Government Debt/Gold Juniors/GoldGood Morning:
Government Debt/Gold Juniors/Gold
Roubini on Government Debt
Here is an article I strongly suggest you read - 'Greece Just Tip of Debt Crisis Iceberg: Roubini' - click here.The article says that according to Nouriel Roubini - the New York University economist who is given wide credit for predicting the 2008 economic downturn - just wrote: "The sovereign debt crisis will get worse and bond vigilantes could move on to even bigger economies like the United States and Japan when they are done sweeping through vulnerable European nations".For what it is worth, if I were to read and think about the views of only one economist it would be Roubini.
Gold Juniors
An article yesterday titled 'Gold Juniors May Post High Returns as M&A Activity Heats Up' reports that a recent Reuters report says "gold futures are expected to perform well in 2010 (and) analysts see gold equities outperforming futures this year".The latter is attributed to possible increased M&A activity in gold mining shares where major gold producers will seek to increase their reserves by acquiring juniors with advanced exploration and development projects.The article also suggests that as speculation rises over possible takeovers of particular juniors, their share prices will rise as well.
As we work to develop StockResearchPortal.com I am continuously talking with gold exploration company Presidents.Antidotally I can tell you there is broad belief among that group that the majors are continuously looking to add to their respective reserves by acquiring junior gold explorers of interest.I think whether that translates in 2010 into higher equity market prices for the shares of such Juniors will be influenced by a combination of near-term transactions and overall equity market conditions.Stated differently, if the overall equity markets reverse over the next few months I think that will have to influence the market price of all equities - including those of gold explorers - on the 'rising tides raise all ships and vice-versa' theory.I think the overall equity market condition is something analysts don't always focus on when reaching their views on the prospects for individual (or like groups of) securities. Rather, it seems to me many of them make the (generally) unstated assumption that the overall prospective equities market condition will remain static.
Physical Gold Revisited
If you hold, or are contemplating directly or indirectly (via an ETF) holding physical gold I recommend you read a Seeking Alpha article published this morning titled 'New Gold Record Due to Safe Haven Demand?' - click here.I added the following comment to that article this morning:
In my view an excellent summary. I am surprised GoldCore does not have more followers. Based on my assessment of things, in the current environment I can't see how physical gold - subject of course to downward dips, and one's asset base and tolerance for risk in the context of gold as a safe haven holding - is not a good place to be.