Category: General

The Biggest Gold Prediction Of The Year

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By:David Goodboy of Street Authority

Whenever I'm faced with a major change in my opinion regarding the market's long-term direction, I think of the English punk band the Clash.

In particular, the 1980s hit "Should I Stay or Should I Go" comes to mind. With apologies to the song's writers:

"Should I buy or should I sell? If I buy, there will be trouble / If I sell, it will be double."

Thinking of these altered lyrics might be a nod to being obsessed with music during my adolescence. It might also be a signal that it's time to make a change. I like to think of them as the latter. Continue reading "The Biggest Gold Prediction Of The Year" →

Something's Got to Give in the Precious Metals Market

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The Gold Report: Heiko, in late June gold had its biggest weekly drop in two years. What's your take on that?

Heiko Ihle: It was set off by far-reaching talk of a slowdown in quantitative easing. However, an awful lot of U.S. dollars are still floating around and the price of gold is pegged to the U.S. dollar. In the long run, companies can't sell gold for less than it costs to take it out of the ground. At some point something has to give.

TGR: So, what's going to give?

HI: Either the cost of mining or the price of gold. Quite frankly, the cost of mining has been reasonably sticky thus far.

TGR: Can miners profitably mine gold at $1,200/ounce ($1,200/oz) and silver sub-$20/oz? Continue reading "Something's Got to Give in the Precious Metals Market" →

Unemployment Benefit Applications Rise

Posted on by The INO.com Team

U.S. unemployment benefit applications rose 16,000 last week to a seasonally adjusted 360,000, although the level remains consistent with steady hiring.

The Labor Department said Thursday that the less volatile four-week average increased 6,000 to 351,750.

The weekly applications data can be volatile in July because some automakers briefly shut down their factories to prepare for new models and many schools close. Those factors can create a temporary spike in layoffs.

The broader trend has been favorable. Applications have declined steadily in the past year, as companies have laid off fewer workers and stepped up hiring. In the past six months, employers have added an average of 202,000 jobs a month. That's up from an average of 180,000 in the previous six months. Continue reading "Unemployment Benefit Applications Rise" →

More jobs needed to taper bonds

Posted on by The INO.com Team

Many Federal Reserve members agreed last month that the job market's improvement would have to be sustained before the Fed would reduce its bond purchases, according to minutes of their June meeting. Several felt confident that a pullback in bond purchases could occur soon.

The minutes released Wednesday echo remarks Chairman Ben Bernanke made at a news conference after the meeting. Bernanke said the Fed would likely slow its bond purchases later this year and end them around mid-2014 if the economy continued to strengthen. The bond purchases have helped keep long-term interest rates low to spur spending.

Since the purchases began in September, the economy has added an average 204,000 jobs a month, up from 174,000 jobs in the previous nine months. Still, unemployment remains a high 7.6 percent.

The minutes showed that Fed members struggled with how best to convey the Fed's thinking about its timetable for bond purchases. Some wanted to explain it in the post-meeting statement. Others felt the statement might be misinterpreted. In the end, most participants thought Bernanke should lay out the Fed's thinking in his news conference _ and stress that any pullback in bond purchases would depend on the economic outlook. Continue reading "More jobs needed to taper bonds" →

Strategies for Success in a Bloody Market

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The Gold Report: John, early this year you predicted that as many as 500 companies listed on the TSX Venture Exchange would go under by the end of 2013. Do you stand by that?

John Kaiser: I think at least 500 companies are endangered; I doubt they will disappear by the end of the year. The critical time will be next summer, when their audited financials are due and their annual meetings will be held. If we have not had a turnaround by then, many management teams will hand the keys over to the stock exchange and abandon their companies.

Of the 1,800 companies we follow, 761 as of June 28 have less than $200,000 ($200K) in working capital left. That is the bare minimum needed to merely exist as a publicly listed company.

TGR: Is capital on hand one of the first things that you look at when deciding whether to invest? Continue reading "Strategies for Success in a Bloody Market" →