Press Esc to close

Welcome to Money Morning - Only the News You Can Profit From.

Close

We'll Tell You When It's Time to Tap Tesla

A week ago today, in a strategy story aimed at helping you survive and thrive in today’s whipsaw markets, Chief Investment Strategist Keith Fitz-Gerald told us to put Tesla Motors Inc. (Nasdaq: TSLA) on our “watch lists” for a likely future purchase.

“BP, Tesla is a definite ‘shopping list’ stock,” Keith told me back then. “We’ve been nibbling at it here, and have played it successfully several times. But it’s not yet at the point where I’m ready to jump all the way in. I think my rationale behind Tesla remains upbeat. I mean, you’ve got a real winning combination here – a disruptive sales model, a CEO who’s the most innovative guy on the planet, all the capital in the world that can be brought to bear. I don’t give a rat’s [tail] that New Jersey won’t let the company sell its cars there. There are much bigger opportunities. Wait ’til you see what the company does with China.”

Sometimes I think Keith has a “crystal ball” in his hip pocket…

  • Gold

  • Two Ways to Go Big on Gold Stocks Right Now

    There are plenty of reasons for you to have some gold stocks in your portfolio.

    Governments are stockpiling record amounts of the shiny metal. Mints are pumping out new coins as fast as they can. And the Fed under "Helicopter" Ben Bernanke is wallpapering the world with greenbacks, pumping out $85 billion a month until...well, who knows when?

    But there's more.

    The Europeans have joined the party by bailing out their weak sisters with hundreds of billions of euros.

    And the Bank of Japan just announced a $1.2 trillion bond purchase program for 2013 and $150 billion per month after that - almost twice the size of the Fed's folly.

    Now the yahoos in Washington are threatening to spill more blood over the debt ceiling.

    All this spells big upside for gold prices in 2013...and the companies that produce gold.

    To continue reading, please click here...

    Read More...
  • Investing in Gold: Don't Ignore this Central Bank Buying Frenzy 2014 Gold Commodity Prices

    Anyone investing in gold should recall that before the financial crisis in 2008 central banks were dumping the yellow metal - when it was trading for less than half of where gold prices are today.

    But that certainly has changed in recent years.

    In 2012, the world's central banks added the most gold to their reserves since 1964. Net official gold purchases added up to 536 metric tons, a gain of 17.4% from the previous year according to a report from Thomson Reuters GFMS. The estimate from the World Gold Council for such purchases is similar at 500 metric tons.

    Central banks are forecast by GFMS to purchase 280 metric tons in the first half of 2013 alone.

    That's good news for anyone investing in gold.

    To continue reading, please click here...

    Read More...
  • Four Sensational Facts About Gold Investing That You Might Not Know Gold Price Drivers 2014 When it comes to gold and gold miners, many investors leave "the driving" to active money managers, who are supposed to understand these specialized assets and the global trends affecting them. But with these charts, you can know what they know right now. Check it out. Read More...
  • How Will the Debt Ceiling Debate Affect Gold Prices?

    If you're wondering how the debt ceiling debate will affect gold prices, you need to check out a new report from Goldman Sachs Group Inc. (NYSE: GS).

    Investment powerhouse Goldman believes gold prices will log impressive gains over the next three months as the debt ceiling debate takes center stage on Capitol Hill. The bank is advising investors to position portfolios ahead of upward moves in the precious metal.

    "We see current prices as a good entry point to re-establish fresh longs," Goldman analysts Damien Courvalin and Alec Phillips wrote in a Jan. 18 report.

    The bank reaffirmed its three-month price target for gold of $1,825 an ounce. (Gold was trading at $1,695.20 in New York Tuesday.)

    "The uncertainty associated with these (debt-ceiling) issues, combined with our economists' forecast for weak U.S. GDP growth in the first half of 2013 following the negative impact of higher taxes, will push gold" to the three-month target, the report stated.

    The Goldman strategists pointed out six instances between 1996 and 2007 when the country hit the debt ceiling and the Treasury responded by using its muscle to execute "extraordinary measures" to keep the country afloat and running.

