Daily Updates

Note: Prechter’s interview starts at 4.20 minutes into the segment.

 

Qhile 2010 was my best year ever, my wife asked me today what have I done for her lately (joke…really).  In an era of instant gratification where “long-term” is considered to be a week to some, I will give you my best “guess.” It may come as a surprise to some (especially those who watch CNBC), but no one knows the future except Almighty God. Despite what some preachers may like to imply, no one has an open hotline to Him.

01/04/11 Gaithersburg, Maryland – Stay with commodities where supply is tight and there is no immediate cure.

For 2011, I’d say uranium has the most upside, outside of the precious metals. Even though prices rose in 2010, they still don’t compensate miners for the risk of building new mines. It’s also a very concentrated industry. More than 60% of all uranium comes from just 10 mines. Stay long those uranium stocks.

What about the biggest potential correction on the downside? I’d say agricultural commodities. We’re going to see record planting all over the world. My guess is that will be enough to dent the run of commodities such as wheat and corn.

Ignore the “gold is in a bubble” crowd. The mainstream press doesn’t understand gold. They look at the price and think it’s expensive.

Instead, they should turn it around and question the value of the dollar. Gold is best thought of as a play on the creditworthiness of paper money. When people worry about the printing presses, gold does well.

As most governments have huge deficits to finance, gold shouldn’t collapse.

Gold stocks are the best way to play gold because they are going to put up a stellar year of earnings in 2011. Many will mint money at $1,400 an ounce.

Chris Mayer
for The Daily Reckoning

Chris Mayer studied finance at the University of Maryland, graduating magna cum laude. He went on to earn his MBA while embarking on a decade-long career in corporate banking. Chris has been quoted over a dozen times by MarketWatch, and has spoken on Forbes on Fox. He has also spoken on CNN Radio, and has made multiple CNBC appearances. Chris is the editor of Capital and Crisis and Mayer’s Special Situations, a monthly report that unearths unique and unconventional opportunities in smaller-cap stocks. In 2008, Chris authored Invest Like a Dealmaker: Secrets From a Former Banking Insider.

I hope everyone had a great holiday and new years!

It’s time to reset our profit counter to zero and start looking for new profitable trades along with managing our current open positions on our small cap stocks which we continue to hold with gains of 66%, 35% and 10%.

A Buy Spot for Gold (Updated 3:34pm)

Posted by Richard Russell & Jim Rogers

on Wednesday, 5 January 2011 8:00

January 5th: “To turn bearish, gold would have to hit the 13660 box, which at this writing it has not yet done. Strong support comes in at 1330 – Richard Russell
gold point and figure

“Dollar Index was up and February gold plunged 44.10 to 1378.80. March silver was down 1.61 to 29.50. All precious metal items were lower. Profit taking all around, providing a buy spot for those who have been waiting to take a position. And that’s what makes markets, sellers and buyers and buyers and sellers, and the strongest are the winners”.

Richard Russell has made his subscribers fortunes. One of the best values anywhere in the financial world at only a $300 subscription to get his DAILY report for a year. HERE to subscribe. Amongst his achievements Richard was in cash before the 2008/2009 Crash and he has been Bullish Gold since below $300.

Jim Rogers: I would own silver than gold

LONDON (Commodity Online): Which is the best investment asset in commodities? Gold or Silver? It is an ongoing precious metals debate to which leading global commodities investors and bullion analysts are partaking these days.

Among them, the wisdom in investing in commodities comes sharp and clear from Jim Rogers, chairman of Rogers Holdings. The celebrated commodities investor and founder of the Rogers International Commodity Index says he would love to own silver than gold.

In an interview to India’s business television channel ET Now, Rogers said that by the way of the precious metals investment, “I would rather own silver than gold.”

Asked if he expects soft commodities to outperform precious metals and base metals, Rogers said this: “Well, as a generalization, yes. I would rather own agriculture and so other commodities in 2011, but silver may outperform a lot of things.”

He said that silver is a metal and it is still depressed. “Silver is still 40% below its all-time high. So silver has not been any sort of great bubble compared to perhaps some other assets we know. I, as a class between agriculture, energy and metals, would rather own agriculture and by the way of the precious metals, I would rather own silver than gold.”

Rogers, a veteran commodities investor who has penned such fascinating books like Hot Commodities and A Bull in China, disclosed that he still owns silver.

“I still own my silver. I am not sure if I would buy it today as it has gone up so much so fast, but I am not selling it and if it goes down, I will buy more silver. Likewise for the rice, if rice goes down, I will buy more rice. So both the silver and rice have a great future for the next few years,” Rogers added.

On US bonds and China real estate, Rogers had the following words of wisdom:

“I am selling short United States government bonds, the long bonds. Everybody seems to be optimistic. Even I felt unsure when Mr. Bernanke said he was going to buy them. I thought I was being foolish, but I am making a little bit of money right now. But as I look around the world, that is one of the few bubbles or potential bubbles that I see.”

” Well, one should go the other way where there is a market, there may be a bubble in Chinese urban real estate. It is not really many ways for me to play that but the only bubble that I see in public markets is the long-term government bond market in the United States.”

The New Gold Rush

By Nick Barisheff

As confidence in global currencies wanes, the world’s appetite for gold will increase.

As we embark on 2011, gold continues to climb and investors are questioning its future price direction. Is gold in a bubble? Have the price gains of the last decade-which beat out stocks, bonds and several other favored asset classes- peaked? Did today’s investors miss the opportunity to buy?

Since 2002, we have responded to these questions daily, as gold climbed from $275 an ounce to over $1,400. Unfortunately, most people see gold as just another dollar-based asset class to be evaluated using the same metrics as stocks and bonds, and commodities like corn and coffee. But in order to understand the benefits of buying and holding physical gold, investors must go beyond conventional economic wisdom and understand causes rather than symptoms. They need to be able to interpret the message gold is sending.

Gold has its own rules, which explain its price performance and form the foundation of what we call “the gold mindset.” This is completely different from the debt-based mindset that has prevailed since 1971, when President Nixon removed the U.S. dollar-the world’s reserve currency-from its international peg with gold. Eliminating the gold standard has resulted in anywhere from $14 trillion to $200 trillion of debt for the U.S., which now relies on a phenomenon called “Quantitative Easing” (QE) for economic survival. QE, or money printing, has triggered global currency devaluations and protectionism worries.

In this piece, we will examine four of gold’s most important rules; the irreversible trends affecting the gold price; and how the consequences of these trends will push gold higher in 2011 and beyond.

The Golden Rules

…..read more HERE

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