Friday, July 16, 2010
Stocks slumped on Friday.
- By John March
Impressive corporate profits weren't enough to jolt the bulls into action this week, as stock indexes described a perfect parabola from Monday to Friday. Despite gains of 2 to 3 percent at midweek, all three major indexes had collapsed back to their starting points by noon on Friday.
That's bad news for those hoping that surging stock values alone could drive the economy out of recession. It's corporate earnings season, and the news has generally been mixed. JPMorgan Chase, chip manufacturer Intel and aluminum producer Alcoa all posted better-than-expected results, but other companies didn't fare as well.
General Electric, Citigroup and Bank of America all missed estimates, while Goldman Sachs settled the suit brought against it by the SEC for $550 million.
That just boosted the investment bank's shares, though: As it turns out, the fine is equal to just 14 days of Goldman's first-quarter earnings.
The market signals point to sustained weakness in stocks, which is probably good news for hard assets like physical gold. The price of dealer gold has jumped almost 8.5 percent since the beginning of the year, and at one point it was up almost 15 percent.
By contrast, the S&P 500 never got past 10 percent gains in 2010, and it's currently down almost 4 percent.ADNFCR-2970-ID-19895170-ADNFCR
Wednesday, July 21, 2010
Thursday, July 1, 2010
One of the world's poorest nations could have the next gold rush
One of the world's poorest nations could have the next gold rush
Wednesday, June 30, 2010
Gold mining could bring a measure of prosperity.
- By Bruce Sands
Burkina Faso says that its gold exports will rise more than 60 percent over the course of the next year, reports Bloomberg. The West African nation is also one of the world's poorest, with a per-capita annual income of less than $300. The last figure for unemployment, in 2004, put it at 77 percent.
Currently, Burkina Faso does not export an enormous amount of gold. But it's seeking to attract major mining corporations like Newmont Mining Corporation of the U.S. and Vale SA of Brazil.
IAMGOLD of Canada started up a mine this week in Essakane, Burkina Faso, that it projects will produce 500,000 ounces of gold by the end of next year.
The country expects its revenue from gold mining taxes to rise from #30 million last year to over $150 million in five years, according to Abdoulaye Abdoulkader Cisse, the mining and energy minister interviewed by Bloomberg. Cisse says that 800 companies sought exploration licenses in December, over twice the number the government projected.
All these trends point to a promising future for Burkina Faso in gold mining, which could finally begin to rise from the bottom of the economic heap. ADNFCR-2970-ID-19867520-ADNFCR
Wednesday, June 30, 2010
Gold mining could bring a measure of prosperity.
- By Bruce Sands
Burkina Faso says that its gold exports will rise more than 60 percent over the course of the next year, reports Bloomberg. The West African nation is also one of the world's poorest, with a per-capita annual income of less than $300. The last figure for unemployment, in 2004, put it at 77 percent.
Currently, Burkina Faso does not export an enormous amount of gold. But it's seeking to attract major mining corporations like Newmont Mining Corporation of the U.S. and Vale SA of Brazil.
IAMGOLD of Canada started up a mine this week in Essakane, Burkina Faso, that it projects will produce 500,000 ounces of gold by the end of next year.
The country expects its revenue from gold mining taxes to rise from #30 million last year to over $150 million in five years, according to Abdoulaye Abdoulkader Cisse, the mining and energy minister interviewed by Bloomberg. Cisse says that 800 companies sought exploration licenses in December, over twice the number the government projected.
All these trends point to a promising future for Burkina Faso in gold mining, which could finally begin to rise from the bottom of the economic heap. ADNFCR-2970-ID-19867520-ADNFCR
Friday, June 11, 2010
Some economists wary of Chinese economic trends
- By John March
Some investors have been optimistically looking to emerging nations like China and India to help the global recovery gain momentum in the coming months.
This is because both countries have seen their gross domestic product continue to expand in recent quarters, even as the recession held back growth in much of the rest of the world. An emerging middle class in both nations is seen as having the potential to provide new consumer spending markets for corporations.
Also, manufacturing activity, particularly in China, could help sustain the price of some commodities and strategic metals as economic conditions improve.
However, some economists are warning against becoming overly optimistic about this scenario. In fact, recent months have seen increased concern that China's economy could turn out to be a bubble, citing real estate prices in Beijing and heavy lending activity by banks that could turn out to be ill-advised. In fact, China's government appeared to respond to such concerns earlier this year when it took steps to scale back lending activity.
More recently, a report in the UK's Telegraph newspaper warned that "China's banks are veering out of control," while predicting that the country's "half-reformed" economy will not be able to absorb some $600 billion in loans issued since December.
