Translate

Search This Blog

Search Tool




Asian Markets at Close Report

European Markets at Close Report

Jun 30, 2009

Apple VS RIMM…who’s on top? : By Adam Hewison

A little over six weeks ago I produced a video on the relationship between Apple and RIMM.



called it the “Battle Of The Tech Titans,” and in this short video I explained that we felt the relationship was changing between Apple, Inc. (NASDAQ_AAPL) and Research In Motion, Ldt (NASDAQ_RIMM). I detailed a strategy of approaching this market using a trading strategy that I call “pair trading” or “trading pairs.”



What trading pairs means is that you buy one market while going short the other market in the same sector. Now Apple and RIMM are battling it out right now in the smart phone sector. It remains to be seen who is going to be triumphant in this battle but it would appear as though Apple may have the upper hand based on its very successful “APP” store.


http://www.ino.com/info/391/CD3233/&dp=0&l=0&campaignid=3


Trading pairs is what many professionals do when they are unsure as to the direction of the general market but feel pretty comfortable in their analysis of the relationship between two stocks. I hope you find the video both informative and educational.
The video is free to watch and there is no need to register. I would love to get your feedback about this video on our blog.



http://www.ino.com/info/391/CD3233/&dp=0&l=0&campaignid=3



All the best,
Adam Hewison

President,

INO.com

Jun 28, 2009

Energy fields...and Gold ? : By Adam Hewison

I am very glad to give my readers this video, that I have just received from Adam Hewison.
In this new video Adam analyzes the gold market in a way that "he never divulged before." So you'll be getting the first view of a method that Adam has NEVER discussed in any previous videos.
Energy Fields... and Gold ?


¡To increase your knowledege you can not miss this outstanding video!




Fernando Guzmán Cavero


FGC BOLSA - FGC FINANCIAL MARKETS


Jun 26, 2009

Big Moves on The Upside: By Adam Hewison

Adam has sent us this video which will surprise you about what The Trade Triangle Technology can do for you. But let 's read and view what Adam has for us :



Fernando Guzmán Cavero


FGC BOLSA - FGC FINANCIAL MARKETS





In today’s video, I will be using MarketClub’s “Trade Triangle” technology to discover stocks that are potentially getting ready for big moves on the upside.

http://www.ino.com/info/383/CD3233/&dp=0&l=0&campaignid=3

I will show you a quick and easy way to replicate these moves using using MarketClub’s tools for the trader. With just a few clicks of the mouse, you too will be able to spot these trades.

You can use MarketClub’s “Trade Triangle” signals for Stocks, Futures, Precious Metals, forex, ETFs and Mutual Funds. To the best of my knowledge there is no easier, faster way to find winning trades.

http://www.ino.com/info/383/CD3233/&dp=0&l=0&campaignid=3

The video is free to watch and there is no need to register. I would love to get your feedback about this video on our blog.

All the best,

Adam Hewison
President, INO.com
Co-creator, MarketClub

From The Desk of Nick Nicolaas:


As every Friday our friend Nick Nicolaas, from Mining Interactive, reminds us that Adam Hamilton has posted his Weekly Zeal Intelligence Newsletter. Below find the transcript of his e-mail:
Dear Friends:
Adam Hamilton has posted his weekly Zeal Intelligence Newsletter on the Mining Interactive Website. Click here:
http://www.mininginteractive.com/releases/zeal/zeal20090626.pdf Have a great weekend and - - - Stay Tuned!!
Regards,
Nick L. Nicolaas
Mining Interactive “Ahead of the Pack”
Nick L. Nicolaas
President & CEO
Mining Interactive Corp.
www.mininginteractive.com

Direct 24/7: +1 (604) 657-4058
Main Office: +1 (604) 569-0800
Fax: +1 (604) 569-0758
Skype: nicknicolaas
nick@mininginteractive.com

Vancouver Stock Exchange Building (1929)
Suite 818 - 475 Howe Street
Vancouver, BC, Canada V6C 2B3

How To Watch Trading Seminars ‘Til You Puke For $100…

Fernando Guzmán Cavero

When Adam Hewsion asked me to review his INO TV service, I told him I really don’t have time. But he was persistent so I did it.
As I started to explore the site… I got excited! For those of you who are new to the scene, in early 90’s there was this symposium called “TAG”. (Technical Analysis Group) that was I believe an annual or biannual event. All the biggest and best minds in the industry were there, and it offered traders and investors one of the only places to immerse themselves in trading ideas. (Remember this was the pre expo, pre Internet media era..) They recorded these presentations, first as audio cassettes (remember those?) then video later on… Well, INO has the rights to ALL THOSE SEMINARS!
**I also secured a link for you to watch 4 seminars for free!**


I have just scratched the surface as I believe they have some 500 titles. Some of the names I am excited to listen to are…
* Mark Cook* Linda Raschke (Her “Short Skirt” presentation was one of the first seminars I ever attended! Well worth the price of admission alone…)* Richard Arms (The inventor of the TRIN)* Larry Conners* Toby Crabel (Who’s book Day Trading With Short Term Patterns and Opening Range Breakout sells for $1500 on ebay.)* Mark Douglas* Dr. Richard McCall* George Lane (The inventor of Stochastics)* Victor Niederhoffer* Martin Pring* Jack D. Schwager (Author of the Market Wizards series.)* Victor Niederhoffer* Peter Steidlmayer
And a ton more…. The best thing about most of these presentations is that they are old…(Really!) These ideas are universal and still as powerful as the day they were given…Yet I bet you money right now that many of you don’t know some of the names I put up on that list… That means that most of the other traders who have come to the markets recently are also in the dark! There is gold in them thar’ videos, and not much competition for what once were dominate investment strategies.













You will be amazed at what you see up there. It will really help your trading.







