Bank of America (NYSE:BAC) says women are recovering faster from the impact of the recession than men, and companies need to consider that when making decisions going forward.
BofA said, "Yes, women make the bulk of household spending decisions as it is. But their increasing earnings potential means stronger purchasing power relative to men.
"This secular 'long-on-women' theme should bode well for companies that cater specifically to women."
A couple of items to note were that the unemployment rate for women is two full percentage points lower than for men, and they're entering into fields like healthcare which have some of the better long-term prospects.
Jobs lost in the recession were more male-dominated sectors, like manufacturing and construction, which may never come back.
Bank of America concluded, "Women are better educated, more likely to live on their own, have better job opportunities, and will enjoy a stronger earnings potential relative to men."
Showing posts with label Recession. Show all posts
Showing posts with label Recession. Show all posts
Tuesday, December 21, 2010
Friday, November 19, 2010
PetSmart's (NASDAQ:PETM) PetsHotel Should Jump During Holidays
Jefferies likes what they see with PetSmart (NASDAQ:PETM), which should get a nice bump during the holidays from their PetsHotel, while continuing to increase sales against their competitors.
Over the long term, Jefferies believes PetSmart will continue to grow market share with their GNC vitamins for Pets. Also noted for growth are products for fleas, ticks and services.
Earnings per share estimate for full year 2011 were raised by Jefferies from $1.97 to $1.98. They maintain a "Buy" rating on PetSmart.
Even with the strong outlook, there are some concerns from others about the pet market in general, as the recession continues to affect the pocketbooks of consumers.
That has caused the share price of the company to fall after their earnings report Wednesday, even though they met expectations.
The closed Thursday at $36.88, plunging $1.40, or 3.66 percent. Jefferies has a price target of $43 on the, increasing it from $39.
Over the long term, Jefferies believes PetSmart will continue to grow market share with their GNC vitamins for Pets. Also noted for growth are products for fleas, ticks and services.
Earnings per share estimate for full year 2011 were raised by Jefferies from $1.97 to $1.98. They maintain a "Buy" rating on PetSmart.
Even with the strong outlook, there are some concerns from others about the pet market in general, as the recession continues to affect the pocketbooks of consumers.
That has caused the share price of the company to fall after their earnings report Wednesday, even though they met expectations.
The closed Thursday at $36.88, plunging $1.40, or 3.66 percent. Jefferies has a price target of $43 on the, increasing it from $39.
Wednesday, September 15, 2010
George Soros Clueless on Gold and "Ultimate Bubble"
George Soros seems to be clueless on gold and his obsession with it being the "ultimate bubble."
Soros doesn't seem to understand the reason there's support under gold and why that will continue for a long time.
He said to Reuters, “I called gold the ultimate bubble which means it may go higher but it’s certainly not safe and it’s not going to last forever,” although reluctantly admitting it's the only bull market at this time.
One reason Soros asserts this is he's big government socialist, and has out-of-the-mainstream views on politics and life.
Gold interferes with his worldview in that regard, and even though he has millions invested in gold, continues to hammer at it as if it's poised to plunge at any time.
There's no problem with Soros saying gold is an ultimate bubble, as someday in the far future that will eventually play out, especially when investors and the average person on the street all pour their money into it without knowing why, and far past the reason it is going up at this time.
That's the overall practice of fast-moving stocks and bull markets of any kind throughout history.
Where he's completely wrong is in he says gold isn't safe. Gold is safe, but it of course, like anything else, depends on how someone is investing in it, and the degree of overall exposure of their overall portfolio.
The price of gold is going up because of economic weakness and disastrous policies and practices of central banks and governments around the world.
And with the recession continuing on, or at minimum the global economy slowing down significantly, quantitative easing is ready to begin again, which will drive up the price of gold even more.
Of course it's not going to last forever, as Soros says, but that's obvious.
But that's like saying if you live in certain parts of California you're going to experience an earthquake sometime.
Everyone knows that, but you simply need to be prepared for that inevitable moment and respond accordingly. You don't stop living and life because it may happen.
Danger can come anywhere and any time, and safety is always an issue, even when traveling to a neighborhood store.
So to suggest gold isn't safe is like saying living in California isn't safe. What's the point?
As long as the fundamental reasons for the price of gold continuing to rise remain in place, gold prices will continue to rise. It's as simple as that.
when the macroeconomic climate changes, then we all need to remain vigilant with our gold investments.
Gold isn't even close to being in a bubble at this time, as nothing in the global economy has changed to make it be a concern. It will eventually happen, but that is probably a number of years away.
Until governments stop the printing presses and their stimulus plans, gold will continue its upward ride.
Soros doesn't seem to understand the reason there's support under gold and why that will continue for a long time.
He said to Reuters, “I called gold the ultimate bubble which means it may go higher but it’s certainly not safe and it’s not going to last forever,” although reluctantly admitting it's the only bull market at this time.
One reason Soros asserts this is he's big government socialist, and has out-of-the-mainstream views on politics and life.
Gold interferes with his worldview in that regard, and even though he has millions invested in gold, continues to hammer at it as if it's poised to plunge at any time.
There's no problem with Soros saying gold is an ultimate bubble, as someday in the far future that will eventually play out, especially when investors and the average person on the street all pour their money into it without knowing why, and far past the reason it is going up at this time.
