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 Featured Video
McEwen Says Gold May Reach $5,000 an Ounce By 2012
Robert McEwen, chairman and chief executive officer of U.S. Gold Corp.,
talks with Bloomberg's Erik Schatzker and Deirdre Bolton about the
outlook for gold prices. McEwen expects gold prices to increase to
$5,000 an ounce between 2012 and 2014 as rising U.S. government debt
depreciates the value of the dollar.
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Dear Members,
Becareful. There is a clear and present danger.
It has not been the best of times for the markets this past
week. The Toronto Stock Exchange saw its biggest one-day loss in almost three
months this past Thursday, with red arrows carrying over to Friday.
From the fears mounting in China regarding their tighter
monetary policy, the growing numbers of U.S. unemployment claims to U.S.
President Barack Obama's get-tough approach to banks, the markets have been
reacting.
But there's a darker secret hidden behind the headlines
For months we have discussed the topic of inflation (see We're Back and It's Time to Prepare). Now recent economic data and events are making our predictions of
inflation seem that much more apparent.
The Bank of Canada, which kept interest rates unchanged this
week, has committed to maintaining the policy overnight rate at 0.25 per cent
through the first half of this year. The bank also said that "considerable
excess supply remains" and inflation won't return to policy makers' 2 per
cent target until the third quarter of next year. So in Canada, we still have a
few years to go.
But this past week, China showed fourth quarter GDP growth
of 10.7, the fastest pace since 2007's fourth quarter and a lot faster than the
world expected. Coming out of a global recession, one would think that an
accelerating and better-than-expected GDP report would not only send the
markets higher, but give investors the optimism needed to push and sustain the
markets. Instead, the numbers assisted in one of the sharpest declines of the
markets this year.
Here's why
As well all know, growing too fast almost always leads to
one thing: inflation.
The Chinese have already been taking steps to put the brakes
on economic growth by raising bank reserve requirements, putting a cap on
lending and raising rates on some bonds. This may also indicate that they will
need to accelerate monetary tightening and begin raising interest rates. The
only question is how high and how fast they will need to raise interest rates
to combat this situation.
Remember that China's currency is almost completely tied to
the US. They own more than 70% of their international foreign reserves (see Facts on Gold You Need to Know) in US dollar and much of their exports stem from the Greenback. As
the US recovers and begins a stronger re-growth period, think about how hard
inflation will hit China if they're already growing at this pace after a global
meltdown.
China's impact has already begun to affect their neighbours. The
pace of Real Estate prices are now rising the fastest in 18 months. In
Shenzhen, southern China's manufacturing hub, property prices have surged 19 per cent from last year.
The price of water, food, and tea are all soaring with their
main stock market leading the way, surging 80 per cent last year.
Home prices both in Hong Kong and Singapore are flying.
Revived demand and rising house prices in Australia are sending interest rates
higher. Meanwhile, ballooning prices for items such as rice and potatoes in
India nudged its inflation rate to a
one-year high of 7.3 per cent last month.
Analysts are predicting China will surpass Japan as the
world's second largest economy in 2010.
It is very possible that China could be in line for a real
estate bubble burst, but the numbers and trends are stating otherwise. Either
way, the impact of China will have an adverse effect on the world markets.
Including our own
Our market reliance on China is more staggering than many
believe yet very apparent. If China decides to slow growth, you'll see the basic
materials sector fall sharply. This would be a signal to wash and clean your portfolio
of any basic material sector stocks. If China's growth continues, inflation
could easily make its way over to our side of the world and add to the fuel of
inflationary worries already presented by the US (see The Impressive News Release).
The situation in China is not the only thing that hampered
the markets. The number of Americans filing initial claims for unemployment
insurance has risen for the second straight week. Keep in mind, these jobless
claims are only attributed to people who are actually making these claims. The
amount of true unemployment in the US will remain unknown. These economic signs
clearly show that the markets, as we have mentioned before, shouldn't really be
where they are right now.
But therein lies a darker secret
Right now, the US is doing
everything they can to slowly prevent the onslaught of inflation or worst yet,
hyperinflation. Except, unlike China, the US will do it by sneaking in policies
to deter the public of what is really going on.
