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Still ‘early days’ of gold investment demand Murenbeeld

Wed, 03 Aug 2011 18:41:13 +0000

The growth in investment demand for gold is still in its early days, and the price of the precious metal is not in a bubble, Dundee Wealth economist Martin Murenbeeld told delegates at the Canadian Institute of Mining, Metallurgy and Petroleum conference in Vancouver this week.

Update on Silver 2008 Economy-Silver Still a Buy! Here’s Why

Sat, 14 May 2011 18:56:01 +0000

The silver program that is doing very well can be found at silversnowball.com (we never ran out of Silver Eagles Silver hitting it’s ‘correction’ (or market manipulation) is a gift, if you can fight the ignorant psychology of investing and stop believing the lies that are being sold on TV and in the papers and take the gift this really is right now. Supply and demand have nothing to do with the prices we have seen in silver recently…and the manipulations will not be holding up much longer…silver is on the way back up…WAY up. Time to jump on board! The book I speak of in the video (among many others) is called “Creature from Jekyll Island” I highly encourage anyone who has not yet ’seen behind the curtain’ about the truth about the Federal Reserve to read this book. It is extremely enlightening! Cheers to all of you…and to a most amazing element…SILVER…All that glitters is not gold. To your wealth and your health. I’ll drink to that! Namaste Shannon

Banks Still Adding Jobs In London, Despite Taxes

Thu, 24 Mar 2011 18:43:09 +0000

Banks Still Adding Jobs In London, Despite Taxes
Investment banks in Europe’s financial capital are adding jobs, helping to bolster headcounts at law and accounting firms across London, as the rest of Britain struggles to recover from the worst economic contraction since the 1930s. Chancellor of the Exchequer George Osborne, who delivers his budget today, has little alternative except to do all he can to keep companies such as Barclays Plc …

Gold Still Glitters! April 30

Mon, 27 Dec 2010 18:39:10 +0000

Gold Still Glitters! April 30

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Home Page > Finance > Investing > Gold Still Glitters! April 30

Gold Still Glitters! April 30

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Gold bullion is at a new high for the year, and has rallied more than 10% since February. Yet it has not attracted the excitement among investors and the media that its rallies usually generate. That may be an indication it has further to go on the upside, since excessive excitement about a gold rally is usually seen before its rallies end.

Gold certainly seems to have a lot going for it right now.

For instance, it has a history of attracting buyers in times of uncertainties in currency and credit markets, acting as a so-called safe haven.

The growing worries about the debt crisis in Greece, which saw its credit rating downgraded to junk status last week, certainly qualifies as uncertainty. And while that uncertainty will ebb and flow as efforts are made to rescue Greece, it will not go away permanently anytime soon. It has been feared for many months that Greece was only the canary in the coal mine of global government deficits and dangerous debt levels, that its crisis is only the first in what will be a long line, eventually possibly even winding up in Japan and the U.S. The popular term has become ‘contagion’. This week’s additional downgrades of the credit ratings of Portugal and Spain, and rumors that Ireland might be next, certainly add to the likelihood of ongoing uncertainty. That may explain why gold gained an additional $22 an ounce, or almost 2%, this week.

Gold also has a couple of other potential positives going for it.

Gold is the age-old hedge against rising inflation, the price of gold rising when inflation rises. Anyone who can remember back to the double-digit inflation of the 1970’s may also remember that is when gold soared to its exciting high of $850 an ounce, reached in 1980 (which at the time was by far a record high). It created so much excitement for gold that not only were people clamoring to come up with more money to pour into gold investments, but housewives were melting down jewelry and family heirlooms to recover their gold content.

Currently there are no signs of inflation in the U.S. In spite of housewives’ complaints about rising food prices and auto and truck drivers’ complaints about rising fuel prices, the government reports show inflation remains benign. However, inflation is a concern in a number of other countries, and gold is not a U.S. commodity but a global commodity. So in those countries there could well be rising demand for gold as an inflation hedge.

