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Six Gold and Silver Leaders at Today's Prices

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The Gold Report: Gold is up for the year. Do you expect this trend to continue?

Benjamin Asuncion: For 2014, we're officially forecasting an average gold price at $1,300/ounce ($1,300/oz). We've elected to err on the side of conservatism in our commodity forecasts, which leaves company valuations to be more reflective of operating performance than reliant on higher metal prices.

TGR: Ambrose Evans-Pritchard of the Daily Telegraph says if the Federal Reserve "has to back off [tapering] again, gold will have a fresh lease on life." Do you agree, and do you think the Fed is committed to tapering?

Geordie Mark: I agree that if the Fed backs off tapering, it's a total game changer for sentiment. Janet Yellen, the new Fed chair, has certainly been quite cautious as to how she's going to approach monetary policy, so right now we're in a wait and see period, but that being said, the market now appears to show a certain positive sentiment for precious metals companies.

TGR: We've seen various currency panics around the world in recent weeks. Will this lead to a flight to safety in the U.S. dollar? Continue reading "Six Gold and Silver Leaders at Today's Prices" →

Are We On The Brink Of A Retail Spending Boom?

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Thanks, Old Man Winter. Consumers have already been in a sour mood, and you're not helping matters. Icy roads and bitter winds have left many people to stay at home -- and keep their cash in their pocket.

For companies that have been looking for signs that retail spending is finally ready to grow, this roadblock has been unwelcome. The bleak winter likely explains why retail spending on goods and services like cars, restaurants and gas stations slipped 0.4% in January on a seasonally adjusted basis, according to the National Retail Federation.

Yet before you conclude that the era of robust consumer spending will never return, consider an interesting stat offered up by J.P. Morgan: In just the past two years, consumers' net worth has expanded by $13 trillion. Continue reading "Are We On The Brink Of A Retail Spending Boom?" →

How You Can Take Your Trading To an Olympic Level

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The average trader always has money on the mind.  Money,money, money.  A couple more points.  A sexy balance sheet.

That's also why they're average. The best of the best aren’t thinking about money at all. Let's use an analogy to prove this point.

What happens to an Olympian who's always looking up at the scoreboard or clock? They lose the puck, fall behind another skier, or miss their landing. What happens to the Olympian who is focused on improving their game, making the right pass, hitting the right turn, and nailing their landing? They win.

This is no different than trading. Money is the byproduct. We all know that. But focusing on the byproduct doesn't get you any closer to it. To take your trading to an Olympian level, you must remove yourself from the bottom line and focus on what makes you better. If you can't do that, go liquidate your brokerage account. You shouldn’t be trading. Continue reading "How You Can Take Your Trading To an Olympic Level" →

Indicators Show Market at a Near-Term Decision Point

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Last week, the bellwether SP 500 continued its rebound from a successful test of underlying support at 1,730 at the beginning of the month. The U.S. broad market index finished Friday's session at 1,839, 2.3% higher for the week and just off the all-time high at 1,851.

Year to date, however, the SP 500, along with the blue-chip Dow 30 and small-cap Russell 2000, are in negative territory. The tech-laden Nasdaq is the only major U.S. index in positive territory in 2014, up 1.6%, and it must continue to lead on the upside for the broad market advance to continue. Continue reading "Indicators Show Market at a Near-Term Decision Point" →

Food, Water and Fuel Are Necessary to Life and Investors

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The Energy Report: In your Gold Report interview last fall, you said that the two biggest reasons for the erosion of the middle class are peoples' inability to save money due to low interest rates or low wages, and higher taxes, especially the hidden taxes we end up paying.

Bob Moriarty: Yes. I think there are 37 taxes on a loaf of bread. Taxes have increased dramatically over the last 20 years, including what are called the "unclaimed taxes."

In an article James Gruber wrote on peak oil last month, he made the point that debt is actually a future call on energy. Under the General Agreement on Tariffs and Trade, when you owe money, you've already spent the energy. He argues that the economy is an energy system, not a monetary system. He's absolutely correct, in my view.

"The enormous increase in wealth we've seen worldwide over the last 150 years has stopped."

The enormous increase in wealth we've seen worldwide over the last 150 years has stopped. There will be no more growth. From a mathematical point of view, you cannot increase growth. Energy consumption per capita has to go down, and that means wealth goes down. All the debt we've accumulated is a noose around the neck of society.

TER: Gruber also wrote, "Deflation is winning the battle over inflation." His argument is that excessive debt has to be deleveraged and in that deleveraging process, asset values will plummet. Central banks are doing whatever it takes to create inflation in an environment where deflation is really the underlying tide. What do you have to say about that? Continue reading "Food, Water and Fuel Are Necessary to Life and Investors" →