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 Featured Video
Jim
Cramer Interviews Eldorado Gold's CEO Paul Wright
Jim Cramer revisits a trend that could make your portfolio shine in this
market. He loves gold, loves bullion, loves ETF's, but what about the miners?
Here is a video interview with Paul Wright, Eldorado Gold Corp. president/CEO regarding his company and gold in general.
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Dear Members,
These past few years have shown us how unfair investments have become.
With billion dollar Ponzi schemes and market manipulation
plaguing our markets, it is becoming much harder to understand where the
markets are heading. Goldman Sachswere just accused of securities fraud,
adding more insult to injury (see SEC charges against Goldman Sachs).
This leads us to the next conspiracy theory that, if proven
correct, could reap big rewards for those who are in the know.
Silver Manipulation
For months we have been raving about precious
metals such as gold and silver, with many past newslettersfocusing on gold. But
this time around, we're going to focus specifically on silver and why we are
heavily favouring silver and silver miners right now.
Gold is
great. But we think silver is better.
Silver historically trails gold
in a precious metals bull market because everyone sees gold as an alternative to money. But a closer look will tell you that silver
posts better percentage returns nearly every time there
is a sustained gold rally.
If you like gold, you should love silver
For thousands
of years, the gold/silver ratio price per ounce has remained relatively constant at 16
to 1-meaning one ounce of gold can buy 16 ounces of silver. Coincidently, that ratio remains relatively constant for the amount of silver versus
gold in the world. For every ounce of gold in the ground, there is roughly 17.5
ounces of silver.
Right now, the gold and silver price spread is 60 to 1.
We think there is a good
reason why. And this reason alone, if exposed, could send silver prices through
the roof...
Even though
there is far more silver on earth than gold, the silver market is much smaller
than gold. This makes transactions much more visible and the market more
susceptible to large fluctuations - and thus, manipulation. Silver is a less-active and lower-volume
market than gold, which means that purchases even by individual investors can
make an impact on silver prices.
That is
exactly what the Commodity Futures Trading Commission (CFTC) is thinking.
The CFTC is currently investigating the manipulation of the
silver market by the big banks, including J.P. Morgan. This isn't the first time this has happened. The
CFTC has done this many times before.
But this time, they had no choice.
The Consipracy Theory?
Andrew Maguire, a successful metals trader and whistleblower went to the CFTC with data that strongly suggested that a small number of short sellers had rigged the markets for both silver and gold. Maguire not only provided the regulators on how the manipulation generally worked, but also warned them of a specific scenario where the SPDR Gold Trust (NYSE:GLD)and iShares Silver Trust (NYSE:SLV) markets would be manipulated.
Not
only that, he told the regulators that a massive crime was about to happen, and
the crime happened precisely as he predicted it would, forcing the CFTC to take
a closer look.
You can search
the conspiracy theories all over the internet regarding the events that
followed by searching the net for "Andrew Maguire" and
"Silver Manipulation". It's actually quite entertaining.
However, we're not
here to tell right from wrong, nor accuse any one of any wrong doings. That's
the CFTC's job. But certain things were revealed during the hearing that
could have a significant upward impact on the price of both silver and
gold.
It has now been revealed that most of the gold that is traded in the markets is
not actually fully backed by the actual metal itself, as many believe. For years, most people have assumed that the London Bullion Market
Association (LBMA), the world's largest gold market, had actual gold to back up
the massive "gold deposits" at the major LBMA banks.
This was confirmed during the CFTC hearings when Jeffrey Christian of the CPM Group said that the LBMA banks have approximately 100 times more gold deposits than actual gold bullion. This means that for every ounce of gold traded in these markets, 99 of them appear from thin air. Has gold and silver been converted into a fiat currency in these markets?
What happens if everyone decides that they want actual
physical delivery of their gold? What about silver?
In fact, we may already be seeing some action in the markets
from the information presented at the recent CFTC hearings. Silver prices
are up almost 8% since the hearings and rumours are circulating that JPMorgan is already buying
back some of its silver short positions.
If the CFTC announces
that the silver markets have, in fact, been manipulated, the price of silver could
easily skyrocket. Combine that with the fact that the silver traded in the today's markets may not be 100% backed by physical metals, and we could have s signifcant supply shortage.
Therefore, as rare as silver is thought to be today,
it will be even rarer than we once believed if the markets are being
manipulated with excess futures.
It's Only Just Begun
What makes this scenario even
more scary, or should we say bullish, is the fact that silver inventories are
drying up, while the demand of silver through ETF's and investment purposes are
rising.
