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Vanadium: An Infrastructure Essential With Major Potential Use in Energy Storage and Green Energy

Editor — Mon, 21 May 2012 04:03:51 +0000

In this infographic, (sponsored by Largo Resources Ltd., a member of the Forbes & Manhattan group of companies) we look at the primary uses for vanadium, its supply and future applications that could potentially affect the metal’s demand.

The infographic below comes from* www.visualcapitalist.com and is made available by Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!). This paragraph must be included in any re-posting to avoid copyright infringement.

Vanadium is a grey transition metal used primarily as an additive to steel and as a chemical catalyst. Vanadium is also a key part of future green technology: vanadium is a potential source of energy through vanadium redox batteries and lithium-ion battery cathodes.

*http://www.visualcapitalist.com/portfolio/vanadium-a-strengthening-alloy-charged-with-potential (To access the article please copy the URL and paste it into your browser.)

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Related Articles:

1. This Interactive Table of Commodity Returns Is Easy to Use – Try It

Natural resources are the building blocks of the world, essential to progress and prosperity. These commodities, like all investments, can have wide price fluctuations over time. The interactive table provided shows the ebb and flow of commodity prices over the past decade and illustrates the principle of mean reversion—the concept that returns eventually move back towards their mean or average. [Take a look.]

2. Graphite: The Newest HOT Resource Investment! Here’s Why

The word ‘fad’ doesn’t exist in the minds of true miners and prospectors. However, fads are something that people like you and I can make a lot of money investing in if we are ahead of the curve and right now I believe the graphite sector is in the early stages of the ‘fad’ and will provide a ton of profitable opportunities. [Let's take a look at just why, where and when you should get positioned in this fast developing sector.] Words: 1535

3. Unlike Gold, Bull Market in Copper to Continue for Decades – Here’s Why

Gold and silver continue to receive the lion’s share of press headlines and investment writers’ attention. [While] our team believes this theme will continue, there are other assets which benefit from a weak dollar, especially if a weak dollar is combined with some decent economic activity. [One such asset] is copper, a base metal that, like gold and silver, [that will] appreciate with inflation and has tremendous potential for increased demand given the theme of 2012 – economic growth. [Let me explain in some detail why we think that is the case.] Words: 1150

4. The Implications of Coming “Peak Copper” for America – and the World!

About two years ago, I looked through a BHP Billiton presentation which listed the number of years remaining for particular commodities. It was not an analysis of “peak” commodities as such, just a report on when various commodities would be completely, 100% depleted based on current usage rates and reserve assumptions. Copper in that report was determined to be scarcer than oil! [What does that mean for the future well-being of the U.S. - and the world?] Words: 1380

5. Uranium: Talk About a Growth Industry!

There are 436 nuclear power reactors operating in 30 countries around the world today, providing approximately 15% of the world’s electricity, and according to the World Nuclear Association, another 50 power reactors are currently being constructed in 14 countries with over 130 more power reactors being planned and 250 more being proposed. Talk about a growing industry! Words: 776

6. Tantalum: How Tantalizing

From what we know about the many and growing market applications for tantalum, the impending supply shortage of tantalum, the present low price for tantalum and the historic high price tantalum commanded just a few years ago it is evident that the future price of tantalum has no where to go but up – big time! Words: 624

Canadian Oil Sands: World’s Single Largest Petroleum Resource and…

Editor — Mon, 21 May 2012 03:42:27 +0000

The Canadian oil sands are the world’s single largest petroleum resource at 1.7 trillion barrels. With conventional oil supply decreasing, heavy oil projects such as the oil sands become more attractive economically to meet the needs of growing demand. While environmental concerns about the oil sands remain, the options for plentiful, cost efficient, and clean oil sources are limited.

So says the introduction to the infographic below by www.visualcapitalist.com and presented by the editor of www.munKNEE.com (Your Key to Making Money!). This paragraph must be included in any re-posting to avoid copyright infringement.

*http://www.visualcapitalist.com/portfolio/the-canadian-oil-boom-oil-sands-intro (To access the article please copy the URL and paste it into your browser.)

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Related Articles:

1. These 10 Charts Should Put Your Mind at Ease Regarding Canada’s Oil Sands

The following charts come straight from the Canadian Association of Petroleum Producers in an attempt to put the benefits and impact of Alberta, Canada’s oil sands into proper perspective from their point of view. Take a look and I think you will be favourably impressed. Words: 540

2. Canada’s Oil Sands to Have $520 Billion Impact on U.S. Economy: Here Are the Facts, State by State

Canada is the largest supplier of oil to the U.S. When the U.S. imports oil from Canada, the spin-off economic benefits are substantial. The interactive map of the U.S. below will let you calculate the economic impact generated in each U.S. state from new oil sands projects in Alberta, Canada. Words: 592

3. A Look at the Canadian Oil Sands: the U.S.’s #1 Source of Supply

The third largest source of oil in the world is the Canadian oil sands and the United States already imports more of it from there than from anywhere else. With oil prices on the rise, the controversial oil sands are likely to become even more economically viable, despite experts’ warnings about environmental risks [and the political and environmental gamesmanship to block the Keystone pipeline project from there to refining facilities in the U.S.]. Below are 12 incredible facts about the oil sands. Words: 408

4. The Oil Sands are NOT the “Tar” Sands and 9 More Interesting Facts

The oil sands in northern Alberta are crucially important to the Canadian economy. People from all over the country are traveling there to find work. The news is filled with controversy over proposed pipelines (the Keystone XL and the Northern Gateway) to carry the oil to export markets. Here are 10 things everyone should know about the oil sands. Words: 878

5. Canada’s Oil Sands: “The World’s Dirtiest Commodity”?

When you think of Canada, which qualities come to mind: the world’s peacekeeper, the friendly nation, a liberal counterweight to the harsher pieties of its southern neighbour, decent, civilised, fair, well-governed? Think again. This country’s government is now behaving with all the sophistication of a chimpanzee’s tea party. Words: 1377

6. How ‘Crude’ are Canada’s Oil Sands?

The carbon footprint left by Canada’s oil sands has been a target of criticism for years with many environmentalists suggesting that the extraction and processing of bitumen from Alberta’s northern oil sands is “two to three times worse” for the environment than any other supply of oil on the planet. Is that legitimate criticism? Words: 692

Bonds Are NOT a Safe Place to Be – Here’s Why

Editor — Sun, 20 May 2012 18:16:02 +0000

For those who think bonds are a safe place to be, you might want to reconsider. In addition to rising sovereign risk (yes, for the U.S. as well as other countries), there is interest rate risk….[should you not] hold it to maturity. If interest rates rise, then the value of your bond falls (Bonds can produce capital gains/losses, just like stocks.) and the possibility of interest rates rising is pretty good. Words: 530

So says ”Monty Pelerin” (a pseudonym derived from The Monty Pelerin Society) in edited excerpts from his original article* as posted at www.economicnoise.com.

Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!), has edited the article below for length and clarity – see Editor’s Note at the bottom of the page. This paragraph must be included in any article re-posting to avoid copyright infringement.

Pelerin goes on to say, in part:

Here is a graph of 10-year Treasury bond rates:

The only comparable period in this 200 plus years to our current level of interest rates was the latter part of the Great Depression. During that period, deflationary pressures kept interest rates low.

Economists have a simple rule of thumb regarding interest rates. They have a hypothetical risk-free rate which they assume to be 3%. This rate cannot be seen, although is assumed to be, the rate paid on short-term government securities (which used to be considered as having a zero percent chance of default).

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In a non-inflationary world, Treasuries would presumably pay 3%. In an inflationary world, Treasuries would presumably pay this 3% plus a premium equal to the expected inflation rate over the course of the bond. Thus, if you anticipated a 3% inflation rate, you would be willing to buy Treasuries that paid a return of 6%.

In the Great Depression, the inflation rate was negative (i.e., deflation). 3% minus some number explains why interest rates were so low then but there is no market rationale for interest rates being so low [now]. They are because of the Fed’s “operation twist” whereby they (last year) bought 61% of new Treasuries. That cannot go on much longer.

There are two things to worry about:

If you own 10-year Treasuries and interest rates rise to a more normal level, you will incur a capital loss if you dispose of the bonds prior to maturity.
If interest rates rise, government interest expense will double or triple from the amounts being paid today. That potentially triggers a debt death spiral, where government has to borrow more than otherwise expected. It also raises the credit risk and could ratchet interest rates up again. Greece’s short-term interest rates approached 100%, months ago. Spain and Portugal ratcheted up into the twenties. The same thing can (and eventually will) happen here unless deficits are dramatically reduced.

The distortion in interest rates is only one of the distortions embedded in our economy.

For years the Fed and government have been propping up the economy with low interest rates and fiscal policies designed to stimulate. As a result, the price distortions and capital misallocations are large. They are also unsustainable. All of this will eventually overwhelm the government’s attempt to pretend and extend and end up in another Great Depression.

*http://www.economicnoise.com/2012/05/19/why-are-interest-rates-so-low/ (To access the above article please copy the URL and paste it into your browser.)

Editor’s Note: The above article may have been edited ([ ]), abridged (…), and reformatted (including the title, some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. The article’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article.

Related Articles:

1. With Options So Limited Where Should We Invest?

The fear factor among investors is high with investors unsure just where to put their money. Let’s review the options and come to a conclusion as to where best to invest our cash at this point in time. Words: 402

2. This New ‘Peak Fear’ Indicator Gives You an Investment Edge

We are at a major crossroads in the equity and bond markets. We could see a major ‘risk-on’ rally in the S&P 500 BUT if no equity rally ensues, and U.S. Treasury note yields keep falling, then something terrible is about to strike at the heart of the global capital markets…. [As such, it is imperative that you keep a close eye on this new 'Peak Price' indicator. Let me explain.] Words: 450

3. Will U.S. Gov’t Eventually Mandate that ‘x’ % of IRA/401K Funds Be In Treasuries?

The notion of government raiding personal retirement accounts for funds may seem extreme…but other governments have done it. Argentina did in 2008, Ireland has indicated it might [and the U.S. might well do so as it's] financial crisis worsens. This article puts forth reasons why it is possible they would undertake such a grab or ‘confiscation’ of your retirement accounts and how they likely would go about implementing such an event. Words: 700

4. Tom Fitzpatrick: Stocks to Go Down 27%, Bonds to Go Up to Extreme Levels, Gold to Remain Firm

A top analyst at Citibank has told King World News that global stock markets are set to plunge 27%…the panic will move global bond markets to extreme levels, but gold will remain firm.

5. Larry Edelson: Inflation Surge Coming No Later Than September! Here’s Why

There’s also no doubt in my mind that another inflationary surge is right around the corner….probably starting no later than September. [Here's why and where you should invest to get the greatest bang for your buck.] Words: 785

6. Michael Pento Doubts U.S. Can Inflate Its Way Out of Debt – Here’s Why

Michael Pento, president of Pento Portfolio Strategies, and Peter Tchir, founder of TF Market Advisors, talk about Nobel Prize winner Paul Krugman’s recommendation that policy makers should consider allowing slightly higher inflation as a way to spur the U.S. economy.

7. Insights into the Bond Market and How to Trade Them

Although the stock market is the first place in which many people think to invest, the U.S. Treasury bond markets arguably have the greatest impact on the economy and are watched the world over. Unfortunately, just because they are influential, doesn’t make them any easier to understand, and they can be downright bewildering to the uninitiated. [This article provides you with an excellent understanding of what bonds are, the advantages of owning them and how to go about trading them.] Words: 1325

8. Gold Bullion, Stocks or Bonds: Which Have More Long-term Investment Risk?

In proclaiming buy-and-hold investing to be dead, the pseudo-experts masquerading as financial advisors have abandoned the fundamental principle of investing: buying undervalued assets – and then giving those assets the time necessary to mature. Instead, these charlatans have forced their clients to become short-term gamblers. Worse still, they are now consistently steering their clients toward the worst possible asset-classes, stocks and bonds, rather than the best ones [simply because they do not] understand the fundamental conceptual difference between risk and volatility. In a market populated by panicked lemmings, we cannot avoid volatility. However, we can and must reduce risk – which begins by building an allocation of history’s true safe haven asset, precious metals. [Let me explain more about what risk and volatility are and are not.] Words: 1080

With Options So Limited Where Should We Invest?

Editor — Sat, 19 May 2012 21:30:14 +0000

So says David Urban in paraphrased comments from a recent article* posted on Seeking Alpha.

Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!), has edited the article below for length and clarity – see Editor’s Note at the bottom of the page. This paragraph must be included in any article re-posting to avoid copyright infringement.

Urban goes on to say, in part:

Option #1: European banks? - Not based on the news this week which saw ratings cuts by Moody’s on Italian and Spanish banks.

Option #2: European sovereign debt? Given the risk from a potential Greek exit from the EU and problems in Italy, Spain and Portugal that option is highly unlikely.

Option #3: U.S. banks? Given the recent loss at JPMorgan that calls that strategy into question.

Option #4: U.S. Treasuries? With yields at their present lows they provide what Jim Grant has coined “return-free risk.”

Option #5: European stock markets? Across Europe have fallen as risks from Greece and Spain begin to properly price themselves into the markets.

Option #6: The U.S. markets? They have lagged behind on false hopes that economic growth will be strong enough to decouple from the world but recent economic releases have caused that theory to be rethought.

Option #7: Gold? For more than a decade now gold has provided yearly gains without a loss and while some may state that gold is in a bubble they could not be farther from the truth. A bubble would imply that everyone is rushing out to buy the yellow metal. Even at the peak last summer my local jewelry store had lines of people wanting to sell rather than buy. In contrarian fashion that indicates the bull market is far from over.

