Published on TheStreet.com 02/14/10 - 09:12 PM EST
By Mohammed Isah of fxtechstrategy.com
"Gold futures took a break this past week from their recent declines and broke back into their longer rising trend line and through the Jan. 28 low at 1,073.95 to close the week higher at 1,093.30. Gold futures still retain their broader downside bias, but the immediate risk is higher, and futures could target the Feb. 3 high at 1,125.00. A cap is expected there, which would turn the commodity back down again. However, if that level breaks, we could see more momentum build toward the Jan. 20 high at 1,141.48. "
To read the entire article go here.
Sunday, February 14, 2010
Thursday, February 4, 2010
The Glitter of Precious-Metals ETFs - Kiplinger.com
By Laura Cohn, Associate Editor, Kiplinger's Personal Finance
Published February 4, 2010
In this article Ms. Cohn identifies five exchange-traded funds that give investors a stake in gold, silver, platinum and palladium. Ms. Cohn reports “for decades, precious metal maniacs have argued the bullish case for their favorite metal. In recent years, they’ve actually been right. The price of gold has climbed steadily for the past nine years, from $277 an ounce in 2001 to a record high (not adjusted for inflation) of $1,213 in December 2009 as investors piled into the yellow metal because of its reputation as a safe haven and as a hedge against a falling dollar”. Recently Gold closed at $1,115 on February 2, 2010.
She further elaborates “the rising price and the rise of exchange-traded funds have attracted investors in droves. Thanks to ETFs, investors can buy gold without having to open their own Fort Knox. Last year, investors around the world bought 51.2 million ounces of gold, and 35% of that amount came through ETFs. In the case of silver, the figure is even more astounding. Investors snatched up 172 million ounces of silver last year, and 87% of it was via ETFs. Silver closed February 2, 2010 at $17 an ounce, well below the record of $50, set in 1980, but far above the $5 level of recent years. However, you may want to expand your horizons to commodities that are less well known. In particular, the arrival of two new ETFs makes it easier than ever to invest in platinum and palladium, two precious metals with a wider array of industrial uses than gold and silver. The creative names of these new vehicles are ETFS Physical Platinum Shares (symbol PPLT) and ETFS Physical Palladium Shares (PALL).”
Then she shares a bit of wisdom that if you do not know already you should. Don’t put all of your eggs in the same basket, or as the author more eloquently states “Investing in raw materials doesn’t come without risk -- and, in fact, prices of platinum and palladium are actually more volatile than those of gold. So this is one reason precious metals should represent only a small slice of your portfolio -- 5% at most and probably less for most people. The best way to get a piece of gold is through the popular and liquid SPDR Gold Shares (GLD). The ETF sports an expense ratio of 0.40%. (If you’d rather track gold stocks, you can buy another ETF, Van Eck Market Vectors Gold Miners ETF (GDX), which tracks an index of gold-mining stocks). For access to silver, buy the iShares Silver Trust (SLV), which charges 0.50% per year. Both GLD and SLV provide a stake in the metals, which are housed in vaults located in London, eliminating the need to worry about where to store them safely.” “What gets people into trouble is making a bet that’s too concentrated,” says Jack Reutemann, founder of Research Financial Strategies, so he recommends a buying bit of each. The author states an alternative “spread your risk by buying an ETF that includes gold and silver as well as other materials, such as oil, corn and soybeans. For broad exposure, we like the PowerShares DB Commodity Index Tracking Fund (DBC). The ETF, based on the Deutsche Bank Liquid Commodity Index, tracks the futures prices of 14 raw materials. Its expense ratio is 0.85%.”
Read the whole article here:
The Glitter of Precious-Metals ETFs - Kiplinger.com
Posted using ShareThis
Published February 4, 2010
In this article Ms. Cohn identifies five exchange-traded funds that give investors a stake in gold, silver, platinum and palladium. Ms. Cohn reports “for decades, precious metal maniacs have argued the bullish case for their favorite metal. In recent years, they’ve actually been right. The price of gold has climbed steadily for the past nine years, from $277 an ounce in 2001 to a record high (not adjusted for inflation) of $1,213 in December 2009 as investors piled into the yellow metal because of its reputation as a safe haven and as a hedge against a falling dollar”. Recently Gold closed at $1,115 on February 2, 2010.
