Category: Gold

Buy, Sell or Hold

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Sometimes the market offers investors a rare chance to buy shares of a great company on a dip. That’s precisely the opportunity we’re getting right now with Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX).

The current market volatility is giving investors with an eye toward long-term investments a great chance to buy shares in a world-class company.

FCX is one of the best-run global mining companies and a great way to gain exposure to gold and copper. So it’s time to “Buy” Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) (**).

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Stocks Fall on Concern Japan’s Quake to Hurt Growth; Treasuries, Euro Gain

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Global stocks slid, following the biggest drop in Tokyo since 2008, and Treasuries gained amid concern Japan’s biggest earthquake on record will hurt economic growth. The euro rallied as European leaders agreed to expand the region’s rescue fund.

The Standard & Poor’s 500 Index fell 0.6 percent to 1,296.39 at 4 p.m. in New York, paring a drop of as much as 1.4 percent as energy shares rebounded. The Nikkei 225 Stock Average plunged 6.2 percent, with about $285 billion in equity value erased from the Japanese market. Ten-year Treasury yields lost 4 basis points to 3.37 percent. Oil reversed losses after dipping below $99 a barrel. The euro rose against 15 of 16 major peers.

Companies that operate nuclear power plants or supply the fuel helped lead stocks lower, with Entergy Corp. down 4.9 percent in New York and Cameco Corp. tumbling 13 percent in Toronto, while natural gas rallied amid speculation that the atomic-energy industry will suffer as Japan works to contain radiation at damaged reactors. Tiffany & Co. and Coach Inc. lost more than 5.2 percent for the biggest declines in the S&P 500 on concern sales of luxury goods in Japan will slow.

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Gold prices will hit $2,500 in the near future

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Gold prices will hit $2,500 in the near future.
Government Pushing Gold in China, although it’s rarely mentioned in the Western media, the Chinese government is encouraging their citizens to buy physical gold bullion as part of an effort to cool further investment in the red-hot real estate and housing sectors.

“Unlike the property market, investment in the gold sector is something the government is encouraging,” ICBC’s Zhou told Reuters.

“There is frantic demand for non-physical gold investments. We issued 1 billion yuan ($151 million) worth of gold-price-linked term deposits in 2010, but we managed to sell the same amount over just a few days in January this year,” Zhou said, adding that investors will deposit more than 5 billion yuan ($759 million) in gold-linked accounts this year…

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Global Investing Strategies

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Right now, China is where America was back at the dawn of the Industrial Revolution, and into the 1800s. Development is highly concentrated in the coastal regions, the financial system is maturing and the country’s economy is characterized by rapid growth across the board. And everything – from intellectual property to real estate values – is under tremendous pressure … to grow. So there are some real parallels. China is not going to stop growing anytime soon nor is it going to fail. But it is likely to have some hiccups…again, just as we did with two world wars, the Great Depression, 20 or so recessions and all manner of boom-and-bust cycles. Some of those hiccups will be quite wrenching in nature.

The key will be to “follow the money” into the best profit opportunities. And no matter what happens, there will always be opportunities – if you know what to look for.

I am convinced that China will affect every asset class on the planet – even if only indirectly – for the rest of our lives. I am also convinced that it represents the single-greatest-wealth-creation opportunity of our time, which is why I have spent a good portion of my life and career in the Pacific Rim – studying, participating and actively investing in related markets.

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Best Investments For 2011

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The U.S. recovery will continue this year, and U.S. stocks will continue to advance, though investors can expect whipsaw trading patterns and must beware of the point when the U.S. Federal Reserve ends the cheap-money mindset that’s fueling the advances, says Money Morning Chief Investment Strategist Keith Fitz-Gerald.

But uncertainty also brings opportunity, and Fitz-Gerald sees tremendous profit potential for those who are willing to remain invested – and who have the courage to make opportune choices. Commodities of all types, so-called “BEE” (Big Emerging Economy) markets and the stocks of companies that derive a major portion of their sales from these fast-growing overseas economies should be on everyone’s investment menu.

And don’t ignore multinational stocks from your own backyard: While it might surprise many investors to discover this, many U.S.-based companies are major players abroad, Fitz-Gerald says.

“I see the markets generally rising until mid-2011, which is when the reality of stimulus spending, the looming budget battle and fiscal follies set in.

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