In the
last decade, silver has been readily consumed almost as quickly as it has been
produced, with the largest driver of growth coming from the electronics sector
such as new flat screen TV's. The very TV or computer screen you are
staring at right now probably contains several grams of silver - most of which
will never be recovered or recycled.
Commodities research firm CPM Group says the current amount of above
ground refined silver has fallen from 2.2 billion ounces in 1990 to less than 1
billion today. The fact that total
global inventories could completely collapse in just 15 years gives us some
indication of how grossly-undervalued silver truly is.
Now Don't Forget China
We all know that China has played a pivotal
role in the price of gold increase (see Where the Billionaires Invest). As recently as 2002, the
private ownership of gold was prohibited in China. But since 2009, the central Chinese
government removed all restrictions and began to encourage their citizens to
buy precious metals such as gold and silver.
Again, because not everyone can afford gold, many of their citizens
will be rushing toward silver.
Practically every bank in China now sells gold and silver bullion bars in different sizes. And with a savings rate of 30-40%, you can bet
the Chinese are buying these up. Heck, there are even reports of mining employees that have been encouraged to convert some of their wages to gold on payday.
In addition to bullion alone, China also represents an ever-growing
economy migrating from a developing nation to first world country. This means that millions upon
millions of Chinese citizens will be buying new TV`s, cell phones and
devices that require silver.
China's silver consumption already accounts for
70% of the global total of industrial use, and its middle class is far from
reaching its spending potential. This will undoubtedly send the silver supply
further downward as global production slows.
Think about it. How many silver producers are there out there? Not
many.
That's why we have been aggressively meeting with the management teams
of silver juniors recently and we may be on the brink of releasing our next featured silver
company very soon.
Stay tuned...you won't want to miss it.
Until next week,
Questions?
Call Us Toll Free: 1-888-EQUEDIA (378-3342)
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Gold in Perspective
 By David Galland, Managing Director, Casey Research
As the price of gold rises and the inevitable quacking begins again
about the "barbaric" metal being overvalued, I thought a quick check-in
with the historical perspective might prove useful.
The first
of two charts that follow shows the long-term picture of gold from
1970 to the present, correctly adjusted for inflation.
In the second chart, we overlay the
inflation-adjusted price of gold from the last secular gold bull market
in the 1970s, with the secular bull market we're now in.
As you can see, if the current bull ends with the sort of
grand finale we saw at the end of the last big blow-off, then prices
have a long way to go from here. That said, a credible case can be made
that this time around, the price could go much higher.
For starters,
in the 1970s, though not good by any means, the economy was in much
better shape than it is today. The chart here uses long-term
unemployment as a proxy for that contention.
As you can see, at
the end of the 1970s, the employment picture was quite healthy.
Today, in addition to wildly out-of-control debt on both the private
and public levels, we have a massive problem with unemployment and the
consequences of a burst housing bubble. Thus, Paul Volcker's somewhat
simplistic solution to inflation - and the trigger for the end of the
last gold bull market - seriously ratcheting up interest rates, is off
the table. (Since we're trying to gain perspective, I'll remind you
that at the beginning of the 1980s, mortgage rates topped 18%.)
But wait...
Click Here to Continue Reading
More Casey Research Articles
> Oil - The Beginning of the End
>
Going Nuclear: Obama's Green Machine Is Ready to Go> Sell Now, Buy Later - the ABCs of Short Selling
> The Tax Window of Opportunity
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What
to Expect from Q1 Earnings
 Earnings season is about to get started and our experts given their take
on what that means for the stock market.
Our experts weigh in with their views in this video segment of Zacks
roundtable review - a discussion of events affecting investors as well
as other topics of financial interest featuring the analysts and editors
of Zacks.
Click the video to play.
More Zacks videos:
> Increasing Sales and Profit Margins - Stock Screening Strategy Video
> Momemtum Stock Picks for April 15, 2010
> Growth and Income Stock Picks for Apr.14, 2010
> Value Stock Picks for April 13, 2010
> Agressive Growth Stocks for April 12, 2010
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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 Celldex Therapeutics Inc., Eastman Kodak Co., Pharmacyclics, Rambus Inc., and a whole bunch of other stocks. To see more videos, Click Here.
 Like his analysis?
Click Hereto 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 This Past Week
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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
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This disclosure and disclaimer represents Equedia's current positon at
this time of this writing. Please view our privacy policy and disclaimer
to view our full and latest disclosure at
http://equedia.com/cms.php/terms.. 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
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particular purpose.
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