Think about it this way.
It's no longer a secret that the Obama administration has
the world running around in circles. First they threw more money than we can
count at TARP to achieve market stability, re-growth and encourage lending.
Now that the big banks appear to be recovering, President
Obama proposes a huge tax on them. Then he announces a new proposal that will limit
the size and scopes of the major U.S. banks by putting in place policies that would
force financial institutions to choose between commercial banking and
proprietary trading, or trading done for its own profit.
The proposed
regulations would bar commercial banks from: trading in securities for their
own profit; operating, sponsoring or investing in hedge funds or private equity vehicles;
and trading complex financial derivatives such as credit default swaps without
oversight.
If his proposals are passed, this will most certainly cause
the banks some major grief and restrict their ability to lend, which in turn,
will slow the recovery of the economy: "The proposal will restrict lending,
increase risk, decrease stability in the system, and limit our ability to help
create jobs," warned Steve Bartlett, president and chief executive of the
Financial Services Roundtable, which speaks for the big banks.
Now we understand Obama is trying to penalize the banks for
over-leveraging themselves and requiring government intervention to survive. We
also understand that this is the penalty the big banks are paying for not
stepping up their lending policies to small businesses while giving themselves
big bonuses, as we predicted would happen (see Get Ready For More Outrageous Compensation).
It's pretty obvious that if these proposals come into
effect, the growth needed to bring the economy back will be hampered. This will
soften the impact of inflation momentarily, but not for long.
With all of the curve balls that are being thrown by China
and the Obama administration, making decisions on investments will become that
much harder. Emerging markets and financials will suffer if Obama gets his way with the banks.
Basic materials will suffer if China decides to implement further policies to hinder growth. The list of uncertainties stretches miles long.
But there is one
thing that may prevent a strike out and give us a an opportunity for a home run...
Precious Metals
If you go back and read our past newsletters (every one of them), you can see all the reasons why we are bullish on precious metals .
For
the first time in nearly 30 years, central banks around the world have now
become net buyers of gold. In addition, hedged players in the mining industry
(see Facts on Gold You Need to Know) have begun covering their hedged gold
positions indicating they expect the price of gold to go higher, or at the very
least, stay at these levels.
All of the recent events leading up to today have indicated
to us that precious metals are continuing their dominance in the markets. (see Where the Billionaires Invest)
Especially the Juniors
You see, the markets have peaked for a lot of the larger
producers and their share values are now tied to the price increase and
decrease of their precious metals focus. In order for the majors to give their
investors any real returns, they'll have to increase their asset base through
new discoveries or acquisitions.
This means the major miners are in desperate need of
acquiring new deposits
But the majors are generally not the ones to go and find a
new discovery. They simply takeover and
buyout the juniors or form alliances to increase reserves and production. This
has already been happening for the last year and we expect a lot more of these
situations in 2010. Take for example, Alexis Minerals (TSX: AMC) which just recently completed
the acquisition of Garson Gold Corp. to increase their resource base for
shareholders.
The outlook for junior precious metal stocks has never been
better.
Right now, we are continually scanning the markets and looking for
underpriced junior gold and precious metals stocks with a good management team,
tight capital structure, and a strong resource base in geopolitically safe
regions.
If there is a company that you feel we should feature or
know about, please let us know! Give us a call at 1-888-EQUEDIA (378-3342) or email us at
info@equedia.com.
It doesn't matter if you are the CEO of a junior miner or
simply a shareholder, if there is a story that you think we need to hear and
share with our audience, let us know right away!
Until next week,
Questions?
Call Us Toll Free: 1-888-EQUEDIA (378-3342)
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Zacks Investment Research: It's All About Earnings
 As earnings season heats up, our panelists share their thoughts on
what's ahead and on whether consumer sentiment is really on the
upswing.
Click the video to play.
More Zacks videos:
> Momentum Stock Picks - January 21, 2010
> Aggressive Growth Stock Picks - January 19, 2010
> Value Stock Picks - January 18, 2010
> Grading Management with ROE
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Dude, Is That Gold Bar for Real?