For instance, in early April, China’s central bank warned that it expects global inflation to become a problem in 2010. It blames the ultra loose monetary policies adopted by global central banks to rescue financial systems, saying, “Once economies turn better that massive liquidity will definitely add to inflationary pressure.”

Numerous countries have already begun to raise interest rates in an effort to ward off threatening inflation pressures. They include Australia (four rate hikes so far), Brazil, China, and India (where inflation has spiked up to 9.9%).

Those rising inflation fears abroad, if not in the U.S., are a potential positive for gold.

Then there is gold’s history of usually moving opposite to the stock market, not so often in the short-term, but frequently over the long-term.

For instance, going back to the 1970s again, when gold was soaring to $850 an ounce as an inflation hedge, the stock market, which doesn’t like inflation, was in a bear market. However, as inflation began to cool off, and the stock market was about to begin its powerful new 18-year secular bull market of 1982 -2000, gold topped out into what was to be a 17-year bear market in which gold plunged from $850 an ounce to just $250 by 1999.

And then, when the stock market topped out into its severe bear market of 2000-2002, the beginning of the so-called ‘lost decade’ for stocks, gold began what has so far been a 10-year bull market for gold, rising from $250 an ounce in 2001 to more than $1,200 at its new record high last year. Meanwhile, in spite of two cyclical bull markets in the last ten years, the stock market as measured by the S&P 500 is still 22% below its level seen at the market peak in 2000.

But of course for that positive for gold to be a factor, that it tends to move opposite to the stock market in its long-term moves, the stock market would have to go into another correction, extending its secular bear market. While I do have an opinion and expectation regarding that, it’s another subject for another place.

However, for now the uncertainties in global currency and debt markets, and fears of inflation in some parts of the world, seem to be to be enough reasons to remain bullish on gold.

Sy Harding is editor of the Street Smart Report, the Long and Short Stock Advisor, and the free daily market blog, www.streetsmartpost.com.

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About the Author:

Sy Harding is CEO of Asset Management Research Corp., author of 1999’s Riding the Bear and 2007’s Beat the Market the Easy Way, editor of www.StreetSmartReport.com, and www.StreetSmartPost.com.

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Gold Outlook -Gold is still driving the market

Fri, 27 Aug 2010 18:50:20 +0000

Those of you who have been watching these videos in the past will not be surprised to hear me say that weve got more of the same coming. All the way through weve talked about the gold price being quite strong and really leading the resource sector. And thats reflecting all the inbalances in the world in respect of debt levels in a lot of the OECD countries. Now were seeing that strong gold price, were seeing gold over 1150 over night, and I think were going to see move up to the 12,13, 14 hundred dollars an ounce, reasonable soon, certainly thats what it looks like. The demand for gold is still very robust and were seeing the major gold stocks starting to really perform and look as if theyre going to make a major upside breakout. Now the gold price is moving because of a whole range of reasons. Mine production has been declining for the last 10 years, and that has a minor impact, weve seen India buy that 200tonnes of gold from the IMF and Im sure that other central banks around the world of smaller nations are looking to buy more gold as well. The American dollar is weakening, it has been quite weak over the past few months, and that certainly is helping things. The decision by the US fed to keep interest rates low for another year or so basically means that the US dollar will be much weaker against other currencies, and the so called carry-trade where people borrow low interest rates costs (US$) and buy assets will continue. The weight of money in the United States …

EU Consumer Confidence still below zero but improving

Thu, 22 Jul 2010 18:42:22 +0000

EU Consumer Confidence still below zero but improving
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Are You Still Investing in Your Company’s Stock?

Fri, 07 May 2010 18:39:50 +0000

For many investors investing in their company’s stock makes sense. After all, you are an insider and it makes you feel like you know what is going on in the company. If anything were to go wrong you would be the first to know right? Or, you may think that you are doing great and your division is doing great, so it is safe to assume that the company is doing great right? Or, you have had meetings with your Human Resources Department and Manager and they have assured you that your company is not like “those” other badly managed companies. These may be some of the thoughts that may go through your head as you pour more money into your company’s stock. But are these thoughts rational or are you getting blindsided?

