exchange originally appeared on BloggingStocks on Fri, 24 Dec 2010 11:00:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

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Yamana (NYSE:AUY) Still Struggles to Gain Respect, Traction

Although there have been a lot of positive comments and data presented on the future of Yamana Gold (NYSE:AUY), it continues to struggle to gain respect and traction in a gold investment climate that should result in a much better price movement for the gold miner.Scotia interrupted the attempted party again, downgrading Yamana from “Sector Outperform” to “Sector Perform.” With analysts having

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Masco Downgraded to “Sell” at Goldman Sachs; Expects 15% Downside (MAS)

Filed in copper, dividend, earnings, Gold, Gold Investment, goldman sachs, shares, Zinc by on October 13, 2010 0 Comments
Masco Downgraded to “Sell” at Goldman Sachs; Expects 15% Downside (MAS)

Home and building products maker Masco Corporation ( MAS ) on Wednesday caught a big downgrade from analysts at Goldman Sachs, sending its shares lower in premarket trading. The firm cut its rating on MAS from “Neutral” to “Sell” with a $10 price target. That target represents an expected 15% downside to the stock’s Tuesday closing price of $11.82. Goldman said it feels Masco’s current 2011 consensus earnings estimates are 33% too high — Goldman expects the company to earn 41 cents for the year, while the average Wall Street estimate sits at 62 cents. A Goldman analyst commented, “Masco’s key businesses will face margin pressure in 2011 via higher copper, zinc, insulation and titanium dioxide prices.” Masco shares fell 22 cents, or -1.9%, in premarket trading Wednesday. The Bottom Line We removed shares of MAS from our “recommended” list last Sept.23, when the stock was trading at $17.87. The company has a dividend yield of 2.54%, based on last night’s closing stock price of $11.82. The stock has technical support in the $10 price area. If the shares can firm up, we see overhead resistance around the $13 price level. We would remain on the sidelines for now. Masco Corporation ( MAS ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.0 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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EURO Climbs as Markets Wait for the ECB

EURO Climbs as Markets Wait for the ECB

The rout of the USD continued throughout the Asian session and the momentum isn’t letting up during the European. As stated yesterday, even though technical indicators are signaling that the USD is currently oversold, we are going to stick to our fundamental guns. Right now – fears of another round of global QE and endless liquidity are priming the risk-taking pumps and the market is clearly turning a blind eye to new sovereign risks coming out of the EU. There are significant fundamental risks still firmly entrenched in the Euro. Ireland’s credit rating was downgraded yesterday as Fitch lowered the Emerald Isle’s rating to A+, the worst assessment among the three major agencies. Further, the European Commission warned yesterday that ’06 – ‘09 Greek debt & deficit data would probably need to be revised higher in the near future. Even though Euro risk is steadily increasing – on the EURUSD pair, the USD remains the sell this week. USDJPY traded down to 82.25 with no harsh words from Japanese policymakers. Interestingly, selling pressure on USD vs. many Asian currencies saw another day of central bank intervention, albeit smoother than in previous days. The AUDUSD rallied higher past 0.9900 as a strong jobs report showed that full time employment gained 55.8k and total employment jumped 49.5k. Rate markets are now pricing in a full 25 bps hike as traders quickly adjust their calendars – expecting a nice gift from the RBA in December. Given the strong growth story in Australia, fuelled in part by commodity prices and domestic demand, the RBA may still have lots of work to do in 2011 which will give the AUD even more upside potential and increase yield differentials into the new year. On that note, commodities will continue to climb with base and precious metals leading the way. Gold is still the major story climbing to $1359.40 / oz at the time of writing, in the current environment, we’ll probably see $1400 before the end of the year. Copper and Zinc followed closely on Gold’s heels but with China still on holiday, Friday’s Asian open will likely introduce further upside due to pent-up physical demand. For the Bank of England, we suspect that it will be a non-event as a vote for no change …

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Goldman Sachs Forecasts $11,000 a Ton for Copper

Goldman Sachs Forecasts $11,000 a Ton for Copper

Filed under: Analyst Reports , Forecasts , Commodities First off we should distinguish between precious metals and base metals. Copper and zinc fall in the category of base metals. Base metals are used in construction and products. So copper and zinc are more a supply-and-demand play than precious metals. The prices of base metals move almost in lock-step to basic supply. Goldman Sachs Group ( GS ) has an international division that specializes in commodities. Much of the data comes from London, which is a hub for commodities trading. The London Metals Exchange (LME) is where this trading takes place. Traders like Goldman can monitor trading and inventories at the LME and run estimates of supply and demand based on trading activity, both on and off exchanges. Continue reading Goldman Sachs Forecasts $11,000 a Ton for Copper Goldman Sachs Forecasts $11,000 a Ton for Copper originally appeared on BloggingStocks on Tue, 05 Oct 2010 13:40:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

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Goldcorp (NYSE:GG) Announces Commercial Production Hit at Penasquito