 By Doug Hornig, Sr. Editor, Casey's Gold & Resource Report
As the 10-year gold bull continues its stunning run, rumors of fakery
seem to be cropping up as fast as new Eagles can be minted. Should you
be worried? Do you need to run to the coin shop for a home test kit?
Well, the counterfeiters are out there, and have been for millennia, but how to counter them?
You probably remember movies about the Old West, wherein a
shady-looking character would offer to exchange a gold coin for a
horse, and the nag's owner would bite down on the coin. That was about
all you could do, if you lacked proper assaying equipment and had to
make a snap judgment on the fly: depend on your teeth to tell you
whether the metal in your hand was sufficiently soft to be genuine gold.
The bite test is actually a pretty good one since gold, despite being
among the heaviest metals, is also very soft. If you chomp down and
shatter a tooth, it ain't gold. But does that mean you need to munch
your way through your coin collection?
Click Here to Continue Reading
More Casey Research Articles
> What the Deflationists Are Missing
> "Get Your Gold the Hell Outta Here!"
> The Eye of the Storm
> Cheap Oil is Gone, and That's Good News
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Technical Trading with Harry Boxer
 Harry Boxer has more than 40 years of Wall Street investment and
technical analysis experience, including eight years on Wall Street as
chief technical analyst with three brokerage firms.
Watch the video as he walks you through his technical analysis on Amtech, Jazz Pharmaceuticals, McMoran Exploration, Rambus, Ciena and a whole bunch of other stocks. To see more videos, Click Here. Like his analysis?
Click Here to receive a Free
15-Day Trial to Harry Boxer's Real-Time Technical Trading Diary for Equedia
members.
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Equedia's Newest Feature - Embed Videos
Is there a video on Youtube or another website that you want to post without uploading it through our technology?
With our new Embed feature enabled, you can now upload and embed any object or video into your blog post. Many of our users are already embedding videos from Fox, Youtube, and CNBC and sharing them with our users.
Embedding is simple. Just copy and paste the embed codes from another website ino the main blog section of your post (not the exceprt).
Where do you find these embed codes?
Embed codes for videos are usually right beside a video.
Here is an example of where the code is on Youtube, highlighted in yellow:
So share what you find with everyone! To learn more, feel free to email or call us at 1-888-EQUEDIA
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Equedia Tips - The Markets Tab
Using the search function at the top right corner of the website, search for any company. Let's use Research in Motion as an example. Once you reach their profile page, click on the MARKETS TAB. You should now see 12 seperate tabs underneath their logo. Try clicking on them and you will find in-depth information such as:
Detailed Quotes - Depth/Level II - Options - Java Charts - News - Profile - Financials - Insiders trades - Filings - Analyst Consensus - Earnings - Historical Data (Highs/Lows, Volumes, Closing/Opening Prices) |
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Build You Network and Invite Your Email Contacts
You can invite your friends to automatically join your network using your email contacts from:
Hotmail, Live, Yahoo! Mail, AOL mail, Gmail, msn, and many more!
or
You can manually add your friends' email addresses by typing them in (or copy and pasting from any text documents)
Just log in with your username and password and click here:
So whether you are a media user or investor, invite your friends now and build your network of investment traders and professionals. Here are some obvious benefits to having a large network:
- Improved credibility to your work and news feeds - the more friends and people you have in your investment network, the more likely you will attract new friends and followers
- Media users with a large network will gain more exposure for their services and attract more potential investors or corporations to their services
- Access more knowledge and information through your feeds
- See your friend's buy, sell, and hold ratings and the companies they have an interest in
Of course, there are many more benefits to inviting your friends but should you give it a try yourself.
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Additional Features (you may not know)
Equedia has many features (you may have overlooked) that will help you manage your investment life and ensure a more enjoyable and useful experience.
Here are just a few of them:
Calendar subscriptions: Keep track of your business events, subscribe to other events, and have access to your online calendar from anywhere in the world. In the near future, we will be working with public companies to add their events to the calendar so that shareholders will never miss an important event again. So call your companies and get them to participate!
Tagging companies to videos and images: Did you know that all of your videos and images can be tagged to public companies? Do you have a video about Google? How about a blog with an image? How about just a blog? Tag it to Google in your blog post, so that anyone searching for Google's quotes and finances can find your coverage!