The Telegraph cited another potential disturbing trend for investors where Shanghai's composite index has risen 70 percent in the past six months while the country's imports have fallen 25 percent over the past year.
The newspaper also noted that 40 percent of China's economy consists of exports, which happened to fall 26 percent in May. Another point cited the increasing tendency of U.S. consumers to save their money, which does not bode well for a sudden and dramatic improvement to China's export figures.
Another red flag for China is the ongoing debt crisis in the euro zone, since this could turn out to be one more blow to its export sector. The euro has fallen considerably in recent weeks, which means consumers could find themselves paying more for Chinese goods at a time when their respective governments are implementing significant new austerity measures.
If Chinese economic growth turns out to be more of an illusion than a reality, it would have a substantial impact on the global economy. Fortunately however, investors have long known that times like these often call for the stability that dealer gold and other precious metals can offer.
John March is the Chief Technical Officer for the Superior Gold Group, his financial insights on precious metals are sought after by Gold & Silver Dealers globally.
If you have any questions about how to buy gold coins, and want to learn how to grow your portfolio call 888.374.4032 or write to askjohn@gold101.com.
ADNFCR-2970-ID-19805899-ADNFCR
Some investors have been optimistically looking to emerging nations like China and India to help the global recovery gain momentum in the coming months.
This is because both countries have seen their gross domestic product continue to expand in recent quarters, even as the recession held back growth in much of the rest of the world. An emerging middle class in both nations is seen as having the potential to provide new consumer spending markets for corporations.
Also, manufacturing activity, particularly in China, could help sustain the price of some commodities and strategic metals as economic conditions improve.
However, some economists are warning against becoming overly optimistic about this scenario. In fact, recent months have seen increased concern that China's economy could turn out to be a bubble, citing real estate prices in Beijing and heavy lending activity by banks that could turn out to be ill-advised. In fact, China's government appeared to respond to such concerns earlier this year when it took steps to scale back lending activity.
More recently, a report in the UK's Telegraph newspaper warned that "China's banks are veering out of control," while predicting that the country's "half-reformed" economy will not be able to absorb some $600 billion in loans issued since December.
The Telegraph cited another potential disturbing trend for investors where Shanghai's composite index has risen 70 percent in the past six months while the country's imports have fallen 25 percent over the past year.
The newspaper also noted that 40 percent of China's economy consists of exports, which happened to fall 26 percent in May. Another point cited the increasing tendency of U.S. consumers to save their money, which does not bode well for a sudden and dramatic improvement to China's export figures.
Another red flag for China is the ongoing debt crisis in the euro zone, since this could turn out to be one more blow to its export sector. The euro has fallen considerably in recent weeks, which means consumers could find themselves paying more for Chinese goods at a time when their respective governments are implementing significant new austerity measures.
If Chinese economic growth turns out to be more of an illusion than a reality, it would have a substantial impact on the global economy. Fortunately however, investors have long known that times like these often call for the stability that dealer gold and other precious metals can offer.
John March is the Chief Technical Officer for the Superior Gold Group, his financial insights on precious metals are sought after by Gold & Silver Dealers globally.
If you have any questions about how to buy gold coins, and want to learn how to grow your portfolio call 888.374.4032 or write to askjohn@gold101.com.
ADNFCR-2970-ID-19805899-ADNFCR
Tuesday, June 8, 2010
Fitch downgrades Connecticut bond rating
Fitch downgrades Connecticut bond rating
Tuesday, June 8, 2010
Deficit problems are affecting states as well as the federal government.
- By John March
World markets have been increasingly concerned about sovereign debt woes confronting several governments in Europe, and even in the United States. However, federal deficits aren't the only potential ticking time bomb when it comes to financial markets - a number of states are confronting their own substantial deficits as well.
For example, California's budget woes have been well-documented in the national media for months. The state has been suffering from a multibillion dollar budget deficit, and lawmakers have remained divided on ways to resolve the problem.
More recently, Fitch Ratings announced that it had downgraded Connecticut's GO bond rating from AA+ to AA. Fitch added that its rating outlook has been revised to stable from negative.
The downgrade was said to be due to what was called "the state's reduced financial flexibility, illustrated by its reliance on sizeable debt issuances during the current biennium."
Fitch also noted that Connecticut is the nation's wealthiest state by per capita personal income, and that "significant revenue declines" were among the reasons the state's budget reserves have been on the decline.
John March is the Chief Technical Officer for the Superior Gold Group, his financial insights on precious metals are sought after by Gold & Silver Dealers globally.
