Gold & Precious Metals

The Gold Chart That Will Knock Your Socks Off!

Posted by Sean Brodrick - Uncommon Wisdom

on Friday, 10 February 2012 08:16

It's a chart of gold fabrication demand — including jewelry, coin, dental, electronic and other industrial uses — that I made using data from Morgan Stanley.

In a moment, I'll tell you why this is so important for you to know. But first, let me say that I'm not disputing its data or projection of gold fabrication demand. There's something else to this chart. Take a look ...



The red line is supply from gold mines, and the blue line is gold fabrication demand. Morgan Stanley's numbers show that fabrication demand for gold is rising, and estimates indicate that it should soar in the years ahead. The company resolves this by saying that investment demand is going to go down. With all due respect to Morgan Stanley, I believe it has that part of the equation wrong, and the only way this demand squeeze will be resolved is through much, MUCH higher prices that force fabricators to look for substitutes.

After all, when the price of an investment — whether it's gold or stocks or anything else — goes higher, do investors want less of it? Heck no! They usually want more — much more!
And this is exactly what I think we're going to see in gold — a rip-roaring rally that sends gold prices much, much higher.

I have more forces that I'll be covering in my presentation in Orlando. But even now, there are other bullish factors falling into place for gold, like pieces to a gleaming metal puzzle. Let me tell you about three important developments that will drive gold prices higher, starting with the fact that......


China's Gold Imports Are Soaring!

China's gold imports from Hong Kong more than tripled in 2011 from the year before, hitting a record 428 metric tons.

China does not release official data on gold imports or demand. So the Hong Kong import numbers, published by the Hong Kong Census and Statistics Department, are considered to offer a partial view of overall demand.

According to sources quoted in the Financial Times, one trader at a Chinese bank said China's total imports last year were at least 30% higher than the Hong Kong numbers. And for 2012, analysts believe China's gold imports are going to continue to ramp up.

Bottom line: China is going to overtake India as the world's largest gold consumer, probably sooner rather than later. And China's hunger for the yellow metal is going to be a major force driving gold prices going forward.

And not only are prices going up, but so is the cost to produce it. Which begs the question ...


Have We Hit Peak Gold?

Steve Letwin, the CEO of IAMGold, thinks so. In an interview with Mineweb, Mr. Letwin said: "I think you hit peak gold three or four years ago. You cannot find the large deposits anymore. Most of it (is) lower-grade and in more-remote locations, so it's going to be difficult for anybody to produce gold at less than $1,200 per ounce in terms of new discoveries."

Ore grades are falling — from around an average grade of 12 grams per ton in 1950 to about 3 grams per ton in the U.S., Canada and Australia. Miners are now going after ore they used to drive over to get to the big deposits.

They aren't chasing low-grade ore because it's fun. They're going after low-grade ore because it's all they can find. Now, there are mines going into production with less than a gram per ton of gold, and they're quite profitable!

Sure, there probably are some high-grade deposits waiting to be discovered. But those higher-grade deposits will be smaller — that's why they were overlooked the first time around.


People are Losing Faith in Fiat Currency

Fiat currency is paper money — in other words, it gets its value from government say-so. And with the government creating more and more money all the time — the Federal Reserve's latest weekly money supply report from last Thursday shows that money supply has surged yet again, by more than 35% on an annualized basis — this shakes people's faith in the value of paper money.

So more and more people are turning to REAL money — gold and silver.

That's why U.S. Mint sales of American Eagle silver coins were the second highest EVER in January. Meanwhile, gold-coin sales totaled 127,000 ounces last month, the most since January 2011.

But I'm not just talking about individuals. Some state-level legislators are getting so worried about the U.S. dollar, they want out.  Lawmakers from 13 states — including Minnesota, Tennessee, Iowa, South Carolina and Georgia — are seeking approval from their state governments to either issue their own alternative currency or explore it as an option. Just three years ago, only three states had similar proposals in place.

Of all the state proposals circulating right now, South Carolina, Georgia, Idaho and Indiana have the best chance of passing their proposed bills this year. If those bills become law, it could have a domino effect, cutting away one of the underpinnings of the U.S. dollar's value.

And that would be just the latest problem for the U.S. dollar. The greenback has only held its value so well in the last year because the euro looks so bad that the dollar looks downright good in comparison.

When the rug finally gets pulled out from under the dollar's wobbly feet, the fall could shake the world as we know it.

Bottom line: Gold is Ramping up for its Next Big Move

I could give you many more reasons why gold looks so good here. In fact, I'll be giving a bunch of them in my presentation at the World Money Show in Orlando. But whether you see that presentation or not, know this — the fuse is lit on gold.

The forces of supply and demand are lighting the fuse on gold's next big move. You'll want to be onboard this metal rocket when it takes off.


Yours for trading profits,



P.S. Gold is going up, but not straight up. You've got to pick the right companies to invest in, AND grab them at the right time so you can get the biggest-possible return.

Frankly, that's why I think the best investment you can make right now is to join my Red-Hot Global Resources service. We just got locked-and-loaded in three potentially rocket-fueled precious-metals trades. There's still time to get in before these names blast off. Don't miss out – join today and get access to these new trades!


