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Rosanne Lim
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Rosanne is a contributor to SunshineProfits.com. She analyzes the movements of gold, silver, and capital markets. Rosanne is a graduate of entrepreneurship and she is a believer that politics and macroeconomic policies of the government have a big impact on the investment climate.
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  • Which Currency Will Crash First?

    Which Currency Will Crash First?

     

     

    The full version of our analysis (with comments particularly valuable for Precious Metals Traders) is available to our Subscribers.

     

    2010 was an exciting year for currencies. The dollar, euro, the yen, and the yuan all went under the spotlight. Except for the yuan, each experienced drastic swings wrought about by internal or external factors. But overall, these events underwhelmed confidence in paper money. The main reason is because of the sovereign debt crisis that swept the world.

     

    Most of the developed nations including the United States, Japan, and a number of European countries have unsustainable debt. The US and Japan, for example, are heading towards insolvency. Meanwhile, the only reason why several countries in the EU haven’t defaulted is the bail-out by stronger EU members.

     

    This year presents more challenges for the world’s major currencies. While the markets are not as nervous at this point, problems remain just beneath the surface. The truth is that the world has not seen a sovereign debt crisis of the magnitude seen last year. With much of the developed world on the red, this has brought the market at the brink of disaster. We’ll analyze some of the major currencies in this article including the yen, the euro, and the dollar. Developments in China regarding the yuan will also be discussed.

     

     

    The Euro

     

    It was all over the news in the later part of 2010. Several weaker members of the Eurozone would have defaulted already if they weren’t helped out by stronger members. As it stands right now, Greece, Portugal, Spain, Italy, Ireland, and Belgium are on shaky grounds. A number of countries have had their credit rating slashed, resulting to soaring bond yields that are unsustainable. Taking on new debt has become very expensive.

     

    Greece, the country who was most at risk of default at one point in 2010, saw their yields go up from 6 percent to 13 percent in a single month. Even countries that are not in danger are feeling the effects of the crisis. For instance, the French debt hit a record high on December 20.

     

    Right now, there are rumblings that more European countries may need bailouts to stay afloat. According to Professor Willem Buiter, a chief economist at Citibank, a few EU countries can face financial collapse in the next few months. “The market is not going to wait until March for the EU authorities to get their act together…they are being far too casual.”

     

    Where did the bailout money come from? A lot of it comes from Germany but most people don’t realize that a significant portion actually came from the United States. But the real question is, are these countries willing to pour in more money to nations on the verge of default? For the German public, they want bailout to weaker neighbors to stop. There are other reasons why continuous bailouts will not work.

     

    Right now, some politicians in Europe are asking for the European “bailout fund” to be doubled to $2 trillion. There are analysts who think that it will require $4 to 5 trillion to help all European nations that need it. Even a country as wealthy as Germany cannot give away billions of euros to its neighbors indefinitely. When the bailout to financial black holes stop, the defaults are likely to begin.

     

    Let’s look at the short-term chart (courtesy of http://stockcharts.com) for euro:

     


    In the Euro Index chart this week, there are a number of bearish signals which can lead to bullish sentiment for the USD index. We have observed that the right shoulder of the bearish formation was invalidated by the buying that occurred at the beginning of this week. However, the price then moved to the rising dashed ling, invalidating the breakout. As a result, the head-and-shoulder formation is still underway, which has bearish implications for the following weeks.

     

    Still, that formation alone doesn’t mean that euro will be the first major currency to crash. There are also other candidates…

     

     

    Japanese Yen

     

    Although Japan has the third largest economy, they are swamped with debt. The Japanese government has the highest debt to GDP ratio at 200% of all major industrialized countries. It is estimated that with this amount of debt, every person living in Japan right now owes around 7.5 million yen. Any other country would have defaulted. The main reason why Japan hasn’t yet is the high amount of personal savings rate of its citizens. The Japanese citizens are buying massive amounts of government debt at very low interest rates.