If you have any questions about how to buy gold coins, and want to learn how to grow your portfolio call 888.374.4032 or write to askjohn@gold101.com.
Tuesday, June 8, 2010
Deficit problems are affecting states as well as the federal government.
- By John March
World markets have been increasingly concerned about sovereign debt woes confronting several governments in Europe, and even in the United States. However, federal deficits aren't the only potential ticking time bomb when it comes to financial markets - a number of states are confronting their own substantial deficits as well.
For example, California's budget woes have been well-documented in the national media for months. The state has been suffering from a multibillion dollar budget deficit, and lawmakers have remained divided on ways to resolve the problem.
More recently, Fitch Ratings announced that it had downgraded Connecticut's GO bond rating from AA+ to AA. Fitch added that its rating outlook has been revised to stable from negative.
The downgrade was said to be due to what was called "the state's reduced financial flexibility, illustrated by its reliance on sizeable debt issuances during the current biennium."
Fitch also noted that Connecticut is the nation's wealthiest state by per capita personal income, and that "significant revenue declines" were among the reasons the state's budget reserves have been on the decline.
John March is the Chief Technical Officer for the Superior Gold Group, his financial insights on precious metals are sought after by Gold & Silver Dealers globally.
If you have any questions about how to buy gold coins, and want to learn how to grow your portfolio call 888.374.4032 or write to askjohn@gold101.com.
Sunday, April 11, 2010
Combined credit debt fell again in February
Thursday, April 8, 2010
Consumers may be making more progress on personal financial issues.
- By Bruce Sands
Consumers have continued making progress in paying down their credit debts and auto loans, despite a shaky economy and questions about the strength of the recovery.
In the latest announcement from the Federal Reserve, the nation's combined consumer credit debt stood at $858.1 billion as of the end of February, down from $867.6 billion in January. The latest rate of decline, 13.1 percent on an annualized basis, was consistent with numbers seen in the fourth quarter of 2009.
In the fourth quarter of 2008, revolving consumer credit debt peaked at $958.1 billion, indicating that people have been paying down debts they ran up in the prelude to the financial collapse.
Some economists have also warned that the current decline in consumer credit is due considerably to the fact that many lenders have simply charged off old debts and are extending loans to fewer people. This is particularly likely now that federal credit card reforms have made it less profitable for lenders to offer new accounts to people with lower credit scores.
While consumers have showed progress in this area of the economy, it remains to be seen if the combination of weak spending and high unemployment will continue to make dealer gold an attractive investment option.
News brought to you by Superior Gold Group – expert gold dealers offering precious metals products. Become part of the gold affiliate program today!
Contact The Superior Gold Group and learn how to get on the gold standard at www.gold101.com or Call (888) 374-4032.
Consumers may be making more progress on personal financial issues.
- By Bruce Sands
Consumers have continued making progress in paying down their credit debts and auto loans, despite a shaky economy and questions about the strength of the recovery.
In the latest announcement from the Federal Reserve, the nation's combined consumer credit debt stood at $858.1 billion as of the end of February, down from $867.6 billion in January. The latest rate of decline, 13.1 percent on an annualized basis, was consistent with numbers seen in the fourth quarter of 2009.
In the fourth quarter of 2008, revolving consumer credit debt peaked at $958.1 billion, indicating that people have been paying down debts they ran up in the prelude to the financial collapse.
Some economists have also warned that the current decline in consumer credit is due considerably to the fact that many lenders have simply charged off old debts and are extending loans to fewer people. This is particularly likely now that federal credit card reforms have made it less profitable for lenders to offer new accounts to people with lower credit scores.
While consumers have showed progress in this area of the economy, it remains to be seen if the combination of weak spending and high unemployment will continue to make dealer gold an attractive investment option.
News brought to you by Superior Gold Group – expert gold dealers offering precious metals products. Become part of the gold affiliate program today!
Contact The Superior Gold Group and learn how to get on the gold standard at www.gold101.com or Call (888) 374-4032.
Precious metal prices benefiting from economic optimism
Monday, April 5, 2010
Precious metals are seeing recent economic gains.
- By Superior Gold Group
Silver and gold dealers are likely to see growing demand for precious metals among investors in the coming months, in light of an improving economy that has provided some momentum for commodities in general in recent days.
For example, a recent Associated Press report noted that platinum and palladium prices had gained last week, along with other metals such as copper and silver. Many of these materials are required for the manufacture of vehicles and electronics, among other consumer products.