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Central banks around the world continue to add to their gold stakes with China, Russia (16.5 tons purchased), Turkey (11.48 tons) and Mexico (16.8 tons) making major purchases during the first quarter. Argentina made its first purchase since 2005 with the Central Bank adding 7 tons.

Conclusion

While we are into a seasonally slow month for gold the downside risk is limited….[so having a good proportion of my portfolio in gold seems like the prudent thing to do at this point in time].

*http://seekingalpha.com/article/600981-nearing-a-bottom-on-gold?source=email_macro_view&ifp=0 (To access the above article please copy the URL and paste it into your browser.)

Editor’s Note: The above article may have been edited ([ ]), abridged (…), and reformatted (including the title, some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. The article’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article.

Related Articles:

1. Update: 51 Analysts Now Maintain that Gold is Going to $5,500 – $6,500/ozt. in 2015!

Lately analyst after analyst (161 at last count) has been climbing on board the golden wagon with prognostications as to what the parabolic peak price for gold will eventually be. That being said, however, only 51 have been bold enough to include the year in which they think their peak price estimate will occur and they are listed below. Take a look at who is projecting what, by when and why. Words: 644

2. Goldrunner: Fractal Gold Analysis Says Gold On Way to $3,500 Mid-year!

Our Fractal Model suggests the wave for Gold in US Dollars will sweep up into the $3500 to $3600 area into the mid-year time-frame. The leading edge of that time-frame begins in May and extends out for a few months. A potential for Gold to spike to a $3900 extended fib level exists. Like all parabolic moves in Gold, the late stages create the biggest price movements. Personally, I would be happy with a huge Gold run up to the $3200 level. Words: 1400

3. Alf Field: Correction in Gold is OVER and on Way to $4,500+!

There is a strong probability that the correction in the price of gold [down to $1,523] has been completed. The up move just starting should be…the longest and strongest portion of the bull market…at least a 200% gain… [to] a price over $4,500. The largest corrections on the way to this target, of which there should be two, should be in the 12% to 14% range. [Let me explain how I came to the above conclusions.] Words: 760

4. Is Gold About to Go Parabolic to $3,495 in June ’13; $10,899 in Sept. ’14 and Top Out at $32,659 on Jan. 16, 2015?

According to a recent Elliott Wave theory analysis gold is about to go parabolic reaching $3,495 in June 2013, $6,233 in April 2014, $10,899 in Sept. 2014, $18,712 in December 2014 and culminating in a parabolic peak price of $31,672 on January 16th, 2015! See the chart below. Words: 600

5. New Analysis Suggests a Parabolic Rise in Price of Gold to $4,380/ozt.

According to my 2000 calculations, if interest rates and inflation stay constant over the next 2 years, we could expect to see (with 95.2% certainty) a parabolic peak price for gold of $4,380 per troy ounce by then! Let me explain what assumptions I made and the methods I undertook to arrive at that number and you can decide just how realistic it is. Words: 740

6. David Nichols: Expect to See $2,750 – $3,000 Gold By June 2013 – Here’s Why

The interim peaks in gold have been spaced 21 months apart over the past 6 years and have seen gains from 80.2% to 97.3%. As such, given the fact that the low of this last correction came in at $1,524 four months ago, we can expect gold to reach a new peak price of $2,750 to $3,000 in 17 months time (i.e. June/July 2013). [Let me explain in more detail.] Words: 976

7. Leeb: Gold Going to $3,000 Before the End of 2012!

The Fed is [going to] keep interest rates at zero until the end of 2014 [and that] is as aggressive as it gets and as bullish as it gets for gold. Inflation will be let out of the bag, maybe for the next three to four years. In this environment gold and silver are the best investments around…We are really talking about the next leg higher in this bull market…This is the leg I expect to take gold to $3,000 before the end of 2012.

8. Rebound Ratio Suggests New High for Gold By Mid-year

[While] some investors are frustrated,, and a few are worried that gold seems stuck in a rut [such a] stall in price has happened before…[but has] always eventually powered to a new high…[Let's] examine the size and length of past corrections and how long it took gold to reach new highs afterward. Words: 740

9. Charles Nenner: Dow to Peak in 2012 and Then Decline to 5,000!

Charles Nenner has been accurately predicting movements in the liquid markets for more than 25 years, and his most recent cycle analysis predicts that the current stock market rally is going to last through Q2 and then begin a major descent in 2013 – with the Dow eventually reaching 5,000! Read on to learn how Nenner’s unique system works and what he forecasts for commodities, currencies, bonds, interest rates and more. Words: 400

10. We’re In For a “Bummer of a Summer” – Here’s Why

We are in for another bummer of a summer, with the Dow tumbling over the next several months to the 12,000-12,200 range…. [Let me explain why and how best to protect your portfolio and profit from what is unfolding.] Words: 580

11. Pento: Markets Will Fall Significantly This Summer – Here’s Why

Investors are being told that the worsening sovereign debt crisis in Europe will leave the U.S. economy unscathed….[because,] since we don’t make many things to export to Europe, our GDP won’t suffer a significant decline at all…. What [has been] conveniently overlooked, [however'] is the fact that 40% of S&P 500 earnings are derived from foreign economies and the seventeen countries that make up the Eurozone have collapsed into recession. [Let me explain what effect that will have on the performance of the S&P 500 this summer.] Words: 325

12. We’re at the “Beginning of the End” for the Markets – Here’s Why

We are now at the mercy of oil and the commodity markets. Bernanke’s plan to print our way to prosperity is destined to fail. Ultimately, he is just going to spike inflation and collapse the global economy, resulting in a worse downturn than what we saw in 2008/09. Let me explain. Words: 510

13. NOW Is the Time to Get Out of the Stock Market! Here’s Why

With the S&P 500 at its highest level since the summer of 2008, investors previously sidelined by reoccurring fears of a double dip recession and nagging worries about a disorderly Greek default may now be tempted to hold their noses and dive into the market where, presumably, they will be swept along to the land of outsized profits by the Dow 13,000 wave. Having said this, it is worth noting that often the best time to sell is when everyone else is buying. Now may be that time. [Let me explain.] Words: 885

14. S&P 500 Should Continue Climbing Until October and Then Decline 15-30%! – Here’s Why

At the end of November 2011 the U.S. behavioral indicator for the U.S. stock market, based on insights on investor psychology, touched the crisis threshold for the fifth time (1971,1979, 1986, 2006) since 1970. If the current case follows the four prior cases, we expect a similar positive return from November 2011 to the end of October 2012 as in the four prior periods followed by a decline somewhere between 15% and 30%. [Let me explain.] Words: 317