     

    Despite this, the debt level is worrying. Standard & Poor has said they will slash the country’s credit rating if the debt gets any bigger. If confidence starts to falter, Japan has to pay significantly higher interest rates. At some point, Japan will have to face the threat of a meltdown unless drastic actions are taken.

     

     

    The US Dollar

     

    No one can argue that the United States is indeed in trouble. It has the largest national debt of all. With its national debt at $14 trillion, it is just $300 billion away from the $14.294 debt ceiling. If Congress fails to raise the debt ceiling, the US government will begin to default. While everyone fully expects this to be increased, the US cannot continue raising this threshold forever.

     

    The US national debt is now 14 times higher than 30 years ago. Everyone is realizing that this level of debt is not sustainable. The Federal Reserve has already stepped in and “bought” more debt for the US government. Treasury yields have been moving up, potentially starting a massive problem in the future. This is mainly because the United States is increasingly relying on short-term debt.

     

    Average maturity for US government bonds is now 4.4 years. As a comparison, the maturity of UK government debt is around 13 years. The situation can be dire if interest rates continue to climb. But there is one thing going for the United States: The Federal Reserve. It can keep on printing money and because the dollar is a global reserve currency, there is demand for it. But this can change quickly – and the consequences will be seen all around the Globe.

     

     

    The Chinese Yuan

     

    China is increasing its gold and silver reserves in line with its plan to globalize the yuan. The report published by the Economic Information Daily, the People’s Bank of China – the country’s central bank – is chalking up plans to buy gold and silver reserves when the prices are down.

     

    A number of analysts predict that the Chinese yuan might overtake the US dollar as the global currency in a few years; one of them is global commodities expert Jim Rogers. He believes that the Chinese yuan will eventually dominate the currency market. China is already the largest producer of gold.

     

    Last year, officials have announced that they will increase reserves to the tune of 10,000 tons over the next decade; the country’s reserves currently stands at 1,200 tons. Chinese central bank adviser Xia Bin has confirmed that China must increase its gold and silver reserves. According to the report, “increasing gold reserve at the time of prices dip is the strategy of internationalizing the yuan.”

     

    There were rumors that the People’s Bank of China will bid for IMF gold reserves but this did not happen in 2010. The main reason may be that bullion prices climbed by 30% last year aided by the depreciation of the US dollar against other major currencies, the European debt crisis, and strong demand from India due to festivals and other occasions. The investment appeal of precious metals also surged as investors sought to protect their wealth in an uncertain environment.

     

    In essence, what China wants to happen is to stabilize its currency. By making the yuan internationally tradable, its dependence on the dollar will be dramatically reduced. Hwang Il Doo of the Korean Exchange Bank Futures Co. said that while “the report is a positive factor for gold prices in the mid-and-long term”, it won’t have an “immediate impact on prices as gold’s gain has more to do with the unrest in Egypt at the moment.”

     

     

    Can this be the Start of a Global Currency?

     

    Concerns about the stability of currencies have improved the appeal of a united global currency. The same groups and individuals who thought up the WTO, IMF, OECD, and World Bank believe that the uncertainty produced by shaky world economy presents the perfect “opportunity” to introduce a world currency. Chinese President Hu Jintao has said that the “current international system is the product of the past.”

     

    Whether this comes to fruition or not remains to be seen. The United States has the most to lose if this happens. Certainly, American policymakers will certainly try to find a remedy. However, the problem is, the country might eventually be too deep in debt to do something about it.

     

    If you are interested in knowing more on the market signals we analyze, we encourage you to subscribe to our Premium Updates to read the latest trading suggestions. We also have a free mailing list - if you sign up today, you'll get 7 days of full access (+unique Charts and Interactive Investment Tools) to our website absolutely free. In other words, there's no risk, and you can unsubscribe anytime.

    Thank you for reading.

