Gold

Gold is a precious metal that serves many purposes. In the world of investing, it is used to hedge against inflation, uncertainty, and currency devaluation. This is mainly because the yellow metal has been known as a currency for much longer than the fiat (paper-based) currencies and it increases in value as these factors come into play.

Gold is also used in the fashion industry, mainly for jewellery purposes, and in other industries such as aerospace, electronics, and medical.

Over the past 12 years, gold prices have soared—from around $280.00 an ounce to about $1,250 now. This represents an increase of about 250% in total or a bit more than 28% each year. Going forward, the fundamentals for the prices to move higher look promising as well. Demand is increasing and supply is shrinking.

Back in 2002, the editors of Profit Confidential started telling their readers it was time to jump into gold-related investments. This gold investing guidance and analysis proved to be extremely timely. Yes, back in 2002 we started offering gold analysis to our readers and we still do it today. We have been recognized as one of the first investment letters to tell its audience to jump into gold stocks, very early in the gold bull market. The gold guidance and analysis we provided resulted in investors seeing many stocks we follow rising in price 100% or more in short periods of time. Today, you can regularly find gold market analysis in Profit Confidential. Each time gold prices have moved higher, we’ve told our readers to buy more gold-related investments. See what we have to say about gold’s future daily in Profit Confidential.

The Question Everyone Is Asking This Morning

By Friday, August 1, 2014

Stocks Turn Negative for 2014; Likely to Get WorseYesterday, the Dow Jones Industrial Average fell 317 points, while the NASDAQ Composite Index fell 93 points—respective losses of about two percent per index. This morning, stock market futures are down again.

As a reader of Profit Confidential, this “rout” we are now in should come as no surprise. I have been writing for mont… Read More

The Sobering Issue

By Friday, July 25, 2014

Why Our National Debt Will Double From HereAccording to the U.S. Congressional Budget Office, next year, the government is expected to incur a budget deficit of $469 billion and then another budget deficit of $536 billion in 2016. (Source: Congressional Budget Office web site, last accessed July 21, 2014.) From there, the budget deficit is expected to increase as far as the p… Read More

Taking It Too Far Again…

By Friday, July 11, 2014

Why Interest Rates Will Rise Faster and Sooner Than Most ThinkWhat led to the 2008/2009 stock market and real estate crash and subsequent Great Recession can be attributed to one factor: the sharp rise in interest rates that preceded that period.

In May of 2004, the federal funds rate, the bellwether rate upon which all interest rates in the U.S. are based, was one percent. The Federal Reserve, se… Read More

Stock Market Pricing-in a Recession?

By Wednesday, July 2, 2014

U.S. Economy Close to Technical RecessionBy no surprise to me whatsoever, the government’s third and final estimate of first-quarter U.S. gross domestic product (GDP) came in at a negative annual pace of 2.9%. (Source: U.S. Bureau of Economic Analysis, June 25, 2014.) The U.S. economy’s growth rate in the first quarter of this year was the worst since 2009.

I’ve been w… Read More

Why I Never Pay for Coffee at Sam’s Bakery

By Monday, June 16, 2014

Grains of coffee and dollarsThere’s a local bakery near my office I try to get to at least once a week. Sam and his wife own the bakery, and Sam is usually the one there serving espressos and cappuccinos to the many small business owners who meet there early in the morning to talk about business and the economy.

My problem is that I never pay for coffee at Sam’s baker… Read More