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click to play  | Featured Video
US Imposing Sanctions on China?
Watch as Stephen Orlins, president of the National Committee on U.S.-China
Relations, discusses Chinese Premier Wen Jiabao's speech in New York
and the prospects of U.S. sanctions against China if that
country doesn't revalue its currency.
Wen said a 20 percent rise in the
yuan would cause severe job losses and trigger social instability,
putting the nation on course for a clash with U.S. lawmakers demanding a
stronger currency.
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Dear Members,
The money is starting to pour in.
Hedge funds and institutions that once
sat on the sidelines are beginning to show their strength. That's why this past
Friday, the markets roared.
Not only did new economic data show that demand for American
equipment is improving, two powerful hedge fund managers came out with overly
optimistic comments on equities.
One of the hedge fund managers, Doug
Kass, said that betting against bonds would be the "trade of the decade." Moving
out of bonds will undoubtedly take money out of that asset class and shift into
equities. David Tepper, the other hedge fund manager, said that equities are
all but guaranteed to go higher because of the U.S. Federal Reserve's pledge
this week to intervene with more stimulus if needed (see The Double Take.)
Of course it's not just their comments that added
to Friday's rally.
Recent
events are making equities look very strong. The Dow once again made substantial gains this week, making it the
fourth straight week in the green. To add to the rally, U.S. lawmakers will
postpone a vote on whether to extend the U.S. tax cuts - a development shows a
strong possibility that most of them will be extended. We also have the
possibility that the Republicans - often regarded as business friendly - are going
to take control of the U.S. House of Representatives after the November
elections.
But more importantly for us, gold and silver once
again hit new highs.
Silver reached
as high as $US21.48. A few dollars may not seem like much, but this is the
highest level for a most-active contract for silver in over 30 years! Gold also
finally surpassed the $1300 mark, reaching a record $US1301.60, before settling
back down.
Every time
gold or silver goes up, contrarians scream bubble - yet, both gold and silver have
continued to push new highs.
As mentioned last week (see the Breakout), with
the rise in both gold and silver prices, we are now looking at the beginning
of a renewed junior market sector.
Funds are slowly beginning to flow back into the junior mining
segments, which means that we may see a strong breakout over the next year for
junior miners and explorers (see the Breakout). Combine
that with the continued increase in gold and precious metal prices, the juniors
are set to continue their run (see It's Almost Over.)
Nobody is expecting the US Dollar
to do much in the next little while. So you can bet that gold and silver will
find a way to work itself higher. With more stimulus and spending in the works,
the Fed is cranking up the printing press again, and the dollar is going to
suffer for it.
But that's exactly what the US
wants...
The Printing Press Strategy
Everyone thinks the US dollar is
tumbling and the US is losing its power and control of the world. But what's
really happening may shock you.
In US' current economic state, it
wants to devalue its currency. It needs to. It's their secret way of rebuilding
a bigger, stronger economy.
And it will work.
The US, and its citizens, are known to be a big spenders. But that was
before the world collapsed. The US no longer wants its citizens to spend money
- not outside of the US anyway. It wants everyone to spend money in the US. And
what better way to do that than by reducing its own purchasing power against
foreign markets. What better way to do that than to print more money.
Think about it. Not only is the
US encouraging exports by devaluing its currency (thus bringing more money from
the foreign markets and into the US economy), it's also using the money from
the printing press to make the US better through growth and innovation. Two birds, one stone.
The Battle for the Number One Spot
The trade war between China and the US
is evidence of US' "printing press" strategy.
As the two biggest economic powers in
the world, China and the US are constantly battling over currency value. On the
one hand, China's financial position is strong and they have growth. On
the other hand, they have no innovation. They rely on manufacturing and exports
from cheap labour. (see Time to Think Again)
That is why there is so much
controversy surrounding China's currency value. China doesn't need to print more money - it
has more than enough. That's why they have no excuse to devalue their currency.
The US, on the other hand, is printing money so it can devalue its currency to
encourage exports, while fuelling growth and innovation.
By limiting China's exports, it slows
down China's growth and encourages the growth of the US. This strategy is
already starting to take place. A bill that would give the U.S. government the
power to impose economic sanctions on China and other countries found to be
manipulating their currencies to gain trade advantages has just won approval
from a key House committee.
American
manufacturers say that China's currency is undervalued by as much as 40 percent
against the Dollar. That makes Chinese products cheaper and more competitive in
the United States and American products more expensive in China. For example, China ranked No. 3 among Florida's top merchandise trading
partners in 2009, with $5.8 billion in trade, which includes $5.2 billion in
imports, according to the Orlando EDC. In other words, Florida buys more from
China than it sells there. That means money out of the US, and into China.
That's not good for the US.
Beating the Competition
When you want growth, you need to be
competitive. What better way to do that than to devalue your own currency and
increase the value of your strongest competitor?
As the US dollar slumps, China's Yuan
prospers. In the short term, this may seem like China is winning the battle.
But at the end of the day, a lower US dollar makes US exports much more
attractive to foreign investments, fuelling money into the US economy.
