Gold Miners vs. the S&P - Surprising Conclusions

We often hear the claim that gold producers have not met investors' expectations for the past couple years. While there are many potential reasons for this, one explanation for their underperformance lies in the fact that producers diluted their share structures, leaving shareholders with smaller gains than they would have otherwise harvested.

To show how this dilution has impacted the industry, let's first review how gold miners performed last year compared to the S&P 500. Continue reading "Gold Miners vs. the S&P - Surprising Conclusions"

Kevin Puil: $4/lb Copper Is on Its Way

The Metals Report: Kevin, base metals analysts from London to Sydney to Toronto are increasing their price outlook for copper. Do you agree with their bullish outlook for 2013?

Kevin Puil: Yes, I absolutely agree with their bullish outlook. In fact, I've been bullish on copper for quite some time. Although there have been many analysts purporting that the commodities cycle has run its course, I disagree. The fundamentals for copper remain highly favorable and I continue to see secular demand for most commodities, copper in particular. Industrialization and urbanization, especially in the BRIC (Brazil, Russia, India, China) countries, is not about to stop, and this continues to put pressure on copper miners, who struggle to keep up with demand. Supply growth has slowed due to lower grades, higher costs and political unrest. In addition, the new projects and mine expansions that were scheduled to come on-line haven't materialized, and if they do, it will not be in a timely fashion. Continue reading "Kevin Puil: $4/lb Copper Is on Its Way"

Commodity Chart of The Week

Each week longleaftrading.com will be providing us with a commodity chart of the week as analyzed by a member of their team. We hope that you enjoy and learn from this new feature.

Gold has been a frustrating market for a lot of traders for the last few months. If you are the buy and hold type or one who tries to find dynamic trends to capture, gold has not been an attractive market for you. Gold, however, is now getting interesting and could provide a move this week, especially if markets get negative and a flight to safety bid enters the market.

The market has been building a solid base since the January lows and technically we are now getting to a point where a move could occur if we can penetrate the upward portion of the wedge you can see in the chart above. The top of the wedge and the 50 day moving average both come in right at 1685/ounce and a close over that level would bode well for gold if it is breached. Continue reading "Commodity Chart of The Week"

Gold Chart of The Week

Each Week Longleaftrading.com will be providing us a chart of the week as analyzed by a member of their team. We hope that you enjoy and learn from this new feature.

Weekly Gold Report (February 4th through February 8th)

It should come as little surprise that we begin this week correcting a portion of last week’s strong move up. After a fun filled stretch of reports in the United States, including an FOMC announcement, Consumer Confidence figures, and Employment numbers, we head into a light news calendar for the next five days here in the states. There are scheduled Interest Rate decisions this week in Australia, New Zealand, Great Britain, and from the ECB, which should bring some movement to global currencies and in turn, commodity prices.

The standout in last weeks reports in the United States was the fact that the FED announced they will maintain their usual stance on the market and will continue easing at the same pace until things improve. Continue reading "Gold Chart of The Week"

Are You A Good Candidate for a Reverse Mortgage?

Two of the top subjects that my Money Forever readers have asked us to cover are annuities, specifically how to pick the right one and covered in the November issue with a companion “how-to” special report (click here for how to get your copy), and reverse mortgages. My guess they’re seeing all those TV ads featuring Henry Winkler and Robert Wagner and wondering if it’s right for them.

Quite simply a reverse mortgage is where you give the bank a mortgage on your home based on your current equity. In return, the mortgage company agrees to pay you a certain amount every month for some period of time: until you die, move out, or celebrate your 100th birthday (the age when they’re generally capped). For a reverse mortgage to be a good investment, you have to outlive your expected mortality and stay in your home. Continue reading "Are You A Good Candidate for a Reverse Mortgage?"