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Money Morning's Gilani Analyzes Silver, Stocks and Gold During FoxBusiness Interview

Money Morning's Shah Gilani acquitted himself so well on the popular Varney & Co. show on Fox Business early yesterday (Thursday) that program host Stuart Varney invited Gilani back - before the interview was even over.

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Gilani's Views on Silver, Stocks and Gold

Is now the time to buy stocks? What's driving the stock rally? Is silver a better investment than gold? Money Morning's Contributing editor, Shah Gilani, joins Fox Business Varney & Co. to answer these questions. ¬† Loading the player …

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U.S. Stock Market Forecast: Tech, Energy, Commodities and Gold Are Top Plays For 2011

The outlook for the U.S. stock market in the New Year figures to be an exasperating mixture of promise and peril. Positive momentum is building going into 2011, but so are dangerous bubbles.

The high-tech, energy, materials and commodities sectors will be hot in the New Year. And the U.S. stock market will get an added boost from the fact that U.S. Treasuries, municipal bonds (munis) and euro-based investments will not.

Here's what's in store for the U.S. stock market in 2011.

For the most complete stock-market strategy you'll find anywhere, please read on...

Money Morning Mailbag: Soaring Gold and Silver Prices Point to Profits in Equipment & Drilling Industries

Gold yesterday (Thursday) continued a four-day rise soaring as high as $1,399.70 an ounce as the dollar fell for a second consecutive day.

"Gold is up primarily on dollar weakness and economic optimism," Adam Klopfenstein, a senior market strategist for Lind-Waldock, told Bloomberg. "This is very positive for gold on the future inflation front."

This week Money Morning Contributing Editor Peter Krauth showed why gold and silver are still headed for gains in the New Year, following a 2010 surge.

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Chinese Investors Drive Gold Imports Five Times Higher on Inflation Fears

The gold rush in China accelerated during the first 10 months of 2010 as investors seeking protection from looming inflation drove imports of the yellow metal up nearly five times more than the amount brought in all of last year.

Gold imports rose to 209 metric tons compared with 45 tons for all of 2009, Shen Xiangrong, chairman of the Shanghai Gold Exchange told a conference held in Shanghai yesterday (Thursday).

"The government hasn't officially said that China is encouraging private gold investments, but we in the industry suspect it. And you can see the big jump in the delivered gold imports through the exchange has to be approved by them," Albert Cheng, managing director of the World Gold Council's Far East department, told Bloomberg News in an interview.

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Gold Price Forecast: Four Reasons the "Yellow Metal" Will Hit $1,900 an Ounce in 2011

Gold investors are a happy bunch. Those with the luck or foresight to have boarded the golden railroad back in 2001 have experienced a fivefold investment in the "metal of kings." That works out to compounded return of better than 20% a year.

Such a torrid performance has evoked claims that this is just another financial bubble - that's soon to burst.

But the reality is that anyone who classifies this bull market in gold to be nothing more than a bubble simply hasn't looked at the market fundamentals, doesn't understand them, or has an ulterior motive.

Precious metals - and gold in particular - have been the asset class of the decade. But it's not too late to climb aboard - there's still plenty more growth to come.

In fact, before 2011 closes out, I predict that each ounce of the prized "yellow metal" will be trading at $1,900 - an increase of about 37% from yesterday's (Wednesday's) closing price of about $1,390 an ounce.

To understand why gold prices will advance in the New Year - and to see how to profit - please read on...

Question of the Week: Midterm Elections Leave Investors Wary, Turning to Silver and Gold

The hotly contested midterm elections ended last week, and now U.S. voters will watch to see if newly elected officials will deliver on promises to lift the nation out of its economic morass.

Many voters made their decisions out of frustration with current economic conditions, such as excessive government spending, ineffective stimulus measures and stubborn unemployment. And given the potential for change in U.S. economic policy, investors will likely be eager to see what the stock-and-bond markets will do in the months to come.

Although there is unlikely to be any quick decision making in Washington, investors will hope for the status quo in at least one area - a continued market rally, which is the norm for midterm election years.

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Money Morning Mailbag: When Investing in Precious Metals, 'Physical Metal' Isn't Always Better

If there's one thing that I've discovered in my careers as a hedge-fund manager, investment advisor and financial columnist, it's this: Whenever you pitch a stock that has something to do with mining or metals, you'll always hear the argument that "physical metal is better."

As my experience has demonstrated, however, that's not necessarily true.

Wealth protection in hard economic times is driven by asset diversification. In good times, an investor should concentrate their investment bets on profitable enterprises, in hard times you want to diversify your assets across different asset classes. You will lose some money, but if you choose wisely, you will have real assets and value on the other side.