China,
on the other hand, whose main power relies on manufacturing and exports, will
eventually suffer as their currency increases in value.
So for those of you who believe the US is digging
its own grave by spending so much money, you may have to rethink that
philosophy.
But this is all great news for
investors. The Dollar will fall but stocks will rise through growth and
innovation. The Dollar will fall but precious metals will rise through safe
haven investing. All in all, if the markets hold, this may be one of the best
times to invest for the long term.
It may be a bumpy ride, but the
destination will be rewarding.
Until next time,
Questions?
Call Us Toll Free: 1-888-EQUEDIA (378-3342)
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Alaska's New Gold Rush
 Louis James, Senior Editor, Casey's International Speculator
Alaska is one of the most prospective and yet most underexplored
areas in the world. There are good reasons for the neglect, most
notably the long, cold winters and the lack of infrastructure. Whether
the latter is a result of, or a cause of, there being few people in
the state is an open question.
One clear result, however, is a rather small economy: Alaska's
2009 GDP was US$47.3 billion, comparable to that of the Dominican
Republic or Bulgaria. The state is ranked 44th by GDP among its U.S.
peers.
In terms of metals, Alaska produces gold, silver, copper, lead,
and zinc. Being well endowed with natural resources, Alaska's mining
history dates back to the early 1800s, when Russian explorers
prospected the region, looking for placer gold. But not until after
Russia sold Alaska to the United States did exploration activities
start to develop rapidly, both on placer and hard rock deposits.
Alaska has undergone not one but a series of gold rushes, the
most famous being the 1890s Klondike Gold Rush, which actually centered
on gold found just over the border in the Yukon Territory. That event
drew many immigrants and spawned numerous settlements on the way to
the Klondike, one of the principal routes having been through Alaska.
Almost 13 million ounces of gold were produced by placer miners in the
area. Since the end of the 19th century, mining has become an
integral part of the state's economy.
The following chart shows Alaska increased its gold production
to 800,000 oz in 2008 (most recent data available), up 10% from 2007.
That's also about a 10% share of total U.S. gold production. Alaska is
the second largest gold-producing state behind Nevada. It is
remarkable to see production in Alaska rise while total U.S.
production has been in decline for more than a decade.
Yet, most Alaskan gold comes from only a handful of mines - and
that tells you something about the size of the deposits being worked.
The two largest mines, Fort Knox and Pogo, account for more than 80%
of 2008 total gold production, or 640,000 ounces. The Kensington
project, which started producing gold just a month ago, is set to
become the third largest. Perhaps. But these mines are small potatoes
compared to some of the current projects being advanced toward
production. Given that a million ounces of contained gold is
considered a large gold mine, Alaska's major deposits are genuine
monsters: Pebble has 107.3 million ounces of gold, Donlin Creek has
42.3 million, and Livengood has 19.7 million. If these go into
production, Alaska will rank as one of the world's top gold producers.
Alaskan Moose vs. African Elephant
I like Alaska. I like the fact that many, if not most, Alaskans
own guns - it's one of the last remnants of American "rugged
individualism" (though sometimes it seems that more Alaskans take pride
in the rugged part than in the individualism part).
Now this is an Alaskan cabin!  |
But in my professional capacity as Doug Casey's rock-kicker,
it's not Alaskan culture that I like the most. It's the almost unique
combination of being a huge, highly prospective mineral district in a
stable, pro-mining jurisdiction. Many people argue that all the big
deposits in safer jurisdictions have been found - but you don't have to
go to Africa and put up with corrupt, kleptocratic regimes to hunt
big game.
Alaska is unquestionably elephant country (well, moose country,
and moose are almost as big as elephants and much more foul-tempered)
with work done this cycle identifying genuine monster deposits. And
there is plenty of room in that great empty place to find more.
The Pebble Controversy
What about Pebble - doesn't that cast doubt on Alaska as a mining jurisdiction?
No.
The fight over Pebble does not stem from a groundswell of
anti-mining sentiment among Alaskans, but from objections by specific
interests to the potential mine's proximity to salmon spawning
grounds. Alaska's economy has been dependent on resource extraction
from the get-go, and remains so. Fish are an important resource, but
mining has also long been a part of local culture and is no more
horrifying to most Alaskans than guns are. In contrast to the views of
the parasitical class that inhabits Washington DC, guns are simply
necessary and useful things to most Alaskans. Similarly with mining.
Culture aside, the basic fact of life in Alaska is that the
economy has always been driven by natural resources, and for Alaskans,
this is not just an abstract theory. The State of Alaska cuts a check
to each resident every year, paying them a dividend on the royalties
the state has collected from the oil industry. Most of the money in
the state Permanent Fund that pays these dividends came from the North
Slope oil fields - and those are in decline. The Alaska Pipeline is
operating at half capacity now, and if it drops below 30% or so,
they'll have to shut it down. That opens up some interesting
conjectures about the future, but the point at the moment is that
individual Alaskans get a substantial check in the mail every year
($1,305 in 2009) that reminds them of the importance of the resource
industry.
