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Private Briefing
with WILLIAM PATALON III, Executive Editor

Sharpen Your Pencil – And Put These Three Stocks on Your "Shopping List"

Ask any of our gurus for advice on how to survive a stock-market sell-off – or even a whipsaw period like the one we’re navigating now – and you’ll get a surprising answer.

Keep a shopping list ready, they’ll tell you…

  • Featured Story

    The Silver and Gold Prices 'Super Cycle' is Far From Over

    • By , Associate Editor, Money Morning  -   December 6, 2012
    Looking at a 10-year gold prices or silver prices chart and seeing respective gains of 423% and 650% can get investors pretty excited, and for good reasons.

    Whether you enjoyed the previous commodities bull run and are currently adding to your positions, or just initiating one, now is the time to buy gold and silver, as both are expected to continue climbing in value.

    The "commodities super cycle is far from over" is a sentiment Money Morning Global Resource Specialist Peter Krauth has repeatedly shared with readers, and it was reiterated today by Jeffrey Currie, head of Commodity Research at Goldman Sachs Group Inc. (NYSE: GS).

    "We believe current market developments are simply the next phase of a commodity investment cycle that commenced in the late 1990s and, like previous phases, it will create new investment opportunities and should therefore be viewed more as a renaissance," Currie told Bloomberg News.

    This "renaissance" is something investors should enjoy by having part of their portfolio invested in precious metals and other commodities.

    Here's why.

    To continue reading, please click here... Read More...

  • gold options

  • The Ultimate Gift for Your Gold Lover and 5 Other Amazing Consumer Trends Package gift small
    • By , Contributing Writer, Money Morning  -   November 28, 2012
    Last weekend marked the official start of the holiday shopping season in the U.S., so for the next month, consumers will be enticed with daily deals on the latest fads, such as one-cup coffee makers, tablets, flat screens and cashmere sweaters.

    According to the latest survey from the Consumer Electronic Association, about 60 percent of adults plan to shop in stores or online during the holiday weekend, with the average person indicating they'll fork over $218 for gifts and merchandise from Thanksgiving through Cyber Monday.

    This is a sharp increase from 2011, where shoppers said they'd spend $159.



    For the ultimate gold lover on your shopping list, one amazing purchase you can nab is a Christmas tree complete with Disney characters and gold leaf ribbons made of 88 pounds of pure gold from a jewelry store in Tokyo, according to Reuters.

    The ornamental tree will set you back $4.2 million, but there's also a smaller version available for $243,000.

    But that's not the only thing that has grabbed my attention this holiday season. Here are 5 other amazing consumer trends that are happening around the world.

    To continue reading, please click here... Read More...
  • The "Two Outlooks" for Gold Prices
    One of the best parts of my job is when I hear back from you.

    And two recent columns in particular on gold generated a larger-than-normal response.

    The comments were related to the two-parter on gold prices that we published on Nov. 5 ("The Secret Gold Standard") and Nov. 13 ("Why Obama's Victory Means Higher Gold Prices").

    Let's take a look at what you had to say.

    The comments related to the "Secret Gold Standard" column were especially intriguing because a number of you thought I was advocating a literal return to the "gold standard."

    I wasn't, of course. I employed the term as a convenient metaphor to try and help folks understand how the world's central banks were adding gold reserves for the first time in nearly a quarter century.

    In fact, a global return to the gold standard isn't possible - there literally isn't enough gold to allow that to happen. It would crimp money-supply growth in such a way that global economic growth would be stymied.

    A number of you wrote in to make that same point - including one reader who actually performed all the necessary calculations to make his case.

    Al K. wrote in to ask: "Some analysts believe gold will drop further & others believe gold has bottomed out now. What do the experts of Money Morning believe?"

    Since Al requested an "expert" opinion - a fair request - I put in a call to Chief Investment Strategist Keith Fitz-Gerald.

    The Outlook For Gold Prices

    Right now, Keith explained, there are two separate outlooks for gold - one for the near-term and another for the longer-term.

    To continue reading, please click here... Read More...
  • As Gold Prices Climb, This Options Trading Strategy Tells You When to Buy
    • By , Contributing Writer, Money Morning  -   August 1, 2012
    While most experts agree the long-term outlook for gold prices is still bullish, the yellow metal's pattern this summer can only be described as one of fits and starts.

    In all, gold has made 11 short-term bottoms since May 29, the lowest being a close at $1,552.40 an ounce on June 28. Meanwhile, subsequent rally attempts have all quickly run into resistance, stalling out at near $1,620.