Energy & Commodities

China's Oil Imports From Iran Reduced Again

Posted by Mike "Mish" Shedlock: Global Economic Analysis

on Thursday, 09 February 2012 12:37



China has stepped up the pressure on Iran in the face of Europe's oil embargo. China will reduce its crude oil imports from Iran for a third month, sources said today, as the two remain divided over payment and price terms, although they plan to meet again for talks as early as this week.


China is the top buyer of Iranian oil and also the fastest expanding major oil importer, putting it in a strong position to negotiate for better terms after it more than halved imports for both January and February.

The reductions for March-loading supplies will be largely the same, if not deeper, than the previous two months, industry officials with direct knowledge of the supply situation told Reuters.


China, which buys around 20 percent of Iran's total crude exports, cut its January and February purchases by about 285,000 bpd, just over one half of the total average daily amount it imported in 2011.


Spotlight China: Electricity Consumption Drops Sharply; Central Bank Vows Housing Support; Asia Real-Estate Bull Turns Bearish HERE



Bonds & Interest Rates

BlackRock, Fidelity Bullish on Corporate Bonds

Posted by Wes Goodman: Bloomberg

on Thursday, 09 February 2012 10:25

BlackRock Inc., Fidelity Investments and Charles Schwab Corp., which together manage more than $5 trillion, are all bullish on corporate debt.


The Federal Reserve’s pledge to keep interest rates at a record low through late 2014 means investors should take advantage of the extra yield, or spread, offered by asset-backed securities, commercial mortgage-backed debt and high-yield bonds in the U.S., according to BlackRock. It’s favoring securities due in five years and less, said Rick Rieder, chief investment officer for fundamental fixed-income portfolios for the company, which has $3.51 trillion in assets.


“One of the ways to take advantage of fixed income is to buy spread assets,” Rieder said yesterday in an interview from London. Yields on short- and medium-term Treasuries are “going to be very low for a long time.”


Dow Jones Corporate Bond Index


Corporate bonds (Dow Jones Corporate Bond Index chart above)  are outperforming U.S. government securities this year as the world’s biggest economy shows signs of growth. Treasuries have returned 0.3 percent, versus 2.4 percent for company debt, according to Bank of America Merrill Lynch indexes. 


....read more HERE


Stocks & Equities

Here’s Why It May Be Time To Think Defensively

Posted by Steven Russolillo: The Wall St. Journal

on Thursday, 09 February 2012 01:23

  It seems like everyone loves the stock market these days. The S&P 500 is off to the races this year. Only a handful of years throughout history compare to the index’s 7.1% surge to kick off 2012.


BlackRock chieftan Larry Fink says asset allocation should be steered toward 100% equities. No questions asked. Even Dr. Doom is less gloomy than he’s been in the past.


Has everyone gone mad?


Cyclicals have led this year’s rally, with financials jumping 13%, materials surging 12% and tech stocks advancing 11%.

Screen shot 2012-02-09 at 12.27.03 AM

While the rally doesn’t look like its petering out anytime soon, Barry Knapp at Barclays Capital offers some reasons for caution. 


....read it all HERE


Gold & Precious Metals

Barclays: Higher Metals Prices on Tap for 2012

Posted by Barclays Capital via Resource Investor

on Thursday, 09 February 2012 01:13

Commodity price risk that is now to the upside and Barclays Capital analysts believe that 2012 is going to be a good one for producers of industrial metals and precious metals, Kevin Norrish, the bank’s managing director of commodities research told the Investing in African Mining Indaba here Monday.


The result will be gold trading above $2,000 an ounce, copper trading consistently above $9,000 a tonne by the second half of the year and platinum by the four quarter averaging somewhere around $1,800 an ounce, he said.


"The speed with which prices fell in the latter part of 2011 was very reminiscent of the speed at which prices were falling in 2008 and 2009,” he said. “So a lot of people say we’re coming into 2012 with the risks very clearly to the downside. I would disagree with that. Certainly our view is that 2012 is going to be a good year for commodities prices and it’s going to be a particularly good year for base and precious metals, In fact the risks are very much tilted to the upside."

....read more HERE


<< Start < Prev 2191 2192 2193 2194 2195 2196 2197 2198 Next > End >>

Page 2193 of 2198

Free Subscription Service - sign up today!

Exclusive content sent directly to your Inbox

  • What Mike's Reading

    His top research pick

  • Numbers You Should Know

    Weekly astonishing statistics

  • Quote of the Week

    Wisdom from the World

  • Top 5 Articles

    Most Popular postings

Learn more...

Our Premium Service:
The Inside Edge on Making Money

Latest Update

Buy the Canadian Dollar for a Trade

Key Drivers: Key technical juncture Nafta good news Re-engaging with oil prices So, what might change the direction of the dismally acting...

- posted by Jack Crooks

Michael Campbell Robert Zurrer
Tyler Bollhorn Eric Coffin Jack Crooks Patrick Ceresna
Josef Mark Leibovit Greg Weldon Ryan Irvine