Author: admin

Read This Before Investing In Commodities

Posted on by admin

I want to show you the best way to invest in gold and other commodities. But there is something you need to know...

Commodities are risky. One of the riskiest things an individual investor can attempt.

It's estimated that 95% of individual commodity futures traders lose money. That means 19 out of 20 walk away with less than they started. 

You see, commodities trading is not investing. It's speculating that prices will move one way or the other. That's akin to gambling in my book.

Really, the only people that make serious money in commodities trading are the brokers. They pocket hefty commissions from clients that speculate on gold, wheat, oil, cattle, lumber and even coffee.  Continue reading "Read This Before Investing In Commodities" →

Chris Berry: Energy-Metals Juniors with Derisked Projects Are Takeout Bait

Posted on by admin

The Energy Report: In your Morning Notes in January, you defined much of the energy mining industry as an oligopoly. What do you mean by that?

Chris Berry: Industries like uranium, lithium, vanadium, rare earths or potash typically have a few players at the top that control production and hence pricing. This is a huge barrier to entry for juniors looking to join the ranks of producers.

TER: If the majors are producing enough material to meet today's demand, what are the prospects for the juniors in this market?

CB: It's challenging in the near term because I see supply and demand in balance in many of the metals markets. This is why companies with ample cash on their balance sheets should attract attentionthey can survive until demand recovers. Economic growth has slowed across the globe, which implies lower demand and less need for the many juniors out there. Continue reading "Chris Berry: Energy-Metals Juniors with Derisked Projects Are Takeout Bait" →

Rob Cohen Imagines a Gold-Centric World

Posted on by admin

The Gold Report: Robert, you presented a paper at the Prospectors Developers Association of Canada conference that focused on, among other things, the uses of gold as a monetary asset. Please tell our readers about that.

Robert Cohen: Gold is quintessentially a monetary asset. Many people believe it is the most ideal monetary asset on the planet, given that the world's other monetary assets are fiat currencies that can be expanded at the whim of a government.

Every ounce of gold ever produced is still kicking around on the surface, a total of about 160,000 tons. Half of that may be in the banking system. Miners produce about 2,500 tons a year. So only a very tiny expansion of liquid gold accrues every year, especially compared to the global liquidity created by printing money. Continue reading "Rob Cohen Imagines a Gold-Centric World" →

4 Trends You Need to Know About This Bull Market

Posted on by admin

As the markets reach new highs, investors have begun to express caution instead of celebration.

Since Nov. 15, 2012, the SP 500 has risen an impressive 15%. That works out to be a 45% annualized gain. And the whole time, a significant number of investors have remained dubious, citing ample reasons why the market should be moving lower -- not higher. And as the market has climbed this "wall of worry," even the most ardently pessimistic bears have thrown up their hands in dismay. Continue reading "4 Trends You Need to Know About This Bull Market" →

How to Protect Your Portfolio From the Sequester

Posted on by admin

The "fiscal cliff" deadline came and went without even a bearish whimper from the stock market. Now, the so-called "budget sequester" -- a set of laws that limit federal spending -- was put into effect on March 1. Absolutely nothing negative has happened to the economy -- so far.

The bullish reactions to these events, which may result in long-term, negative overhang on the thriving stock market, have lulled many investors into a false sense of security. These satisfied investors point to the stock market roaring higher, steadily improving economic numbers and to bad news being dismissed as irrelevant as sure signs that the market's surge won't end any time soon.

But investors should be concerned... Continue reading "How to Protect Your Portfolio From the Sequester" →