    Gold prices rallied some 10% in half of these instances in the month prior to the debt-limit increase.

    To continue reading, please click here...

    Read More...
  • Gold Prices: Don’t Let Faber Scare You The Future of Gold Prices

    After hitting its 12th straight year of new highs, gold prices got off to a bumpy start in 2013.

    "Dr. Doom" Marc Faber even came out Tuesday with a reduced price prediction for gold.

    In a CNBC "Squawk Box" interview, Faber said, "I don't think [gold] will go up right away, and we maybe have a correction of 10 percent or so on the downside."

    Faber had also estimated a gold price range in his JanuaryMarket Commentary of "... perhaps down to between $1550 and $1600."

    But any gold price correction would be a short-term move. Even Faber admitted central bank action is a reason to bet on higher gold prices for the long term.

    That's why investors should look at any price correction in gold as an opportunity to stock up.

    By Thursday, the yellow metal jumped 1% after the European Central Bank left interest rates the same and the euro rose against the dollar. The February gold contract jumped $20.90 (1.3%) to $1,676.40 per troy ounce.

    To continue reading, please click here...

    Read More...
  • Seven Ways to Tell if Your Gold Is Counterfeit Gold bars I had just finished a walking tour of the Royal Canadian Mint when I saw it. Right there, out in the open, was a 400-ounce bar of pure gold.

    It was chained to a display table and kept safe by an armed guard. At the time, in 2005, the bar was worth $220,000.

    Today, the same bar is worth $549,200. In just eight years, gold prices have jumped by 150% -- and that's even with a 27% drop from the peak of $1,900 in 2011.

    But it's not the eternal fascination with gold that has boosted the price. With growing levels of worldwide uncertainties, mounting inflation risks, and government distrust, people are clamoring for gold primarily as insurance.

    According to the World Gold Council, 2011 saw gold bars and coins reach nearly $77 billion in sales, versus 2002's $3.5 billion. And in November alone, the U.S. Mint's sales of the popular American Eagle coins jumped 131% in the wake of the election.

    Editor's Note: Right now, four separate indicators are saying gold is set to surge. Any one of them is bullish on its own. But when all four signals flash at once...

    With the market for gold growing at a feverish pace, it's now more important than ever to know that your gold is the real deal - especially now that gold has begun to show signs of a strong rebound.

    Here's why...

    Gold counterfeiting is nothing new. In fact, just recently there were reports of fake gold bars from China turning up in New York. Instead of gold, their centers were stuffed with tungsten.

    But rest assured there are a number of methods you can use to mitigate the risks of ending up with counterfeit gold. Some are simple, quick, and inexpensive. Others are more elaborate, detailed, and not so readily accessible.

    Here are seven ways to find out if the gold you own is real:

    To continue reading, please click here... Read More...
  • Your 2013 Guide to Investing in Gold Gold bullion, gold stocks or no gold at all?

    I put that question to Real Asset Returns Editor Peter Krauth last week.

    You see, there's a lot of interest in investing in gold right now. Or perhaps I should say that there's a lot of interest in what gold might do.

    And you can certainly understand why.

    From its November 2008 market lows, the SPDR Gold Trust (NYSE: GLD) - the No. 1 proxy for the "yellow metal" - rose as much as 158%, reaching its peak in September 2011. But it's down about 13% since that time (though it's up 5% year to date), and a lot of folks are wondering what gold is worth, and how they should play it.

    Wall Street has grown more tepid on gold, with many of the investment banks ratcheting back just a bit on their target prices. But most also see prices heading up to and beyond the $2,000 level in 2013, meaning they see a potential gain of 22% or better.

    Peter's target price is a bit more aggressive: He sees gold trading as high as $2,200 an ounce - 34% above current prices in the $1,640 range.

    I've worked with Peter for several years now, and admire the way he works.

    He based himself in resource-rich Canada in order to be closer to the many companies that he covers. And he's made a number of truly superb market calls: In September 2010, for instance, when silver was trading at $19 an ounce, Peter told investors the metal was a "Buy" - and we then watched it soar to a high of $48 (a 153% windfall).