That's the overall practice of fast-moving stocks and bull markets of any kind throughout history.
Where he's completely wrong is in he says gold isn't safe. Gold is safe, but it of course, like anything else, depends on how someone is investing in it, and the degree of overall exposure of their overall portfolio.
The price of gold is going up because of economic weakness and disastrous policies and practices of central banks and governments around the world.
And with the recession continuing on, or at minimum the global economy slowing down significantly, quantitative easing is ready to begin again, which will drive up the price of gold even more.
Of course it's not going to last forever, as Soros says, but that's obvious.
But that's like saying if you live in certain parts of California you're going to experience an earthquake sometime.
Everyone knows that, but you simply need to be prepared for that inevitable moment and respond accordingly. You don't stop living and life because it may happen.
Danger can come anywhere and any time, and safety is always an issue, even when traveling to a neighborhood store.
So to suggest gold isn't safe is like saying living in California isn't safe. What's the point?
As long as the fundamental reasons for the price of gold continuing to rise remain in place, gold prices will continue to rise. It's as simple as that.
when the macroeconomic climate changes, then we all need to remain vigilant with our gold investments.
Gold isn't even close to being in a bubble at this time, as nothing in the global economy has changed to make it be a concern. It will eventually happen, but that is probably a number of years away.
Until governments stop the printing presses and their stimulus plans, gold will continue its upward ride.
Tuesday, September 14, 2010
Goldman (NYSE:GS), Quantitative Easing, and Gold Prices
Goldman Sachs’ (NYSE:GS) economist Jan Hatzius says he sees the Federal Reserve beginning a new round of quantitative easing, and it could happen as early as November, he said.
Quantitative easing is the phrase the Fed hides behind for the printing of money, which our children and grandchildren will have to pay for, if they are even able to.
While the ongoing weak economy, and probably a recession that has never left, continues on (hidden by the printing of money and stimulus programs), gold prices always soar on that news, and it's possible the expectations of quantitative easing also resulted in the record gold prices today.
Hatzius said, “We don’t expect this at the September 21 meeting, but in November or December there’s certainly a possibility that it will be announced.”
The Fed will more than likely acquire about $1 trillion in U.S. Treasurys in their misguided effort to get us out of the recession, which has already failed with the over $1 trillion already spent, and will fail again.
Gold and gold mining companies will only benefit from continued policies of Ben Bernanke's Federal Reserve and the Obama administration.
Quantitative easing is the phrase the Fed hides behind for the printing of money, which our children and grandchildren will have to pay for, if they are even able to.
While the ongoing weak economy, and probably a recession that has never left, continues on (hidden by the printing of money and stimulus programs), gold prices always soar on that news, and it's possible the expectations of quantitative easing also resulted in the record gold prices today.
Hatzius said, “We don’t expect this at the September 21 meeting, but in November or December there’s certainly a possibility that it will be announced.”
The Fed will more than likely acquire about $1 trillion in U.S. Treasurys in their misguided effort to get us out of the recession, which has already failed with the over $1 trillion already spent, and will fail again.
Gold and gold mining companies will only benefit from continued policies of Ben Bernanke's Federal Reserve and the Obama administration.
Gold Prices Today Explode to Record High on Weak Economic News
The price of gold today exploded to another record high as weak economic news out of Europe reinforced the extremely fragile and weak global economy.
Another factor may have been the weaker U.S. dollar, but the hype of a global recovery after a couple of reports focused on by mainstream media wasn't believed, and the pent-up fears and concerns are pouring out toward gold again; primarily being driven by that.
Gold prices soared to a record high on the New York Mercantile Exchange, reaching $1273.40 on a gain of $25.90 for December delivery.
Most gold miners moved up with the price surge, including majors like Goldcorp (NYSE:GG), Barrick Gold (NYSE:ABX), Newmont Mining (NYSE:NEM) and Kinross Gold (NYSE:KGC).
Another factor may have been the weaker U.S. dollar, but the hype of a global recovery after a couple of reports focused on by mainstream media wasn't believed, and the pent-up fears and concerns are pouring out toward gold again; primarily being driven by that.
Gold prices soared to a record high on the New York Mercantile Exchange, reaching $1273.40 on a gain of $25.90 for December delivery.
Most gold miners moved up with the price surge, including majors like Goldcorp (NYSE:GG), Barrick Gold (NYSE:ABX), Newmont Mining (NYSE:NEM) and Kinross Gold (NYSE:KGC).
Friday, September 10, 2010
Gold Prices Ready to Rebound?
Gold has taken a little bit of a hit this week, as investors ignored the bad economic news and latched onto the good.
That's highly unlikely to continue for long, as the weakness in the global and U.S. economy isn't going to improve any time soon, and mounting evidence confirms we're in for a continuing recession.
Gold prices will respond accordingly and continue their upward push to who knows where, as central banks' and government policies around the world continue to debase currencies and have done nothing to make a difference economically.
As predicted by us here and a number of others, government spending exasperates the problem, it doesn't help it. And gold and gold investors will be the beneficiaries of this folly for years into the future.
In the short term, gold prices could possibly drop, maybe to $1,245, but the support is so strong, that even if it goes below that it's unlikely it'll stay there long.
The revelation, which many of us already knew, that European banks and the stress tests related to them were a joke, and the depth of the sovereign debt risk is probably even worse than we know.
Picking and choosing what economic date we want to focus on isn't a good way to get a good overall picture of what is really happening, and gold investors aren't usually the type to do that, at least those that follow gold throughout the years.
So gold will continue on its upward run, and the economic data, if it can be trusted, will support the fact the global economy is still struggling, and the recession has never really ended. It was just masked by the trillions countries through at it.
That's all good news for gold investors.
That's highly unlikely to continue for long, as the weakness in the global and U.S. economy isn't going to improve any time soon, and mounting evidence confirms we're in for a continuing recession.
Gold prices will respond accordingly and continue their upward push to who knows where, as central banks' and government policies around the world continue to debase currencies and have done nothing to make a difference economically.
As predicted by us here and a number of others, government spending exasperates the problem, it doesn't help it. And gold and gold investors will be the beneficiaries of this folly for years into the future.
In the short term, gold prices could possibly drop, maybe to $1,245, but the support is so strong, that even if it goes below that it's unlikely it'll stay there long.
The revelation, which many of us already knew, that European banks and the stress tests related to them were a joke, and the depth of the sovereign debt risk is probably even worse than we know.
Picking and choosing what economic date we want to focus on isn't a good way to get a good overall picture of what is really happening, and gold investors aren't usually the type to do that, at least those that follow gold throughout the years.
So gold will continue on its upward run, and the economic data, if it can be trusted, will support the fact the global economy is still struggling, and the recession has never really ended. It was just masked by the trillions countries through at it.
That's all good news for gold investors.
Tuesday, September 7, 2010
Yamana (NYSE:AUY), Novagold (AMEX:NG), Newmont (NYSE:NEM) Rise on Soaring Gold Prices
Newmont Mining Corporation (NYSE:NEM), Novagold Resources Inc (AMEX:NG)
and Yamana Gold, Inc. (NYSE:AUY) are all up today as the news the stress tests for banks in the EU weren't as accurate or reliable as portrayed, has gold prices soaring today, surpassing record levels in mid-day trading, reaching as high as $1,261.60 for December delivery.
It was highly suspect when the stress tests were performed, as many noted at the time they didn't seem to have strong controls in place to give a reliable record of the condition of the banks. Now it seems the European banks hold far more government debt than originally believed.
This renews the specter of an ongoing recession, which we at Everything Gold have never believed left in the first place.
The sovereign debt crisis confirms that belief, among a number of other things, and that will be a strong positive for gold prices and gold miners going forward, as we can see today.
and Yamana Gold, Inc. (NYSE:AUY) are all up today as the news the stress tests for banks in the EU weren't as accurate or reliable as portrayed, has gold prices soaring today, surpassing record levels in mid-day trading, reaching as high as $1,261.60 for December delivery.
It was highly suspect when the stress tests were performed, as many noted at the time they didn't seem to have strong controls in place to give a reliable record of the condition of the banks. Now it seems the European banks hold far more government debt than originally believed.
This renews the specter of an ongoing recession, which we at Everything Gold have never believed left in the first place.
The sovereign debt crisis confirms that belief, among a number of other things, and that will be a strong positive for gold prices and gold miners going forward, as we can see today.
Tuesday, August 24, 2010
Oil Futures Trading Plummets: Investors Ditching Oil Stocks
"Concerns over the strength of the global recovery, combined with a stronger dollar, have placed downward pressure on oil," according to analysts at Action Economics. Crude Oil Futures continue to plummet, today falling below $72 a barrel. The cause, mounting worry and concern about the global recovery pace.
In morning trading, The Dow Jones Industrial Average dropped over 100 points. While broader Indexes also saw a decline of over 1 percent. Investors are ditching oil stocks and going back into the safety of the Treasury bond market. The looming concern is that because of the slow recovery, which could push the economy back into a recession.
The Dow Jones slid 103.83 or 1 percent to 10,074.06. While The Standard and Poor 500 Index also declined to 11.60 or 1.1. percent to 1,055.76. The Nasdaq Composite Index dropped 25.52 or 1.2 percent bringing it to 1,786.79. For every one stock that rose on the New York Stock exchange, 10 fell.
Phil Flynn, PFG Best analyst said, "Just when it seems oil is going to rally on strong economic optimism, it gets crushed with the realty of gluttonous supply. When it gets ready to fall apart, like in the emergence of the latest chapter in the economic crisis, some central bank supports it with a flood of printed money."
In morning trading, The Dow Jones Industrial Average dropped over 100 points. While broader Indexes also saw a decline of over 1 percent. Investors are ditching oil stocks and going back into the safety of the Treasury bond market. The looming concern is that because of the slow recovery, which could push the economy back into a recession.
The Dow Jones slid 103.83 or 1 percent to 10,074.06. While The Standard and Poor 500 Index also declined to 11.60 or 1.1. percent to 1,055.76. The Nasdaq Composite Index dropped 25.52 or 1.2 percent bringing it to 1,786.79. For every one stock that rose on the New York Stock exchange, 10 fell.
Phil Flynn, PFG Best analyst said, "Just when it seems oil is going to rally on strong economic optimism, it gets crushed with the realty of gluttonous supply. When it gets ready to fall apart, like in the emergence of the latest chapter in the economic crisis, some central bank supports it with a flood of printed money."
Tuesday, July 20, 2010
Gold Rises on Weak Housing Report
Although it'll take a little time to sort out because of conflicting economic reports which attempt to mask the extremely weak U.S. and global economy, the weak housing report again reminds us of the importance of holding gold in the face of major risk associated with the economy.
The appearance that there is uncertainty as to which direction the economy is going is exasperated by news reports that imply this is the case, when in reality, now that the faux recovery is exposed as soon as the government props are lifted away from various sectors of the economy, gold will again be seen as the one place investors can place their money and retain it.
If you have trouble believing that, just look every time the data come out and the ubiquitous and dishonest word "unexpected" is added to it. Every single time we get down economic news the financial press, especially mainstream financial press, somehow can't ever figure out what's going on, and they are caught off guard by the "unexpected" economic news.
How could anyone be that ignorant, for example, concerning the housing market in the U.S. As soon as the tax credit was ended housing started predictably plummeted, as they did again in the latest data, where they were down another 5 percent in June, which was the lowest in eight months. How can that be unexpected?
Now they're saying there will probably be a double dip recession in housing if the job market doesn't improve any time soon. We also know that's not going to happen, as the wasted 100s of billions allegedly already spent has done nothing to create jobs, as government money never can.
All we've got from that, for the most part, is more government employees feeding off the hard work of the private sector, and which they can't afford to do any longer.
How that all affects gold is this: housing starts plummeting, and if no jobs are created, we're going into another recession. Unless you think a miracle is going to happen or spending another $1 trillion or so will solve it, you're in for a world of hurt as the "unexpected" circumstances overcome you. Gold will explode upward again as the realization comes that we've been lied to again. There never has been prospects for a recovery, there has never been a recovery, and there isn't going to be a recovery for a long time. Gold will be the beneficiary of that as the realization grows on the investing community.
The appearance that there is uncertainty as to which direction the economy is going is exasperated by news reports that imply this is the case, when in reality, now that the faux recovery is exposed as soon as the government props are lifted away from various sectors of the economy, gold will again be seen as the one place investors can place their money and retain it.
If you have trouble believing that, just look every time the data come out and the ubiquitous and dishonest word "unexpected" is added to it. Every single time we get down economic news the financial press, especially mainstream financial press, somehow can't ever figure out what's going on, and they are caught off guard by the "unexpected" economic news.
How could anyone be that ignorant, for example, concerning the housing market in the U.S. As soon as the tax credit was ended housing started predictably plummeted, as they did again in the latest data, where they were down another 5 percent in June, which was the lowest in eight months. How can that be unexpected?
Now they're saying there will probably be a double dip recession in housing if the job market doesn't improve any time soon. We also know that's not going to happen, as the wasted 100s of billions allegedly already spent has done nothing to create jobs, as government money never can.
All we've got from that, for the most part, is more government employees feeding off the hard work of the private sector, and which they can't afford to do any longer.
How that all affects gold is this: housing starts plummeting, and if no jobs are created, we're going into another recession. Unless you think a miracle is going to happen or spending another $1 trillion or so will solve it, you're in for a world of hurt as the "unexpected" circumstances overcome you. Gold will explode upward again as the realization comes that we've been lied to again. There never has been prospects for a recovery, there has never been a recovery, and there isn't going to be a recovery for a long time. Gold will be the beneficiary of that as the realization grows on the investing community.
Thursday, July 1, 2010
Gold Futures Crushed as Investors Go to Treasurys
Investors today, who have been extremely fickle lately, have chosen to go to Treasurys as a place of safety rather than gold, driving the price of gold today down by $34.70, or $1,207.70 an ounce, as of 1:03 PM EDT.
Economic data has painted a ominous portrait of economic conditions, and it's weighing strongly on investors.
Uncertainty about inflationary or deflationary pressures also influences the price movement of gold on a daily basis, as economic data and reports have it potentially going either way, or at least it's perceived in that way.
One thing most people agree on, is the alleged economic recovery isn't, and it's increasingly doubtful as to whether or not we've ever left the recession, only having temporary respite because of massive amounts of money being infused into the economy from government policies.
Economic data has painted a ominous portrait of economic conditions, and it's weighing strongly on investors.
Uncertainty about inflationary or deflationary pressures also influences the price movement of gold on a daily basis, as economic data and reports have it potentially going either way, or at least it's perceived in that way.
One thing most people agree on, is the alleged economic recovery isn't, and it's increasingly doubtful as to whether or not we've ever left the recession, only having temporary respite because of massive amounts of money being infused into the economy from government policies.
Friday, June 18, 2010
Gold Prices Today Reach New Record High on Weak Economy
Economic data released on Thursday confirmed what many gold investors have known for some time, that is we're really not in an economic recovery, and gold will continue to be the key place to put our money for safety and retaining wealth.
Gold prices continue to break records again, after yesterday's all-time record close, and gold reaching another record today, surging past $1,260.00 an ounce for the first time in history.
Momentum for gold continues on from yesterday's record gold close, as numerous data show there is nothing that can be pointed to which can justify saying there is a sustainable economic recovery, if there ever one was to begin with. More than likely we've never left the recession, and even though economists may ultimately call this a double-dip recession, it would be probably more accurate to describe it as an ongoing recession.
Unemployment continues to rise in the U.S., manufacturing is slowing way down, new housing starts have plunged, and the sovereign debt crisis and Europe and China battling inflation in its urban property markets is dragging down the global economy, and there's nothing in the near-, or probably mid-term that will change any of that.
Consequently gold prices will continue to move up, and even though we'll always have temporary corrections, there's nothing in the way of gold that will stop it from its climb ... at least not in the near future.
Gold prices continue to break records again, after yesterday's all-time record close, and gold reaching another record today, surging past $1,260.00 an ounce for the first time in history.
Momentum for gold continues on from yesterday's record gold close, as numerous data show there is nothing that can be pointed to which can justify saying there is a sustainable economic recovery, if there ever one was to begin with. More than likely we've never left the recession, and even though economists may ultimately call this a double-dip recession, it would be probably more accurate to describe it as an ongoing recession.
Unemployment continues to rise in the U.S., manufacturing is slowing way down, new housing starts have plunged, and the sovereign debt crisis and Europe and China battling inflation in its urban property markets is dragging down the global economy, and there's nothing in the near-, or probably mid-term that will change any of that.
Consequently gold prices will continue to move up, and even though we'll always have temporary corrections, there's nothing in the way of gold that will stop it from its climb ... at least not in the near future.
Friday, June 11, 2010
Economic Recovery? Retail Sales Plunge
For those looking to gold for a safe haven and to make money, the release of the latest retail sales report confirms we continually say at Everything Gold, and that is we're not even close to being in a sustainable recovery, and all the massaged numbers the government wants to put out can't cover up the reality of the ongoing recession.
In May, retail sales plunged by 1.2 percent, confirming what I just said, as consumers remain extremely skittish and concerned about the weakness of the economy.
Another thing the government hasn't included in the retail picture is most people were simply spending their tax money, at temporary event, just like the ridiculous notion a bunch of jobs were created, when in fact they were a bunch of temporary census positions, which will end very soon.
It's one thing to listen and read this stuff, it's quite another to believe it.
For gold investors, we need to largely ignore the positive numbers thrown out by the government at this time, as they're largely irrelevant, and only used to show one tiny part of the picture.
All the props and gimmicks are coming to an end, and the real condition of the economy is starting to emerge.
One example of that is the huge decline in hardware and home improvement sales, which plummeted 9.3 percent after the homebuyer tax credit expired.
Keep those types of things in mind when making decisions about investing in general, and investing in gold specifically.
In May, retail sales plunged by 1.2 percent, confirming what I just said, as consumers remain extremely skittish and concerned about the weakness of the economy.
Another thing the government hasn't included in the retail picture is most people were simply spending their tax money, at temporary event, just like the ridiculous notion a bunch of jobs were created, when in fact they were a bunch of temporary census positions, which will end very soon.
It's one thing to listen and read this stuff, it's quite another to believe it.
For gold investors, we need to largely ignore the positive numbers thrown out by the government at this time, as they're largely irrelevant, and only used to show one tiny part of the picture.
All the props and gimmicks are coming to an end, and the real condition of the economy is starting to emerge.
One example of that is the huge decline in hardware and home improvement sales, which plummeted 9.3 percent after the homebuyer tax credit expired.
Keep those types of things in mind when making decisions about investing in general, and investing in gold specifically.
Wednesday, June 9, 2010
Record Gold Prices Continue as Currencies Falter, Recession Lingers
Gold futures continue to break records, and they will for some time to come, as there's absolutely nothing standing in the way of price increases based on the economic conditions we face, unless you want to listen to Federal Reserve Chairman Ben Bernanke, who came out of hiding to announce we're continuing on in an economic recovery (laughter in the background).
While I don't believe we've ever been in a recovery, as the spending of trillions hasn't been able to stem the downward spiral of the economic tide we continue to face, while adding to our national debt in the United States, and other countries as well who have participated in similar practices to no avail, as Europe is showing us all in its sovereign debt crisis.
Yesterday gold again broke a record high, ultimately settling at $1.245.60 on the Comex division of the New York Mercantile Exchange.
There are no quick solutions to the flat American economy, no quick solutions to the European sovereign debt crisis, and no quick solutions in China's attempt to stem the tide of inflation emerging from their urban property market, which has and will continue to reduce demand for raw materials like copper, although they will still grow, albeit at a much more sustainable pace than in the past.
Add this together and you have gold prices continuing to go up for some time into the future.
This doesn't mean their won't be short term corrections based on all sorts of variables, like speculators and traders covering positions they've lost money in in other sectors, and many just taking profits.
But overall, there is simply nothing out there other than concerns over too much optimism in the gold market which could drive up gold prices more speculatively.
Because of the fundamentals and safety concerns emerging from those fundamentals, even if speculators drive prices up at times, it doesn't negate the safety factor and fears over weakening and untrustworthy paper currencies as a result of unprecedented spending by central banks and governments around the world.
There is no recovery in the short- or mid-term, and that will mean gold will continue on its upward journey during that time.
While I don't believe we've ever been in a recovery, as the spending of trillions hasn't been able to stem the downward spiral of the economic tide we continue to face, while adding to our national debt in the United States, and other countries as well who have participated in similar practices to no avail, as Europe is showing us all in its sovereign debt crisis.
Yesterday gold again broke a record high, ultimately settling at $1.245.60 on the Comex division of the New York Mercantile Exchange.
There are no quick solutions to the flat American economy, no quick solutions to the European sovereign debt crisis, and no quick solutions in China's attempt to stem the tide of inflation emerging from their urban property market, which has and will continue to reduce demand for raw materials like copper, although they will still grow, albeit at a much more sustainable pace than in the past.
Add this together and you have gold prices continuing to go up for some time into the future.
This doesn't mean their won't be short term corrections based on all sorts of variables, like speculators and traders covering positions they've lost money in in other sectors, and many just taking profits.
But overall, there is simply nothing out there other than concerns over too much optimism in the gold market which could drive up gold prices more speculatively.
Because of the fundamentals and safety concerns emerging from those fundamentals, even if speculators drive prices up at times, it doesn't negate the safety factor and fears over weakening and untrustworthy paper currencies as a result of unprecedented spending by central banks and governments around the world.
There is no recovery in the short- or mid-term, and that will mean gold will continue on its upward journey during that time.
Monday, June 7, 2010
Robert Prechter Maintains 40 Percent Gold Correction
At the Reuters Investment Outlook Summit in New York, Elliott Wave president Robert Prechter maintained gold could fall 40 percent in a major market correction.
Prechter is trying to weasel out of his projection in January that gold will plunge by 40 percent, saying it couldn't continue on because of deflation and too many institutions and people owing it.
Of course the assertion of deflation is ridiculous, and unless you trust the government numbers, which they massage and tweak to their benefit, deflation hasn't been around yet, and only once in decades has their been a deflationary year.
There is the crowd that redefines inflation and deflation in order to say there is deflation, but they can't be taken serious, and for everyday items people buy in America, there hasn't been deflation, unless want to pick out a couple out of the bunch to justify your point.
The weasel aspect I mentioned was when he said gold was being stalled by technical momentum and since 2006 the increase has subsequently been experienced at a lower rate, which he covered his butt by saying, "That is not a guarantee of change but a sign that one is likely."
Anything is likely, so that's irrelevant.
What must be taken into consideration is the sovereign debt crisis in Europe, the Chinese battling inflation and the so-called jobless recovery in America, which isn't one, as the recent job numbers revealed, where the government has propped up the jobs market by hiring people, while the private sector has been holding back, not trusting in the assertions of the government, as they're the ones on the street experiencing the realities of the economy on a local, regional, national and international basis.
That means investors will continue to seek safety, and there is nothing safer than gold at this time, and there is a growing lack of faith in paper currencies around the world, with gold really being the only alternative.
I think the idea of gold being over-bought is where Prechter misses it, as that may be true in general among institutional investors, but the vast majority of people on the street haven't even entered into the gold market yet, and until that happens, there's not going to be a bubble, let alone one that bursts, neither will there be a major correction to the degree Prechter calls for, although there will always be some corrections in any market.
Demand for safety and concern over inflation is what is primarily driving gold prices up, and that isn't going to change or correct, based on what Prechter calls "technical indicators," which to me is a bunch of BS and mumbo jumbo.
The idea that 98 percent of people are positive about gold is another somewhat irrelevant statement. Obviously that 98 percent would have to have been culled from a small group of a certain type of investor.
What he meant by that is if everyone is positive, he's going to run the other direction. In normal investing circumstances that's not a bad strategy, but with gold in these economic circumstances it doesn't make sense.
Gold isn't going to correct to that level at this time because there is simply nothing out there to make it happen. Everything is pointing to instability and ongoing recession.
And if you believe there has been a weak recovery, then call what's coming a double-dip recession.
Either way, gold prices are going to continue going up, and while there will be sell-offs and taking of profits like a couple of weeks ago, I don't see anything that will change the price of gold going up for years into the future.
Now that doesn't mean there will never be a correction, but it's not going to be for some time, and it won't happen until there is a real bubble market similar to the housing bubble, where clueless people bought homes to make some quick money, not understanding they were at the top of the ponzi scheme. Gold isn't anywhere near that, and there is too much inflation and geo-political situations to change that in the near term.
Prechter is trying to weasel out of his projection in January that gold will plunge by 40 percent, saying it couldn't continue on because of deflation and too many institutions and people owing it.
Of course the assertion of deflation is ridiculous, and unless you trust the government numbers, which they massage and tweak to their benefit, deflation hasn't been around yet, and only once in decades has their been a deflationary year.
There is the crowd that redefines inflation and deflation in order to say there is deflation, but they can't be taken serious, and for everyday items people buy in America, there hasn't been deflation, unless want to pick out a couple out of the bunch to justify your point.
The weasel aspect I mentioned was when he said gold was being stalled by technical momentum and since 2006 the increase has subsequently been experienced at a lower rate, which he covered his butt by saying, "That is not a guarantee of change but a sign that one is likely."
Anything is likely, so that's irrelevant.
What must be taken into consideration is the sovereign debt crisis in Europe, the Chinese battling inflation and the so-called jobless recovery in America, which isn't one, as the recent job numbers revealed, where the government has propped up the jobs market by hiring people, while the private sector has been holding back, not trusting in the assertions of the government, as they're the ones on the street experiencing the realities of the economy on a local, regional, national and international basis.
That means investors will continue to seek safety, and there is nothing safer than gold at this time, and there is a growing lack of faith in paper currencies around the world, with gold really being the only alternative.
I think the idea of gold being over-bought is where Prechter misses it, as that may be true in general among institutional investors, but the vast majority of people on the street haven't even entered into the gold market yet, and until that happens, there's not going to be a bubble, let alone one that bursts, neither will there be a major correction to the degree Prechter calls for, although there will always be some corrections in any market.
Demand for safety and concern over inflation is what is primarily driving gold prices up, and that isn't going to change or correct, based on what Prechter calls "technical indicators," which to me is a bunch of BS and mumbo jumbo.
The idea that 98 percent of people are positive about gold is another somewhat irrelevant statement. Obviously that 98 percent would have to have been culled from a small group of a certain type of investor.
What he meant by that is if everyone is positive, he's going to run the other direction. In normal investing circumstances that's not a bad strategy, but with gold in these economic circumstances it doesn't make sense.
Gold isn't going to correct to that level at this time because there is simply nothing out there to make it happen. Everything is pointing to instability and ongoing recession.
And if you believe there has been a weak recovery, then call what's coming a double-dip recession.
Either way, gold prices are going to continue going up, and while there will be sell-offs and taking of profits like a couple of weeks ago, I don't see anything that will change the price of gold going up for years into the future.
Now that doesn't mean there will never be a correction, but it's not going to be for some time, and it won't happen until there is a real bubble market similar to the housing bubble, where clueless people bought homes to make some quick money, not understanding they were at the top of the ponzi scheme. Gold isn't anywhere near that, and there is too much inflation and geo-political situations to change that in the near term.
Friday, June 4, 2010
Gold Keeps Rising as Recession Continues
As mentioned in the past a Everything Gold, the job numbers posted by the government have been bogus for a long time, based on the fact they were just using the hiring of census workers to prop up the numbers, and in some cases it seems there may be fraud involved based on people being hired and rehired and counted as a new hire each time to inflate the new job hire numbers.
Consequently that farce is catching up with the Obama administration as new job numbers show that other than the inflated hiring of census workers, jobs haven't been being created, including the private sector, which hasn't been creating new jobs.
Tom Pawlicki, precious metals analyst at MF Global in Chicago, said this, "With the employment numbers coming short of expectations and the majority of jobs being census workers rather than private payrolls, I think it shows there's a chance the economy is not recovering as fast as previously believed."
I would add that it's doubtful there's ever been a recovery, just massaged numbers to make it look like it.
Pawlicki added that this could be a very positive factor for gold, especially if it results in a double-dip recession, or as I would add, the realization the recession never ended.
Gold rose on the bad economic news, closing the Friday session up $12.20, to end the week at $1,220.
At to this a completely new story in the sovereign debt crisis on Friday when Hungary said they're at risk of a credit crisis similar to Greece, and you see how gold is positioned for a long upward run.
Whether or not Hungary is in dire straits or not isn't the point, the point is the moment the European Union decided not to defend the euro, it was inevitable that a bunch of beggar nations would start lining up for their bailout; possibly with Hungary being one of many in line, or ready to get in line.
Even after this news some continue to adhere to the fantasy that we're in a recovery, albeit a slower one than expected. Their problem is they continue to trust the government numbers, even after realizing they're propping them up by hiring over 400,000 more temporary census workers.
Either way, those looking for safety and long-term financial health in gold, won't be disappointed, as the faux recovery is discovered and revealed to be just that, and when the downfall "resumes," we all know it's just a continuation of what's been going on since the great recession began, and not a double-dip anything.
Don't be fooled by the demagogues and optimists without foundation. Gold is going to continue to rise no matter what dubious data is thrown out there to attempt to stop it.
Consequently that farce is catching up with the Obama administration as new job numbers show that other than the inflated hiring of census workers, jobs haven't been being created, including the private sector, which hasn't been creating new jobs.
Tom Pawlicki, precious metals analyst at MF Global in Chicago, said this, "With the employment numbers coming short of expectations and the majority of jobs being census workers rather than private payrolls, I think it shows there's a chance the economy is not recovering as fast as previously believed."
I would add that it's doubtful there's ever been a recovery, just massaged numbers to make it look like it.
Pawlicki added that this could be a very positive factor for gold, especially if it results in a double-dip recession, or as I would add, the realization the recession never ended.
Gold rose on the bad economic news, closing the Friday session up $12.20, to end the week at $1,220.
At to this a completely new story in the sovereign debt crisis on Friday when Hungary said they're at risk of a credit crisis similar to Greece, and you see how gold is positioned for a long upward run.
Whether or not Hungary is in dire straits or not isn't the point, the point is the moment the European Union decided not to defend the euro, it was inevitable that a bunch of beggar nations would start lining up for their bailout; possibly with Hungary being one of many in line, or ready to get in line.
Even after this news some continue to adhere to the fantasy that we're in a recovery, albeit a slower one than expected. Their problem is they continue to trust the government numbers, even after realizing they're propping them up by hiring over 400,000 more temporary census workers.
Either way, those looking for safety and long-term financial health in gold, won't be disappointed, as the faux recovery is discovered and revealed to be just that, and when the downfall "resumes," we all know it's just a continuation of what's been going on since the great recession began, and not a double-dip anything.
Don't be fooled by the demagogues and optimists without foundation. Gold is going to continue to rise no matter what dubious data is thrown out there to attempt to stop it.
Friday, April 2, 2010
Gold Prices Drop Slightly
Gold Prices Down Slightly
Gold prices slipped from two-week highs on Friday as the euro eased after gaining against the dollar the previous day, with activity subdued due to Easter holidays in many Asian and most European markets.
As the global economic recovery becomes more evident, gold may come under pressure, with investors turning to other commodities which traditionally gain on strengthening industrial demand such as platinum and palladium, traders said.
"Gold will be seen as an underperformer when the economic outlook brightens, with investors showing more interest in other commodities which benefit from rising industrial demand," said Wakako Harada, a senior trader at Mitsubishi Corp in Tokyo.
Rest of gold prices story:
http://www.reuters.com/article/idUSTRE62H1MP20100402
Gold prices slipped from two-week highs on Friday as the euro eased after gaining against the dollar the previous day, with activity subdued due to Easter holidays in many Asian and most European markets.
As the global economic recovery becomes more evident, gold may come under pressure, with investors turning to other commodities which traditionally gain on strengthening industrial demand such as platinum and palladium, traders said.
"Gold will be seen as an underperformer when the economic outlook brightens, with investors showing more interest in other commodities which benefit from rising industrial demand," said Wakako Harada, a senior trader at Mitsubishi Corp in Tokyo.
Rest of gold prices story:
http://www.reuters.com/article/idUSTRE62H1MP20100402
Wednesday, March 31, 2010
Gold's Future Bright on Jobs Report
Gold's future looking brighter and brighter
Most people that understand the depth of what's happening around the world economically, know the future of gold is very bright, and will increase in price in the years ahead, although those trying to time the gold market could get clobbered, as it seems there will be a lot of bumps along the way, and those holding for the long term will be those who profit from the trend.
The jobs report yesterday showing another 23,000 jobs were cut by employers helped gold rise nicely, and even though the government will attempt to massage those numbers, almost everyone knows we're not anywhere near an economic recovery, and most likely are still in a deep recession.
One thing that could derail gold in the short- or mid-term would be another country being in danger of defaulting in Europe. Those who are clueless seem to think that's a reason to invest in U.S. dollar, based only on the fact it's not near as bad as the euro or most other currencies.
Even so, gold did have some days where it abandoned the normal inverse relationship with the U.S. dollar, seeming to reveal people are starting to understand gold is the place to be in times like these, although just as many days the usual inverse relationship between gold and the dollar occured, also showing there's confusion or uncertainty that gold is a better place to put your money in those types of times.
Other than that, the economic practices of governments and central banks around the world ensure gold will be strong for some time, and other than occasional anomalies, albeit some very potential strong anomalies, gold should enjoy a contiuous upward flow in price, even if there are a lot of swings while on its journey.
Most people that understand the depth of what's happening around the world economically, know the future of gold is very bright, and will increase in price in the years ahead, although those trying to time the gold market could get clobbered, as it seems there will be a lot of bumps along the way, and those holding for the long term will be those who profit from the trend.
The jobs report yesterday showing another 23,000 jobs were cut by employers helped gold rise nicely, and even though the government will attempt to massage those numbers, almost everyone knows we're not anywhere near an economic recovery, and most likely are still in a deep recession.
One thing that could derail gold in the short- or mid-term would be another country being in danger of defaulting in Europe. Those who are clueless seem to think that's a reason to invest in U.S. dollar, based only on the fact it's not near as bad as the euro or most other currencies.
Even so, gold did have some days where it abandoned the normal inverse relationship with the U.S. dollar, seeming to reveal people are starting to understand gold is the place to be in times like these, although just as many days the usual inverse relationship between gold and the dollar occured, also showing there's confusion or uncertainty that gold is a better place to put your money in those types of times.
Other than that, the economic practices of governments and central banks around the world ensure gold will be strong for some time, and other than occasional anomalies, albeit some very potential strong anomalies, gold should enjoy a contiuous upward flow in price, even if there are a lot of swings while on its journey.
Monday, October 6, 2008
Why Gold isn't Surging at this Time
While gold was the only commodity in the positive today, it hasn't performed quite as strongly as one would expect in the economic conditions we face. There are three reasons for this, with one being the major one to look to as a signal to buy.
The three reasons are a slowing demand for jewelery, speculators holding back, and most importantly, the dollar has remained too strong to cause gold to surge.
When the U.S. dollar starts to drop again, we'll see gold take a big step forward as it becomes the usual safe haven during difficult economic times.
I don't think there's much more to watch for in reference to gold investing at this time than the movement of the dollar.
Speculators and jewelery demand, while part of the picture, aren't the primary movers of gold, so we simply need to watch the performance of the dollar and respond accordingly.
The three reasons are a slowing demand for jewelery, speculators holding back, and most importantly, the dollar has remained too strong to cause gold to surge.
When the U.S. dollar starts to drop again, we'll see gold take a big step forward as it becomes the usual safe haven during difficult economic times.
I don't think there's much more to watch for in reference to gold investing at this time than the movement of the dollar.
Speculators and jewelery demand, while part of the picture, aren't the primary movers of gold, so we simply need to watch the performance of the dollar and respond accordingly.
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