     

    Rosanne Lim

    Sunshine Profits Contributing Author

    www.SunshineProfits.com

     

     

    * * * * *

     

    Interested in increasing your profits in the PM sector? Want to know which stocks to buy? Would you like to improve your risk/reward ratio?

     

    Sunshine Profits provides professional support for

    Precious Metals Investors and Traders.

     

    Apart from weekly Premium Updates and quick Market Alerts, members of the Sunshine Profits’ Premium Service gain access to Charts, Tools and Key Principles sections. Click the following link to find out how these benefits might facilitate your gains. Naturally, you may browse the sample version and easily sign-up for a free weekly trial to see if you like our accuracy - we insist that you check our previous updates for details.

     

    All essays, research and information found above represent analyses and opinions of Mr. Radomski and Sunshine Profits' associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Mr. Radomski and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above belong to Mr. Radomski or respective associates and are neither an offer nor a recommendation to purchase or sell securities. Mr. Radomski is not a Registered Securities Advisor. Mr. Radomski does not recommend services, products, business or investment in any company mentioned in any of his essays or reports. Materials published above have been prepared for your private use and their sole purpose is to educate readers about various investments.

     

    By reading Mr. Radomski's or his associates' essays or reports you fully agree that they will not be held responsible or liable for any decisions you may make regarding any information provided in these essays or reports. Investing, trading and speculation in any financial markets may involve high risk of loss. We strongly advise that you consult a certified investment advisor and we encourage you to do your own research before making any investment decision. Mr. Radomski, Sunshine Profits' employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.



    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
    Feb 08 11:36 AM | Link | Comment!
  • Gold, Weaker Dollar, and US Exports

    Gold, Weaker Dollar, and US Exports

     

     

    The full version of our analysis (with comments particularly valuable for Precious Metals Traders) is available to our Subscribers.

     

    With the Chinese yuan and Brazilian reals off-limits to most retail investors, turning to gold may be the best bet. Even with the gold hitting the $1,400 an ounce mark, it’s still a good idea to allocate around 20% of your portfolio to this precious metal. Consider that over the last decade, gold is up by 17%. Compare this to stocks over the same period and you’ll see the difference. Stocks were up by only 1%.

     

    In today’s economic climate, gold can serve as a hedge against a weakening dollar. Also, unlike other commodities like wood, wheat, and aluminum that are lumped with gold, you can easily convert this precious metal into cash. Its growing popularity around the world also makes it a safe bet over the short and medium term. China, which is the world’s biggest producer of gold, is quietly buying up more of it.

     

    The Chinese emerging middle class are also quietly acquiring their own stash of gold. India’s middle class is doing the same thing. But the latter is more into buying gold jewelry than bullions.

     

    Dollar Set to Get Weaker, But to What End?

     

    A weak currency would traditionally help a country improve its exports, thereby creating more investments and jobs. However, in the case of the United States today, a weak dollar won’t necessary make much of a difference. It will help the export industry to a certain degree but not to the extent it did in the past – mainly because of how American multinational firms are operating.

     

    Determining the impact of a weak dollar is important. If it isn’t as useful as policymakers hoped it would, then the United States might be getting criticisms left and right for (monetary easing announced this month) without deriving actual benefits from it. A depressed dollar provides American exporters with an advantage; it should also ideally improve the unemployment rate which is stubbornly at 9.6%.

     

    Both President Obama and Treasury Secretary Tim Geithner emphasized that monetary easing is designed to help American businesses invest, grow, and borrow rather than a move that’s intended to lower the dollar. A lower dollar is just among its effects. Even if the Fed’s decision does weaken the currency, however, America’s jobless may not reap the benefits.

     

    Job Creation is Not a Sure Thing

     

    The real issue may lie on how most American companies are structured. Large US firms from General Electric to Ford often manufacturing products in the countries where they will be sold, rather than exporting them abroad. Since companies are effectively using only one currency in this process, this takes the dollar out of the equation.