15. Marc Faber: We Could Have a Crash Like in 1987 This Fall! Here’s Why

Marc Faber has stated in an interview* on Bloomberg Television that “I think the market will have difficulties to move up strongly unless we have a massive QE3 (something Faber thinks would “definitely occur” if the S&P 500 dropped another 100 to 150 points. If it bounces back to 1,400, he said, the Fed will probably wait to see how the economy develops)….. If the market makes a new high, it will be with very few stocks pushing up and the majority of stocks having already rolled over….If it moves and makes a high above 1,422, the second half of the year could witness a crash, like in 1987.” Words: 708

This New ‘Peak Fear’ Indicator Gives You an Investment Edge

Editor — Sat, 19 May 2012 17:42:47 +0000

[We are at a major crossroads in the equity and bond markets.] We could see a major ‘risk-on’ rally in the S&P 500 BUT if no equity rally ensues, and U.S. Treasury note yields keep falling, then something terrible is about to strike at the heart of the global capital markets…. [As such, it is imperative that you keep a close eye on this new 'Peak Price' indicator. Let me explain.] Words: 450

So says John DiCecco (www.TrendCharts.ca) in edited excerpts from his original article* as posted on Seeking Alpha.

Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!), has edited the article below for length and clarity – see Editor’s Note at the bottom of the page. This paragraph must be included in any article re-posting to avoid copyright infringement.

DiCecco goes on to say, in part:

We have noticed something very interesting: the TLT (20-year U.S. Treasury notes) is above 122 and, over the last 12 months, any time the TLT has traded above 122 it has signaled the end of equity sell-offs (peak of fear) and the beginning of a new equity bull run.

(Click to enlarge)

Let’s look at what happened to the SP500 on the two previous dates that the TLT traded above 122.00.

October 4, 2011- the TLT hit an intra-day high of 122.16 and the SP500 hit an intra-day low of 1,074. The SP500 rallied from this low and hit a peak high of 1,284 on October 27 for a gain of 19.5% since the 122 reading on the TLT.
December 19, 2011 – the TLT hit an intra-day high of 122.43 and the SP500 hit an intra-day low of 1,202. The SP500 then rallied from this low and hit a peak high of March 26, 2012 for a gain of 17.8% since the 122 reading on the TLT.

On May 17, 2012 the TLT hit an intra-day high of 124.28 and the SP500 hit an intra-day low of 1,304.

An 18% bounce in the SP500 from this low (similar to the bounces that occurred in October and December) would bring the SP500 to 1,538.

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Will this time be different or have we once again hit the floor for the yield on U.S. Treasury notes? That is, there is nowhere to go but up from here for yields, which in turn means that equity markets will also stop falling and we will experience a strong ‘risk-on’ rally?

If we do see a 15% to 19% rally in the SP500 over the next six weeks we will be able to officially name the TLT as the new Peak Fear Indicator for capital markets.

If no equity rally ensues and the TLT keeps climbing higher, and U.S. Treasury note yields keep falling, then something terrible is about to strike at the heart of the global capital markets….

*http://seekingalpha.com/article/601171-the-peak-of-fear?source=email_macro_view&ifp=0 (To access the above article please copy the URL and paste it into your browser.)

Editor’s Note: The above article may have been edited ([ ]), abridged (…), and reformatted (including the title, some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. The article’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article.

Related Articles:

1. Marc Faber: We Could Have a Crash Like in 1987 This Fall! Here’s Why

2. Pento: Markets Will Fall Significantly This Summer – Here’s Why

3. Charles Nenner: Dow to Peak in 2012 and Then Decline to 5,000!

4. NOW Is the Time to Get Out of the Stock Market! Here’s Why

5. S&P 500 Should Continue Climbing Until October and Then Decline 15-30%! – Here’s Why

6. Jeremy Siegel: 50% Chance of Dow Reaching 17,500 By The End Of 2013! Here’s Why

Last month, Wharton Professor Jeremy Siegel boldly claimed that there was a 70% chance that the DOW could reach 15,000 this year [and that] there’s a 50% chance that it could reach 17,500 by the end of 2013. [Here are his reasons]. Words: 291

7. The Bull Market In Equities is NOT Over! Here’s Why

In spite of all the bearishness out there – the S&P 500 falling to 1,000 (David Tice),the market is overbought (John Hussman), its looking like the bear market of 2011 all over again (David Rosenberg), for example – I tend to disagree for 4 fundamental reasons. Let me explain. Words: 595

8. Which Will It Be: Gold is About to Go Way UP or the Dow is About to Go Way DOWN?

It is very understandable why investors believe America’s engines are ready to roar again because economic indicators in America are turning up even though bad news barrages us from all sides… [That being said,] I believe the Dow Jones Index has not bottomed when viewed from an historical perspective with gold. We have further to go down in the Dow/gold ratio before the next big bull market begins. [Let me explain.] Words: 1250

9. Fractal Analysis Suggests Dow Could Drop to 6,000 in 2012 and Gold Take Off Like It In 1979

[While] I do not prescribe to the 2012 end of the world or end of an era phenomenon, my recent fractal (pattern) analysis of the Dow suggests that it is forming a similar pattern to that which was formed in the late 60s to early 70s and if this pattern continues in a similar manner…the Dow could indeed have an annus horribilis (horrible year) in 2012. Let me explain. Words: 1416

Taxes on “Rich” Vary Dramatically by Country – Take a Look

Editor — Sat, 19 May 2012 04:46:41 +0000

There is a lot of debate these days about the extent at which the “rich” among us should be taxed. That is an argument that no one is going to win but the findings of a study comparing the tax rates of such individuals on a comparative basis by country is most enlightening. Take a look to see how your country’s tax rates on the “rich” compare with other countries. Some of you will read this article and be quite displeased while the majority of you should realize that you have nothing to complain about (relatively speaking, that is). Words: 455

This synopsis has been put together by Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!) from KPMG’s 84-page International Individual Income Tax and Social Security Rate Report to ensure you a fast and easy read. This paragraph must be included in any article re-posting to avoid copyright infringement.

Rather than report on all 96 countries covered in the report coverage has been limited to those countries from which most of the visitors to this site come from plus some other countries that have been very much in the news lately.

Tax Rate at USD100,000 Equivalent Income Level

U.S.A.: 24.3%
Australia: 25.3%
New Zealand: 27.4%
Japan: 28.3%
Canada: 30.3%
U.K.: 31.0%
Spain: 31.7%
Ireland: 36.0%
Portugal: 38.5%
France: 42.0%
Italy: 42.6%
Germany: 43.0%
Greece: 43.5%
Netherlands: 47.6%
Belgium: 47.9%

Tax Rate at USD300,000 Equivalent Income Level

U.S.A.: 29.8%
New Zealand: 31.1%
Australia: 37.2%
Japan: 37.8%
Spain: 39.2%
Canada: 40.8%
U.K.: 41.6%
Germany: 43.9%
Greece: 44.5%
Portugal: 46.3%
Ireland: 47.0%
Netherlands: 47.6%
Italy: 50.0%
France: 42.0%
Belgium: 47.9%

(Note: Effective rates are derived by taking total taxes over gross income prior to any deductions (which may include social security) to allow for a better comparison, as deductions can vary greatly across countries. In addition to federal taxes, the US calculation factors in the income taxes of the state of New York (which vary by state) as a national number (state income taxes vary by state), the Canadian calculation factors in the income taxes of the province of Ontario (which vary by province) and the Swiss calculation factors in Zurich canton and community income taxes which may vary by canton throughout the country.) For a complete list of all 96 countries in the report go here.

