Press Esc to close

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

Close

Wednesday's "Earnings Beat" Makes This The Perfect "Bad-Market" Tech Stock

In last week’s Private Briefing report Our Experts Show You the Stocks to Pick in a ‘Stock-Picker’s Market’,” Money Map Press Chief Investment Strategist Keith Fitz-Gerald identified SanDisk Corp.(NasdaqGS: SNDK) as one of three stocks to buy in the face of the stock market sell-off.

And now we see why…

  • investing in gold

  • If You're Worried About Gold Prices, You Need to Read This

    When stocks fall by 20% or more from their peak, it's labeled as a "bear market."

    With gold prices down 26% from their record close back in August 2011, the "yellow metal" has entered a bear market of its own.

    It took an especially ugly day on Monday to get us to that point.

    Two days ago, gold prices plunged as much as 9.7% - the biggest decline since 1980 - and continued a sell-off that saw the yellow metal fall by 4.7% last week, including a 4.1% drop on Friday.

    The metal has now fallen 26% from its Aug. 22, 2011 settlement record of $1,888.70.

    To get some expert insights on this sell-off, I telephoned Peter Krauth, our resident natural resources expert and editor of our Real Asset Returns research service. Peter based himself in Canada to be closer to the miners and natural-resources companies he covers for his subscribers.

    I asked Peter for insights on the following three questions:

    To continue reading, please click here...

    Read More...
  • Why the "Smart Money" in Japan is Investing in Gold Country Japan flag

    Some Japanese investors were thrilled as gold prices swooned this week, because they got a chance at investing in gold at a bargain price. 

    Tokuriki Honten Co., the country's second-largest gold retailer, reported Tuesday that Japanese investors doubled their gold purchases this week from the week before.

    And Reuters reported how 63-year-old Yujiro Yamashita traveled to Tokyo's Ginza district to buy gold for the first time in 20 years.

    Why?

    It's thanks to fears stemming from Japan's new monetary easing, known as "Abenomics."

    To continue reading, please click here...

    Read More...
  • If You're Worried About Gold Prices, You Need to Read This After an especially ugly day for gold investors on Monday, the "yellow metal" has now entered a "bear market". As of yesterday, gold is down 26% from its record close back in August 2011.

    To get some expert insights on this sell-off, I telephoned Peter Krauth, our resident natural resources expert and editor of our Real Asset Returns research service.

    I asked Peter for his insights on the following three questions:

    • Why gold is selling off.
    • What you can expect from here.
    • And what investors should do now.
    Here's what he had to say... Read More...
  • Investing in Gold: Here's What to Do Now Gold Price trends this year

    Monday's drop in gold prices was the largest one-day plunge since February 1983 - which led many of those investing in gold to bail on the yellow metal.

    Gold prices tumbled $140.40, or 9.4%, to $1360.60 an ounce. This brought the two-day decline to $203.70, or 13%.

    On Friday, we outlined recent factors driving gold's price plunge:

    • The Federal Open Market Committee (FOMC) meeting minutes that came out last week suggested the central bank may start scaling back its monetary stimulus measures later this year, reducing inflationary pressures.
    • Goldman Sachs Group Inc. (NYSE: GS) last week cut its 2013 average gold forecast, for the second time, to $1,545 from $1,610. Investors like to dump the metal after the release of bearish research.
    • There have been rumors financially strapped Cyprus was selling 400 million euros of gold, 75% of its reserves to raise cash.

    Gold prices ended the drastic two-day decline Tuesday, up nearly 2% to $1,387.40.

    To continue reading, please click here...

    Read More...
  • Keith Fitz-Gerald on What's Driving Down the Price of Gold video-keithfitzgerald-gold-prices-falling

    Investors want to know: What's driving down the price of gold - and how long will the plunge last?

    Gold prices tumbled Monday by more than 9% - the biggest percentage drop in 30 years.
    The yellow metal had fallen to just above $1,360 an ounce Monday afternoon.

    To continue reading, please click here...

    Read More...
  • This Gold Prices Chart Points to a Looming 24% Jump GoldPrices2001_2013

    Despite a pullback in gold prices, hold on to your gold. In fact, look to buy more.

    You see, thanks to record highs for the U.S. stock market, a notable shift from defensive assets to "risk-on" trades has occurred.

    The yellow metal slumped 1.4% to $1,552.80 Wednesday marking a nine-month low. That's after gold prices slid below $1,600 an ounce in Q1 on hints of a global economic rebound. The slide prompted market participants to shed gold holdings.

    It's "certainly understandable" for investors to have sold gold following a 400% appreciation over the last decade and move into stocks, said Malcolm Burne, chairman of the Golden Prospect Precious Metals investment trust.

    But, here's why the tide may be about to turn.

    To continue reading, please click here...

    Read More...
  • What Maslow and Rand Would Tell Investors Today (And How It Relates To Gold) The average investor has significantly underperformed oil, stocks, gold and bonds in the past 20 years. While, on average, investors returned 2%, oil, stocks and gold rose about 8%. Let's apply some psychology to find out why. Read More...
  • Does Investing in Gold Top Your List of "Best Investments"? gold

    Even though the Dow Jones Industrial Average and Standard & Poor's 500 Index have hit record highs this year, investing in gold remains the top investment pick in CNBC's latest All-America Economic Survey.

    The March poll shows the yellow metal is the favored investment choice among 35% of respondents, beating real estate at 27% and stocks at 21%. This is the second year that investing in gold has topped the list of what those surveyed consider the "best investment" to make now.

    While survey participants are more optimistic this year than last about the stock market, 21% are uncertain if now is a good time to dabble in stocks, up from 11% in December 2009.

    Those who believe the current environment make it a good time to buy stocks jumped from 31% in November to 40%, the highest amount since December 2009.