FERNANDO GUZMÁN CAVERO



FGC BOLSA - FGC FINANCIAL MARKETS



Jun 25, 2009

Stockhouse Gold and Silver Supplement

Stockhouse Gold and Silver Supplement


Gold, silver premiums back to near normal: Got Gold Report

Posted: 25 Jun 2009 09:32 AM PDT

HOUSTON – Late last year, when both gold and silver were sold down along with everything else in a sell-anything-with-a-bid panic, the world was getting pretty scary. Demand for physical bullion, real gold and silver coins and bars, outstripped dealers' ability to supply the metal to investors anywhere near spot prices. Premiums, the amount charged and paid by dealers over the prevailing cash or spot prices, skyrocketed to record or near record levels.

During the panic, citizens everywhere wanted to get their wealth out of banks, out of stocks and other investments, into cash and into something, anything they perceived as safe.  For a growing number of investors that also meant putting some of their wealth into the one thing people have trusted as a store of value for thousands of years – precious metals, gold and silver.

Two separate markets for gold and silver developed during the crisis. There was one market for small amounts of bullion, the so-called "retail" bullion market and one for the very large commercial-sized bars that trade on the futures and global over-the-counter (OTC) markets. The cash or "spot" price tracks the larger, futures-related market which, in the fall of 2008, was under tremendous pressure from large holders seeking liquidity, massive deleveraging and that market fell prey to opportunistic sell-side traders taking advantage of the extreme volatility.

The retail bullion market disconnected from those artificially low spot prices as the very high premiums of the panic period show. Now that both gold and silver have returned to higher prices and the world has less fear of a global systemic economic collapse (at least for now), the physical bullion markets have returned to premium levels that are approaching normal.

Premiums reflect demand

In more normal markets there is usually ample supply from both buyers and sellers in the smaller, retail bullion markets, but as we have just witnessed, when there is significant fear and more people want to buy metal than sell it, something has to offset that demand/supply imbalance. That's where premiums come in.

Premiums are a direct gauge of retail demand for precious metals. Very simply, the higher the premiums, the higher the current demand at current cash or spot bullion prices for the smaller bullion items most people are able to trade.

The chart just below is a monthly recap of wholesale market for one-ounce gold Krugerrands as reported by Coin Dealer Newsletter (CDN), one of the most respected authorities in the popular rare coin and bullion industry.

Source for bullion premium charts: CDN Greysheet

The chart tracks dealer bid prices as reported weekly by CDN in their industry trade newsletter The Greysheet. From January 2006 to the summer of 2008, dealers were willing to buy one-ounce Krugerrands for resale to their clients from about spot gold to a high of about $8.00 over spot, while the spot price of gold itself rose from the $500s to the $900s. So even though the price of gold was on the rise, there was apparently enough gold metal changing hands to keep premiums from going up very much.

Then, beginning in August 2008, as the panic was getting underway and demand for real physical gold heated up, dealers found themselves having to offer more than spot in order to source precious material for their clients. Dealer bid premiums for "K-Rands" jumped from $13.00 over spot in the August 29 CDN to $35.00 over spot in the October 31, 2008, report.

Availability remained constrained and premiums remained elevated in the first part of this year as spot gold gradually recovered back into the $900s and equity markets all across the globe found at least an interim bottom in March. With $900-plus gold and improving stock markets since then, dealers have seen the physical metal markets loosening up, with finally enough people willing to sell their gold coins nearer to current spot prices. The number of buyers and sellers has become more balanced.

By June 5, 2009, for example, the CDN quoted dealer bid premium for one-ounce gold Krugerrands had come in to $8.00 over the then $978.60 spot gold price.

While these prices represented the industry benchmark, they do not reflect the extremes seen locally and in numerous locations across the country. Some dealers were offering double the CDN bids at times during the October-November panic, as spot gold fell sharply into the $700s. They had to in order to fill orders from their gold buying clients who just wanted the metal no matter the premium.

Although they get that way from time to time, markets rarely remain unbalanced for very long.

It was the same high-demand-low-availability picture for all gold bullion coins during the panic period. Below is the same chart for U.S. one-ounce gold eagles for comparison.

U.S. gold eagles are arguably the most popular gold coin in North America and they still fetch considerably more than the spot price in the U.S. than South African Krugerrands. As of June 5, for example, with "K-Rands" showing an $8.00 premium, U.S. eagles were bid $25.40 over spot according to CDN. Still, that is a lot less than in last October and November, when they were "bid" $46.50 over spot according to CDN, and some dealers were actually paying nearly double that premium. That was with gold then in the $750s to the $850s more or less.

Needless to say that if dealers were paying that much they were selling those same coins for even more.

Silver premiums reached extremes

Even more dramatic was the premium action in the retail physical silver market. Just below is the same graph for U.S. silver eagles, again as reported by CDN.

Note, please, that no matter where the silver price was from January 2006, until the summer of 2008, the quoted dealer premium for U.S. silver eagles remained generally just above $1.00 over the spot price of silver. Then last August premiums spiked up as the futures dominated spot price of silver fell off the proverbial cliff. Panic drove the futures price of very large commercial sized bars of the metal from around $19 an ounce in July to below $9.00 in October in the worst plunge for silver since 1980. But demand for smaller amounts of real physical silver, especially silver coins and silver bullion coins, skyrocketed at the same time and dealers scrambled to find metal to fill orders.

In the most bizarre and, at times, frustrating of markets last fall the public really, really wanted to buy silver at the artificially low panic prices, but since there were so few sellers, dealers were forced to keep raising premiums to coax at least some metal to the market. Dealer quoted bid premiums for U.S. silver eagles reached record levels of over $4.00 above the spot silver price in November. On November 28, 2008, CDN reported the average dealer bid for silver eagles at $4.15, or 45.1%, over the then spot silver price of $10.36 an ounce, for example.