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Related Articles:

1. How Much Do Americans Earn?

How much does the typical American family make? This question is probably one of the most central in figuring out how we can go about fixing our current economic malaise. In this article we break down the U.S. household income numbers. Words: 464

Gold/Silver & Mining Stocks Going From Their Cycle Bottoms to Parabolic Peaks by 2015

Editor — Fri, 18 May 2012 22:20:04 +0000

Once every year gold and stocks form a major yearly cycle low while other commodities form a major cycle bottom every 2 1/2 to 3 years. Occasionally all three of these major cycles hit at the same time….That’s what’s happening right now and it should lead to a powerful rally over the next 2 years, culminating in 2014 when the dollar forms its next 3 year cycle low. Words: 622

So says Toby Connor (www.goldscents.blogspot.ca) in edited excerpts from his original article*.

Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!), has edited the article below for length and clarity – see Editor’s Note at the bottom of the page. This paragraph must be included in any article re-posting to avoid copyright infringement.

Connor goes on to say, in part:

The CRB Index and US Dollar Index

The implications are that once the CRB has completed this major cycle bottom we should see generally higher prices over the next year and a half to two years, presumably topping during a major currency crisis as the dollar drops into its next three year cycle low in the fall of 2014. [Read:

Larry Edelson: “I’m Deeply Worried About the U.S. Dollar” – Here’s Why].

Gold

I think the recent rally in gold is signaling that gold has put in its yearly cycle bottom. Since gold did not break below the December low of $1523 I think we can assume that this is a B-wave bottom and should be followed by the consolidation phase of a new C-wave that should break out to new highs either later in the fall or next spring. [Read:

The next two years should generate an even more impressive advance than the 2009-2011 rally, possibly even generating the bubble phase of the bull market in late 2014 or early 2015 as the dollar crisis reaches a crescendo. [Connor is not alone in his assessment that the peak will be in that timeframe. Read:

Update: 51 Analysts Now Maintain that Gold is Going to $5,500 – $6,500/ozt. in 2015!]

S&P 500 Index

As gold usually leads the stock market by a few days, we should see the stock market put in its yearly cycle low sometime in the next several days but the outlook for stocks is not as bright as the commodity sector. While I do think continued currency debasement will probably drive the stock market to at least marginal new highs I also think an increasing inflationary environment is going to compress profit margins and constrict consumer spending. After a long topping process the stock market and economy will probably roll over and follow the dollar down into that 2014 bottom. [Read:

Charles Nenner: Dow to Peak in 2012 and Then Decline to 5,000!]

Silver

The last C-wave for silver was from 2009 – 2011 with a 400%+ gain at the parabola top in May of last year. [Read:

Mining Stocks

The next C-wave will be the C-wave of the mining stocks. During the irrational selling over the last eight months mining stocks have reached levels of undervaluation that have only been seen one other time in history (2008) that drove a 320% rally over the next two years…I suspect we will see something similar or even larger as the market gets busy correcting this irrational undervaluation. [Read:

Now’s the Time to Take Advantage of Current Discount on Mining Shares – Here’s Why]

Conclusion

I think we are at, or very close to, what is likely to be a once or twice a decade opportunity in the metals sector, especially the mining stocks.

*http://goldscents.blogspot.ca/2012/05/major-long-term-bottoms-forming-in-gold.html (To access the above article please copy the URL and paste it into your browser.)

Editor’s Note: The above article may have been edited ([ ]), abridged (…), and reformatted (including the title, some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. The article’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article.

Related Articles:

1. Update: 51 Analysts Now Maintain that Gold is Going to $5,500 – $6,500/ozt. in 2015!

2. Goldrunner: Fractal Gold Analysis Says Gold On Way to $3,500 Mid-year!

3. Alf Field: Correction in Gold is OVER and on Way to $4,500+!

4. Is Gold About to Go Parabolic to $3,495 in June ’13; $10,899 in Sept. ’14 and Top Out at $32,659 on Jan. 16, 2015?

5. New Analysis Suggests a Parabolic Rise in Price of Gold to $4,380/ozt.

6. David Nichols: Expect to See $2,750 – $3,000 Gold By June 2013 – Here’s Why

7. Leeb: Gold Going to $3,000 Before the End of 2012!

8. Rebound Ratio Suggests New High for Gold By Mid-year

9. Stephen Leeb: We Will See Three Digit Silver in a Couple of Years & Much Higher Gold Prices! Here’s Why

The Western world is going to need even more easing, more money. All of this is incredibly bullish for gold longer-term. I do think you have to navigate the end of the euro before the next massive move in gold, but that’s coming. It’s possible that gold may get hit initially as the euro fails, but you have to buy it if it does.

10. GOLDRUNNER FRACTAL ANALYSIS: 2012 SILVER TO $70++

Around this point in the fractal cycle in the late 70’s, Gold busted out of its channel to rise sharply higher, along with Silver. Silver’s channel top will lie up around $68 to $70 over the coming months which we believe will be reached in 2012. The next higher angled resistance bands for Silver run from $112 to $115, and then up at the $123 area. By the end of the Silver Bull, we expect to see Silver reach $500+. Words: 1765

11. James Turk: Silver Will Climb to $68-$70 in 2 to 3 Months

Silver will climb to $68-$70 in 2 to 3 months once resistance at $35 is taken out… In many ways silver is positioned today like it was back in the summer of 2010… Regarding gold, as goes oil, so goes gold…and the bottom line is that the wind is at the back of the bulls in both the gold and oil markets.