That's not always the case when you concentrate your assets during a period in which there's substantial market risk.

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Could the Government Seize Your Gold? Rules to Consider, Steps to Take

Could the government seize your gold?

It's a question that's being asked with increasing frequency these days. The United States is struggling with a post-financial-crisis economy that can't seem to get healthy, which has led to a ballooning budget deficit and a staggering national debt.

And don't expect any structural improvements to the country's finances. Near-term stock-market bulls are awaiting an all-but-guaranteed round of "quantitative easing" (known as "QE2") - which will inject money into the U.S. financial system, though it will only add to shortfall even as it weakens the U.S. dollar.

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Despite Record Gold Prices, Your Holdings May be Worth Less Than You Think

Record gold prices are becoming an almost-daily headline, with the "yellow metal" making a run at $1,400 an ounce. And while this is great for the investors who are along for the ride, there is an important caveat - your gold may not be worth as much as you think it is.

Moreover, because of the tax consequences of ownership, chances are it'll never add up to what those guys hawking gold coins on late night TV lead you to believe.

But that doesn't mean you shouldn't invest. With an estimated $202 trillion in unfunded pension liabilities and the global public debt clock ticking higher, I believe gold and other precious metals should be a part of every investor's portfolio.

To find out why your gold may not be worth as much as you think, read on...

Buy, Sell or Hold: Silver Wheaton Corp. (NYSE: SLW) Is Poised to Profit from the White Metal's Rally

Have you ever wanted to invest in a company that owned the supply of a product at a nice fixed rate of cost, but was able to leverage the upside, but not have to take any risk in actually making the product?  How about if it's something inherently dangerous and expensive with bad margins like mining?

In the case of Silver Wheaton Corp. (NYSE: SLW) we have a very interesting investment vehicle, because the company does not have to take additional risks to grow its production numbers.  Silver Wheaton owns the rights to silver production from mines that produce it as a bi-product.  This allows the company to enjoy a growing supply curve, while protecting its balance sheet.

It has already purchased these rights upfront for cash, helping some miners with their capital costs to open a new mine.  As these mines ramp up production in whatever primary product they are producing, Silver Wheaton gets access to the silver produced as a bi-product.

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As QE2 Looms, Is the Fed Focusing on the Wrong Things?

U.S. Federal Reserve Chairman Ben S. Bernanke is looking forward to 1932.

That's not a misprint. Actually, Bernanke is looking forward to a point when the challenges facing today's U.S. economy mirror the problems of that particular Great Depression-era year. And he wants that to happen for a very simple reason.

He knows how to solve those problems.

Unfortunately, "1932" isn't likely to arrive. And the preparations the Fed is making in the meantime are likely to deepen the United States' economic woes.

Let me show you what I mean...

To see where the central bank has gone wrong, please read on...

QE2: How New Quantitative Easing Will Launch Emerging-Market Stocks

 In Wall Street circles, it's known as "QE2" - for "Quantitative Easing - Round 2."

The U.S. Federal Reserve and the Bank of England (BOE) are moving rapidly towards it, and the Bank of Japan (BOJ) has pledged to enact it.

That Bank of Japan pledge ignited a $23.50 spike in the price of gold on Tuesday. But that's nothing compared to what would happen after a Fed move. An additional easing by the U.S. central bank would cause gold and commodity prices to spike - and emerging-market stock markets to soar.

We should be prepared for this eventuality.

To see how you can profit from "QE2," please read on...

With Prices Soaring Gold Bullion is Suddenly in High Demand

The world's wealthiest people are moving their money out of stocks and into gold bullion, sucking the yellow metal up by the ton in some instances.

Fears that the dollar will continue to lose value in the wake of the U.S. Federal Reserve's quantitative easing have boosted the appetite for physical bullion as well as for mining company shares and exchange-traded funds (ETFs), UBS AG (NYSE: UBS) executive Josef Stadler told the Reuters Global Private Banking Summit.

"They don't only buy ETFs or futures; they buy physical gold," said Stadler, who runs the Swiss bank's services for clients with assets of at least $50 million to invest. "We had a clear example of a couple buying over a ton of gold ... and carrying it to another place," Stadler said.

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Question of the Week: With Gold Prices Soaring Investors Are Cashing In

Gold prices have continued their record-breaking climb, and are showing no signs of stopping.

Industry analysts and bankers met at the London Bullion Market Association conference in Berlin last week - the biggest gold industry gathering - and predicted gold would hit $1,450 an ounce next year, a 12.5% climb from its current price of around $1,300. The LBMA's predictions have a strong track record, and in recent years often fall just shy of actual prices.

Gold is up almost 20% this year, and having this week topped $1,340 an ounce.

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