     

    And for companies that still manufacture in the United States, majority of them source components from abroad. The weaker dollar is thus offset by the higher cost of sourcing supplies. In addition, even if a company receives a boost in foreign sales, it may not result to employment. It is important to note that a large chunk of American exports are manufactured products, which are not labor-intensive.

     

    Martin Regalia, the chief economist of the United States Chamber of Commerce says it clearly, “There are very few corporations that would see this just one way…it cuts across a whole bunch of lines”. Overall, the effect on net export will be positive.

     

    Profitability for companies won’t easily become a driver for job creation. A lot of firms that are currently manufacturing in the US are usually too small to justify setting up an overseas facility. Having a weak dollar will help but it won’t prompt them to hire especially if economic outlook remains unclear. Daniel Meckstroth, the chief economist of Manufacturers Alliance further says that, “you can replace people with machines.”

     

    Data from the past are not very encouraging. The dollar has fallen by 31% against major currencies since 2001. Yet, Nigel Gault of HIS Global Insight said that manufacturing employment actually went down from 16.4 million to 11.7 million – this is despite the fact that exports actually grew by 45%. Since June 2010, the dollar has already fallen 10% against a basket of major currencies and exports are up 0.3% in September, the highest level in two years.


    The long-term USD chart (courtesy of
    http://stockcharts.com) above shows that the index values reached the lower part of our target eclipse. It is relatively safe to say that betting on the USD at this point would no longer yield significant profits. In the chart above, note that the USD is not yet close to the next cyclical turning point so it will trade more or less on the 80 level before declining again - still, we wouldn't bet on its gains in the near future as the risk/reward ratio doesn't appear favorable here.

     

    Gary Hafbauer from the Peterson Institute for International Economics expects the dollar to fall another 10% in the next few months. This would result to an estimated $100 billion in American experts over the next two years – translating to about 500,000. The number isn’t bad but it is hardly enough to create an impact because 15 million people are still without work.

     

    The dollar has indeed been driven down. However, the Fed’s decision to inject $600 billion into the economy is not likely to result to steep devaluation because most of the weakening already occurred prior to the announcement.

     

    Now let’s turn to gold. The price of gold went back to around $1,350 an ounce on Thursday even as the dollar continued to decline. Silver prices rose by nearly 4%, reaching $26.60 an ounce.



    In the very long-term chart this week, we see that gold has not moved above the upper border of the very long-term trading channel. As we have stated in previous essays, this is an important resistance level. It was likely that some consolidation will be seen in the near-term so this should not be of any great concern as it is quite a natural phenomenon.

     

    The important point is that our next target level, after moving above the trading channel will be close to $1,600. This target has been arrived at by utilizing two important technical tools. One is the upper border of the accelerated trading channel and the second is extrapolation made my applying the 1.618 phi (φ) number. Both tools indicate a likely move to the $1,600 level perhaps in the first quarter of 2011. Please note that the full version of this essay includes also short-term details.

     

    Trade Imbalance

     

    Experience dictates that the trade imbalance, which we talked about in a previous article, between surplus and deficit countries won’t easily be solved by currency movements in itself.

     

    This was already apparent in the 1980s; the weakening dollar couldn’t solve United State’s deficit with Japan. The same can be said when you look at another trading partner, Britain. Roger Sustar, the president of Fredon Corporation which is a maker of components in the defense, aerospace, and medical industries, said that even as the dollar weakened against the pound, their company didn’t see an increase in sales. Rather, the company received a deluge of requests from clients asking them to lower their prices.

     

    Despite the challenges, there are still a number of economists who are hopeful that a sustained weakness of the dollar will have a positive effect on US employment. Increase in exports, if continual, would have a multiplier effect on the economy. Steve Blitz from ITG Investment Research said that the country should rely more on the export industry to improve employment outlook rather than relying on US consumers (which currently accounts for 60% of national economic activity). He added that, “the model of the last 30 years can no longer continue…the job creation has to come from the export sector.”