    This start-and-stop action makes it extremely difficult for investors to avoid being "whipsawed."

    Fortunately, there's a way around this dilemma: Just use an options trading strategy that lets the market itself tell you exactly when to buy gold.

    And, here's the best part: This clever options trading strategy will cost you only a few dollars.

    It can be used on gold futures - e.g., the standard 100-ounce CME Group contract, on any of the gold mining stocks or on the much more affordable gold-backed exchange-traded funds (ETFs) on which options trade.

    Taking the Guesswork Out of Gold Prices

    For ease of explanation, I'll base our example on the most popular and actively traded of the gold ETFs - the SPDR Gold Trust (NYSEArca: GLD).

    Recently quoted at $155.75, the price of a single GLD share usually tracks the price of one-tenth of an ounce of gold (discounted by 2.5%-3.0% for fund expenses and storage costs for the metal that backs the shares).

    Here's how you would initiate the strategy, based on actual prices available last Friday:

    To continue reading, please click here... Read More...
  • How Shorts on Gold ETFs are Nearing a Big Squeeze
    • By , Contributing Writer, Money Morning  -   June 19, 2012
    There has been an increasing number of investors taking short positions on gold exchange-traded funds (ETFs) - but they better watch out for what's ahead this summer.

    In fact, each day that passes brings us closer to what could be the day of reckoning for those holding massive short positions on the ETFs for gold, silver, copper and related investments.

    You see, the Federal Reserve Bank of Kansas City in late August will host an economic policy symposium in Jackson Hole, WY. Speaking at the conference, as he did in August of 2010 when he introduced the second round of quantitative easing, will be Federal Reserve Chairman Ben Bernanke.

    There is much to believe that QE3 - if not declared sooner - could be announced at Jackson Hole. Should this happen, the prices of gold, silver and copper will likely soar like back in 2010.

    That means anyone holding shorts on gold ETFs or similar investments could find themselves scrambling to cover their positions.

    To continue reading, please click here... Read More...
  • Physical Gold and Silver Dividends Offer Investors the Best of Both Worlds
    • By , Resource Specialist, Money Morning  -   March 26, 2012
    What if I told you there was a company that paid its shareholders in physical gold?

    Would a "golden dividend" be enough to get you interested in gold stocks?

    If not gold, what about silver?

    Neither one of these options even existed when I first started talking about them just three months ago.

    But thanks in part to billionaire resource investor Eric Sprott, today's investors can benefit from a dividend payable in physical gold or silver.

    Sprott had sent a letter to silver producers, suggesting they reinvest some 25% of their earnings back into silver, rather than in cash at the bank.

    That took my earlier discussion about gold and silver dividends to a totally new level: dividends in kind.

    These aren't paper profits, but real, hold-in-your-hand gold and silver dividends.

    For precious metals investors, these "hard asset" dividends make perfect sense.

    Today, one innovative gold and silver producer offers investors the best of both worlds.

    Finally: Physical Gold and Silver Dividends

    In a bid to gain the "first mover" advantage, Gold Resource Corp. (NYSEAmex: GORO), a low-cost gold producer, is launching a gold and silver dividend program on April 10, 2012.

    The company has already paid out $41 million in dividends to its shareholders over the past year and a half.

    But now they are offering shareholders a unique option by partnering with Gold Bullion International (GBI). GBI is a New York-based precious metals provider to individual and institutional investors, with storage vaults in New York, Salt Lake City, London, Zurich, Singapore, and Australia.

    Essentially, GORO shareholders can elect to convert their cash dividends into Gold Resource Corp. "Double Eagles" consisting of one ounce 0.999 fine gold and/or one ounce 0.999 fine silver rounds.

    These "Double Eagles" will be drawn from GORO's physical treasury and placed into the shareholder's "individual bullion account" with GBI.

    To continue reading, please click here... Read More...
  • Silver Options: How to Protect Your White Metal Profits
    • By , Contributing Writer, Money Morning  -   April 13, 2011
    Turn on the television or flip through the pages of any major newspaper, and the top stories will be either the stock market's unrelenting rise in recent days or gold's climb to yet another record high.

    Without question, both are worthy of note - but the real star over the past eight months has been silver.

    Stocks, gold and silver all hit cyclical lows during the final week of August 2010. The Dow Jones Industrial Average bottomed on Aug. 26, closing at 9,985.81, while June Comex gold futures closed at $1,223.30 an ounce on Aug. 24, and July Comex silver contracts settled at $18.121 per ounce on Aug. 23.

    Read More...