I'm not worried about Alaska turning anti-mine; Pebble's problems are specific to that project.
Real Obstacles
The main problems for resource industries in Alaska boil down to two things...
Click Here to Continue Reading
More Casey Research Articles
> Doug Casey: Exception Among Equities
> How High Will Gold Go This Fall?
> The Long Road to Recovery
> The Smoking Ruin Solution
> Gold Confiscation: Straws in the Wind
> China and India: Still Hungry for Coal
> The Genetics of Investing: Kill the Messenger
> Should You Buy a House Now?
> Moving into Bonds: From Frying Pan to Fire
> Oil's Out - Find Out What's In
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Why You Shouldn't Be Afraid to Buy 52-Week High Stocks
click to play  | Lots of stocks are making new 52-week highs this year. Does that mean its too late to invest? Have we missed the boat?
Watch the video as Kevin Matras talks about stocks making new highs and why you shouldn't be afraid to buy them in this week's Screen of the Week.
More Zacks
Videos:
> Aggressive Growth Stock Picks - September 23, 2010
> Value Stock Picks - September 21, 2010
> Momentum Stock Picks - September 22, 2010
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Gold: Up to $1,500? - Interview with John Brimelow
John Brimelow is an independent gold analyst from Connecticut.
Q: What will be the price of gold by the end of the year?
A: I think there's a reasonable chance it will make a
stab at $1,500. But I'm not going to say it's going to stay there
forever. The final quarter in recent years has become the best quarter
for gold. The basic reason for it is that the major buyer is India. The
final quarter of the year is when their marriage season peaks.
Q: How important is India in the gold market?
A: They are the largest single buyer; they buy a
fifth of world gold production. Actually, however, their impact on the
world gold trade is a great deal higher for two reasons. One is that
India itself produces little gold, in contrast to China, which is
frequently cited as a major influence on the world gold market. This
simply isn't true. China consumes apparently north of 300 tons of gold a
year, a considerable amount more than it did a few years ago. But it
also mines a tremendous amount of gold, so the amount the Chinese need
to import has only recently risen over 100 tons. Whereas the Indians
have been importing 500 to 800 tons for a number of years.
Q: What's the second reason?
A: India is an extremely well-managed economy.
Amazingly enough, after 40 to 50 years of socialism. Rather like Canada,
which must be given credit for completely side-stepping the current
mess, which essentially stemmed from reckless activities by the banking
sector in many countries, particularly in America. Consequently, India
is absolutely booming. This morning they published their industrial
production numbers, which are over 13% higher than last year. And India
is one of those countries that when wealth rises, a significant amount
of it is spent of gold.
Q: Is the gold bought for jewellery or as an investment?
A: Most of it is fabricated into jewellery, but
there is an issue of as whether the jewellery is actually adornment or
investment, because as you probably know they won't buy jewellery unless
it's .995 or higher. So it's tantamount to an investment instrument.
Traditionally, Indian women get to keep their own gold, and it remains
their property in the event of divorce. Indian brides are sometimes
married wearing a pound or more of gold.
Q: Is gold rising because investors see it as a safe haven?
A: The thing about gold is that every culture in the
world has some appetite for it to a greater or lesser extent, but it is
never zero. Every community has a different approach. There's no doubt
that in the West over the last two or three years there has been a
tremendous...
Click Here to Continue Reading
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Upload Your Own Videos - 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
Except for the
statements of historical fact, the information contained herein is of a
forward-looking nature. Such forward-looking information involves known
and
unknown risks, uncertainties and other factors which may cause the
actual
results, performance or achievement of the Company to be materially
different
from any future results, performance or achievements expressed or
implied by
statements containing forward-looking information.
Although the
Company
has attempted to identify important factors that could cause actual
results to
differ materially, there may be other factors that cause results not to
be as
anticipated, estimated or intended. There can be no assurance that
statements
containing forward looking information will prove to be accurate as
actual
results and future events could differ materially from those anticipated
in
such statements. Accordingly, readers should not place undue reliance on
statements containing forward looking information. Readers should review
the risk factors set out in the Company's prospectus and the documents
incorporated by reference.
Cautionary Note to
U.S. Investors Concerning Estimates of Inferred Resources
This presentation
uses the term "Inferred Resources". U.S. investors are advised that
while this
term is recognized and required by Canadian regulations, the Securities
and
Exchange Commission does not recognize it. "Inferred Resources" have a
great
amount of uncertainty as to their existence, and great uncertainty as to
their
economic and legal feasibility. It cannot be assumed that all or any
part of an
Inferred Resource will ever be upgraded to a higher category. Under
Canadian
rules, estimates of "Inferred Resources" may not form the basis of
feasibility
or other economic studies. U.S. investors are also cautioned not to
assume that
all or any part of an "Inferred Mineral Resource" exists, or is
economically or
legally mineable.
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Companies Under Evaluation This Past Week
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Disclaimer and Disclosure
Disclaimer
and Disclosure
Equedia.com & Equedia Network Corporation bears no liability
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Equedia.com has been compensated to perform
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