As silver recovered back up to the $15 arena premiums have returned to near normal, however. On June 5, for example, with silver at $15.73 the ounce, CDN reported the dealer bid for silver eagles at $1.27 an ounce over spot silver, very close to where premiums were in March 2008, with silver then in the $17 neighborhood.

"90% bags" a better buy

One of the most versatile and logical ways of owning physical silver is old U.S. dimes, quarters and half dollars minted before 1965. Sold in cloth bags containing $1,000 in face value, these so-called "junk silver" coins contain 90% silver and the rest of the gross weight is copper. Also called "90% bags" or just "90%" by dealers, each bag contains about 715 ounces of pure silver. The buyer essentially pays for the silver only in these bags of coins.

For years the relatively plentiful 90% bags traded at a slight discount to spot silver. During the heat of the crisis, however, dealer bid premiums jumped up to levels not seen since 1980, and then only at much, much higher silver prices. The chart just below tracks premiums for 90% U.S. silver coins in $1,000 face value bags according to CDN.

The usually always available bags of old coins were in such high demand last October and November, and so few of them were coming on the market then with silver around or below $10.00 the ounce, that by October 31, with silver then at $9.20 the ounce dealers were paying an average of $3.81 over spot silver to acquire them. That was a huge 41.4% higher than spot for a product that usually trades at a slight discount, but for most dealers even that wasn't enough to call out very much silver from hiding.

Take a look at how constant the market was for 90% silver coins until the panic escalated last summer. No matter what silver was doing dealers consistently offered about 50 cents an ounce less than spot silver to buy the bags of 90% silver coins. Most dealers charged a reasonable markup above that to sell them, usually about $200 to $300 per bag over their buy price, or somewhere close to the then prevailing spot price per ounce of pure silver.

Dealers have a kind of shorthand for quoting the old coins. They speak in terms of face value, as in "10.9 times face." That was the quoted dealer bid price for 90% as of June 5, according to CDN, meaning that dealers were willing to pay 10.9 times face value in order to buy the coins. CDN says that dealers were also willing to sell the bags that same day at 11.2 times face value, or $11,200 per $1,000 face value bag.

Isn't it interesting to know that silver coins minted just 45 years ago now fetch 11 times their value then? That is the power of inflation at work. But it is not for just any coins minted then, it is for silver coins. Believe it or not, as high as 11 times face sounds, that multiple of real silver coins is actually substantially less than it should be if we compare where silver historically trades relative to gold, but that is beyond the scope of this report. Suffice it to say that silver remains "cheap" relative to gold in many relative metrics, including its relative purchasing power to gold. We'll undoubtedly have more about that in future reports.

By the way, at Got Gold Report we favor 90% silver U.S. coins as the preferred way to own physical silver and we have since the early retail coin shop days in the 1980s. They usually trade at a slight discount in more normal markets so one can own more silver for the same amount of money invested. They are very easily divisible into smaller units, everyone understands what they are, they are very difficult (and unprofitable) to counterfeit and they are always in high demand. We believe that over time they will once again trade at substantial premiums, so while we have the opportunity to buy them at or even below spot, they take the point in our silver preference line up.

In case it isn't obvious, when the world was terrified people turned to the same thing they have trusted as a store of value for over four millennia, the one thing that people in all countries, in all cultures, respect and understand as real money – gold and silver. The jump in premiums shown above proves that.

Precious metals are presently in a correction, sending late comers to the rally and the nervous to the sidelines. While the current respite from high precious metals premiums means that buying and selling pressure have become more balanced (for now), is it merely the calm before the storm?

Read more Stockhouse articles by Gene Arensberg

Inside the S&P 500 UPDATE

This is just an update on using the internal forces of the market to time new positions. In this short video we look at the internal workings of the S&P 500 index.
We will be using in this example the free technical tools to help time a position. The number one tool we will be using is the Fibonacci retracement tool which just comes in beautifully in this example.
The second tool we are using is the Welles Wilder parabolic SAR. This tool is very useful for confirming entry and exit points when combined with our Fibonacci retracement tool.
The last tool is the MACD or as it is commonly called the MAC-D. This tool once again can help in timing the entry point using an intra-date chart.
Enjoy the video:




http://www.ino.com/info/382/CD3233/&dp=0&l=0&campaignid=3



The video is free to watch and there is no need to register. I would love to get your feedback about this video on our blog.



All the best,
Adam Hewison
President,
INO.comCo-creator,
MarketClub

Forex Cross Rates Updates June 25

Last week I showed you how to analyze 13 forex cross-rates in less than 11 minutes. I thought it would be fun to go back and look at how this very quick analysis turned out.

http://www.ino.com/info/381/CD3233/&dp=0&l=0&campaignid=3

Out of all the markets we analyzed in just 11 minutes, only five were in tune with our trade “Triangle Technology.” What this means is that both our daily and weekly “Trade Triangles” were in alignment indicating the direction for that particular cross.

Out of all the markets we analyzed in just 11 minutes, only five were in tune with our trade “Triangle Technology.” What this means is that both our daily and weekly “Trade Triangles” were in alignment indicating the direction for that particular cross.

USD/CAD was trading at 11335. Trade Triangles said to be long USD short CADNow trading at 11490, that’s a profit of 155 pips.

USD/NZD was trading at 5642. Trade Triangles said to be short USD long NZDNow trading at 5533 this is a profit of 109 pips.

CAD/CHF was trading at 9578. Trade Triangles said to be short CAD long CHFNow trading at 9531 this is a profit of 47 pips.

USD/CHF was trading at 10869. Trade Triangles said to be short USD long CHFNow trading at 10952 for a loss of 83 pips.

Out of the five markets that showed the correct “Trade Triangle” configuration, 4 are profitable and 1 was showing a loss as of this writing.