     

    Foreign investment into the US can also generate jobs. For example, BMW has set up several facilities in the country to avoid getting hit by currency fluctuations. The government can encourage more multinational companies to set up their facilities within the country by offering special advances. Currency movements are just one part of the system.

     

    If you are interested in knowing more on the market signals we analyze, we encourage you to subscribe to our Premium Updates to read the latest trading suggestions. We also have a free mailing list - if you sign up today, you'll get 7 days of full access to our website absolutely free. In other words, there's no risk, and you can unsubscribe anytime.

    Thank you for reading.

     

    Rosanne Lim

    Sunshine Profits Contributing Author

    www.SunshineProfits.com

     

     

    * * * * *

     

    Interested in increasing your profits in the PM sector? Want to know which stocks to buy? Would you like to improve your risk/reward ratio?

     

    Sunshine Profits provides professional support for

    Precious Metals Investors and Traders.

     

    Apart from weekly Premium Updates and quick Market Alerts, members of the Sunshine Profits’ Premium Service gain access to Charts, Tools and Key Principles sections. Click the following link to find out how these benefits might facilitate your gains. Naturally, you may browse the sample version and easily sign-up for a free weekly trial to see if you like our accuracy - we insist that you check our previous updates for details.

     

    All essays, research and information found above represent analyses and opinions of Mr. Radomski and Sunshine Profits' associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Mr. Radomski and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above belong to Mr. Radomski or respective associates and are neither an offer nor a recommendation to purchase or sell securities. Mr. Radomski is not a Registered Securities Advisor. Mr. Radomski does not recommend services, products, business or investment in any company mentioned in any of his essays or reports. Materials published above have been prepared for your private use and their sole purpose is to educate readers about various investments.

     

    By reading Mr. Radomski's or his associates' essays or reports you fully agree that they will not be held responsible or liable for any decisions you may make regarding any information provided in these essays or reports. Investing, trading and speculation in any financial markets may involve high risk of loss. We strongly advise that you consult a certified investment advisor and we encourage you to do your own research before making any investment decision. Mr. Radomski, Sunshine Profits' employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.

     



    Disclosure: No positions
    Nov 22 8:08 PM | Link | Comment!
  • Establishing a Stable Dollar Is More Important Than Ever

    Establishing a Stable Dollar Is More Important Than Ever

     

     

    The full version of our analysis (with comments particularly valuable for Precious Metals Traders) is available to our Subscribers.

     

    In a move to boost a “disappointingly slow” economic recovery, the Fed has finally announced that it will buy $600 billion of US government months over an eight month period to lower interest rates and encourage more borrowing. In addition to this announcement, the Federal Reserve also made it clear that it is ready to do more if growth isn’t achieved in the months ahead.

     

    Policy makers in emerging markets have criticized QE2 (second round of quantitative easing), saying that pumping more money into the US economy will escalate the influx of cash in fast-growing developing economies. From South Korea to Brazil, officials have said that they intend to curb the flood of money going to their economy – to protect their export and to avoid asset price bubbles.

     

    Within the United States itself, there are various concerns. This is because although the move is intended to boost growth, its concept is founded on shaky grounds: that manipulating the dollar can lead to economic growth and employment. The experience from the last 40 years has shown that markets may react the opposite way.

     

    Establishing a stable dollar value by restoring dollar-gold convertibility may be the best way for the Fed to accomplish its goals of price stability and employment. It is important to compare the era before the “floating dollar” to today to get a glimpse of how glaring their differences are.

     

     

    Analyzing the Gold Standard

     

    An analysis of the past showed that from 1947 up until 1967, unemployment rate in the United States averaged 4.7% and it never went higher than 7%. Real growth rate was around 4% a year. There was also low inflation during this period – consumer-price inflation averaged 1.9% annually. Meanwhile, interest rates were also low and the yield on triple-A corporate bonds averaged 4% and never went higher than 6%. The above scenario was an era before the US turned its back on dollar-gold convertibility.