The wire service added that improving auto sales had fueled the price gains for platinum, which was reportedly trading around $1,669 an ounce last week, and palladium, which was around $490 at the same time.
Changing technology has also created demand for other materials that may only become increasingly valuable in the coming years. For example, various media reports have noted that companies are now seeking out new deposits of lithium in an effort to meet the long-term demand for its use in batteries for hybrid and electric vehicles.
Precious metals have long been seen as a safe haven investment for times of economic uncertainty, but new technologies have helped make these commodities more in demand regardless of what the financial climate may be.
News brought to you by Superior Gold Group – expert gold dealers offering precious metals products. Become part of the gold affiliate program today!
Contact The Superior Gold Group and learn how to get on the gold standard at www.gold101.com or Call (888) 374-4032.
Precious metals are seeing recent economic gains.
- By Superior Gold Group
Silver and gold dealers are likely to see growing demand for precious metals among investors in the coming months, in light of an improving economy that has provided some momentum for commodities in general in recent days.
For example, a recent Associated Press report noted that platinum and palladium prices had gained last week, along with other metals such as copper and silver. Many of these materials are required for the manufacture of vehicles and electronics, among other consumer products.
The wire service added that improving auto sales had fueled the price gains for platinum, which was reportedly trading around $1,669 an ounce last week, and palladium, which was around $490 at the same time.
Changing technology has also created demand for other materials that may only become increasingly valuable in the coming years. For example, various media reports have noted that companies are now seeking out new deposits of lithium in an effort to meet the long-term demand for its use in batteries for hybrid and electric vehicles.
Precious metals have long been seen as a safe haven investment for times of economic uncertainty, but new technologies have helped make these commodities more in demand regardless of what the financial climate may be.
News brought to you by Superior Gold Group – expert gold dealers offering precious metals products. Become part of the gold affiliate program today!
Contact The Superior Gold Group and learn how to get on the gold standard at www.gold101.com or Call (888) 374-4032.
Sunday, February 28, 2010
Lawmakers show little inclination to tackle national debt
Wednesday, February 24, 2010
Gold can be a safe investment option in light of a rising national debt.
- By John March
Many investors have been talking to silver and gold dealers about concerns raised by the ever-increasing U.S. national deficit, especially in light of widespread doubt about whether substantial action will be taken to resolve the problem.
Still, members of Congress and the White House have acknowledged the national debt problem to some extent in recent weeks. For example, earlier this month President Barack Obama announced the creation of a National Commission on Fiscal Responsibility and Reform.
The panel will be headed by former White House Chief of Staff Erskine Bowles, a Democrat, and former U.S. Senator Alan Simpson, a Republican from Wyoming.
"For far too long, Washington has avoided the tough choices necessary to solve our fiscal problems - and they won't be solved overnight," said Obama in his announcement.
However, the commission's recommendations will not be binding upon Congress, which raises concern in some quarters that it will make little real progress in the long run.
Given the economic chaos that the nation's debt burden could eventually bring upon the financial system, considering an investment in dealer gold may be a wiser long-term choice than ever.
John March is the Chief Technical Officer for the Superior Gold Group, his financial insights on precious metals are sought after by Gold & Silver Dealers globally.
If you have any questions about how to buy gold coins, and want to learn how to grow your portfolio call 888.374.4032 or write to askjohn@gold101.com.
Gold can be a safe investment option in light of a rising national debt.
- By John March
Many investors have been talking to silver and gold dealers about concerns raised by the ever-increasing U.S. national deficit, especially in light of widespread doubt about whether substantial action will be taken to resolve the problem.
Still, members of Congress and the White House have acknowledged the national debt problem to some extent in recent weeks. For example, earlier this month President Barack Obama announced the creation of a National Commission on Fiscal Responsibility and Reform.
The panel will be headed by former White House Chief of Staff Erskine Bowles, a Democrat, and former U.S. Senator Alan Simpson, a Republican from Wyoming.
"For far too long, Washington has avoided the tough choices necessary to solve our fiscal problems - and they won't be solved overnight," said Obama in his announcement.
However, the commission's recommendations will not be binding upon Congress, which raises concern in some quarters that it will make little real progress in the long run.
Given the economic chaos that the nation's debt burden could eventually bring upon the financial system, considering an investment in dealer gold may be a wiser long-term choice than ever.
John March is the Chief Technical Officer for the Superior Gold Group, his financial insights on precious metals are sought after by Gold & Silver Dealers globally.
If you have any questions about how to buy gold coins, and want to learn how to grow your portfolio call 888.374.4032 or write to askjohn@gold101.com.
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