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October 8, 2011
Here’s the story…Gold prices usually travel in the opposite direction of the U.S. dollar trend. If the greenback is rising in value against a basket of other major world currencies, the price of gold has historically declined. The opposite is also true: If the U.S. dollar heads down in value, price for gold bullion rises.Since the beginning of 2011, the U.S. Dollar Index (type “$USD” into any...
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26 Reads
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October 8, 2011
Terrible day for the markets yesterday…It all started with June crude oil futures down about $9.00 a barrel, the U.S. dollar up sharply and the precious metals down. June gold futures were down about $34.00 an ounce, bringing the metal back below the $1,500 level. There was more pressure on silver prices, too (I explained why yesterday in my editorial, Why Silver Prices Are Falling So Quickly...
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33 Reads
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October 8, 2011
Just imagine…It’s 2012 and the world realizes the euro can’t make it as a currency. Greece, Portugal, Spain and Italy have all been repeatedly bailed out. Germany and France have had enough. They tell these weaker countries to get out of the euro or Germany or France will go it alone.Meanwhile, in Canada, the air has finally been released from its overheated housing market and the economy is on...
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30 Reads
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October 7, 2011
If this is the decade of the commodity, then the single most attractive area for equity speculators remains the gold-mining business. The entire industry is swimming in cash, while spot prices and physical demand for precious metals remain strong. Gold, silver and copper have been holding up exceedingly well, as the rest of the stock market corrects. And it isn’t just the store of value...
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24 Reads
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October 7, 2011
Gold miners are reporting their second-quarter earnings right now and, for the most part, they are awesome. If it’s one thing that gold-producing businesses have learned over the last few years, it’s that there’s no need to hedge the price at which they sell their gold. The outlook for the spot price of gold has been so uniformly strong that virtually no mining company engages in a major...
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26 Reads
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October 7, 2011
It’s pretty difficult to get enthusiastic about the stock market with sentiment so focused on the sovereign debt situation inGreece. Even in the face of solid earnings expectations for the third quarter, investors are looking into the future and seeing slow economic growth, translating into slower earnings. It’s the perfect storm for equities and it makes choices for equity investors very...