    Moreover, in spite of the improved outlook for stocks, the overall view of the current state of the economy remains bleak. Currently, 60% of those surveyed are pessimistic about the U.S. economy, up from 56% in November.

    To continue reading, please click here...

    Read More...
  • Can Gold Miners Increase Profits Through Spin Offs?

    After more than a decade of merger mania, gold miners are now looking to spin off some of their acquisitions.

    By doing so, the gold miners hope for better results after abysmal performance recently, as gold prices have fallen. And, as always, gold miners' profits rise and fall much faster than the yellow metal's price.

    The underperformance of the Market Vectors Gold Miners ETF (NYSE: GDX) compared with that of the SPDR Gold Trust (NYSE: GLD) bears this out. GDX is down 20.5% since the end of last year, while GLD is down 4.8%.

    Investors are starting to get really impatient with the gold miners - so much so that billionaire hedge fund manager John Paulson is arguing some of the world's biggest gold mining companies, including AngloGold Ashanti Limited (NYSE: AU), spin off some of the mines that they have acquired through M&A over the past 10 years.

    Paulson, the largest shareholder of GLD and AU, thinks the sum of the parts is greater than the value of the whole mining company. Paulson certainly can't be pleased with AU's 23.5% decline so far in 2013.

    Other gold majors, including Gold Fields Limited (NYSE: GFI) and Barrick Gold Corp. (NYSE: ABX), have already spun off some of their mines or are in the process of doing so.

    To continue reading, please click here...

    Read More...
  • Don't Shy Away from Investing in Gold

    Gold prices were up today (Thursday) as the U.S. dollar retreated against other currencies, leading foreign buyers to favor investing in gold



    The most actively traded gold contract, for April delivery, rose $2.70, or 0.1%, to settle at $1,590.70 a troy ounce on the Comex division of the New York Mercantile Exchange.

    "The gold market is getting propped up by a break in the dollar index," Ira Epstein, director of the Ira Epstein division at the Linn Group, told The Wall Street Journal. "The problem is, people are not buying into the rally, they're buying it on the dips."

    If gold prices cross the psychologically important $1,600-an-ounce level, confidence in investing in gold could strengthen.

    Until then, it looks like investors will stay busy trying to profit from the record-high Dow.

    To continue reading, please click here...

    Read More...
  • These Gold Stocks Are Poised to Rebound in 2013 They almost HAVE to. Fact is, gold mining companies' stocks specifically have lagged the performance of the precious metal for six years. Here's why investors can expect a reversal in the next nine months. Read More...
  • Gold Prices: Don't Ignore This Bullish Trend Gold prices have been languishing in recent weeks, as investors have been drawn into riskier assets, like equities. Investors are not looking for a "save haven" right now. But not everyone is shunning gold - and you shouldn't either. Take a look. Read More...
  • Gold and Silver Prices Boosted by These Global Moves Gold Price trends this year

    Gold and silver prices both marched toward their largest gains in more than a week Tuesday joining the uplifting mood on Wall Street. As the Dow Jones Industrial Average reveled in a historic rally that took the benchmark to a record high, commodities also soared. 

    Gold prices settled Tuesday's trading session up $2.50, or 0.2%, at $1,574.90 an ounce, supported by stimulus chatter and a weaker dollar. The safe haven metal had reached as high as $1,585.80 an ounce intraday, on course for its biggest leap since Feb. 26.

    Year-to-date, gold has dipped 5.7%. The commodity logged its fifth consecutive month of declines in February, marking its longest stretch of declines since 1997.

    Silver prices rose 1.7% to $28.97 in early trading, their biggest gain in more than a week. The white metal ended the day at $28.81.

    While silver's slip since January has been more modest than gold's, it's well below the $34.89 it traded at during the same period a year ago.

    But loose monetary policies worldwide, geopolitical uncertainties, rising oil prices and renewed fears of inflation should support, if not boost, both gold and silver prices in the months ahead.

    Aggressive Global Stimulus Here to Stay

    Driving gold and silver prices higher Tuesday were comments from Federal Reserve Vice Chairman Janet Yellen.

    At the National Association for Business Economics conference Monday, the Federal Open Market Committee's (FOMC) Yellen defended the bank's $85 billion a month of bond purchases.

    "At this stage, I do not see any (risks) that would cause me to advocate a curtailment of our purchase program," Yellen said.   

    Yellen's sentiments mirror that of Fed Chief Ben Bernanke, who thinks continued stimulus will be good for the U.S. economy. Acknowledging there are risks from the Fed's aggressive efforts to stoke the anemic U.S. economy, Yellen added there are also risks from not being aggressive enough.

    This news from overseas is also bullish for gold and silver prices...

    To continue reading, please click here...

    Read More...
  • Gold Prices Are Being Manipulated and Here's What To Do About It If you’ve ever suspected gold prices are being manipulated, you’re right, they are.

    Against the backdrop of fiscal mismanagement, political incompetence, and failed austerity measures, the world's biggest traders have all bet heavily on gold. Lately, they've been pulling out all the stops to get what they want (while laughing all the way to bigger bonuses).

    Today, I want to talk about who "they" are and share a few tricks you can use to capitalize on their actions without being taken to the poorhouse.

    Here's how to play the game to win. Read More...
  • The Looming Gold Production Cliff That Will Drive Prices Higher Country Canada maple leaf

    In recent years, global gold production has been at or near record levels. The plentiful supplies have led gold bears to argue that the yellow metal's decade-long bull run will end.

    But gold bears are dead wrong.

    In fact, the 'glory days' of gold production may be ending soon.

    That's because some industry experts are beginning to point to a gold "production cliff' that is looming not far in the future.

    And this coming decline in production can mean only one thing: higher gold prices.

    To continue reading, please click here...

    Read More...