Archives for April 17, 2013

April 2013 - Money Morning - Only the News You Can Profit From

The Best-Performing Commodity of 2013 is Just Heating Up

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Gold and silver are in the midst of an ugly selloff, but the best performing commodity of 2013 continues to ramp up.

Believe it or not, it's natural gas.

After increasing 1.2% Wednesday, natural gas prices now stand around $4.20/mmbtu- up more than 120% from a year ago and almost 30% this year alone.

By comparison, gold prices are down 18% and silver prices are off over 23% since the beginning of 2013.

The good news for natural gas investors is that there are still plenty of reasons why natural gas will continue its recent run.

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Why the "Smart Money" in Japan is Investing in Gold

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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."

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Retirement Nightmare: Underfunded Pensions Want to Chop Your Benefits by 60%

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Unions, employers and the federal government have finally come up with an answer for the nation's underfunded pension plans, many of which are headed for bankruptcy.

Take the money from the retirees.

The proposal would erase the guarantees created under the 1974 Employee Retirement Income Security Act (ERISA) and allow underfunded pension plans to reduce monthly benefits for both future and current retirees.

That change would affect the more than 10 million people who participate in defined benefit pension plans operated by companies, unions, or both. It could have a devastating impact on those already receiving benefits, and have been depending on promises made decades ago.

"The truth about pension plans is that they are promises — not guarantees," said Money Morning Capital Wave Strategist Shah Gilani. "It's unfortunate, but current retirees won't likely see promises made to them fulfilled."

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Jim Rogers' Prediction on Gold Prices Was Only Half of the Story

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In October, legendary Quantum Fund manager Jim Rogers made a prediction about gold prices that left many gold bugs shaking their head.

Although Rogers admitted he wasn't going to be selling his hard assets, he predicted further consolidation and a near-term correction in the metals markets.

Predicting this short-term downturn, Rogers cautioned that gold had been on the rise for twelve consecutive years, a streak that was unparalleled. That was then.

This week, his prediction rang true as gold and silver prices took another huge hit. In the aftermath, gold prices are now down approximately 30% since reaching an all-time high in August 2011.

According to Rogers gold prices have even further to fall.

Stock Market News for April 17, 2013 - Market News

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Encouraging reports on housing combined with better-than-expected earnings from a couple of companies helped benchmarks finish in the green. Meanwhile, weak Consumer Price Index (CPI) and Industrial Production data added weight to the Federal Reserve’s argument of continuing monetary stimulus to accelerate economic growth. All the top ten S&P 500 industry groups registered gains, among […]

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IPO Performance of 2013: Check Out Winners and Losers

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2013 has been a strong year for IPO performance so far.

About 40 deals have been priced through the second week of April, and 33 of the deals have moved higher in the secondary market with an average gain of more than 20%.

If you missed these profits, don't worry. There is no sign of any slowing in the IPO market, as there are currently nine deals already scheduled for the next two weeks. In fact, IPO dollar volumes for the year so far are nearing the $9 billion mark, on par with the levels seen in 2012.

Let's take a look at the biggest and best IPO performances so far in 2013.

How a Massive Landslide Shifts Copper Supply

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The U.S. mining industry was dealt a devastating blow as Kennecott Utah Copper's Bingham Canyon Mine experienced a pit wall failure causing a massive landslide with rocks and dirt covering the bottom of the mine pit. It's a miracle no one was hurt due to the vigilance of its owner, Rio Tinto.

Brian Hicks, portfolio manager of the Global Resources Fund, is very familiar with the mine, having visited it often. He also has personal ties as both of his grandfathers were once employed by the mine. When Brian saw the photo of the landslide posted on the web, he said the substantial destruction of the collapsed wall and falling rock was apparent, yet the tremendous scale and magnitude of the mine cannot be captured in pixels.

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

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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: