Silver Leads the Way in Commodities Tumble: See Pullbacks as an Opportunity [View article]
Short term, silver remains volatile. But its up over 5% today already. I still suggest that many of the silver miners and ones with a large resource are undervalued. The market just needs to catch up and we should see this after summer.
Why Aren't the Producers Moving Up With Gold? [View article]
You are right, its all about timing. We still like the majors, depsite the rise in oil prices. Goldcorp has one of the lowest production costs, averaging around 270/oz for all of 2010, and as low as 170 for Q4.
But if oil prices continue to stay high over a 60-90 period, it will hurt the bottom line for the major producers. The article was not to say that gold is better than the majors or vice versa. It was simply to answer the question why gold producers sometimes fall in share price when gold rises.
The Big Gold Signal No One Talked About [View article]
Please read out past letters. We know things are bad. We've said it before. Are they going to get worse? Yes. But that doesn't mean the stock market won't rebound. The sell-off was panic.
We are a Canadian based firm and as such, our buy on the dip call has been bang on. Please go back to our past letters and see our full point of view. equedia.com/blog/index...
You're absolutely correct. Level II data, although important, does not gaurantee success. There are many things to consider such as your dark pools, iceberg orders, etc..
But having Level II data is an incredible tool for both traders and investors. There are heavy traders that take advantage of market depth to short and buy long, all day long - especially in more thinly traded markets such as the junior mining explorers.
Level II doesn't show everything, but we would never make a trade without it.
Perhaps gold prices may not climb, but if they stay where they are today, it still means lots of money to be made through investing in junior miners. The leverage will most certainly be there if gold and precious metals stay at these levels.
All three of the silver juniors featured in our newsletters this year have done incredibly well since our coverage. We will be releasing another junior to our readers shortly.
alphaman 997: I think you are right. Gold could very easily crash as it has very easily gone up in price.
The fact, however, is that gold is becoming more and more prominent in today's modern currency market, as the World Bank President has mentioned.
With regards to some of your comments that reference the price of gold and that it may be worthless, please read our past newsletter: equedia.com/blog/view....
"In particular, Gold is as good as cash. Actually, it's better - its climbing while the dollar is sinking. While sceptics continue to say that gold is not a good investment, let's compare it to both stocks and the real estate market. What you are about to read may shock you.
In the past three years: gold is up more than 37%. The S & P 500 is down 26%. US real estate is down 13%.
Winner: Gold
In the past five years: gold is up more than 207%. The S & P 500 is down 7%. US real estate is down 15%.
Winner: Gold
In the past ten years: gold is up more than 475%. The S & P 500 is down 20%. Luckily, US real estate is up 23%.
Winner: Gold
Despite the price of gold, gold is a liquid asset. You can buy things with it, sell it, trade it, and even wear it. (see equedia.com/blog/view....)
While we are not gold bugs, we can see the value of investing in gold. We do, however, like to invest in higher leverage plays such as the junior resource sector where the returns can be substantial, and ROI can come sooner.
China's government has said that they will be buying gold on the dips and will continue to buy gold to increase their gold reserves. Please see: equedia.com/blog/view....
Thanks. Actually, the point of the article was to illustrate that gold has been around for thousands of years. You are right, the founding fathers did not create the idea. But they did create the idea of pegging their dollar to gold, which was eventually axed as demand easily outgrew supply.
Regarding your comment on looking back 10 years, please review the article again. In particular:
In the past ten years, gold is up more than 475%. The S&P 500 is down 20%. Luckily, US real estate is up 23%.
Gold's Price Discovery Is Clearly Out Of Sync With True Fundamentals [View article]
Great question. While it would take a full essay to explain why we are bearish on the world economy as a whole, we'll try and simplify it as much as we can.
The world needs jobs to grow. America is slowly wiping out the middle class. China has no real middle class. The Eurozone is breaking down. Supply will soon outweigh demand. Any form of technology and innovation that can create new jobs, such as alternative energy, are many years away. Americans create iphones. China makes them. Americans innovate. China prospers. But as the standard of living rises in China and a middle class is formed, as do the costs of good sold. Which means eventually, China will charge too much to produce goods and these goods will be produced in more third world-like countries which will have little impact on the world economy as a whole. It all boils down to jobs.
Of course, many factors including strong political will and individual movement could change our theory. But for now, nothing has been shown or proven otherwise.
Gold's Price Discovery Is Clearly Out Of Sync With True Fundamentals [View article]
Thanks for the comment. Your reasons, as well as ours, are just some of the reasons why we believe gold will continue its climb. More insight in our next letter to be published on Sunday. If you haven't already, feel free to follow us here at Seeking Alpha or subscribe to our letter via email by visiting: http://bit.ly/peaIlJ/
The Bottom for This Summer Appears to Be Forming. Another Opportunity to Make Money? [View article]
I must say I have to disagree. We are no where close to 2008 or have the same issues as before. Liquidity exists in the bank and the ECB is helping out. Is the world still in shambles? Yes. Is it deleveraging? Yes. But don't forget that earnings often rises with inflation.
If we are talking short term, we see a bull market until at least the end of the year.
If you would have bought on the dip yesterday, you would have made a lot of money today. Manipulation? Maybe, but the market is still up strong.
PIMCO's Bill Gross: Continue to Short U.S. Bonds Unless Double-Dip Happens [View article]
You are correct, he said he is not short treasuries but is underweight. The shorting of treasuries by Bill Gross has been published by many reputable news sources such as Bloomberg, Reuters, CNBC, etc.