Total Gain: 322 pips
Total Loss: 83 pips
Total Net: 239 pips

5 trades, 4 wins,
1 loss80%
win/loss ratio
3.87 pips gained for every pip lost

Now remember, we did this in just 11 minutes and we analyzed 13 cross rates. Now I’m not saying that it will always be like this and that you will always have this percentage of winners, but the reality is, if you trade using our “Trade Triangle” technology, are disciplined, diversified and follow the program… you will be a winner over time.

Lastly, all the forex quotes and “Trade Triangle” alerts for forex symbols and precious metals at MarketClub are realtime.

http://www.ino.com/info/381/CD3233/&dp=0&l=0&campaignid=3

Now you know how to analyze the Forex markets super fast and come out a winner.

All the best,
President, INO.com
Co-creator, MarketClub

Jun 24, 2009

From the Desk of Nick Nicolaas:


MAWSON RESOURCES LTD. TSX - MAWFrankfurt - MRY (WKN# A0B 8YJ)Pinksheets - MWSNF
MAWSON STAKES THREE (3) HIGH GRADE AND NEAR SURFACE SANDSTONE-HOSTED URANIUM PROSPECTS IN CENTRAL SWEDEN
The prospects are located within fifteen kilometres of each and are held by three 100% owned permit applications which total 4,374 hectares. Historic exploration highlights include: Åviken 2.65 m @ 1.54% eU3O8 from 21.8 m (drill hole AVI75402)2.65 m @ 1.05% eU3O8 from 3.2 m (drill hole AVI75401); Sölvbäcktjärn 1.55 m @ 2.38% eU3O8 from 8.35m (drill hole SOL75008); Tossåssjön 18 mineralized outcrops over 1.6 km strike length, 392 uranium mineralized boulders, never drilled. The three (3) prospects together are known as“the Kapell Project”.
States Michael Hudson, Mawson President & CEO:“The Kapell project offers a new and attractive style of uranium mineralization for Mawson in Sweden and complements the Company's extensive uranium portfolio in Scandinavia. Sandstone hosted systems can form large, good grade and metallurgically amenable orebodies. At Kapell high grade mineralization over 1% U3O8 has been discovered near surface at all three project areas, which lie within 15 kilometres of each other. Further geological mapping, scintillometer surveying and ground magnetics will be undertaken during this summer before drill testing. The prospects remain open in all directions and form high merit exploration targets.”
View Mawson News Release

Dear Friends:
As we stated at the end of May, we expected “still more excitement From Mawson”! Well, Mawson's management certainly is once again adding hot projects to their already stellar portfolio. We suggest to start informing YOUR friends about this one because - - at once - - when we least expect it - - this Mawson Train will be leaving the station and those investors on board when it departs will be in for an exciting ride. We look forward to more and more from Mawson this summer therefore - - we suggest - - Stay Closely Tuned!!!
Regards,
Nick L. Nicolaas Mining Interactive

"Ahead of the Pack"

Forbes.com Alerts:"Real Estate Won't Recover Until 2017"

Commercial property values are in free-fall. Real estate's lost decade endures.
Click the link below to read the full story:

http://www.forbes.com/2009/06/24/commercial-real-estate-markets-economy-foreclosures.html?partner=alerts

Jun 23, 2009

Gata Dispatches: "Warren Bevan: China and IMF gold sales -- the real story "

Submitted by cpowell on 12:10PM ET Tuesday, June 23, 2009. Section: Daily Dispatches 3:06p ET Tuesday, June 23, 2009Dear Friend of GATA and Gold:In commentary posted today at GoldSeek, Warren Bevan, editor of Precious Metal Stock Review, surmises that China's recent open partiality to gold as a means of diversifying its foreign exchange reserves was meant as a warning to the West to accomplish gold sales by the International Monetary Fund -- so that China might buy it all. You may recall GATA's account last October of economist Robert Mundell's open and private advice to China that it should buy any and all gold offered for sale by the IMF:http://www.gata.org/node/6792Maybe that's why, Bevan says, Congress' belated approval this month of IMF gold sales seems to have had little impact on the gold market.Bevan's commentary is headlined "China and IMF Gold Sales: The Real Story" and you can find it at GoldSeek here:http://news.goldseek.com/GoldSeek/1245776400.phpCHRIS POWELL, Secretary/TreasurerGold Anti-Trust Action Committee Inc.
* * *Help keep GATA goingGATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code.
Its e-mail dispatches are free, and you can subscribe at:
http://www.gata.org
To contribute to GATA, please visit:
http://www.gata.org/node/16
Contact GATAinfo@gata.org
Gold Anti-Trust Action Committee
7 Villa Louisa RoadManchester,
Connecticut06043-7541 USA
www.gata.org

Stockhouse Gold and Silver Supplement

Stockhouse Gold and Silver Supplement


Why it pays to hold the lowest cost-producing silver stocks

Posted: 23 Jun 2009 11:42 AM PDT

Two weeks ago precious metals were as hot as ever. Gold prices were climbing. Gold stocks were doing even better. And silver prices were leading the way.

The old adage, "when gold climbs, silver soars" was playing out perfectly. Gold booked its biggest monthly gain since November. Silver, however, climbed past $15 per ounce and had its biggest monthly climb in 22 years according to MarketWatch.

Silver was showing its value as a dual-purpose commodity.

As an industrial metal, silver's uses in healthcare, photography, and as a chemical catalyst (just to name a few) has made it more attractive as the economy shows signs of recovery.

As a precious metal, silver has been getting a lot of attention as the U.S. dollar shows continued weakness. Also, when the big money rotated around into gold and John Paulson's big bet on gold were making headlines, gold was the hot sector. Silver was getting a lot more attention as an undervalued corollary.

Of course, sectors fall in and out of favor. Momentum traders have proven their willingness to quickly move onto something new. But if you're looking for a long-term investment in silver, aside from silver ETF's like the iShares Silver Trust (NYSE: SLV), silver mining stocks are the way to go.