As investors, we know or should know that we need to be as rational as we can be when it comes to investing. After all, investing is about taking measured risks and looking at the numbers. Unfortunately for many of us it is quite difficult, if not impossible, to remove emotions from our decision making. And when it comes to investing, our emotions can sometimes have a detrimental effect in our portfolios.

Why People Do It

Aside from the myths that were mentioned in the introduction (yes they are myths) there are many reasons why people invest and sometimes invest heavily in their company’s stock. For one, companies sometimes allow employees to purchase shares at a discount in the form of stock options or through discount stock purchase plans. Other times employees receive a match on their retirement contributions not with cash but with company stock. And sometimes, depending on your position you may be expected to invest in your company stock. It makes sense for the employer; they not only gain your loyalty but may also be able to reduce their payroll. And if you are working for a startup it is an easy way to get you to work hard for less because you hope to make it big later when the company goes public or it becomes a huge success.

The question is, does it make sense?

Why You Should Not Do It

There is a reason why financial planners and investment advisors recommend not putting your eggs in one basket. It is simply too risky. The more you invest in one stock, the more at risk your retirement account will be. You may be saying to yourself, “but my company is in fact a good investment”. That may be so, but think for a moment: if your company runs into trouble, not only could you lose your job but the value of your retirement account is bound to shrink if not disappear altogether. Is it worth the risk when you can easily diversify your portfolio? I do not think it is.

We all know what happened to Enron and to the 401Ks of their employees and if you don’t here it is: 57.73% of employees’ 401(k) assets were invested in Enron stock as it fell 98.8% in value during 2001. In one single day, they were locked out to sell any of their stock, they lost their job, and they ultimately lost most of their retirement money.

The latest victims of this are employees of Bear Stearns and Lehman Brothers, who saw their net worth erode if not disappear in a matter of days. Given the current economy, it is likely that we will see this scenario play out again.

According to a study done by the Employee Benefits Research Institute and the Investment Company Institute 33% of employees who have the opportunity to invest in their company’s stock do so, and as much as 9% of these employees have 80% or more of their 401(k) assets invested in their employer’s stock. Employees in their sixties had almost 20% of their 401(k) savings in their company’s stock and almost 12% have more than 90% in their employer’s stock. What is wrong with this picture?

It is bad enough to put your retirement at risk when you are young (presumably you can still make it up if it goes bust), but to do so in your sixties or so close to retirement is criminal and foolish.

How Much is Too Much

There is no one answer to this question. There are good ethical companies with competent management teams and healthy balance sheets, but even these can suffer from economic downturns, lawsuits, or miscalculations. My thoughts, you should step out of yourself and study your company just as if you were an outsider. If you determine that this is a good investment you should still diversify your account and probably not invest more than 2%-5% into your company. Lastly, if you own mutual funds you may already be investing in your company, so make sure you don’t invest more than you should.

It’s Your Retirement

Owning your company’s stock can make you feel good; after all you are a “part of the team”. But this feeling comes at a high risk. No one cares or should care more about your retirement than you (not even your current employer). Diversify your portfolio and do not feel guilty about it. No one has to know how much company stock you dumped, and I can assure you, you will sleep better at night.

Karla Arguello, MBA is the Executive Vice President of Cathy Pareto & Associates, Inc. a fee-only financial planning and investment management firm.

www.cathypareto.com

Blog http://cathypareto.blogspot.com/

Do you think its funny when McCain supporters still say they dont know what Obama’s change is?

Sun, 11 Apr 2010 20:59:56 +0000

Here comes all the “empty suit” references from the rightwing mouthbreathing, knuckledragging squad.
John McCain/Bush stands for a third term of the disasterous Bush administration, the guy should be stuffed and mounted and put in a museum somewhere in South Carolina.

