View as an RSS Feed
New Gold Discoveries Plunge, Peak Gold In 2015 Predicted
- The market’s focus on impending interest rate increases misses the longer-term trend of diminishing gold supply.
- New gold discoveries are at the lowest levels in decades.
- Global exploration budgets, while still elevated historically, are falling significantly.
Gold Eyes ECB, Preps For Eurozone QE
- The ECB is preparing measures to buy Eurozone sovereign bonds.
- Draghi does not believe unsterilized sovereign bond purchases violate its mandate against monetary financing.
- If forced to sterilize sovereign bond purchases, Draghi will implement a weak sterilization regime.
- Expectations of lower bond yields and an increase in uncertainty in the Eurozone are accretive to gold prices.
Despite Recent Blood, Gold Crushing S&P 500 Total Return
- Constituted ten years ago, the gold backed GLD outperformed the S&P 500 Total Return by 39% and kept pace with Berkshire Hathaway.
- Recent blood in the precious metals markets and surge in equities presents a classic sell high, buy low opportunity.
- Near-term catalyst, such as delay in Fed tightening, should halt the fall of gold prices.
Ebola Risk Threatens Randgold Resources In Mali
- The World Health Organization is treating the Ebola situation in Mali as an emergency.
- Mali’s initial Ebola case is centered in the Kayes region of Mali. Randgold Resources’ flagship gold mining complex is also located in the Kayes region.
- Consider reducing exposure to Randgold Resources while still maintaining leveraged exposure to potential gold price increases.
Markets Misreading Of Fed Statement Is Opportunity In Gold
- The markets misread changes to the FOMC’s October statement as hawkish, focusing only on changes to language concerning the labor market.
- The statement contained dovish additions regarding inflation expectations and shifts in votes toward a more dovish stance.
- The sell-off in gold following the statement release offers a buying opportunity before markets price-in a more dovish Fed.
Gold And Silver Shine When Data Dependent Fed Caves
- Impending increases to the federal funds rate, now called “liftoff” by the FOMC, begin in the second quarter of 2015 according to current projections.
- As incoming data continues to point toward increasing economic weakness, FOMC participant projections for the federal funds rate likely shift toward a later, weaker more dovish upward movement.
- Both the preceding market anticipation and eventual declaration of a more dovish FOMC stance would be positive for the monetary metals and is yet to be priced in.
- Lessons From Apple's Fiscal Q3 Instructive For Current Quarter Predictions
- Expect Beat From Activision On Strong Diablo III Sales
- Freeport-McMoRan's Improved Balance Sheet Sustains Growth And Dividend
- Call Of Duty China Employs Fremium Model
- Randgold's Rapid Growth Trumps Political Risks
- Call Of Duty China, Diablo III, Key To NetEase's Outlook
- MW3, World Of Warcraft, Diablo III Key To Activision's Earnings And Outlook
- Expect Beat From EA On Battlefield 3 Sales
- Expect Surprise From Activision's World Of Warcraft Numbers
- $400 Million Court Battle Looms For EA and Activision
- Activision's Careful Social Strategy
- Perfect World's Disaster Quarter Cloaks 2012 Reversal
- Activision's Record Sales Driven By Unique Corporate Partnerships
- Why Electronic Arts' Revised Guidance Appears Too Conservative
- Activision Blizzard's Strengths On Display At BlizzCon
- Profitibility Questions For Electronic Arts' New Social Game
- Activision's Promising New Franchise: 'Skylanders'
- NetEase to Announce Earnings Wednesday: Growth Outlook Remains Strong