The cheaper the better

As with all mining stocks, each of the major silver mining stocks offer many different qualities. Some of the higher cost producers offer greater leverage. Others offer greater value and a bit more downside protection. Still others offer very large silver reserves compared to the others.

The key factor we look at first at the Prosperity Dispatch though when comparing sector specific mining stocks is costs. With my investment research I'm looking for value and limited downside risk. In mining stocks that means low costs. Low cost operators provide downside protection because if commodity prices fall, they're the last ones to close down. Depending on their costs, the other mix of metals produced, the low-cost producers can usually survive extended downturns.

Below is a chart of the cash costs of silver produced. The cash costs are calculated by subtracting the revenues generated from the sale of byproducts like copper, zinc, and other base metals. In one case, after the base metal revenues are added into the mix, the costs are actually negative. (Note: Silver Standard – SSRI – is not shown because not enough data exists because its production is much more recent)

As you can see, the cash costs for all the most actively-traded silver miners vary widely. This is a result of different types of deposits and mixes of byproduct metal production. In this case, Silvercorp (AMEX: SVM)is the only one with a negative cash cost. In a way it gets paid to mine silver.

The costs will contribute directly to earnings, margins, and impact of any increases in production. So when it comes to valuation time, the costs will go a long way to determining premium valuations.

Lower isn't necessarily better though. When it comes to safety, the lower the cost the better. When it comes to leverage, the higher costs the better. The basic rationale goes if something is barely or not profitable, it is worthless now. But if silver prices rise, it will be valuable. So it might not be as valuable, the jump from next to nothing to something is very big.

It's not just costs, though, we also have to look at relative performance to see how well these stocks have done during the last time silver prices went on a decent run.

Good things come to those who wait

That's why I've broken down where these silver mining stocks were trading when silver started to make its first big run past $15 per ounce back in late 2007.

The date I took for comparison purposes was November 7, 2007. This is the first real breakout above $15 for silver and eventually led to a relatively long and stable period when silver was trading for more than $15 an ounce. The chart below shows what the major silver companies were trading for then, now, and the decline they've all experienced.

As you can see, silver stocks have been hit pretty hard over the past year and a half. There are plenty of explanations for the decline.

First, very few sectors have defied the overall market decline. As leading investment manager David Burrows pointed out a few months ago when we sat down with him:

Burrows' research concludes that stocks you invest in only account for 20% of the total return earned. Meanwhile, the overall market accounts for 50% and which sector you invest in accounts for 30% of returns.

Also, market volatility has been heavily impacted by sector rotations. Over the last year or so, the impact on individual sectors has been extreme. You have a sector go for a good run for a few months, watch a lot of new money bidding up the stocks in the entire sector, and a few months later the entire sector falls right back to where it was. A few recent examples we've covered have been shares of education, auto parts suppliers, and stem cell firms.

Finally, there is a general sense that this time around isn't "the big one" for precious metals. Although there are plenty of reasons to be buying precious metals stocks now and holding for the long-term, it's not likely the last buying opportunity in precious metals stocks.

Silver set to soar

Despite it all, everything is still in place for silver and silver stocks to do exceptionally well in the months and years ahead.

Whether the economy recovers and pushes precious metal safe havens down even lower in price or this is the time precious metals run much higher. History provides all the evidence.

The most important historical silver investment valuation method is the gold/silver ratio. The gold/silver ratio is the measure of how many ounces of silver can be bought for an ounce of gold. For instance, today gold/silver ratio sits at a relatively high at just over 63 (Gold -$939.4/Silver - $14.86).

When we look at how silver prices "slingshot" past gold prices, we identified how far away from normal the gold/silver ratio has gotten:

Right now, the gold/silver ratio is at an extreme. It's slowly working its way back to historical norms, which are much lower.

Over the long term, the gold/silver ratio has averaged about 30. That means one ounce of gold would buy about 30 ounces of silver. The gold/silver ratio hung around 50 for most of 2008.

Today, with silver at $14.60 an ounce and gold at $953, the gold/silver ratio is 65. In other words, an ounce of gold would buy 65 ounces of silver. That's more than twice the long-run average.

Right now, silver is in great position to do well over the short term and long term. It has all the attributes to perform in any type of economic environment. Whether we face deflation (and the inflationary money printing to offset it), inflation, or hyperinflation, silver (and therefore silver stocks) is set to go much higher.

Disclosure: Author currently holds a long position in Silvercorp Metals (SVM), physical silver, and no position in any of the other companies mentioned.

FT.COM ALPHAVILE " INSTANT MARKET INSIGHT"



















Jun 20, 2009

Gata Dispatches: " U.S. Says Smuggled Treasury Bonds were Fake"

