2 ETFs and 4 Mining Stocks to Profit from $1,500 Gold
Martin Hutchinson in Money Morning says that over the long-term oil and agricultural commodities are likely to deflate.
This is because, once the threat posed by the U.S. housing crisis has passed, the Federal Reserve will be forced to increase interest rates to fight inflation. Other countries will follow, which will deflate the commodities boom.
However, over the short-term, gold, whose movements are directly linked to inflation, is likely to bounce. Martin reckons a price tag of $1,500 an ounce for the yellow metal is entirely possible. He recommends two ETFs and four gold miners to profit from this situation…
Byron King Says Commodities in a Short-Term Correction
It’s a difficult time for commodities bulls. Crude oil is off more than 20% from its July peak. Gold is going for about $830 an ounce, way off its Spring highs. And the Reuters/Jefferies CRB Index is down 19% from its June high.
Energy expert Byron King says investors shouldn’t panic over the drop in prices. For a start, August is a notoriously poor month for commodities. It tends to be a month of net selling.
Despite some demand issues caused by the global slowdown, Byron says commodities are in a short-term correction. And that means plenty of great bargains on offer…
Buy Fannie and Freddie Debt Now at Record Yield Spreads
The U.S. banking system is in hot water. According to the Federal Deposit Insurance Corporation (FDIC), a total of nine banks have failed this year. Five folded in July alone.
To stabilize the situation, the U.S. government is poised to bail out Freddie Mac (NYSE:FRE) and Fannie Mae (NYSE:FNM). This opens up a great opportunity for investor, says Eric Roseman in The Sovereign Society.
He is buying Fannie and Freddie short-term and intermediate-term debt up to a maximum of five years. Yields are at historic highs and the government won’t allow these institutions to fail.
Real Inflation of 13.6% and Failing Euro Mean Gold Will Soar
If you own gold or are thinking of buying gold, David Galland’s latest article for The Daily Reckoning is a must-read.
Gold is starting to climb northwards from its nine-month low reached on August 15. But at just under $832 an ounce this morning in London trade, the yellow metal is still way off its March high of $1,032.70.
Dave says two important events mean the recent setback in gold prices will not last long. The first of these is soaring inflation in the U.S. - which, if calculated by pre-Clinton metrics, is now running at 13.6%. The second is the failure of the euro as an alternative to the dollar…
BHP Billiton (BHP): Painting a Happy Face on Iron Ore
So you’re watching the Olympic Games and the usual suspects appear as advertisers… There’s Visa, Coca-Cola, McDonald’s…and BHP Billiton (NYSE ADR:BHP)? Who are those guys, anyway?
It does seem unusual for one of the biggest mining companies to sponsor the Beijing Games.
But as it turns out, this massive marketing campaign wasn’t targeted at Joe Sixpack watching the Olympics.
It was payback to Beijing, says Irwin Greenstein, writing for Contrarian Profits.
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