     

    In 1971, after finally breaking the link between dollar and gold, the US experienced slower growth, decline in economic resilience, greater instability, and higher average unemployment. From 1971 until 2009, the jobless rate averaged 6.2% which is 1.5 percentage points higher than the previous decades. In addition, real growth rate was placed at 3%. Aside from these, the US also underwent the three worst recessions since the Second World War. In 1975, unemployment averaged 8.5%; in 1982, it was at 9.7%, and for the last 14 months to today, it is placed at 9.5%.

     

    In the years that the Federal Reserve was allowed to manipulate the currency, consumer-price index, on average, increased by 4.4% each year. This means that one dollar today is only worth a sixth of what it was before. Interest rates have also become highly volatile. The yields on triple-A corporate bonds significantly increased to 8% and it never got lower than 6% until 2003. These developments are merely manifestations of monetary uncertainly. The economy has become less resilient to external shocks – leading from one financial crisis to another.

     

    Also as a result of discretionary monetary policies, the world experienced more than 10 financial crises. As early as 1973, there was already the oil crisis. It was followed by several other major incidents, the Asian financial crisis, and finally, the economic crisis of 2008-2009. In addition, the threat of global currency war still looms – making 2010 and beyond look even bleaker for investors that haven't discovered gold and silver yet (they will, but at much higher prices).


     

     

    Unfulfilled Promises of the US Dollar

     

    At the center of these problems is gyrating currency value of the US dollar either in real terms (products and services) or in foreign-exchange markets. Because it can swing dramatically in either direction, windfall profits and losses are produced. The cycle feeds market speculation. Seeing the vulnerabilities of the dollar today, investors are finally putting their money back to gold and other commodities in the hope that it can hold its value amid FOMC’s plan to decrease American buying power even further.

     

    It should be noted that the “floating dollar” was well-received before because of the promise that it will improve the country’s trade balance and make the labor force more competitive. Everything turned out exactly the opposite of what has been hoped for. In 1967, a dollar is worth approximately 2.4 euros (based on the German mark) and around 362 yen. 42 years on, the US dollar is devalued 72% against the euro and at around the same rate (at 75%) against the Japanese yen. And instead of gaining a surplus, the economy has a $390 billion deficit of GDP today.

     

    Similar to their predecessors, FOMC are trying to find the best solution possible. But a glance at the past reveals that they might be going the wrong way about it. Federal-funds rate have been almost zero for nearly two years. Yet, businesses find it difficult to get loans from banks and other institutions. Savers are getting severely punished for being frugal because of the artificially low interest rates. Given that returning to the gold standard is not a plausible option at this point, the clear answer is still to increase the inflation rate. As we said in a previous article, however, this needs to be from demand-pull inflation rather than cost-push inflation to be effective.

     

     

    Long Term Gold Chart

     

    This week’s long-term chart (courtesy of stockcharts.com) reveals that gold did not move above the upper limit of the long term trading channel. In a previous premium update, we said that some consolidation was expected. Is more to be expected? At this time, there is not enough information to make a call. Looking at the solid blue lines, the breakout in the upper limit is likely to be followed by a move to $1,500 in the succeeding months. Until this breakout appears, gold may not move significantly.



     

    Gold Bulls See Gold Hitting $10,000

     

    The idea of gold hitting $10,000 seems impossible at first glance but Shayne McGuire believes that it can happen. Shayne McGuire runs the Teacher Retirement System of Texas and handles a $330 million gold portfolio. While Wall Street analysts consider this claim outlandish (we believe gold could easily go above $6,000 and silver above $100), Mr. McGuire sticks to his claim. And he provides reasons to back it up.

