No Fed Rate Hike Good for Gold, Bad Sign for Economy

Joe McAlinden, founder of McAlinden Research Partners and former chief global strategist with Morgan Stanley Investment Management, was disappointed that the Fed “blinked.” He called the decision irresponsible and attributed it to worries about China’s growth. The veteran investor saw the status quo as bullish for precious metals and oil, but warned, “As the Fed continues to postpone moving towards normalization of interest rates, the potential for future inflation from years of excessive stimulation increases with every delay of the end of the zero interest rate policy.” He continued, “Based on today’s decision, we now need to watch economic data from China and the performance of the markets themselves. I do not believe that the Fed’s focus on those points is appropriate. Nonetheless, it is now clear that these will influence the timing of the next Fed move. Also, and more appropriately, we should be watching average hourly earnings, overall … Continue reading

When Gold Escapes the Pork Belly Trap, Casey’s Louis James Wants to Own These Seven Companies

The Gold Report: You recently observed in your newsletter that gold has been acting more like a commodity, like pork bellies, than like a currency. That misclassification has discounted the value of precious metals, depressing the price. Why do you think that is? Louis James: Commodities, as a group, tend to move together. We see it with copper and other industrial metals, and we see it in other commodities, including pork bellies. The commodities index is not just an average line. It actually is fairly representative of the sector as a whole. That matters right now because the trend for commodities is downward, plus the fundamentals are. . .scary. China’s slowdown is accelerating, for example. If gold were just another commodity used to make jewelry or fillings, it would be logical to lump it in with iron ore—and therefore be bearish. But it plays another role that is much more … Continue reading

Commodities Are Having A Good Day

Dudley Pierce Baker September 16, 2015 VIVA MEXICO – This is Mexican Independence Day Today we have commodities doing very well as we write: Gold at 1120.50 up $18 Silver at 14.92 up .52 Crude at $47.05 up 2.46 Copper at 2.45 up .02 Perhaps it is time to get excited about finding opportunities? We think so, Visit our unique website: Common Stock Warrants and explore the wealth of opportunities Enjoy the day, Dudley Pierce Baker http://JuniorMiningNews.com http://CommonStockWarrants.com … Continue reading

Jim Rogers on Timeless Investing Strategies You Can Use to Profit Today

Jim Rogers on Timeless Investing Strategies You Can Use to Profit Today By Nick Giambruno September 15, 2015 Recently I spoke with Jim Rogers about the most important investment lessons he has learned over the years. Jim is a legendary investor and true international man. He’s always ahead of the game. Jim made a bundle by investing in commodities in the 1990s when they were out of favor with Wall Street. He’s also made large profits investing in crisis markets. Jim and I spoke about timeless strategies that are truly essential to being a successful investor. You won’t want to miss this fascinating discussion, which you’ll find below. Nick Giambruno: You’ve said that many times throughout history, conventional wisdom gets shattered. What are some widely held beliefs that will be shattered in the next 10 years? Jim Rogers: That’s a very good question. Well, for one thing, I know bond … Continue reading

Thomas Drolet Warns of a Coming Grand Canyon of Uranium Supply Deficit and Shares Three Ways to Profit by It

The Energy Report: We have heard for years that Japan could be restarting its reactors any time. Is it really happening now? Thomas Drolet: It is happening; one has just restarted. The intelligence I have gathered from my visits and telephone conferences with Japanese utility people since the Fukushima-Daiichi accident indicates that the restart will be measured, formal and slow. Only 25 of the original 54 reactors will eventually be restarted, in my opinion. The reasons are varied, but include local opposition, proximity to fault lines, regulatory barriers and excessive capital reinvestment needs. TER: Once they are restarted, how long will it take to work through Japan’s uranium supply backlog? TD: Utilities—and Japanese utilities are no different than North American, European or Canadian utilities—prefer to buy in the long-term markets. They usually buy somewhere between two and five years’ forward supply. That has left the nine Japanese utilities that have … Continue reading