    So when I decided to bring you the latest insights on gold - and some recommendations, as well - I went to Peter.

    To continue reading, please click here... Read More...
  • Why Are Gold Prices Down? Gold prices plunged Thursday, hitting lows not seen since August, after the U.S. Commerce Department reported an unexpectedly robust reading on third quarter U.S. gross domestic product (GDP).

    After the surprising strong report, February gold tumbled $14.50 an ounce to $1,653.50 and spot gold sank $22.80 to $1,643.10.

    Silver prices fell as well, losing $1.13 to $29.95 shortly before noon. Prior to the report, the yellow and white metals were little changed.

    The fresh report revealed GDP in the third quarter expanded at an annual rate of 3.1%, the fastest growth since late 2011. That was up from the 2.7% pace logged last month, and better than economists' expected 2.8% rate.

    Phil Streible, a senior commodity broker at R.J. O'Brien & Associates in Chicago told Bloomberg News, "The GDP number was better than forecast, so the thinking is that improving conditions in the economy might mean a light at the end of the tunnel on when the Fed will end QE3."

    Gold and silver have been big beneficiaries of the FOMC's generous QE3 programs.

    But there's more than the end of QE measures as to why gold prices are down.

    To continue reading, please click here... Read More...
  • Gold Prices: What Happened to the Rise? One of the more confusing things for investors right now is why gold prices aren't going through the roof.

    As the Fed, European banks, China and Japan pump massive amounts of money into global markets, investors are scratching their heads when they look at the price of gold.

    Since reaching the $1,800 an ounce level shortly after QE3 was announced, gold has treaded down to its current level of around $1,650.

    Money Morning's Shah Gilani appeared on FOX Business Network's "Varney and... Read More...
  • Gold Prices: Where to Now After the Sell Off After the final Federal Open Market Committee (FOMC) meeting decision of the year Wednesday, gold prices got good news: the Fed will institute a new bond-buying program.

    February Comex gold increased $8.30 (0.5%) Wednesday and settled at $1,717.90 an ounce.

    And then the sell-off started.

    Gold fell 1.2% in the next session to $1,696.80, for a $21.10 drop. The fall was mostly due to profit taking.

    But analysts see Fed action as bullish for the precious... Read More...
  • How Gold Miners Can Effectively Leverage Gold Prices Gazing into their crystal balls last week, Wall Street firms interpreted differing futures for gold next year.

    Morgan Stanley awarded gold the "best commodity for 2013" while Goldman Sachs called the end of the metal's hot streak.

    After seeing 11 consecutive years of positive performance from gold price, one needs to be wary of research analysts' price forecasts, as they have consistently underestimated the shifting dynamics driving the precious metal higher.

    Take a look at analysts' annual predictions of gold prices, which is "a telling picture," CEO Nick Holland of Gold Fields told the crowd at a mining conference last summer.

    From 2006 through 2011, Bloomberg's contributing analysts have forecasted that future gold prices would be lower. "The analysts who keep telling us the gold price is going down have been wrong seven years out of seven. That's a remarkable track record!" says Holland.

    Take a look at the chart...

    To continue reading, please click here...

    Read More...
  • Will the Government Confiscate Your Gold? The Roosevelt Administration Executive Order of 1933 required U.S. citizens to turn over most of their gold coins, gold bullion and gold certificates in return for paper currency. Is the government eyeing your gold again? Read More...
  • Investing in Gold: What to Expect from Prices Before 2013 It's been a down week for gold prices, reaching one-month lows, but on Thursday, things began to turn around for the precious metal.

    Due to short-covering in anticipation of Friday's employment numbers and comments from European Central Bank (ECB) President Mario Draghi raising expectations for an interest rate cut, Comex February gold rose $8 an ounce to $1,701.80.

    Gold exchange-traded funds (ETFs) also had a good day on Thursday as they hit record highs of 76.133 million ounces.