Submitted by cpowell on 05:46PM ET Saturday, June 20, 2009. Section: Daily Dispatches Italian Mafia Blamed for $134 Billion in Fake Treasury BillsFrom the Financial Times, LondonThursday, June 18, 2009http://www.ft.com/cms/s/0/82091ec2-5c2f-11de-aea3-00144feabdc0.html?ncli...One summer afternoon, two "Japanese" men in their 50s on a slow train from Italy to Switzerland said they had nothing to declare at the frontier point of Chiasso. But in a false bottom of one of their suitcases, Italian customs officers and ministry of finance police discovered a staggering $134 billion in US Treasury bills.Whether the men are really Japanese, as their passports declare, is unclear, but Italian and US secret services working together soon concluded that the bills and accompanying bank documents were most probably counterfeit, the latest handiwork of the Italian Mafia.Few details have been revealed beyond a June 4 statement by the Italian finance police announcing the seizure of 249 US Treasury bills, each of $500 million, and 10 "Kennedy" bonds, used as intergovernment payments, of $1 billion each. The men were apparently tailed by the Italian authorities.The mystery deepened on Thursday as an Italian blog quoted Colonel Rodolfo Mecarelli of the Como provincial finance police as saying the two men had been released. The colonel and police headquarters in Rome both declined to respond to questions from the Financial Times."They are all fraudulent. It's obvious. We don't even have paper securities outstanding for that value," said Mckayla Braden, senior adviser for public affairs at the Bureau of Public Debt at the US Treasury department. "This type of scam has been going on for years."The Treasury has not issued physical Treasury bonds since the 1980s -- they are handled electronically -- though they still issue savings bonds in paper format.In Washington a US Secret Service official said the agency, which is working with the Italian authorities, believed the bonds were fake.Officials in Tokyo were nonplussed. Takeshi Akamatsu, a Japanese foreign ministry press secretary, said Italian authorities had confirmed that two men carrying Japanese passports had been questioned in the bond case but Tokyo had not been informed of their names or whereabouts."We don't know where they are now," Mr Akamatsu said.Italian officials, while pointing out that hauls of counterfeit money and Treasury bills were not unusual, were stunned by the amount involved. Investigators are looking into the origin and destination of the fakes.Italian prosecutors revealed last month that they had cracked a $1 billion bond scam run by the Sicilian Mafia, with the alleged aid of corrupt officials in Venezuela's central bank. Twenty people were arrested in four countries.The fake bonds were to have been used as collateral to open credit lines with banks, the Reuters news agency reported. The Venezuelan central bank denied the accusations.
* * *Help keep GATA goingGATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:
http://www.gata.org
To contribute to GATA, please visit:
http://www.gata.org/node/16
Contact GATA
info@gata.orgGold Anti-Trust Action Committee
7 Villa Louisa RoadManchester,
Connecticut06043-7541 USA
www.gata.org

Gata Dispatches: "World Gold Council Expects No Impact From IMF Sales "

Submitted by cpowell on 07:23AM ET Saturday, June 20, 2009. Section: Daily Dispatches World Gold Council Welcomes Claritywith Regards to IMF Gold Sales Press Release via Business WireFriday, June 19, 2009http://www.businesswire.com/portal/site/home/permalink/?ndmViewId=news_v...The World Gold Council welcomes the news that the U.S. Congress has passed the Military Supplemental Bill, thereby finalising the process allowing the International Monetary Fund to sell 403.3 tonnes of gold in a manner that will have no impact on the smooth running of the international gold market. This process began with the Crockett Report in 2007, which recommended that the IMF adopt a new income model, including the establishment of an endowment, funded by the proceeds of limited and structured gold sales. More recently at the G-20 Leaders Summit in April of this year, heads of state proposed to use additional resources from the gold sales to provide an extra $4 billion for poor and indebted countries over the next two to three years. This will not impact either the total level or the manner of the gold sales. The IMF has stated publicly that its gold sales should be coordinated with current and future Central Bank Gold Agreements (CBGA), whereby signatories have agreed to limit their gold sales to no more than 500 metric tons annually. Aram Shishmanian, CEO of the World Gold Council, said:"We are pleased to see that the IMF's plan to sell gold in a structured and non-disruptive manner has gone through due political process without problem, which is a credit to the responsible behaviour of all parties involved in the process. These sales will not constitute any net addition to the amount of gold the market is already expecting from official-sector sources as a whole, and therefore we anticipate zero market impact. We believe this announcement, if anything, will lead to positive sentiment among market participants as it clarifies that there will be no net addition to overall gold supply. "In these times of financial instability, gold's universal role as protector of wealth has come to the fore, not least as a crucial part of reserve asset portfolios. The fact that these sales will effectively rescue the IMF from a difficult situation regarding its own finances is proof of gold's unique investment characteristics, long-recognised by central bankers and institutional and retail investors alike." Given the IMF's status as "a lender of last resort," the World Gold Council believes it is imperative that the organisation continues to hold large gold reserves and acknowledges the IMF's public declarations that "the IMF should continue to hold a relatively large amount of gold among its assets, not only for prudential reasons, but also to meet unforeseen contingencies."
* * *Help keep GATA goingGATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:
http://www.gata.org
To contribute to GATA, please visit:
http://www.gata.org/node/16
Contact GATAinfo@gata.org
Gold Anti-Trust Action Committee
7 Villa Louisa RoadManchester, Connecticut06043-7541 USA
www.gata.org

Jun 19, 2009

From the Desk of Nick Nicolaas


As every Friday our Friend Nick Nicolaas from Mining Interactive , reminds us that Adam Hamilton posted his weekly Zeal Intelligence Newsletter. Do not miss it. any commentaries are always wellcome.


Fernando Guzmán Cavero

FGC BOLSA - FGC FINANCIAL MARKETS




Dear Friends:
Adam Hamilton has posted his weekly Zeal Intelligence Newsletter on the Mining Interactive Website. Click here:
http://www.mininginteractive.com/releases/zeal/zeal20090619.pdf Have a great weekend and - - - Stay Tuned!!

Regards,
Nick L. Nicolaas
Mining Interactive “Ahead of the Pack”
Nick L. NicolaasPresident & CEOMining Interactive Corp.http://www.mininginteractive.com/

Direct 24/7: +1 (604) 657-4058Main Office: +1 (604) 569-0800Fax: +1 (604) 569-0758Skype: nicknicolaasnick@mininginteractive.com

Vancouver Stock Exchange Building (1929)Suite 818 - 475 Howe StreetVancouver, BC, Canada V6C 2B3

Stockhouse Gold and Silver Supplement

Stockhouse Gold and Silver Supplement


How much gold should investors hold

Posted: 19 Jun 2009 12:04 PM PDT

You often hear “You need to own gold!” But how much is the right amount?

You don’t want to own too little gold and have the purchasing power of all your savings shrink dramatically. You can’t afford that. But you don’t want to be an end-of-the-world nutcase either.