The quotes we listed, however, are directly from Bill Gross and PIMCO and regardless, our views stay the same.
Fed Release of Discount Window Bailout: Another Reason to Be Cautious of Banking Systems [View article]
Thank you, and you're absolutely right. Even if the increase is "speculation," as some may say, it really makes no difference. Our philosophy is to make money in every market and right now, the strongest bull market lies in precious metals and natural resources - such as agricultural stocks, precious metals stocks, and oil and gas stocks.
In our closing sentence, I said I expected gold and silver to climb. Silver is up close to 5% since this weekend and gold is up significantly as well.
Take Advantage of This Bull Market While It Lasts [View article]
Well, we were right again in this newsletter. The markets closed green. If you read the full letter, you will see that we specifically said we were not bragging about it. We were simply making a point to not believe everything you read and learn to act fast.
Market timing is a very big part of trading. You may not think it means anything, but speculation and predicting the future upticks and downticks is how we make money in the stock market. As long as we're more right than wrong, we will make money. So yes, if you call something and it happens, it DOES mean something. Why? Because we back our words up by investing if we think the markets are going up or down.
Silver Leads the Way in Commodities Tumble: See Pullbacks as an Opportunity [View article]
Why Aren't the Producers Moving Up With Gold? [View article]
But if oil prices continue to stay high over a 60-90 period, it will hurt the bottom line for the major producers. The article was not to say that gold is better than the majors or vice versa. It was simply to answer the question why gold producers sometimes fall in share price when gold rises.
The Big Gold Signal No One Talked About [View article]
We are a Canadian based firm and as such, our buy on the dip call has been bang on. Please go back to our past letters and see our full point of view. equedia.com/blog/index...
Inflation: It's Already Here [View article]
But having Level II data is an incredible tool for both traders and investors. There are heavy traders that take advantage of market depth to short and buy long, all day long - especially in more thinly traded markets such as the junior mining explorers.
Level II doesn't show everything, but we would never make a trade without it.
Gold Is as Good as Cash [View article]
All three of the silver juniors featured in our newsletters this year have done incredibly well since our coverage. We will be releasing another junior to our readers shortly.
Gold Is as Good as Cash [View article]
The fact, however, is that gold is becoming more and more prominent in today's modern currency market, as the World Bank President has mentioned.
With regards to some of your comments that reference the price of gold and that it may be worthless, please read our past newsletter: equedia.com/blog/view....
"In particular, Gold is as good as cash. Actually, it's better - its climbing while the dollar is sinking. While sceptics continue to say that gold is not a good investment, let's compare it to both stocks and the real estate market. What you are about to read may shock you.
In the past three years: gold is up more than 37%. The S & P 500 is down 26%. US real estate is down 13%.
Winner: Gold
In the past five years: gold is up more than 207%. The S & P 500 is down 7%. US real estate is down 15%.
Winner: Gold
In the past ten years: gold is up more than 475%. The S & P 500 is down 20%. Luckily, US real estate is up 23%.
Winner: Gold
Despite the price of gold, gold is a liquid asset. You can buy things with it, sell it, trade it, and even wear it. (see equedia.com/blog/view....)
While we are not gold bugs, we can see the value of investing in gold. We do, however, like to invest in higher leverage plays such as the junior resource sector where the returns can be substantial, and ROI can come sooner.
Gold Is as Good as Cash [View article]
Still Turning to Gold [View article]
Regarding your comment on looking back 10 years, please review the article again. In particular:
In the past ten years, gold is up more than 475%. The S&P 500 is down 20%. Luckily, US real estate is up 23%.
Gold's Price Discovery Is Clearly Out Of Sync With True Fundamentals [View article]
The world needs jobs to grow. America is slowly wiping out the middle class. China has no real middle class. The Eurozone is breaking down. Supply will soon outweigh demand. Any form of technology and innovation that can create new jobs, such as alternative energy, are many years away. Americans create iphones. China makes them. Americans innovate. China prospers. But as the standard of living rises in China and a middle class is formed, as do the costs of good sold. Which means eventually, China will charge too much to produce goods and these goods will be produced in more third world-like countries which will have little impact on the world economy as a whole. It all boils down to jobs.
Of course, many factors including strong political will and individual movement could change our theory. But for now, nothing has been shown or proven otherwise.
Gold's Price Discovery Is Clearly Out Of Sync With True Fundamentals [View article]
The Big Gold Signal No One Talked About [View article]
The Bottom for This Summer Appears to Be Forming. Another Opportunity to Make Money? [View article]
If we are talking short term, we see a bull market until at least the end of the year.
If you would have bought on the dip yesterday, you would have made a lot of money today. Manipulation? Maybe, but the market is still up strong.
PIMCO's Bill Gross: Continue to Short U.S. Bonds Unless Double-Dip Happens [View article]
The quotes we listed, however, are directly from Bill Gross and PIMCO and regardless, our views stay the same.
Fed Release of Discount Window Bailout: Another Reason to Be Cautious of Banking Systems [View article]
In our closing sentence, I said I expected gold and silver to climb. Silver is up close to 5% since this weekend and gold is up significantly as well.
Take Advantage of This Bull Market While It Lasts [View article]
Market timing is a very big part of trading. You may not think it means anything, but speculation and predicting the future upticks and downticks is how we make money in the stock market. As long as we're more right than wrong, we will make money. So yes, if you call something and it happens, it DOES mean something. Why? Because we back our words up by investing if we think the markets are going up or down.
Our track record speaks for itself.