Archives for March 2013

March 2013 - Page 19 of 20 - Money Morning - Only the News You Can Profit From

The Secret to Leaving the Middle Class Behind

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The middle class in America is caught in a vise, and they need a way out.

There is a way, of that I am sure.

But, like almost everything else in life, it's not about anybody keeping you down.

It's about you being honest with yourself that it's up to you. It's about understanding that all those "other people" keeping you down don't give a damn about you. They don't even know you. They do what they do for themselves and if they can use you… oh, they will.

I'm talking about the bankers and brokers who too many of the middle class rely on.

News flash!

They're in it for themselves. Their job is making money for themselves.

Gold Prices Are Being Manipulated and Here's What To Do About It

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If you've ever suspected gold prices are being manipulated, you're not alone–and 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.

Let's begin with the concept of manipulation itself.

In order to understand the players, you have to understand their motivations. You'd think it's all about profit, but that's not entirely true.

Natural Gas Companies: Shell's Huge LNG Win

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Royal Dutch Shell (NYSE: RDS.A) last week inked a $6.7 billion deal to buy Spanish energy company Repsol SA's (RPYY) liquefied natural gas (LNG) business.

Shell will buy a portion of Repsol's LNG assets for $4.4 billion in cash and $2.3 billion in financial leases and assumed debt – more than double pre-sale estimates, according to Bernstein Research.

Tuesday's deal underscores the looming importance of LNG to natural gas companies and the global energy market.  

"LNG overcomes the primary problem faced by natural gas users," explained Money Morning's Global Energy Strategist Dr. Kent Moors earlier this year. "Available supply is traditionally limited to where pipelines are running. LNG, on the other hand, cools gas to a liquid, allowing it to be transported by tankers almost anywhere by water, regasified at an import terminal, and then injected into the local pipeline network."

This opportunity means huge profits for companies – and investors – who get ahead in the LNG market.  

Shell's Big LNG Win

Shell believes global consumption of LNG will double from now until 2025. Earlier this year, Shell's ECO Peter Voser said he expects gas to play a significant role over the next 40 years, with much greater growth rates than oil.

Voser said in November 2012 that Shell plans to invest $20 billion in natural gas products globally over the next few years.

One of the reasons Shell pursued this current deal was to get Repsol's stakes in a major LNG project in Trinidad and Tobago, in addition to a small project off coastal Peru. Shell previously had no presence in these emerging regions.

Operating in these regions gives Shell the ability to provide gas to Latin America, and use its Nigerian gas operations to service Asia. That'll save the company shipping costs and boost profit margins.

"This is a perfect complement to what we have. We get a West Atlantic position and an East Pacific position. These were blind spots," Maarten Wetselaar, Shell's executive vice president told The New York Times. 

The deal comes with a fleet of specialized LNG carrier ships and will add 30% to Shell's LNG supplies, according to The New York Times.

Macquarie Securities estimated Shell will now have 6.6 million tons of LNG to trade, or about 20% of its total volume.

Why Natural Gas Companies are Chasing LNG

Five Signs the Bull Market Is Getting Close to Topping Out

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With the current bull market celebrating its fourth birthday by flirting with all-time highs, investors need to look hard for signs of where stocks are going from here.

Last week, the Dow Jones Industrial Average came within 20 points of its all-time record close of 14,164.53. Two weeks ago the Standard & Poor's 500 Index came within 31 points of its all-time high of 1,561.80.

Unfortunately, most market indicators are suggesting that the bull market that has carried U.S. stocks a long way from the lows of March 2009 is just about out of steam.

"There are a lot of measures that tell us markets are overbought at this point," Philip Saunders, head of multi-asset funds at Anglo-South African fund manager Investec, told the Financial Times. "Nothing goes up in a straight line."

That's not to say necessarily that we're facing a full-blown stock market crash, but that the likelihood of some sort of downturn has increased dramatically in recent months.

Many of the best indicators of a nearing change in the direction of stock markets are contrarian – that is, they appear to tell you the opposite of what you're currently observing.