Well, one of the world’s shrewdest investors – Jean-Marie Eveillard – has 10% to 12% of his extremely successful investment fund allocated to gold and gold plays.

Jean-Marie Eveillard’s First Eagle Global Fund beat the stock market every year this decade. What’s more, he’s done it conservatively. He doesn’t take big risks. Over 30 years, he’s proven to be one of the most successful mutual fund managers ever.

So what’s Jean-Marie Eveillard recommend buying today?

“After equity markets have gone up 35%-40% or more over the past three months, ideas that are immediately appealing are few,” he told Bloomberg news today. But he did have one big idea … gold.

Right now, his fund is about 10% invested “in gold and gold mining securities,” he said.

His explanation is simple: “It’s insurance to protect against the fact that current policies by the American government and the Fed are potentially wildly inflationary.”

Jean-Marie likes gold because he expects the Fed will leave interest rates near zero for a very long time.

The Fed will “stay pat until the politicians give them the green light to raise rates, which will take quite a while. As long as unemployment is very high, politicians will be reluctant to push up short-term rates.”

When I got into investing nearly 20 years ago, Jean-Marie was already a legend. After doing my homework, his First Eagle Global Fund was one of the very first investments I ever bought (Back then, it was called the SoGen fund – it still uses its old symbol, SGENX).

Jean-Marie started managing the fund in 1979. If you had invested $10,000 in the fund back then, it would be worth roughly $500,000 today (Heck, I should have kept my money in there)!

His “big idea” now is very simple. Gold pays no interest. And money in the bank pays nearly no interest. You can print money. But you can’t print gold. If the Fed keeps interest rates near zero for the foreseeable future, the obvious outcome is that it will take more slips of paper (dollar bills) to buy an ounce of gold.

He believes his clients’ money should be about 10% or so allocated to gold and gold investments. What’s right for your situation? That’s up to you. But if you’re substantially under or over the legendary investor’s gold allocation, then you ought to consider getting more in line with him.

Adam Hewison::"13 Forex Pairs Analyzed on the fly!"

This video Adam has sent us is unbelievable, 13 pairs analized using the Market Club Trade Triangle technology" please Just tell me if I am wrong when I say:There are good market analysts, but this forex analysis of 13 pairs you had never seen with the professional approach, knowledge,experience and honesty that Adam always has shown us in his presentations. It Is AAA+ . If you miss it , well, what can I say? It's up to you fellows. Below Adam's transcription:



AS always comments are wellcome.



Fernando Guzmán Cavero

FGC BOLSA -FGC FINANCIAL MARKETS


We are going to be doing something a little bit different today as we analyze the forex markets. Examining the forex markets is nothing new, but we have never gone through 13 pairs of cross rates on the fly. I also show you a quick and effective way to analyze the dollar index at the same time.
In my new video I look at all the major cross rates in a way to quickly tell if you should be in or out of the market.
I am basing my forex observations on our “Trade Triangle” technology and will gladly show you how we apply them to any currency cross rate. It is a quick and easy lesson that will show you exactly what I look for when I’m going to go into a market. You ca view it in the link below:




The video is free to watch and there is no need to register. I would love to get your feedback about this video on our blog.


All the best,
Adam Hewison

President, INO.com

Co-creator, MarketClub







Jun 18, 2009

Gata Dispatches: " Congress Approves IMF Gold Sales, Line of Credit"

Congress approves IMF gold sales, line of credit
Submitted by cpowell on 04:46PM ET Thursday, June 18, 2009. Section: Daily Dispatches Congress Backs War-Funding Bill, 'Cash for Clunkers'By Brian FalerBloomberg NewsThursday, June 18, 2009http://www.bloomberg.com/apps/news?pid=20601103&sid=azS1VwKeTbKoWASHINGTON -- A $106 billion war-spending bill won final congressional approval after the Senate voted to retain a "cash for clunkers" provision aimed at helping the auto industry. Action by the Senate today sends the measure to President Barack Obama for his signature. The Senate passed the bill on a 91 to 5 vote; the House approved the measure earlier this week. Sen. Judd Gregg, a New Hampshire Republican, led the effort to drop a provision providing as much as $4,500 to people who trade in their vehicles for more fuel-efficient models. He said the plan, which would cost $1 billion, was a poor use of tax dollars when the government is projected to run its biggest budget deficit since 1945. "It is a clunker," Gregg said of the plan. "Why should our children and our grandchildren have to pay the bill" for the government subsidizing "somebody to buy their car today? How fiscally irresponsible is that?" he said. Sen. Debbie Stabenow, a Michigan Democrat, said the proposal was needed to help auto dealers hit by an "economic tsunami." She said the plan would "help those who have been having an extremely difficult time just holding their head above water." The legislation provides more than $82 billion to fund military operations in Iraq and Afghanistan, which would bring total spending on the wars to more than $900 billion. Voting against the bill in the Senate were Republicans Tom Coburn of Oklahoma, Jim DeMint of South Carolina, and Mike Enzi of Wyoming, Democrat Russ Feingold of Wisconsin, and independent Bernie Sanders of Vermont. Lawmakers included in the bill $2.7 billion to buy eight C-17 aircraft made by Boeing Co. and seven C-130 aircraft manufactured by Lockheed Martin Corp. Another $600 million would go to purchase four F-22 aircraft, also produced by Lockheed Martin. Lawmakers agreed to Obama's request to include $5 billion to secure $108 billion in aid, primarily in the form of a line of credit, to the International Monetary Fund. The legislation would permit U.S. representatives to the IMF to agree to its planned sale of 13 million ounces of gold, one-eighth of the organization's holdings, to help finance aid to poor countries. The bill also would provide $7.7 billion for pandemic flu programs. The "cash for clunkers" provision provides temporary rebates to those buying cars that get at least 4 miles more per gallon than their trade-ins. Truck purchases could qualify if the purchased vehicle gets as little as 1 more mile per gallon than the trade-in. The purchased vehicles, which must be new and cost no more than $45,000, must be bought between July 1 and Nov. 1 to qualify. Critics, including some Democrats, said the plan would subsidize the purchase of gas-guzzling sport-utility vehicles while not helping the market for used hybrid cars. Backers of "cash for clunkers" needed 60 votes to thwart Gregg’s bid to strip it from the bill, and they hit that mark exactly. The vote to retain the provision was 60-36. Lawmakers split largely along party lines, with just four Republicans backing the program and only one Democrat opposing it. Other provisions would allow the Pentagon to transfer suspected terrorists held at the military prison at Guantanamo Bay, Cuba, to the U.S. for trial, though not for long-term incarceration or release. Lawmakers set aside $534 million for special payments to troops who have served under “stop-loss” orders that have prevented them from returning home at the end of their regular tours. The bill would provide $500 for every extra month served since the Sept. 11 terrorist attacks. The White House has said the legislation will be the last time the administration relies so-called "supplemental" appropriations bills to pay for war-related expenses. Such bills, which are considered outside Congress’s annual budget process and are exempt from yearly spending caps, are supposed to be reserved for unexpected expenses. Former President George W. Bush relied on the bills to fund the Iraq and Afghanistan conflicts, which critics, including some Republican lawmakers, said made it more difficult to keep spending in check. The bill is H.R. 2346.
* * *Help keep GATA goingGATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

