price of gold

Marc Faber: Gold is a Hedge Against a U.S. Economic Collapse

By Thursday, July 30, 2015
Marc Faber: Gold is a Hedgeimage by Simon Cunningham
The U.S. could be on the verge of an economic collapse and investors should start moving their portfolios into hard assets like gold and silver. At least, that’s according to renowned investor Marc Faber. In a presentation at the CFA Analyst Seminar in Chicago, the popular market commentator argued asset markets are broadly overvalued and investors should be accumulating cash. To survive the looming financial crisis

Gold Prices to Skyrocket Due to Greek and Chinese Economic Struggles

By Thursday, April 16, 2015
Gold PricesAs it stands, there are more reasons for gold prices to go higher than there are for the yellow metal to decline. The mainstream is focused on just two factors; they argue there isn’t any inflation and that the U.S. economy is performing well enough. Remember: there’s more to gold prices than just these two phenomena. Think of gold as a global currency; it’s not just limited to the U.S. .

Stock Market Outlook Solid Based on Earnings and Valuation

By Wednesday, August 29, 2012
Stock Market Outlook Solid Based The stock market certainly isn’t going up because of stronger expectations for corporate earnings. But I think all the conservative forecasts by corporations will lead to another quarter of mostly outperformance this upcoming earnings season. Companies have consistently been able to generate good earnings, even with lackluster revenue growth. Cost cutting is paying off in terms of solid earnings results, and this is the reason why balance sheets are so .

Gold Stocks Breaking Out of Their Correction

By Monday, August 27, 2012
Gold Stocks Breaking Out of Their CorrectionThe price of gold is going up, and it just crossed $1,660 an ounce. Silver crossed $30.00 an ounce. You might say that precious metals are back. You can plainly see the resurgence in gold stocks, which have really turned around from what was a considerable period of weakness. The majority of gold stocks have been trending lower all year, as the spot price has been consolidating. Expectations for more .

Gold Update: Precious Metal Stuck in the Short Term

By Thursday, August 2, 2012
Gold Update: Precious Metal Stuck in the Short TermIf you’re looking to make money playing the long side in gold, you may want to wait a bit unless you are willing to trade the range. The yellow metal is no longer in a bear market, but it is also not ready to rally much higher in the short term. On the supportive side, we have the eurozone mess, slowing in China, and high overall market risk. Since cash .

China to Become World’s Biggest Buyer of Gold in 2012

By Friday, July 13, 2012
Gold bullion imports from Hong Kong into mainland China increased 600% in May 2012 when compared to May 2011! (Source: Bloomberg, July 9, 2012.) China is set to take the lead from India as the largest purchaser of gold bullion in 2012. The World Gold Council estimates that China will buy at least 870 tons of gold bullion in 2012. Just to give an idea of how large these purchases .

Gold vs. the Bear Market; Will it End Happily Ever After?

By Thursday, May 17, 2012
 price of goldIn the classic nursery tale “Goldilocks and the Three Bears,” first put in written form by British author Robert Southey, Goldilocks ran when she came face to face with the bears. On the price charts, gold is also now facing a bear market; but will gold also run away and tank? Looking at the chart of the June gold, the picture is extremely bearish following the recent break below $1,600 .

Why the Pathetic New Consumer Confidence Reading Is Good News!

By Wednesday, October 26, 2011
The New York-based Conference Board’s household sentiment index has slumped to the lowest level since March of 2009… But hold on…don’t dismiss it as more bad news! It’s actually good news. Sure the U.S. unemployment rate has held at about nine percent for about 30 months now. Sure, 8.75 million jobs were lost in the recession that ended in June 2009. And, with only about two million jobs created since the recession ended, the unemployment picture is not looking good. How can consumer confidence not be taking a beating?

Precious Metals Mergers About to Take Off

By Friday, October 21, 2011
Gold bugs are feeling the pain, as precious metals continue with their slower-economic-growth correction. As well, the prospect of action on the Europe debt crisis is tempering the marketplace’s appetite for gold futures. My view is that gold and silver continue to represent some of the most attractive assets going forward over the next several years. We’re in a market where new trends take a long time to develop and we’ll likely see the spot price of gold trade around $1,600 an ounce for quite a while yet.

Strong Corporate Earnings and the
Bear Market: How it Will Play Out

By Thursday, October 20, 2011
Remember this summer when the Dow Jones Industrial Average had a couple of 400-point loss days and we heard so many stock advisors and analysts tell us we were headed straight into a second recession…that corporate earnings would plummet? Stocks fell 20% from their May 2, 2011, high and all of a sudden headlines started to appear saying that we were in a bear market.
Sep. 2, 2015
Trailing 12-month EPS for Dow Jones companies (Most Recent Quarter) $1014.15
Trailing 12-month Price/earnings multiple (Most Recent Quarter)


Dow Jones Industrial Average Dividend Yield 2.71%
10-year U.S. Treasury Yield 2.14%

Immediate term outlook:
The bear market rally in stocks that started in March 2009, extended because of unprecedented central bank money printing, is coming to an end. Gold bullion is up $1,000 an ounce since we first recommended it in 2002 and we are still bullish on the physical metal.

Short-to-medium term outlook:
World economies are entering their slowest growth period since 2009. The Chinese economy grew last year at its slowest pace in 24 years. Japan is in recession. The eurozone is in depression. With almost half the S&P 500 companies deriving revenue outside the U.S., slower world economic growth will negatively impact revenue and earnings growth of American companies. Domestically, America’s gross domestic product grew by only a meager 2.3% in the second quarter, which will negatively impact an already overpriced equity market.


Will slowdown in China affect the U.S. economy?

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From: Michael Lombardi, MBA
Subject: Gold: The Stock Contrarian Investors’ Best Play of the Decade

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