    Peter Spina, president of Goldseek.com said to Investor's Business Daily of Thursday's levels, "If gold does remain around these levels for the near term (several months), this remains a very healthy gold market, which will set the tone for the next move up."

    After the November U.S. jobs report, which had been expected to be skewed from Superstorm Sandy, came out better-than-expected on Friday, gold went above $1,700 again. Expectations for Federal Open Market Committee (FOMC) easing fell a bit.

    Until the Dec. 10 and Dec. 11 FOMC meeting ends, investors are expected to hit the sidelines.

    At next week's meeting, FOMC members will decide what to do with "Operation Twist" as it comes to an end. Many think they will extend it, plus implement a "QE4."

    This would be good for the precious metals markets. But gold prices are affected by much more than the FOMC.

    To continue reading, please click here...


    Read More...
  • How to Buy Gold: Don't Miss the Yellow Metal's Next Move Up With experts predicting rising gold prices for at least the next year, it's no surprise that more and more investors want to know how to buy gold.

    According to the facts and figures cited last week by Money Morning Global Resources Specialist Peter Krauth, 2013 should be a banner year for gold. Krauth projects prices for the primary precious metal could easily climb from the current $1,704 an ounce to $2,200 - or even more - a one-year gain in excess of 25%.

    That means every serious investor should have at least some gold in their portfolio.

    That raises two immediate questions:
    1) What are the best vehicles for investing in gold; and,
    2) What are the best ways to buy the yellow metal?

    For each investor, the best approach to how to buy gold depends on your goals and expectations.

    How to Buy Gold

    If you're worried global political and economic tensions will intensify, then holding the actual physical metal is your best choice.

    Possible flash points include strife in the Middle East, a meltdown in the Eurozone debt crisis, a continued slowing of China's growth rate and, of course, the U.S. fiscal cliff crisis, which could plunge America and perhaps the world economy back into recession - or worse.

    Under such conditions, purists feel holding physical gold provides the only truly effective hedge against almost certain declines in the value of the dollar and other fiat currencies - declines that could be amplified by sharp reversals in global financial markets.

    For smaller investors, how to buy gold in physical form typically means buying gold bullion bars, rounds (unadorned coin-shaped pieces) or minted gold bullion coins.

    To continue reading, please click here... Read More...
  • Why Gold Prices Will Soar After the Dec. 12 FOMC Meeting Gold prices will start another epic run beginning Dec. 12 - the day the Federal Reserve will double down on QE3 at its Federal Open Market Committee (FOMC) meeting.

    Decisions made at the Dec. 12 FOMC meeting could add as much as $2.2 trillion to the Fed's balance sheet over the next two years, which will turbocharge gold prices, silver prices and oil prices.

    The FOMC is the select group within the Fed that sets monetary policy, such as interest rates and the bond-buying programs known as quantitative easing, or QE.

    That the Fed will dramatically increase QE3, which launched in September with the monthly purchase of $40 billion in mortgage-backed securities (MBS), at the Dec. 12 FOMC meeting is almost a given; it practically has no choice. QE3.

    But the real issue at the Dec. 12 FOMC meeting will be what to do about the Dec. 31 expiration of the Operation Twist program. In Operation Twist, the Fed sells about $45 billion of short-term Treasuries each month and uses the proceeds to buy long-term Treasuries.

    The Fed probably would opt to extend Operation Twist - which has not added to the Fed's balance sheet as QE1, QE2 and QE3 have -- except that it is starting to run low on short-term securities to sell.

    Yet the Fed committed in October to extending its easing policies as long as necessary to bring down unemployment and aid the U.S. economy. Its only option is to convert Operation Twist to a conventional bond-buying program - effectively doubling its QE3 money-printing.

    "Our baseline expectation is a continuation of the current pace of asset purchases of $85 billion per month on an open-ended basis, which would imply that the current $45 billion per month in [Operation] Twist-financed Treasury purchases is replaced by $45 billion per month in QE-financed Treasury purchases," Jan Hatzius of Goldman Sachs (NYSE: GS) said of the likely actions at the Dec. 12 FOMC meeting.

    To continue reading, please click here...

    Read More...