Tag: silver

Bullion vs Mining Stocks | Financial News

Filed in African Gold, Bank Gold, Gold, o, platinum, silver by on February 19, 2011 0 Comments

I discuss the pros and cons of owning mining stocks vs bullion and give my opinion on 401ks. seekingalpha.com I looked at the. … It was not a pretty picture as it was revealed that a basket of silver stocks we track in my newsletter had underperformed silver by 27%” www.marketoracle.co.uk “The Canadian mining stock mutual funds lost between 25% and 55% in 2008, whereas BMG BullionFund, a mutual fund that holds physical gold , silver and platinum bullion , lost only 4%” …

Continue Reading »

Urban Magnets for Disaster

Filed in BP, deflation, economy, Ford, Gold, inflation, o, silver, ubs, US Dollar by on February 18, 2011 0 Comments

When it comes to bad stuff the sky’s the limit. It’s gonna happen, eventually…one way or another. And it could be real bad. And when bad stuff happens, you’re better off being somewhere else. Where? Generally, bad stuff seems to happen most often in cities. Why is that? Cities are where most people live. It is where governments are. And it is where the labor force is most specialized. There are no subsistence farmers living in cities. Nor do urban populations “live off the land.” Instead, they depend on complex networks of commerce. The typical city dweller produces neither food nor energy. He sits all day in an office — completely dependent on others to provide power and food. Then, he goes home — still completely dependent on the division of labor for his most important needs. Progress can be described as the elaboration of the division of labor. In man’s most primitive state, specialization is extremely limited. From what we’ve been told, the early man was the hunter. Early woman gathered…that’s about the extent of it. As the tribe grows larger, specialization increases. One person might tend the fire. Another might be in charge of making clothes or arrows. The advent of sedentary agriculture and towns caused a big leap forward in human progress and, not coincidentally, the division of labor. Some townspeople went out to tend the fields. Others began to focus on woodworking…or iron mongering…or making weapons…or clothes. Some played cards and hung around at bars. There was soon a homebuilding industry…and, not long after, merchants, prostitutes and bankers…and even shyster lawyers and tax collectors. As the division of labor expanded, the average person became richer…and more dependent on others. In order to eat, someone else had to plant…and till…and harvest…and hunt…and gather. And then, when agriculture became mechanized, he depended on faraway people who produced oil and gasoline…and people who built …

Continue Reading »

Gallup: The Unemployment Rate is 10%

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

Continue Reading »

ABC Bullion Blog: Stocks fall, oil, gold, silver rise as Mideast …

Filed in Bank Gold, Gold, o, silver by on February 16, 2011 0 Comments

In what may become the common theme of 2011 yesterday stocks fell while Brent Crude topped $104 and gold and silver headed back to their former highs of last year. The cause? More unrest in the Middle East. …

Continue Reading »

The Incredible Shrinking Middle Class

Filed in BP, Debt, economy, Ford, Gold, GOld juniors, inflation, Lear, o, recession, silver by on February 16, 2011 0 Comments
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 …

Continue Reading »

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 …

Continue Reading »

Carlos Slim Catches Gold Fever

Carlos Slim Catches Gold Fever

Carlos Slim beat both Warren Buffett and Bill Gates in stock market performance last year. The reason: a hell-bent plan to start a brand-new gold and silver mining company in Mexico. Slim’s publicly disclosed holdings jumped 37% to $70 billion in 2010, according to data compiled by Bloomberg . Meanwhile, Buffett helped return a 22% gain for Berkshire Hathaway last year, and Gates’ Microsoft fell, hurting his overall annual returns even as he spread his investments into other sectors… The World’s Richest Man catches gold fever Slim — who made his fortune by building one of the world’s biggest telecommunication empires — has recently been making significant investments in gold and silver, particularly with a focus on precious metal mining in Mexico. Carlos Slim became the world’s richest man in 2010 with an estimated net worth of $55 billion. And a new spin-off mining company may help him widen his lead atop the global wealth list… Back in August, Slim’s holding company, Grupo Carso, S.A.B. de C.V., announced it would spin off a new precious metal mining company that would be focused on gold and silver mining in Mexico. The news added billions to Slim’s already ridiculous fortune as the plan to spin off the new company sent shares of Grupo Carso soaring in 2010, making it his best-performing asset last year. The new company (called Minera Frisco) produced nearly 200,000 ounces of gold and 5.5 million ounces of silver from its Mexican projects in 2010. Frisco recently reported plans to spend nearly $750 million this year to ramp up gold and silver production. The company estimates production from new mines in Mexico will more than double the company’s gold production to 440,000 ounces and nearly quadruple its silver production to 19.1 million ounces in 2011. Shares of Minera Frisco began trading Mexican Stock Exchange at the beginning of this year. But Slim and his family received nearly 80% of the new shares of Minera Frisco, and the stock is very thinly traded. Most analysts and investors will most likely avoid covering or owning this stock… However, there are many suitable alternative companies with a focus on gold and silver mining in Mexico. The largest of Minera Frisco’s publicly-traded competitors is the London-based silver major Fresnillo plc (LON: FRES) . Fresnillo plc Exchange: Symbol London: FRES P/E 39.76 Share Price 1,450 GBX Divided 5.90 GBX Market Cap 10.41 Billion GBP Yield 1.12% Fresnillo is the …