Here are some of Senator Barack Obama’s positions:

Opposed the Iraq war from the start.
Voted to end the war in Iraq.
Supports capturing and killing Osama Bin Laden.
Favors a $1000 tax cut for every working American family.
Will implement tax form simplification to reduce filing time.
Provide tax credit for all middle class homeowners.
Provide a tax cut for all families making less than $75,000 a year.
Amend NAFTA to protect American workers.
Amend NAFTA to strengthen environmental protections.
Providing Flex Ed training accounts for workers.
Extending Trade Adjustment assistance to service workers.
Supported Patriot Employer Act of 2007 that gives tax credits to large companies that keep workers here in America.
Double funds for basic federal research.
Implement a long term research and development tax credit.
Invest in green technologies.
Reduce carbon emission gases.
Tackle the challenges of global warming.
Create an energy focused youth jobs program.
Create Federal Renewable Portfolio Standard.
Extend the Production Tax Credit.
Expand Broadband into every community.
Keep the Internet tax free.
Expand high speed internet access in rural areas.
Fight for passage of Employee Free Choice Act.
Ensure freedom to unionize.
Would overturn “Kentucky River” classifications of Bush’s NLRB
Protect rights of striking workers.
Increase the mininum wage to index it to inflation.
Crack down on predatory lenders.
Provide a universal mortgage tax credit for homeowners who don’t itemize.
Sign the Stop Fraud Act to prevent lending fraud.
Mandate accurate loan disclosure.
Create a fund to protect people from foreclosures.
Close the bankruptcy loophole for mortgage companies.
Establish a credit card rating to improve disclosure.
Ban utilateral credit card charges.
Apply interest rate only to future debt.
Prohibit credit card interest on fees.
Prohibit Universal defaults.
Require prompt and fair crediting of cardholder payments.
Protect working people from unfair bankruptcy laws.
Ban executive bonuses for bankruptcy companies.
REquire disclosure of pension investments.
Cap outlandandish interest rates on payday loans.
Implement legislation to drive unscrupulous lenders out of business
Create a bankruptcy exemption for people that went broke because of medical bills.
Double funding for after school programs.
Extend Family and Medical Leave Act.
Encourage states to adopt Paid leave.
Expand the Child Care Tax Credit
Supports ratification of UN Convention Rights of Persons With Disabilities.
Supports independent, community based living for people with disabilities.
Expand educational opportunites for people with disabilities.
Expand job opportunities for people with disabilities.
Strengthen civil rights enforcement.
Sign into law the Fair Pay Act.
Sign law reversing recent SCOTUS rulings that permitted discrimination against women.
Sign law reversing recent SCOTUS rulings that permitted discrimination against racial minorities.
Strengthen federal hate crimes legislation.
Eliminate the sentence disparities regarding crack cocaines.
Establish drug courts for first time, non violent offenders.
Create a prison to work incentive for those transitioning back into society.
Passed a law to prohibit the practice of racial profiling.
Supported reauthorizing the Voting Rights Act.
Opposes all discriminatory barriers to voting.
Helped reform death penalty system in Illinois to protect innocent people on death row.
Voted to ban cluster bombs.
Provide high quality affordable child care to families.
Will quadrulple Early Head Start funding.
Will increase Head Start funding.
Creates early learning challenge grants.
Abolish overly rigid teach to the test curriculum in schools.
Improve accountability in public schools.
Invest in intervention strategies to reduce dropout rates in schools.
Increase funding for afterschool programs.
Supports Step Up program to increase summer learning opportunities.
Support English language learner programs.
Expand college outreach programs.
Create teacher service scholarships.
Requires all public schools to be accredited.
Create teacher residency programs.
Create the American Opportunity Tax Credit for higher education.
Streamline financial aid application.
Introduced legislation to increase Pell Grant to $5,100.
Reduce carbon emissions by 80% by 2050.
Confront deforestation.
Promote carbon sequestration.
Accelerate commercialization of plug in hybrids.
Promote development of commercial scale renewable energy.
Invest in low emission coal plants.
Transition to new electric digit grid.
Double science funding for clean energy products.
Create Green Jobs Cor