Buy, Sell, and Hold Ratings: Once you log in, you can submit your buy, sell and hold ratings on the ratings tab so that other shareholders can see what YOU think. You may also access your associates' ratings and see what they think of the shares you hold.
Blog feed subscriptions: Once you add someone as an associate, you will have access to all of their blog posts through your blog feeds. Simply go to your "blog feeds" tab once you log in!
Search function: By far one of the most overlooked but important functions on Equedia. Using the top right hand corner search function, you can find and add any corporations, media users, or investors to your network.
Markets Tab: Under any corporate profile, you will find this tab. Under this tab, you can find the company's news, level 2 depth (delayed), options, charts, profile, financials, insider trades, filings, analyst overviews, earnings, and historical data (these may not be available for all companies)
There are many more useful features on Equedia.com but we think its better if you experience them for yourself. The more associates you have, the more useful Equedia will become for you. So use the new "invite my contacts" function and get started!
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Forward-Looking Statements
This Newsletter and report contains forward-looking statements. Forward looking statements are statements which relate to future events. In some cases, you can identify forward-looking statements by terminology such as "may", "should", "expects", "plans, "anticipates", believes", "estimates", "predicts", "potential", or "continue or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry's actual results, level of activity, performance or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements.
While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect out current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggests herein. Except as required by applicable law the companies in this report do not intend to update any forward-looking statements to conform these statements to actual results.
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Companies Under Evaluation
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Disclaimer and Disclosure
Disclaimer and Disclosure
Equedia.com & Equedia Network Corporation bears no liability
for losses and/or damages arising from the use of this newsletter or
any third party content provided herein. Equedia.com is an online
financial newsletter owned by Equedia Network Corporation We are
focused on researching small-cap and large-cap public companies. Our
past performance does not guarantee future results. Information in this
report has been obtained from sources considered to be reliable, but we
do not guarantee that it is accurate or complete. This material is not
an offer to sell or a solicitation of an offer to buy any securities or
commodities.
Equedia.com has been compensated to perform
research on specific companies and therefore information should not be
construed as unbiased. Each contract varies in duration, services
performed and compensation received. Equedia.com is not responsible for
any claims made by any of the mentioned companies or third party
content providers. You should independently investigate and fully
understand all risks before investing. We are not a registered
broker-dealer or financial advisor. Before investing in any securities,
you should consult with your financial advisor and a registered
broker-dealer. The information and data in this report were obtained
from sources considered reliable. Their accuracy or completeness is not
guaranteed and the giving of the same is not to be deemed as an offer
or solicitation on our part with respect to the sale or purchase of any
securities or commodities. Any decision to purchase or sell as a
result of the opinions expressed in this report OR ON Equedia.com will
be the full responsibility of the person authorizing such transaction.
Please
view our privacy policy and disclaimer to view our full disclosure at
http://equedia.com/cms.php/termsr. Our views and opinions regarding the
companies within Equedia.com are our own views and are based on
information that we have received, which we assumed to be reliable. We
do not guarantee that any of the companies will perform as we expect,
and any comparisons we have made to other companies may not be valid or
come into effect. Equedia.com is paid editorial fees for its writing
and the dissemination of material and the companies featured do not
have to meet any specific financial criteria. The companies represented by
Equedia.com are typically development-stage companies that pose a much
higher risk to investors. When investing in speculative stocks of this
nature, it is possible to lose your entire investment over time.
Statements included in this newsletter may contain forward looking
statements, including the Company's intentions, forecasts, plans or
other matters that haven't yet occurred. Such statements involve a
number of risks and uncertainties. Further information on potential
factors that may affect, delay or prevent such forward looking
statements from coming to fruition can be found in their specific
Financial reports. Equedia Network Corporation is a distributor (and
not a publisher) of content supplied by third parties and Subscribers.
Accordingly, Equedia Network Corporation has no more editorial control
over such content than does a public library, bookstore, or newsstand.
Any opinions, advice, statements, services, offers, or other
information or content expressed or made available by third parties,
including information providers, Subscribers or any other user of the
Equedia Network Corporation Network of Sites, are those of the
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particular purpose.
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