     

    Back in 2007, the 44-year-old pension-fund-manager and a colleague persuaded the $100 billion Texas fund to invest in the precious metal. It was a novel strategy at the time. Mr. McGuire called gold “the most under-owned major asset, widely seen as an eccentric, anachronistic leftover from the pre-information age that is best for ‘end of the world’ types.” At the time, gold was valued at around $650, half its current price.

     

    The precious metal’s historic round-up is boosted by fears of inflation, uncertainties about currencies, and further monetary easing by the Fed. However, not everyone is impressed with gold. Billionaire investor Warren Buffet said that “It doesn’t do anything but cost you charges and stare at you” in a recent interview. Indeed, the value of gold is hard to gauge because it produces no revenue and even costs money to store.

     

    Despite all these, there is no doubt that gold will continue to be on an uptrend. Other gold bulls such as John Paulson predict that gold can go up by as much as $4,000 an ounce in 2013. For his part, Mr. McGuire said that gold can reach $10,000 if big investors and pension funds start to move as little as 1% of their assets (bonds and global stocks) to gold. This demand will contribute to the metal’s rising prices. Combined with inflation, these developments can push the price of the precious metal tenfold from its current level. And then there is China which sees gold as a “basic savings asset.”

     

    Another reason why gold prices might continue to rise is the popularity of exchange-traded funds (NYSEMKT:ETF). These funds track an index but they are still traded like stocks. GLD, the largest ETF now invests $50 billion. It can go even higher if more investors move a percentage of their portfolio into gold. Right now, the total stock-market capitalization of gold ETF is placed at $80 billion, around the same as McDonald’s Corp.

     

    According to Mr. McGuire, “Now that the value of modern money is becoming highly questionable, more and more people are turning to gold. It’s not the new thing; it’s a return to normal.” He further added that his prediction might seem aggressive (in fact, it is the most aggressive call he made to date) but that “it’s really a comment on what governments have been doing to the monetary system.”

     

    If you are interested in knowing more on the market signals we analyze, we encourage you to subscribe to our Premium Updates to read the latest trading suggestions. We also have a free mailing list - if you sing up today, you'll get 7 days of full access to our website absolutely free. In other words, there's no risk, and you can unsubscribe anytime.

    Thank you for reading.

     

    Rosanne Lim

    Sunshine Profits Contributing Author

    www.SunshineProfits.com

     

     

    * * * * *

     

    Interested in increasing your profits in the PM sector? Want to know which stocks to buy? Would you like to improve your risk/reward ratio?

     

    Sunshine Profits provides professional support for

    Precious Metals Investors and Traders.

     

    Apart from weekly Premium Updates and quick Market Alerts, members of the Sunshine Profits’ Premium Service gain access to Charts, Tools and Key Principles sections. Click the following link to find out how these benefits might facilitate your gains. Naturally, you may browse the sample version and easily sign-up for a free weekly trial to see if you like our accuracy - we insist that you check our previous updates for details.

     

    All essays, research and information found above represent analyses and opinions of Mr. Radomski and Sunshine Profits' associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Mr. Radomski and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above belong to Mr. Radomski or respective associates and are neither an offer nor a recommendation to purchase or sell securities. Mr. Radomski is not a Registered Securities Advisor. Mr. Radomski does not recommend services, products, business or investment in any company mentioned in any of his essays or reports. Materials published above have been prepared for your private use and their sole purpose is to educate readers about various investments.

     

    By reading Mr. Radomski's or his associates' essays or reports you fully agree that they will not be held responsible or liable for any decisions you may make regarding any information provided in these essays or reports. Investing, trading and speculation in any financial markets may involve high risk of loss. We strongly advise that you consult a certified investment advisor and we encourage you to do your own research before making any investment decision. Mr. Radomski, Sunshine Profits' employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.

     



    Disclosure: No positions
    Nov 09 5:03 PM | Link | Comment!
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