The landscape of the gold market has been changing dramatically in the last decade in terms of the dominant gold-producing nations. For example, for nearly a century, South Africa held the top spot for gold production. But in 2008, China took over, and since then, South Africa has sunk down to the fifth spot.
This week marked another surprise for the top five…
Keith Fitz-Gerald: "I am Buying Gold and I Intend to Buy More if It Goes Down"
Apple plunged below $400 per share, while gold prices remained well under $1,400 an ounce.
What's going on in the markets?
Stuart Varney of Fox Business' "Varney & Co." put that question to Money Morning Chief Investment Strategist Keith Fitz-Gerald Thursday.
Of Apple, Keith said, "I wouldn't touch it," then ticked off a number of reasons.
But Keith had a decidedly different take on gold, saying, "I am buying gold and I intend to buy more if it goes down, and I hope I'm smart enough to do it for a long time to come."
Asked what else he's investing in, Keith said he's "cautiously buying" energy, defense technology and medical technology stocks.
To hear more from Keith on these topics as well as his view of the massive money-printing in Japan, watch the video below.
Why Gold Really Crashed and What You Can Do About It
The news is great at telling us what's happening. But understanding what's happening is what makes the difference between an average and a truly great investor.
Gold's crash on Monday is a perfect example.
The media fell all over itself talking about how gold was falling and how far it was off its highs. Yet few tied the devastating slide to real economic events let alone made the connection to actual trading.
But that's my bread and butter. And today I'm going to tell you what really happened and why.
Better yet, I'm going to tell you exactly how to play it... Read More...
While Banks Crumble, The Next Leg Up For Gold Prices Draws Near
Something's afoot in the world of high stakes finance.
The Basel Committee for Bank Supervision (BCBS) is about to decide something crucial to bankers, sovereign nations, and gold investors alike.
As part of the Bank of International Settlements (BIS), the BCBS is reviewing the upcoming new Basel III rules. That may sound arcane to you but I promise it's not.
Though rarely discussed in the mainstream press, the all-important Bank of International Settlements is essentially a global central bank to the world's central banks.
Its goal is ostensibly to provide global stability to the monetary and financial systems.
And in a surprise twist that only a few years ago would have been considered preposterous, the BCBS is entertaining whether gold should qualify as a full-fledged Tier 1 capital asset.
Currently, the precious metal is relinquished to a Tier 3 status, deserving no more than a 50% weighting at that.
Here's why that distinction is important and potentially astonishing.
Achieving Tier 1 status would credit gold with the recognition it's been denied ever since Nixon closed the gold window on August 15, 1971.
In essence, it would mark the official recognition that gold is real money.
But that's not the only reason gold is gaining respect. Other factors are brewing that will set the stage for the next leg up in gold prices.
As Banks Teeter, Gold Gains RespectOne of them is the crumbling state of world's banks. Once unwavering, the trust in these financial ivory towers is precarious at best.
In the last couple of months alone, Greek depositors have withdrawn billions of euros in deposits, as the fear of a "Grexit" looms large.
Not to be outdone, Spain banks have been emasculated by the Iberian nation's own bursting real estate bubble. After denying for weeks that a bailout would be required, officials finally caved to a "Spailout", giving Spain's banking system a 100 billion euro rescue package.
This phenomenon is not exclusive to the Eurozone either.
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Think Gold Prices Have Peaked? Think Again
If you think gold prices have peaked, think again. Gold may have fallen from its June 18 record high of $1258.30 an ounce, but the yellow metal is in for the long haul.
In fact, Credit Suisse Group AG (NYSE ADR: CS) has increased its long-range forecast for gold, arguing in a new report that prices should remain near current levels for at least the next four years.
CS analysts' 2014 target is now $1,300 and ounce, compared to their previous forecast of $1,120. That may not seem like a very brave forecast since gold is already trading at nearly $1,200 an ounce. But it has profound implications for gold miners, because mining stocks are priced based on expectations of future earnings. Removing the expectation that gold futures prices could slide way back removes an impediment to shares going higher.
The rationale for the change: Credit Suisse believes there is an 80% chance of a renewed quantitative easing - or money printing - due either to a full-blown sovereign debt crisis or a new recession. This enthusiastic and inflationary activity would rev up the safe haven buying that has pushed up gold prices over the past few years. The feeling is that companies and government officials may cheat and lie, but gold is as steady as a rock as an irrefutable, trusted source of value.
- The Case for $5,000 Gold: And How to Profit The gold bug is unstoppable. Prices are up four-fold since 2001... and they're not stopping anytime soon. Could $5,000 per ounce be in our future? Read this report to find out why gold is being pushed through the roof - and four ways to profit from gold's rise. Read More...
Three Ways to Profit From the World's Luckiest Country – Australia.
When the late Donald Horne called Australia the " Lucky Country" in 1964, the professor and well-known social critic meant it as an insult: He believed that while other countries were getting rich by developing special skills and embracing new technology, Australia prospered just because it happened to sit on a pile of valuable natural resources.
Well, in the global world of 2010, skill and technology are " two-a-penny" ubiquitous in an emerging-markets world in which billions of industrious people are competing against one another. In this new reality in today's world, natural resources are the key to global wealth.
And Australia is a prime beneficiary of that new reality.
For three ways to profit from this "new reality," please read on...
It's Time to Invest in Canada
This isn't the first time that I've written about Canada, a well-run country that has avoided many of the mistakes made by the United States. Its budget deficit is moderate, its balance-of-payments deficit is also small, its banking system is in pretty good shape and it faces very little inflation risk, since the country has maintained a reasonable monetary policy.
At this point, you might well be asking: Well, if you've said this all before, why does it bear repeating now?
The answer is simple: As I've hunted for attractive investments recently, I have noticed that a very high percentage of those companies are domiciled north of the border.
In short, it's time to invest in Canada.
To discover the profit opportunities available just north of the border, please read on...
- 7 Reasons Gold Will Surpass $2,500 - And Inflation Isn't One of Them Gold's price has quadrupled since 2000, yet this is just the beginning of a historic rise. Seven major forces are set to push gold past $2,500 – and we’re not talking about the tired old inflation story. Read the full report to find out how to play rising gold prices. Read More...