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Deutsche Bank Sees Gold Surging as High as $2,000 as Soros Pares His Bets
Investors including George Soros and John Paulson invested in gold as the metal surged over the past year amid a sovereign debt crisis in Europe, economic turmoil in the U.S. and civil unrest in the Middle East. Photographer: Junko Kimura/Bloomberg
May 10 (Bloomberg) — Michael Yoshikami, who oversees $1.1 billion as chief investment strategist at YCMNet Advisors in Walnut Creek, California, talks about global stocks and commodities. Yoshikami also discusses bonds, the U.S. economy, and BYD Co.’s plan to list shares on the Shenzhen exchange. He speaks from Singapore with John Dawson on Bloomberg Television’s “First Up.” (Source: Bloomberg)
Gold, which reached a record on May 2, may surge a further 30 percent by January as investors seek to protect themselves from “economic uncertainty,” according to Deutsche Bank AG.
“I’m bullish on gold despite its current levels,” Hal Lehr, Deutsche Bank’s managing director for cross-commodity trading, said in an interview in Buenos Aires. “It could reach $2,000 an ounce in the next eight months.”
Investors including George Soros and John Paulson invested in gold as the metal surged over the past year amid a sovereign debt Read more…
Where is the Global Economy Headed? The Experts Weigh In
I’m writing today after spending the last three days in Boca Raton, Florida, attending The Next Few Years: A Casey Research Summit. If you’re not already familiar, the purpose of this summit was to bring together many of the world’s top economic and investing minds to share with us where they believe we’re headed in the months and years ahead.
The cast of speakers was impressive, to say the least. They brought a variety of view points, an almost overwhelming amount of data and analysis, and a perspective on what the current world means for investors that would be hard to build on. Yet, with all this variety of thought and perspective, one central theme seemed to emerge.
If you’re able to see the annihilation of your currency coming down the pike, and you take the right steps to protect your wealth, you can come out on the other side largely unscathed. Given the right investment strategy, you may even be able to grow your wealth significantly during this time.
While I knew this on some level coming into this event – I’ve been reading Casey Research’s work for just a few months now, and this was the first of their events I’ve attended – I was given pause by Casey CEO Olivier Garret’s welcoming remarks.
“While no one can predict the future with complete certainty,” he said, “it should give you comfort to know that the faculty for this summit have in common that they correctly anticipated the trends now dominating the global landscape.”
When you bring together 35 experts who each correctly predicted what’s happened in recent years – while the mainstream media Read more…
Why Investors Are Buying Silver As If There Is No Tomorrow
The price of silver has been absolutely exploding lately. It has reached heights not seen since the Hunt Brothers attempted to corner the silver market over three decades ago. But this time there are no Hunt Brothers to blame for the stunning rise in the price of silver. So exactly why are investors buying silver as if there is no tomorrow right now? Well, the truth is that there are a lot of reasons. Investors have been flocking to precious metals such as gold and silver as the value of paper currencies has declined. The euro is incredibly weak right now and the U.S. dollar appears to be on the verge of a major collapse. In fact, the entire financial system is highly unstable right now. In such an environment, investors seek some place safe to park their money, and right now gold and silver are seen as safe harbors. But gold and silver have not been going up in price at the same pace. So why is silver outperforming gold so significantly?
The price of silver has increased by more than 150% over the past 12 months. But the price of gold has only gone up about 30%.
If you invested $100 in the S&P 500 ten years ago it would be worth about Read more…
QE2 Is Damaging The Economy And Reducing GDP Growth
QE2 is going to go down as one of the worst monetary policy initiatives in the history of the modern Federal Reserve era. On almost any metric applied, QE2 ends up not only falling well short of its proposed goals, but actually turns certain metrics like GDP growth negative compared with the prior quarter, and heading in the wrong direction.
Costs Eat into Corporate Profits = No Hiring
Analysts all over Wall Street are starting to revise their 2nd quarter GDP forecasts down, and some like Goldman Sachs have made several downward revisions as higher input costs due to a weak dollar are creating an additional burden on businesses and consumers and thus slowing economic growth.