http://www.gata.org/

To contribute to GATA, please visit:
http://www.gata.org/node/16

Contact GATAmailto:GATAinfo@gata.org

Gold Anti-Trust Action Committee

7 Villa Louisa RoadManchester, Connecticut06043-7541 USA
http://www.gata.org/

Forbes.com Alerts: "Obama's Titanic Regulatory Overhaul"

The president's massive regulatory overhaul is reminiscent of the Britannic.

Click the link below to read the full story:
http://www.forbes.com/2009/06/18/bill-singer-obama-intelligent-investing-regulate-banks.html?partner=alerts

Jun 17, 2009

Stockhouse Gold and Silver Supplement

Stockhouse Gold and Silver Supplement


Signs gold is going mainstream

Posted: 17 Jun 2009 01:48 PM PDT

Are we there yet? Are we there yet? We gold bugs are like little kids on a trip to the zoo; we just can't wait to get there. "There" being the elusive point in time when the gold mania (no, make that Gold Mania) hits and everyone and their cat will want to invest in the yellow metal. Which, of course, will propel its price to dizzying heights. $1,500… $2,000… $5,000 an ounce – the sky's the limit. At least that's how the theory goes.

But it's not just a theory anymore: in the past year, we've been seeing unmistakable signs that gold indeed may be going mainstream.

For example, we have always said that when the Mania phase of this gold bull market really got underway, mobs would break down the doors of pawn shops and coin dealers in order to get their fill of the yellow metal.

While most pawn shops' doors are still intact, that trend seems to have already begun. In August 2008, the U.S. Mint temporarily suspended sales of the one-ounce American Gold Eagle and in September of the American Buffalo coin, because it couldn't keep up with customer demand.

In December, bullion dealers from Johannesburg to New York City were starting to run out of gold coins when investors caught in the economic downturn scrambled to get into safe-haven assets. The sudden "gold rush" was so extreme that large coin dealers posted disclaimers on their websites that their customers should expect delivery times of a month or more.

According to the World Gold Council, in the first quarter of 2009, "the biggest source of growth in demand for gold was investment. Identifiable investment demand reached 595.9 tonnes in Q1, up 248% from 171.3 tonnes in Q1 2008."

At the same time, there is a counter-trend in motion: cash-strapped Americans are selling their scrap gold like there's no tomorrow. All over the country, housewives throw Tupperware-style parties to sell their gold jewelry by the ounce, often at a steep discount to market price. And businesses like cash4gold.com – which, by the way, we do not recommend – are popping up like mushrooms after a summer rain.

But even Joe the Plumber may soon be enticed to turn from seller to buyer. Even if he never sets foot into a coin store, he'll be able to get his share of gold – in easily affordable, and portable, slices. And he won't have to look any further than his nearest airport, bus or railway station.

A German company has come up with a brand-new marketing concept for the yellow metal: shop for gold while you wait.

Asset management company TG-Gold-Super-Markt is planning to set up 500 ATMs at strategic locations all over Germany. The machines will distribute one-gram (0.0353 oz) mini-bars of gold, about the size and thickness of a child's fingernail. The tiny gold pieces will cost 31 euros – around US$44 – which includes a hefty 30% markup to spot.

Thomas Geissler, chief executive of TG-Gold-Super-Markt, told Reuters that this new way of selling bullion "is an appetizer for a strategic investment in precious metals. Gold is an asset everyone should have, between five and 15 of your liquid assets in physical gold."

Even though Geissler admitted that "In absolute numbers, the demand for physical gold is still tiny," he sees a very bright future for the yellow metal. "[In] relative terms, the growth is explosive," he noted, "inquiries have been doubling every six months."

Are gold ATMs the go-to "gold mine" of the future? While we wouldn't necessarily bet on it, Geissler is. And the fact that he thinks it a lucrative enough business to set them up is no doubt encouraging. It's moves like these that we think we'll see more of as gold becomes increasingly popular. The countdown for the moon shot is on.

As you may know, the BIG GOLD editors go even further than Thomas Geissler: we recommend that you hold up to 33% of your overall portfolio in physical gold, 33% in cash, and 33% in select investments. One of those investments may be one you've never heard of before. Yet it has given our subscribers 54% returns in 2008 – at the same time the common stock market was plummeting. Read our brand-new report here.