Veteran Investment Strategist Joe McAlinden Reverses View, Predicts Recovery for Gold, Oil and Housing

The Gold Report: For more than a decade, you led Morgan Stanley Investment Management’s global investment strategy; now you own your own research firm based on your observations of the industry for more than 50 years. How do you explain the volatility in the markets right now and how should investors position themselves to prepare for what is coming? Joe McAlinden: It has been a wonderful bull market, a wild ride going all the way back to 2007 when the market made its top. That was followed by a horrendous plunge. We’ve not only made that back, but the market has reached highs that were 36% above the 2007 highs. I had been concerned recently, however, that price-earnings ratios have become elevated and we are seeing other spooky similarities to the conditions that prevailed prior to the 1987 crash, including the absence of a more than a 10% correction for … Continue reading

Veteran Investment Strategist Joe McAlinden Reverses View, Predicts Recovery for Gold, Oil and Housing

The Gold Report: For more than a decade, you led Morgan Stanley Investment Management’s global investment strategy; now you own your own research firm based on your observations of the industry for more than 50 years. How do you explain the volatility in the markets right now and how should investors position themselves to prepare for what is coming? Joe McAlinden: It has been a wonderful bull market, a wild ride going all the way back to 2007 when the market made its top. That was followed by a horrendous plunge. We’ve not only made that back, but the market has reached highs that were 36% above the 2007 highs. I had been concerned recently, however, that price-earnings ratios have become elevated and we are seeing other spooky similarities to the conditions that prevailed prior to the 1987 crash, including the absence of a more than a 10% correction for … Continue reading

NexGen Energy: A Bold New Uranium Venture for a World in Short Supply

The Energy Report: Will the no-longer hypothetical restart of the Japanese nuclear reactors move uranium prices into the production range? Leigh Curyer: The restart of the first reactor since Fukushima is very good for our business, psychologically. Japan does not have the capacity to fill its power grid with fossil fuels. It needs nuclear power to provide the country with sustainable and cheap power. On top of that, the carbon emissions from fossil fuels are not sustainable globally. Another positive of the reactor restart, beyond the psychological effects, is the fact that there was a fear that Japan was going to flood the market with some of its stockpiled uranium. But that fear has now been predominately removed. There are a number of Japanese reactors in the final stages of safety review and approval, which should only help to eliminate that risk of Japan’s stockpiles entering the spot market. “Because … Continue reading

Flinders CEO Blair Way: What Tesla Needs to Know about the Graphite Sector

The Gold Report: What is the state of the current global graphite market and what impact might Tesla’s construction of a battery Gigafactory in the desert in Nevada have on future demand for the mineral? Blair Way: Because graphite is used in many energy-related applications (including electric vehicles, Pebble Bed Nuclear Reactors, fuel cells, solar panels and electronics ranging from smartphones to laptops), it has been categorized as a critical, strategic mineral by several governments including the United States and Europe. What does this really mean? At this point in time it means nothing—graphite is in oversupply and prices are low. However, if China decided to stop supplying graphite to the world, then the West would be in trouble. This is highly unlikely to ever happen. As far as the impact of the Tesla plant on the greater market, that’s yet to be defined in detail, but it will create … Continue reading

Flinders CEO Blair Way: What Tesla Needs to Know about the Graphite Sector

The Gold Report: What is the state of the current global graphite market and what impact might Tesla’s construction of a battery Gigafactory in the desert in Nevada have on future demand for the mineral? Blair Way: Because graphite is used in many energy-related applications (including electric vehicles, Pebble Bed Nuclear Reactors, fuel cells, solar panels and electronics ranging from smartphones to laptops), it has been categorized as a critical, strategic mineral by several governments including the United States and Europe. What does this really mean? At this point in time it means nothing—graphite is in oversupply and prices are low. However, if China decided to stop supplying graphite to the world, then the West would be in trouble. This is highly unlikely to ever happen. As far as the impact of the Tesla plant on the greater market, that’s yet to be defined in detail, but it will create … Continue reading