A weak dollar (Fig. 1) to a point can help exports, but an extremely weak dollar which in combination with QE2 liquidity juicing up commodities even further, turns out to be a net negative on the economy, and risks sending the Read more…
Should You Buy A Home In 2011? Check Out These 29 Absolutely Crazy Statistics About The Housing Crisis
Has the U.S. housing market reached a “bottom” yet? Are home prices going to start recovering? Is the housing crisis going to end at some point? Today there are millions of American families that would like to buy homes but they are not sure what to do. After all, nobody wants to end up like all the suckers that bought at the top of the market and now owe far more on their mortgages then their homes are worth. A lot of people are really afraid to take out home loans right now. So should you buy a home in 2011? That is a very good question. The reality is that there are a lot of reasons why home prices could continue to fall. Unemployment is still rampant, and American families simply cannot afford to buy homes without good jobs. Also, lending institutions have really, really tightened lending standards. That is really restricting the number of buyers in the marketplace. The number of foreclosures Read more…
Putin Delivers Big, Mocking Speech Of US Debt, Trade Balance, And Out Of Control Fed
Russian Prime minister Vladimir Putin has called U.S. monetary policy “hooliganism” in a speech before his country’s parliament.
Putin also criticized the U.S. debt situation, and said Russia could not conduct its policy similarly.
“We see that everything is not so good for our friends in the States,” Putin told lawmakers in the lower house of parliament. “Look at their trade balance, their debt, and budget. They turn on the printing press and flood the world with dollars,” he said.
The speech seems pretty typical Putin, applauding himself for recent Russian successes, but it’s made in the context of the 2012 Russian presidential election, in which Putin is expected to run against current president Dmitry Medvedev.
He’s continued to emphasize the fact that Russia Read more…
Stocks Sink on U.S. Credit Outlook as Euro Falls on Debt Crises
U.S. stocks sank the most in a month, oil slid and gold rose to a record after Standard & Poor’s cut the American credit outlook to negative and concern about Europe’s debt crisis worsened. Greek two-year bond yields surged to 20 percent for the first time since at least 1998.
The S&P 500 tumbled 1.6 percent to 1,298.09 at 1:13 p.m. in New York and the Stoxx Europe 600 Index slid 1.7 percent. Ten- year Treasury yields lost three basis points to 3.38 percent as concern about Europe’s finances overshadowed S&P’s move. The euro lost 1.4 percent to $1.4227, while Portuguese debt- insurance costs rose to a record. The S&P GSCI index of 24 commodities slid 1.3 percent as oil and cocoa tumbled.
S&P assigned a one-in-three chance it will lower the U.S. rating in the next two years, saying the credit crisis and recession that began in 2008 worsened a deterioration in public finances. Budget differences among Democrats and Republicans remain wide and it may take until after the 2012 elections to get a proposal that addresses the concern, S&P said.
“This is another indication of the need for the U.S. to better control its fiscal destiny, both for its sake and that of the global economy,” said Mohamed El-Erian, chief executive officer at Newport Beach, California-based Pacific Investment Management Co., the world’s biggest manager of bond funds. “Absent credible medium-term fiscal reform, every segment of U.S. society would be faced with higher borrowing costs, a weaker dollar and a less bright outlook for employment, investment and growth.”
Broad Decline
Commodity, industrial and technology companies had the biggest Read more…
The Truth About Silver and Inflation
Silver futures surged today to a new 31-year high of $43.05 per ounce. Silver is up 146% since NIA declared silver the best investment for the next decade on December 11th, 2009, at $17.40 per ounce. All we need is for silver to rise by another 15.5% and silver will reach its all time high set in 1980 of $49.45 per ounce.Silver soars to 31-year high
Gold rose over 1 per cent to a near-record and silver surged Thursday as dollar weakness, inflation worries and a European debt crisis powered bullion to its biggest one-day gain in about seven weeks.
Silver futures soared to their highest since 1980, rising more than 4 per cent for their biggest one-day gain since November, as strong investment and speculative buying sent the gold/silver ratio to a low.
Gold received a boost from inflation worries triggered by a crude oil rally and data showing rising U.S. core producer prices in March, and as higher-than-expected jobless claims knocked the dollar.
“The combination of higher oil prices, weaker dollar and the resurrection of discussions of Greek sovereign risk problems has galvanized the gold market. It’s particularly impressive because we ran into selling above the market yesterday,” said James Steel, chief commodity analyst at HSBC.
Spot gold rose 1.4 per cent to $1,474.30 an ounce by 4:02 p.m. ET, within striking distance of its record $1,476.21 set on Monday. U.S. gold futures for June delivery settled up $16.80 at $1,472.40 an ounce.
Investors grew jittery on talk of debt restructuring by Greece, the first euro zone member to receive a bailout a year ago in the crisis Read more…
Joseph Stiglitz slams US dollar
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