12. Alf Field Sees Silver Reaching $158.34 Based on His $4,500 Gold Projection!

This article was prompted by a question enquiring what the silver price might be if my gold forecast of $4,500 proved to be correct [see my article entitled "Alf Field: Correction in Gold is OVER and On Way to $4,500+!" and I have settled on] a target price of $158.34 for silver. [Let me explain how I came to that specific price.] Words: 850

13. Silver Will Go to $50 and Then Explode Dramatically Higher! Here’s Why

There is a massive amount of energy underlying the silver market, and when it is ready to unleash, we will see price/value increases that will stun even the most ardent silverbugs…The real power of this expected move is likely to be released only some time after the price of silver has surpassed the $50/ozt. level. [Let me explain.] Words: 685

14. History Says Silver Could Become the Next 10-Bagger Investment! Here’s Why

If you concur with the 159 analysts (see below) that maintain that physical gold is going to go parabolic in price in the next few years to $3,000, $5,000 or even $10,000 or more then you should seriously consider buying physical silver. Why? Because the historical gold:silver ratio is so way out of wack that silver should appreciate much more than gold as it goes parabolic in the years to come. Indeed, silver could easily reach $100 – $200 per troy ounce, maybe even $300 and conceivably in excess of $400 depending on how high gold goes. The aforementioned may be hard to believe but an analysis below of the historical price relationship between silver and gold suggests that such will most likely occur if gold does, indeed, go parabolic. Take a look. Words: 1423

15. Stephen Leeb: Silver’s Going to $60, $70, by the End of 2012 – Easy!

I think scarcity in oil is a dramatic tailwind for gold. Politicians will inflate. They don’t want oil to bring down the economy like it did in 2008. Remember, this inflation will take place with commodity prices already high. So this will create significant inflation. This means higher gold and silver. Gold at $3,000 by the end of the year, easy. Silver $60, $70, easy.

16. Now’s the Time to Take Advantage of Current Discount on Mining Shares – Here’s Why

Gold stocks are now trading as though peace, prosperity, balanced budgets, and the repudiation of fiat currencies were about to break out across the globe, sending the metal back to $1,000 per ounce in the very near future. Given the stagflation conditions in the developed world, however, and governments’ proclivity to use money printing in order to jump-start an economy, it may be wise to take advantage of the current discount being offered on mining shares.

17. Larry Edelson: “I’m Deeply Worried About the U.S. Dollar” – Here’s Why

The disaster in Europe should be pushing the U.S. dollar up more than it is but it’s not, and that has me deeply worried. [I'm] worried that the next leg of the dollar’s decline may be right around the corner; worried that the loss of the dollar’s reserve-currency status could occur more quickly than even I had expected and worried that the “X&@!” may soon hit the fan, across the entire globe. [Let me explain.] Words: 600

18. Charles Nenner: Dow to Peak in 2012 and Then Decline to 5,000!

Is This Surge In Gold a “Dead Cat Bounce” or a “Flight to Safety”?

Editor — Fri, 18 May 2012 16:17:57 +0000

What does [this surge in the price of gold] mean?…Is it just a proverbial “dead cat bounce” or is it that the death of the Euro is beginning to be priced into the markets….Will it continue? While no one can answer these questions with certainty my thoughts (guesses) are discussed below….Words: 380

So says ”Monty Pelerin” (a pseudonym derived from The Monty Pelerin Society) in edited excerpts from his original article* as posted at www.economicnoise.com.

Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!), has edited the article below for length and clarity – see Editor’s Note at the bottom of the page. This paragraph must be included in any article re-posting to avoid copyright infringement.

Pelerin goes on to say, in part:

What may be beginning is that gold is becoming the flight to safety. While the dollar may be strong against the Euro, both are deteriorating in purchasing power. At the moment, the dollar is depreciating slower than the Euro and hence appears “strong” relative to the Euro. All currencies are being destroyed or, as Voltaire observed, going to their intrinsic value — zero.

If (when?) markets finally recognize the inevitability of what massive money printing does to fiat currency, gold should soar. Whether we are at that point is unknown….[but] a significant [ongoing] divergence between the Dow and gold as seen yesterday will be [seen]as an early sign.

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When money leaves the banking system, stuffing it in a mattress is not a solution to protect against loss of purchasing power, especially in times when the currency itself is in question. Taking it out of the bank and putting it into hard assets should protect one against devaluations in currency.

As someone (name unknown) once said, people don’t invest in gold to make money, they invest in gold because they have money and are trying to protect what they have. They are trying to protect the purchasing power that they have achieved.

*http://www.economicnoise.com/2012/05/17/gold-and-the-dow-went-separate-ways-today/ (To access the above article please copy the URL and paste it into your browser.)

Editor’s Note: The above article may have been edited ([ ]), abridged (…), and reformatted (including the title, some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. The article’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article.

Related Articles:

1. New Analysis Suggests Gold Going to $3,495 in 2013, $6,233 in 2014 and Peaking at $31,672 in 2015!

Nick Laird has put together an Elliott Wave theory prediction using ‘The Golden Mean’ & ‘Fibonacci Sequences’ to arrive at future prices for gold…which he is hopeful will serve as ‘a roadmap which gold may take as it climbs to new highs’. See the chart below. Words: 625

2. Alf Field: Correction in Gold is OVER and on Way to $4,500+!

3. Gold: $3,000? $5,000? $10,000? These 151 Analysts Think So!

151 analysts maintain that gold will eventually reach a parabolic peak price of at least $3,000/ozt. before the bubble bursts of which 101 see gold reaching at least $5,000/ozt., 17 predict a parabolic peak price of as much as $10,000 per troy ounce and a further 13 are on record as saying gold could go even higher than that. Take a look here at who is projecting what, by when and why. Words: 844

4. Will Gold Peak at $2,500, $8,890 or $15,000?

When considering that the conditions which propelled gold and silver to their 1980 highs are much worse today, I predict both metals will easily eclipse those previous highs. That means $2,500 gold and $150 silver at the very minimum, but more likely a parabolic ascent to $8,890 gold and $517 silver before all is said and done. Words: 1063

5. New Analysis Suggests a Parabolic Rise in Price of Gold to $4,380/ozt.

6. Deja Vu? Is Gold Just in a Correcting Phase on Its Way to Parabolic Peak of $4,294?

The current volatility in the precious metals market doesn’t necessarily indicate a change in secular direction. [In fact,] if today’s gold price was to rise by the same degree over the next 14 months [as it did from the beginning of 1979 into 1980, it would hit $4294/ozt. by Jan 2013! Let me explain.] Words: 420

7. Contracting Fibonacci Spiral Puts Gold Near $4,000 by 2013 and $7-10,000 by 2020

Gold is operating on a smaller Contracting Fibonacci Spiral Cycle that is in synch with the larger Contracting Fibonacci Spiral the markets are in. Adding together the sum of parts… the price of gold will move up in price in 2013, 2016, 2018, 2019 and 2020, with each subsequent leg moving less in percentage terms than the prior move. Gold advanced 4 foldish from 1999 until 2008 ($252/ounce to $1046/ounce) suggesting that gold should top out below $4000/troy ounce by the end of January, 2013…[on its way] to $7,000 and $10,000 per troy ounce by 2020. [Let me explain.] Words: 834

