Tag: China Gold

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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Barrick (NYSE:ABX), Goldcorp (NYSE:GG), Newmont (NYSE:NEM) as China Increased Gold Imports

The broader gold market today was soaring up till about noon, as news China has significantly increased its gold imports over the last year caused most gold miners, including large-caps Barrick Gold (NYSE:ABX), Goldcorp (NYSE:GG), and Newmont Mining (NYSE:NEM) to make nice upward moves, although as happens many times, speculators moved in and out of the market in that time frame and gold prices

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China Appetite for Gold Increasing as They Battle Property Inflation

The battle by China against property inflation in the first half of 2010 has increased demand for gold in the country, according to the Shanghai Gold Exchange. For the first half of the year, the amount of gold traded on the exchange increased by 59 percent, equal to about 3,174.5 metric tons. It’s cousin silver also performed much stronger, increasing by five times over last year. “I expect

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Barrick Gold (NYSE:ABX) Newmont Mining (NYSE:NEM) Agnico-Eagle Mines (NYSE:AEM), Gold Fields (NYSE:GFI) Jump on China, Sovereign Debt Fears

Concerns over the sovereign debt crisis and China austerity measures have gold mining companies like Barrick Gold (NYSE:ABX) Newmont Mining (NYSE:NEM) Agnico-Eagle Mines (NYSE:AEM) and Gold Fields (NYSE:GFI) jumping today, as they have been up from 4 to 5 percent today, while gold prices today are closing in on all-time records. After the euphoria over the almost $1 trillion being provided to

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China Tightening Weighing on Gold

China and Gold There is a lot of speculation swirling around out there which could have a strong impact on gold if any of them turn out to be true, with one of those being China could end up tightening its money supply to cool down its economy. With China it is believed they may raise their interest rates, which could result in not only a downward pressure on Gold prices, but possibly on other

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China Downplaying Interest in Gold

As many following China and its acquisition of gold have noted, it has shown they are nervous about their holdings of U.S. Treasury’s, and China is now attempting to spin they’re not as interested in gold as they were before, seeming to attempt to shore up their interest in U.S. Treasury’s, even though they are a very poor investment at this time, and will be long into the future.More than likely

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China Won’t Buy IMF Gold

Filed in China Gold, Gold, GOld juniors, Gold Market, US Dollar by on March 1, 2010 0 Comments

Contrary to much speculation, China may not be the buyer of the remaining 191.3 tons of gold that is up for sale from the International Monetary Fund (IMF). Speaking on the condition of anonymity, a senior official from the China Gold Association was quoted in Reuters saying, “It is not feasible for China to buy the IMF bullion, as any purchase or even intent to do so would trigger market speculation and volatility.” The unnamed official said China would continue to build its gold reserves by acquiring gold mines abroad rather than purchases on the international market. Some analysts speculated that China would purchase the IMF gold in an effort to diversify its dollar asset-dominated foreign exchange reserves. According to estimates, China hold’s over 70% of the country’s $2.4 trillion foreign exchange reserves in US dollar assets. China holds approximately 1,054 tons of gold reserves. This gold is equal to only 1.2% of the nation’s gross domestic product, far below the world average of 10%. Good Investing, Luke Burgess Editor, Wealth Daily Investment Director, Hard Money Millionaire China Won’t Buy IMF Gold originally appeared in Wealth Daily . Wealth Daily is a free daily newsletter featuring contrarian investment insights and commentary.

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China Remains World’s #1 Gold Producer

Filed in China Gold, GFMS, Gold, Gold Demand, Gold Market, Gold Producers by on February 4, 2010 0 Comments

The China Gold Association reported that domestic gold output increased 11.3% to a record of 312 tonnes last year, clinching the county’s position as world’s largest gold producer for the third year in a row. China’s booming gold industry reported 138 billion yuan (US$20 billion) of gross industrial output value in 2009 — an increase of 19%, compared to the previous year. Nearly 60% of China’s gold output last year came from the five producing province: Shandong, Henan, Jiangxi, Fujian, and Yunnan. The ten largest gold firms produced 149 tonnes— 47.3%— of the country’s total output. China had more than 700 gold producers in 2009, down from more than 1,200 firms in 2002 as the industry consolidated. The China Gold Association gave no figures for domestic gold demand. However, metals consultancy group GFMS said last month that it expects China to overtake India as the world’s largest gold consumer in 2009. Total Chinese demand is forecast to reach 432 tonnes as investors defy record bullion prices. Luke Burgess Editor, Wealth Daily Investment Director, Hard Money Millionaire China Remains World’s #1 Gold Producer originally appeared in Wealth Daily . Wealth Daily is a free daily newsletter featuring contrarian investment insights and commentary.

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