Continue Reading »

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 …

Continue Reading »

Ben Plans, Food Prices Reach All-Time Highs

Ben Plans, Food Prices Reach All-Time Highs

Don’t you just love the Federal Reserve…? Higher prices have helped to set the world ablaze and Bernanke & Co. continue to insist inflation is a figment of our imagination. You see, despite the obvious fact that commodity prices are skyrocketing……. …the Fed comes out with this nonsense this morning. About inflation the Bernank remarked: “On the inflation front, we have recently seen significant increases in some highly visible prices, notably for gasoline. Indeed, prices of many commodities have risen lately, largely as a result of the very strong demand from fast-growing emerging market economies, coupled, in some cases, with constraints on supply. Nevertheless, overall inflation remains quite low : Over the 12 months ending in December, prices for all the goods and services purchased by households increased by only 1.2 percent, down from 2.4 percent over the prior 12 months. To assess underlying trends in inflation, economists also follow several alternative measures of inflation; one such measure is so-called core inflation, which excludes the more volatile food and energy components and therefore can be a better predictor of where overall inflation is headed. Core inflation was only 0.7 percent in 2010, compared with around 2-1/2 percent in 2007, the year before the recession began.” Meanwhile, the reality is food prices around the world have hit their highest levels EVER… From Breitbart entitled: World food prices hit record high: UN agency “ World food prices reached their highest level ever recorded in January and are set to keep rising for months, the UN food agency said on Thursday, warning that the hardest-hit countries could face turmoil. Rising food prices have been cited among the driving forces behind recent popular revolts in north Africa, including the uprising in Egypt and the toppling …

Continue Reading »

'Fear and Love Make Gold Strong' | SHOUTing GORIlla

Filed in Australian Gold, Gold, o, outperform, silver by on January 28, 2011 0 Comments

This hopefully has reversed the trend of the last couple years where bullion outperformed the stock . Junior gold mining companies, on average, returned roughly twice the gain of gold bullion , but some of those names were fairly silver …

Continue Reading »

Interested in Gold Bullion Coins? | Gold Current

The stock market is home to most investments made in today’s business climate. Nonetheless, a lot of people are embracing silver as a way to invest for the future. Here is some advice if you’re thinking about buying gold bullion bars or …

Continue Reading »

Weekend: A Digital Pearl Harbor

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. From Sun Tzu to “Stormin’ Norman” Schwarzkopf, the goal of every military commander has always been pretty simple: to kill people and break things. Beat the other guy, and your name will find its way into the history books… The only thing that changes is the technology. From the longbow to the ballistic missile, the arms race is one that never sleeps. One of the fastest growing fronts in this struggle is in cyberspace. Today’s style of combat is geek versus geek. But don’t believe for a second that it’s not just as dangerous… Because while it doesn’t involve tanks or fighter squadrons, cyberwar’s ability to disrupt an enemy is just as effective, and often equally destructive. It’s war by other means — one that focuses on using computer code to strike an enemy’s Achilles’ heel. Full-scale cyberwar The recent discovery of a computer worm called Stuxnet is a perfect example of the damage a hacker armed with code can create. Using the “most advanced and aggressive malware in history,” cyberwarriors have now set Iran’s nuclear ambitions back by two years, according to most estimates. (Not surprisingly, Israel and the United States are at the top of the suspect list.) The worm itself attacked controllers critical to operations at Natanz, a sprawling enrichment site in Iran’s desert. As operators stared blankly at their screens, the bug’s centrifuges spun wildly out of control, tearing systems apart. “This was nearly as effective as a military strike, but even better since there are no fatalities and no full-blown war. From a military perspective, this was a huge success,” said Ralph Langer, a top German Security expert. “It will take two years for Iran to get back on track.” This is only the latest cyber skirmish… Back in 2007, Estonia fell victim to what Wired Magazine dubbed “Web War One”. Hounded by three weeks of digital assaults, Estonia’s electronic Maginot Line proved as feeble as the original. The country’s firewalls withered as a flood of data sent by the nation’s unknown opponents quickly crashed one system after another, crippling numerous vital public services. Websites of government ministries, banks, and newspapers all fell victim. And while the rest of the world watched the attacks with a combination of curiosity and indifference, military planners…

Continue Reading »