8. Nick Barisheff: $10,000 Gold is Coming! Here’s Why

This is not a typical bull market. Gold is not rising in value, but instead, currencies are losing purchasing power against gold and, therefore, gold can rise as high as currencies can fall. Since currencies are falling because of increasing debt, gold can rise as high as government debt can grow. Based on official estimates, America’s debt is projected to reach $23 trillion in 2015 and, if its correlation with the price of gold remains the same, the indicated gold price would be $2,600 per ounce. However, if history is any example, it’s a safe bet that government expenditure estimates will be greatly exceeded, and [this] rising debt will cause the price of gold to rise to $10,000…over the next five years. (Let me explain further.] Words: 1767

9. Gold: Will it Go to $12,500 – $24,000 – or $39,000/ozt. – by End of Decade? Here’s the Rationale for Each

From questions whether gold is in a bubble to predictions that soaring prices are just around the corner, one thing is clear: a new phase of awareness for gold is upon us. How far might it move before these troubling times are over? [Let's take a close look at a variety of factors and scenarios before coming to a conclusion.] Words: 5717

10. Gold Will Reach $3,000/$4,000/$5,000 Before This Bull Market Is Over! Here are 12 Factors Why

I believe that the price of gold will… reach… $3,000, $4,000, and even $5,000 [per troy] ounce…during the course of this long-lasting bull market, a bull market that still has years of life left to it…[although] prices will remain extremely volatile – with big swings both up and down along a rising trend…The future price of gold is a function of past and prospective world economic, demographic, and political developments [and in this article] I review some of these developments and trends – so that you can come to your own “golden” conclusions. Words: 3800

11. Larry Edelson: “I’m Deeply Worried About the U.S. Dollar” – Here’s Why

MedX: An Investment to Enhance Your Wealth – and Your Health

Editor — Fri, 18 May 2012 14:40:53 +0000

I attended an investment presentation earlier this week by a company that is introducing an innovative skin cancer detection device into the Canadian/American markets that was so enlightening, so potentially financially rewarding and so potentially life-saving, that I just have to share it with you. I think after you have read this article you might want to forward it to your family physician and dermatologist for their edification and speak to your financial advisor about buying some shares in the company. Words: 888

So says Lorimer Wilson, editor of www.munKNEE.com.

Most of us enjoy getting a tan, even if it entails the occasional sunburn but, unfortunately, too much sun can eventually have an adverse affect on your health in the form of skin cancer which is growing at a rate of 10% per year. Indeed, the Canadian and US Cancer societies confirm that skin cancer is the most common form of cancer. Each year there are more new cases of skin cancer than the combined incidence of cancers of the breast, prostrate, lung and colon.

Nearly 800,000 Americans are living with a history of melanoma and 13 million Americans are living with a history of non-melanoma skin cancer, typically diagnosed as basal cell carcinoma (BCC) or squamous cell carcinoma (SCC). When melanoma is detected early, the survival rate is about 99% and falls to 15% as the disease advances.

If you have experienced too many “too much sun” events over the years, however, (or you have some unchecked moles, or have a family history of malignant melanoma,) you may well be making regular visits to your dermatologist to have the unattractive – and potentially deadly – effects of too much sun (lesions, etc.) frozen off with the application of liquid nitrogen (called cryosurgery or cryotherapy) or otherwise treated ( the application of Efudex cream comes to mind). Some of you may have even:

had an invasive and sometimes painful biopsy of a suspicious looking growth (mole, lesion or some other change in skin appearance),
had to wait for weeks for the answer as to whether it was benign, skin cancer or malignant melanoma,
had to schedule and wait for a follow-up appointment and then
had to schedule, wait and undergo plastic surgery to repair the damage done by the biopsy.

Unfortunately, I know of what I speak as I have been making quarterly visits over the past 20 years to my friendly and accomplished dermatologist undergoing the whole range of treatments.

Well, no more! Future biopsies, and the need to wait for the results (an immediate diagnosis is made during your appointment) will be a thing of the past in large measure (see video here – 4:56 minutes) once family physicians and dermatologists begin practising a new non-invasive skin cancer screening procedure that has been in use in Europe, the UK, Australia for a number of years and has recently been introduced to the medical communities in Canada and the U.S. by MedX Health Corpoation (TSX-V:MDX).

The system is the FDA approved and Health Canada cleared SIMSYS-MoleMate Skin Imaging System ( see a video here - 2:48 minutes – and here – 2:08 minutes) which provides a significant advance in the early detection of potentially life threatening moles and lesions.

MoleMate uses a patented device and technology (MedX has been granted 17 international patents to date and has another 23 patents pending) that features a hand-held scanner designed for office use that utilizes light to view beneath suspicious moles or lesions in a pain free, non-invasive manner, creating images for physicians to evaluate all types of moles and lesions within seconds, providing images that can reveal if a mole is benign, or something more serious, often eliminating the need for skin biopsies, resulting in less pain, scarring, and expense. [See this video - 5:29 minutes - by Dr. Ronald H. Falcon, MD, FAAD on the merits of the SIMSYS-MoleMate.]

It is just a matter of time before this system is owned by every family physician, dermatologist, clinic and hospital in North America so you can just imagine the upcoming growth and increased profits and share price of MedX Health Corp. MedX is a 12 year old Canadian company, headquartered in Mississauga, Ontario (Toronto). MDX trades on the TSX Venture Exchange under the symbol TSXV:MDX and currently trades in the $0.09 to $0.14 range as seen in the chart below:

Physicians have found that the SIMSYS-MoleMate Siascope hand-held device:

is easy to learn how to use via the 60-90 minute training CD,
rapidly provides accurate images of the pigment, blood, and collagen below the mole or lesion,
provides clear precise PDF reports for patient records and referrals,
allows patient interaction and improved education and
raises the profile and enhances the service offering of a practice.

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Thankfully, physicians in Canada and the U.S. can now more accurately evaluate suspicious moles and lesions in a non-invasive, pain-free way as a result of the introduction of MedX’s MoleMate detection system and, in the course of reducing the need for time-consuming and expensive biopsies, save the health care systems and/or patients major expense.

Yes, indeed, an investment in MedX could well be an investment in your future good health and your future financial well-being!

For more information about SIMSYS-MoleMate (TSXV: MDX) contact:
MedX Health Corp.; (905) 670-4428 or (888) 368-3112
info@medxhealth.com; www.simsys-molemate.com

If You Don’t Think Gold IS a ‘Safe Haven’ Then You Don’t Know the Meaning of the Term!

Editor — Fri, 18 May 2012 13:43:00 +0000

It would seem that there is a considerable lack of understanding about what the term “safe haven” actually means when it comes to gold. Let me explain just what it means – and does not mean. Words: 740

So conveys Cliff Wachtel (http://globalmarkets.anyoption.com/) in edited excerpts from an article* posted on Seeking Alpha.

Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!), has edited the article below for length and clarity – see Editor’s Note at the bottom of the page. This paragraph must be included in any article re-posting to avoid copyright infringement.