Filed in Gold, Goldcorp Inc, lead, penasquito, Penasquito Mine, silver, Zinc by on September 14, 2010 0 Comments

Although the first lead and zinc concentrates were produced by Goldcorp (NYSE:GG) at their Penasquito project in Mexico in 2009, the company decided to wait until the second 50 000-t/d mill and flotation line was operational before making the declaration it had officially hit commercial production, which they now have done. Goldcorp is on track to finish construction on high-pressure grinding

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Teck Resources (TCK): Copper, Coal, Zinc and Oil Sands

Filed in Bank Gold, commodities, copper, Teck Resources, Zinc by on September 10, 2010 0 Comments
Teck Resources (TCK): Copper, Coal, Zinc and Oil Sands

Filed under: International Markets , Newsletters , Canada , Commodities , Oil , Stocks to Buy “Given the fact that Canada is looking pretty stable and smart these days, I thought it was time to feature a Canadian stock,” suggests Glenn Rogers . The contributing editor to Internet Wealth Builder explains, “Below, we look at Teck Resources ( TCK ), a highly diversified resource business based in Vancouver. With Teck you get good copper exposure plus coal and zinc as well as oil sands. “This is a pretty good time to be in the natural resources business particularly if you are seen as a reliable and politically neutral trading partner such as Canada. Continue reading Teck Resources (TCK): Copper, Coal, Zinc and Oil Sands Teck Resources (TCK): Copper, Coal, Zinc and Oil Sands originally appeared on BloggingStocks on Fri, 10 Sep 2010 11:00:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

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Time to Invest in NovaGold (AMEX:NG)?

Novagold (AMEX:NG) has a lot going for it from several angles, including the undeveloped resources they own, partners, and major investors. As far as resources go, especially gold and copper, they hold some of the largest undeveloped deposits among miners. They also enjoy deposits of numerous other metals like silver and zinc. Expectations are the cost to develop the assets will be about $4

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Canadian Zinc Corp. (CZICF.OB) Posts Quarterly and Half-Year Results

Filed in Gold Investing, Zinc by on August 6, 2010 0 Comments

Canadian Zinc Corp. today posted its financial results for the three and six months ended June 30, 2010. For the six months ended June 30, 2010, Canadian Zinc reported net income of $2.578 million compared to a loss of $1.019 million for the first half of 2009. For the second quarter ended June 30, 2010,

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Investing in Mexico’s Rising Silver Star

Investing in Mexico’s Rising Silver Star

Last week we discussed why now, more than ever, you should own silver as an important precious metal investment. We talked about price ratios, diminishing global supply, government hoarding, and the recent trend of investors buying the precious metal up like there’s no tomorrow. But now, I want to get more specific. Because while it’s good to know that silver investment demand has gone up 522% since 2007— or that above-ground silver supplies dropped by 83% in the last 2 years — none of this information is going to make you any serious money in the next few days or weeks. However, a unique opportunity just crossed my desk that I think could turn out to be one of my biggest winners of the year. It’s a newly-formed junior silver company that could be sitting on one of the largest silver deposits in Mexico. Here’s the full story… Advertisement The $18 billion black hole Every year, inefficient light bulbs cost businesses and taxpayers $18 billion in energy bills. This has been the case for 130 years… But one micro cap tech company has finally found the solution. In the next few months, with the help of a secretive DoD contract, this $26 million operation… could come to dominate a market worth almost $9 billion/year. Find out the name of the company— and their innovative solution for the lighting…

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Afghanistan Mineral Discovery: A $1 Trillion Find

Filed in copper, economy, Gold, GOld juniors, lead, silver, Zinc by on June 18, 2010 0 Comments
Afghanistan Mineral Discovery: A $1 Trillion Find

There’s gold in that thar war! Geologists working with the Pentagon claim to have discovered $1 trillion worth of precious and base metal deposits in Afghanistan. U.S. and Afghan officials are hopeful that these mineral deposits will convert the war-torn country into a global mining giant, fundamentally altering the economy of Afghanistan and perhaps the war itself. But there are serious doubts over the logistics of actually mining the metals in the near term. And for investors, there are much better opportunities in safer, more stable regions of the world. Mining in Afghanistan Mineral discoveries in Afghanistan is nothing new. The country has a mining history that can be traced back for over 6,000 years. Historical mining in Afghanistan was principally focused on the production of gemstones, with some of the world’s oldest known mines established to produce lapis lazuli for the Egyptian Pharaohs. More recent exploration in the 1970s resulted in the discovery of significant resources of metallic minerals and non-metallic minerals. However, no commercial mining activity has recently occurred in Afghanistan, due to the current political and security situation within the country. But now the American geologists who have uncovered the mineral treasure are saying the recent mineral discovery could change the impoverished nation into a wealthy mining powerhouse— creating job opportunities, alleviating poverty, and uniting the people of Afghanistan. The new discoveries include large veins of: precious metals such as gold and silver …

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