She further elaborates “the rising price and the rise of exchange-traded funds have attracted investors in droves. Thanks to ETFs, investors can buy gold without having to open their own Fort Knox. Last year, investors around the world bought 51.2 million ounces of gold, and 35% of that amount came through ETFs. In the case of silver, the figure is even more astounding. Investors snatched up 172 million ounces of silver last year, and 87% of it was via ETFs. Silver closed February 2, 2010 at $17 an ounce, well below the record of $50, set in 1980, but far above the $5 level of recent years. However, you may want to expand your horizons to commodities that are less well known. In particular, the arrival of two new ETFs makes it easier than ever to invest in platinum and palladium, two precious metals with a wider array of industrial uses than gold and silver. The creative names of these new vehicles are ETFS Physical Platinum Shares (symbol PPLT) and ETFS Physical Palladium Shares (PALL).”
Then she shares a bit of wisdom that if you do not know already you should. Don’t put all of your eggs in the same basket, or as the author more eloquently states “Investing in raw materials doesn’t come without risk -- and, in fact, prices of platinum and palladium are actually more volatile than those of gold. So this is one reason precious metals should represent only a small slice of your portfolio -- 5% at most and probably less for most people. The best way to get a piece of gold is through the popular and liquid SPDR Gold Shares (GLD). The ETF sports an expense ratio of 0.40%. (If you’d rather track gold stocks, you can buy another ETF, Van Eck Market Vectors Gold Miners ETF (GDX), which tracks an index of gold-mining stocks). For access to silver, buy the iShares Silver Trust (SLV), which charges 0.50% per year. Both GLD and SLV provide a stake in the metals, which are housed in vaults located in London, eliminating the need to worry about where to store them safely.” “What gets people into trouble is making a bet that’s too concentrated,” says Jack Reutemann, founder of Research Financial Strategies, so he recommends a buying bit of each. The author states an alternative “spread your risk by buying an ETF that includes gold and silver as well as other materials, such as oil, corn and soybeans. For broad exposure, we like the PowerShares DB Commodity Index Tracking Fund (DBC). The ETF, based on the Deutsche Bank Liquid Commodity Index, tracks the futures prices of 14 raw materials. Its expense ratio is 0.85%.”
Read the whole article here:
The Glitter of Precious-Metals ETFs - Kiplinger.com
Posted using ShareThis
Thursday, January 21, 2010
Jan. 21, 2010: Gold Price Falls as Dollar Rises
Article from TheStreet.com
Gold price Falls as Dollar Rises
Alix Steel
01/21/10
NEW YORK (TheStreet) -- Gold prices fell toward $1,100 an ounce Thursday after President Obama vowed to shake up Wall Street with strict limits on bank's trading activity. Also, the U.S. dollar hit a five-month high against the euro. The author attributes this to a rising U.S. dollar, making dollar-based commodities like gold more expensive to buy in other currencies, often creating the inverse correlation between prices and the dollar.
Steel also states that increased worries over Chinese credit tightening is contributing to gold's slide. China has already ordered its banks to curb lending, but these inflationary figures could put more pressure on the country to restrict lending. An end to free money from China, which has stimulated the global economy, will continue to curb investor interest in purchasing gold as an alternative asset.
Read This Article
Gold price Falls as Dollar Rises
Alix Steel
01/21/10
NEW YORK (TheStreet) -- Gold prices fell toward $1,100 an ounce Thursday after President Obama vowed to shake up Wall Street with strict limits on bank's trading activity. Also, the U.S. dollar hit a five-month high against the euro. The author attributes this to a rising U.S. dollar, making dollar-based commodities like gold more expensive to buy in other currencies, often creating the inverse correlation between prices and the dollar.
Steel also states that increased worries over Chinese credit tightening is contributing to gold's slide. China has already ordered its banks to curb lending, but these inflationary figures could put more pressure on the country to restrict lending. An end to free money from China, which has stimulated the global economy, will continue to curb investor interest in purchasing gold as an alternative asset.
Read This Article
Wednesday, January 20, 2010
A Very Good Reason To Hold Gold
Federal Deficit in the Danger Zone - Kiplinger.com
As federal spending continues to rise, a crushing mountain of debt looms.
Posted using ShareThis
A very good reason to hold gold!
As federal spending continues to rise, a crushing mountain of debt looms.
Posted using ShareThis
A very good reason to hold gold!