Wachtel goes on to say, in part:

Contrary to Dennis Gartman’s dangerous misconceptions in an article recently entitled Dennis Gartman On Gold: ‘Safe Havens Do Not Fall 7% In Two Weeks that “Safe havens are safe. Safe havens are stable; gold is not stable…” and, by inference, that safe haven assets are, by definition, a sound store of value, is just not the case.

Let me take this opportunity to correct Gartman and make sure that everyone else clearly understands that:

1. A safe haven asset is not an asset that has lower risk. It is simply an asset that moves in the opposite direction of risk assets like stocks (in general). For example the U.S. dollar is considered a safe haven, yet it has fallen dramatically vs. a variety of “risk” assets over the past decades. For numerous examples of this, see here**.

2. Safe haven assets are therefore not necessarily safer stores of long term value, and never have been. That’s not the meaning of the term. BI editors should be aware of that. For example, the Canadian dollar is considered a risk asset and risk currency, yet it is a far safer store of value than the U.S. dollar due to its far more responsibly managed banking sector and fiscal/monetary policy.

3. Gold is a currency hedge, neither risk nor safe haven asset. It can rise or fall in good or bad times, depending on whether:

the markets feel greater or lesser confidence in purchasing power of fiat currency, or
in times of rising extreme fear (like now due to rising contagion risk) when there is demand for liquidity (related overrides inflation/loss of purchasing power fears)

and that’s what’s happening now.

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As I have mentioned in a previous article***:

“A. Gold Can Rise Or Fall In Times Of Expansion

Gold can rise due to fears of inflation from too much money chasing too few goods.
Gold can fall if investor’s believe returns from risk assets will outpace inflation, and investors abandon gold (which has no steady yield) in search of higher returns. In other words, loss of purchasing power isn’t a concern because risk assets appear to offer inflation beating returns.

B. Gold Can Rise Or Fall In Times Of Contraction

Gold can rise if the U.S. or EU engages in stimulus actions that are perceived as money printing and thus potentially inflationary, and both private and sovereign investors (like central banks) seek better stores of value than the USD or EUR. This has been the primary driver of higher gold prices in recent years.
Gold can fall if the contraction brings very low inflation, deflation, or rising demand for cash as struggling investors need liquidity to cover margin calls from falling asset prices or to cover declines in income. This is the likely driver of the current downtrend in gold that began in September 2011, and would be the primary driver of a continued move lower if we see a sustained significant deterioration or economic collapse in the EU and/or China, Japan, or the U.S..”

It’s quite clear that the EU will need to print euros just to buy time to prevent contagion [and this will cause the] euro to lose value, as the second most widely held currency. Once panic subsides, most likely due to new “stimulus/money printing”,… gold has an excellent chance of rising, barring massive central bank dumping.

Conclusion

Gold’s recent liquidation is because the markets want cash over preservation of purchasing power and this is [no different than the] similar behavior at earlier stages of [the] EU crisis panic and when U.S. markets dove in late 2008-early 2009. Nothing more and nothing less.

*http://thesensibleguidetoforex.com/2012/05/11/the-most-common-fatal-investor-mistake-inadequate-currency-hard-asset-exposure/ **http://seekingalpha.com/article/594481-a-classic-misunderstanding-of-gold-the-correction-and-solution?source=email_macro_view&ifp=0 ***http://seekingalpha.com/article/319650-the-secret-to-what-really-drives-gold-prices (To access the above articles please copy the URLs and paste them into your browser.)

Editor’s Note: The above article may have been edited ([ ]), abridged (…), and reformatted (including the title, some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. The article’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article.

Related Articles:

1. A Look Back at the Performance of Gold vs. Stocks in Times of Crisis

We are in the midst of turbulent times, and it seems inevitable that things can only get worse. Most investors are of the opinion that gold is one of a very few areas of safety…however, when we look at historical charts, it is obvious that gold doesn’t always behave in the way we would expect. [Let me explain.] Words: 541

2. Physical Gold and Gold Stocks Should be in Your Portfolio – Here’s Why

Do you own enough gold and silver for what lies ahead? If 10% of your total investable assets (i.e., excluding equity in your primary residence) aren’t held in various forms of gold and silver, we…think your portfolio is at risk. Here’s why. Words: 625

3. Do Recent Gold & Silver Correlation/Return Comparisons With S&P 500 Refute Their Safe Haven Status?

The past few years have seen the development of the notion that GLD and SLV represent uncorrelated plays on the market, making them safe haven bets for your portfolio. Looking at historical trends (aside from 2011), [however,] one would have to go back to 2007 to find a year where these two metals weren’t highly correlated to the S&P 500. For all of 2011, both ETFs have featured low correlation, but as recent trading weeks have shown, old habits die hard, as the two ETFs have fallen back into a highly correlated trend. Let’s take a look at the particulars.] Words: 672

4. Ian Campbell’s Commentary: Gold – The Safest Haven?

Is physical gold the best available ‘safe-haven’ or is it the U.S. dollar – or perhaps even U.S. Treasuries? Words: 793

5. Gold as a Safe Haven is Worthless!

If there is one thing we’ve learned about gold in recent years – and recent days – it is this: gold is not a haven investment… There are many theories about gold’s correction. [Let's take a look.] Words: 781

6. Why Does Gold Fall When Financial Crises Worsen?

Why is gold falling as the financial crisis worsens? After all, isn’t gold some sort of safe haven? [Let me explain.] Words: 1287

munKNEE.com

Vanadium: An Infrastructure Essential With Major Potential Use in Energy Storage and Green Energy

Canadian Oil Sands: World’s Single Largest Petroleum Resource and…

Bonds Are NOT a Safe Place to Be – Here’s Why

Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!), has edited the article below for length and clarity – see Editor’s Note at the bottom of the page. This paragraph must be included in any article re-posting to avoid copyright infringement.

With Options So Limited Where Should We Invest?

Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!), has edited the article below for length and clarity – see Editor’s Note at the bottom of the page. This paragraph must be included in any article re-posting to avoid copyright infringement.

This New ‘Peak Fear’ Indicator Gives You an Investment Edge

Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!), has edited the article below for length and clarity – see Editor’s Note at the bottom of the page. This paragraph must be included in any article re-posting to avoid copyright infringement.

Taxes on “Rich” Vary Dramatically by Country – Take a Look

Gold/Silver & Mining Stocks Going From Their Cycle Bottoms to Parabolic Peaks by 2015

Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!), has edited the article below for length and clarity – see Editor’s Note at the bottom of the page. This paragraph must be included in any article re-posting to avoid copyright infringement.

Is This Surge In Gold a “Dead Cat Bounce” or a “Flight to Safety”?

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MedX: An Investment to Enhance Your Wealth – and Your Health

If You Don’t Think Gold IS a ‘Safe Haven’ Then You Don’t Know the Meaning of the Term!

Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!), has edited the article below for length and clarity – see Editor’s Note at the bottom of the page. This paragraph must be included in any article re-posting to avoid copyright infringement.