But that's also what makes them valuable. No one wants to be the last person to leave the party, particularly when that party is a bull market.

Here are five indicators investors need to bear in mind:

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Buying Silver Coins: All You Need to Know

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Investors have been buying silver coins at a lightning-fast pace this year. The U.S. Mint even sold out of 2013-dated American Silver Eagles in early January.

January Silver Eagle sales hit a record 7,498,000. After suspending sales Jan. 17, the U.S. Mint has allowed investors to resume buying silver coins, but with limits on how many coins dealers can order.

The good news: You can still cash in on buying silver coins. But before you buy, you need to know the best deals out there – and the ones to avoid.

That's why Money Morning Executive Editor William Patalon III explained everything you need to know about buying silver coins in this accompanying video.

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What's Keeping Oil Prices Down - for Now, at Least

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Sequestration, production concerns in China and the political mess in Italy have combined to keep oil prices down, says Money Morning Global Energy Strategist Dr. Kent Moors.

Speaking on CNBC, Moors said the oil market is now "slightly oversold."

Moors said increased demand and less refinery capacity being used could increase the oil crack spread in the United States, leading to higher energy prices even if oil prices fall.
Asked why energy prices are so high, Moors said there are six or seven major factors.

"The bottom line," he said, "is we have to stop looking at Western Europe and North America when we talk about oil demand because oil demand is being driven essentially worldwide by completely different regions."

Among them, Moors said, is West Africa, where oil demand is spiking.

Watch the accompanying video to hear Moors talk more about global oil prices and how they will affect you.

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How to Buy Silver Coins

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Silver is one of the hottest investments this year, leading many investors to ask how to buy silver coins before the white metal soars to new highs.

Indeed, investors have been buying silver coins at such a rapid pace, the U.S. Mint announced Jan. 17 it had sold out of 2013-dated American Silver Eagles – just 10 days after opening sales to authorized dealers.

Opening day sales for the hugely popular bullion coins on Jan. 7 hit a record 3,937,000 coins. The tally of total sales over the 10 days the coins were available exceeded 6 million.

Sales resumed Jan. 28 after the Mint replenished its inventory, but on an allocated basis with limited orders. The Mint used the same method in 2009 and 2010 when demand among people buying silver coins also outstripped supply.

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Bear of the Day: hhgregg (HGG) - Bear of the Day

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Do not be fooled by the recent surge, HGG is in serious trouble and investors might be saying 'help me!' before long. AMAZON.COM INC (AMZN): Free Stock Analysis Report BEST BUY (BBY): Free Stock Analysis Report HHGREGG INC (HGG): Free Stock Analysis Report RADIOSHACK CORP (RSH): Free Stock Analysis Report To read this article on […]

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Investing in Copper: Why Prices Will Rebound in 2013

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If you're considering investing in copper, you need to know what's happening in China right now.

The country's extraordinary growth spurt – and the resulting surge in demand for copper – will create a global shortage of the metal this year, likely driving up prices. Copper is currently trading around $3.50 a pound.

Indeed, the real demand story for copper continues to be in emerging markets, particularly in China, which is responsible for about 40% of global consumption of the metal.

Last year, China's imports of refined copper hit a record high 3.4 million metric tons, according to the General Administration of Customs in China. This figure surpassed the previous high of 3.19 million metric tons, set in 2009 during the stimulus following the 2008 financial crisis.

The Profit Potential from 3D Printing is Massive

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When I first started writing about 3D printing, most investors viewed it as a futuristic "gee-whiz" concept – and had no idea it was actually a "here-and-now" technology they could make money on.

And the mainstream news media didn't seem to know that this 3D technology even existed.

Today, as you know, many of the 3D stocks (including some that I've identified) have soared … and then fallen back to earth. Some pundits claim this was nothing but hype – or another tech bubble that now has burst.

Still others are writing this off as little more than a novelty niche.

Don't make that mistake.

With 3D printing, we're in the earliest stages of what's destined to become an entire new industry.

And, as I'm going to show you today, the profit potential is massive.

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