Thursday, January 14, 2010
Article from TheStreet.com : Why Gold Is the Best Money
Why Gold Is the Best Money: Opinion
Jeff Nielson
01/14/10 - 11:14 AM EST
By Jeff Nielson of Bullion Bulls Canada
Among the myths being constantly circulated by gold bears is that gold (and silver) only perform well in high-inflation environments. As with many of the pronouncements of the gold bears, this is another case of them drawing conclusions based upon their own faulty understanding of markets, history, and precious metals, themselves.
READ THIS ARTICLE
Jeff Nielson
01/14/10 - 11:14 AM EST
By Jeff Nielson of Bullion Bulls Canada
Among the myths being constantly circulated by gold bears is that gold (and silver) only perform well in high-inflation environments. As with many of the pronouncements of the gold bears, this is another case of them drawing conclusions based upon their own faulty understanding of markets, history, and precious metals, themselves.
READ THIS ARTICLE
Thursday, January 7, 2010
GOLD PLAYS IN CHILE
According to Yahoo’s In Play, January 7, 2010, New Gold (NGD) announced that it will enter into a partnership with Goldcorp Inc. (GG), and exercise the right of first refusal to acquire 70% of the El Morro copper-gold project in Chile for $463 million. NGD provided notice to Xstrata Copper Chile, a subsidiary of Xstrata (XSRAF.PK), of the exercise of its right of first refusal. New Gold is currently a 30% joint venture partner in El Morro with Xstrata. Goldcorp will loan $463 M to New Gold to fund acquisition. Once New Gold has acquired the 70% interest through a subsidiary, it will sell that subsidiary to Goldcorp. At the same Goldcorp will pay $50 to New Gold and the parties will amend the terms of the existing El Morro Shareholders Agreement to further increase the value of New Gold's 30% interest in the El Morro project.
Tuesday, January 5, 2010
DUMP GOLD?
I want to make it perfectly clear that this is not my opinion, but I strive to be impartial in the articles I post on this blog. If you want my opinion go here.
In an opinion article published on Forbes.com, Jan. 5, 2010, Keith McCullough, Chief Executive Officer of Research Edge said “Sell your gold. Buy some dollars.” It is his belief that the Fed will raise rates sooner than you think, and gold has peaked. He has been bullish on Gold since 2003. But on the date of this publication, Research Edge moved forward to a zero-percent position in their gold asset allocation. Their analysis showed immediate-term trade resistance for the price of gold at $1137.
The decade high for the gold was established on Dec. 2, 2009, and McCullough believes Gold may not top that high until the Fed stops raising interest rates. Even though the consensus is that the Fed is on hold until 2012, and they are long on gold. However, McCullough’s research team remains outside of the consensus. McCullough’s team thinks they have some credibility in reversing their own bearish U.S. dollar stand. It was the same team that wrote the dollar thesis earlier, last year.
McCullough stated that Research Edge did not make this prediction for the sake of being contrarian. They made the call because was their belief in the increasing probability of their being right. They even went as far as to sell their position in SPDR Gold Shares and buy the Powershares DB US Dollar Index Bullish in their virtual portfolio. Both of these moves are confirm the same investment thesis. McCullough’s group says “Sell your gold. Buy some dollars, and start moving forward right now."
The rest of this article can be read here.
In an opinion article published on Forbes.com, Jan. 5, 2010, Keith McCullough, Chief Executive Officer of Research Edge said “Sell your gold. Buy some dollars.” It is his belief that the Fed will raise rates sooner than you think, and gold has peaked. He has been bullish on Gold since 2003. But on the date of this publication, Research Edge moved forward to a zero-percent position in their gold asset allocation. Their analysis showed immediate-term trade resistance for the price of gold at $1137.
The decade high for the gold was established on Dec. 2, 2009, and McCullough believes Gold may not top that high until the Fed stops raising interest rates. Even though the consensus is that the Fed is on hold until 2012, and they are long on gold. However, McCullough’s research team remains outside of the consensus. McCullough’s team thinks they have some credibility in reversing their own bearish U.S. dollar stand. It was the same team that wrote the dollar thesis earlier, last year.
McCullough stated that Research Edge did not make this prediction for the sake of being contrarian. They made the call because was their belief in the increasing probability of their being right. They even went as far as to sell their position in SPDR Gold Shares and buy the Powershares DB US Dollar Index Bullish in their virtual portfolio. Both of these moves are confirm the same investment thesis. McCullough’s group says “Sell your gold. Buy some dollars, and start moving forward right now."
The rest of this article can be read here.
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