Investing

Given the hectic lives most people lead these days there is not much time to surf the internet in search of informative and well-written articles on the health of the economies of the U.S., Canada and Europe; the development and implications of the world's financial crisis and the various investment opportunities that present themselves related to commodities (gold and silver in particular) and the stock market. Not to worry! I have done it for you. I read hundreds of articles each day, select the best and post edited excerpt summaries on munKNEE.com - Your Key to Making Money. Below are introductory paragraphs and links to the top 10 for the week ending November 19th, 2011.

Gold falls when a financial crisis worsens for 2 basic reasons which make total sense when looked at objectively. Resultant government intervention then creates the environment for a future rise in the price of gold. This article explains the causes of the downs and ups in the price of gold and offers suggestions on how and when to act. Words: 868

What’s going on? If gold is the great anti-asset, the thing to hold when everything else is in collapse why is it now trading…[below $1,700 and] not $2,000? Words: 1139

The Royal Canadian Mint has announced that it is making an initial public offering of exchange-traded receipts (ETRs) under the mint's new Canadian Gold Reserves program. Unlike other gold investment products currently available which only enable the purchaser to own a unit or share in an entity that owns the gold, the ETRs will enable the purchaser to actually own the physical gold bullion which will be held in the custody of the mint at its facilities in Ottawa. Words: 650

In the long run developments in the financial markets and around the world seem to conspire to whip up a perfect storm for the gold price, taking it up towards $2,000 and further. That new upleg, however, could very well start from a much lower level than now. There are quite a few developments that could easily send the gold price lower in the coming months. Is $1,200 gold in the cards? Words: 739

If this precious metals bull market continues over the next couple of years, I think one would [be well served to] diversify some assets in gold/silver into platinum. [Let me explain the present relationship between platinum, gold, silver and palladium and why I make the aforementioned recommendation.] Words: 832

The key to long term success in investing is understanding the difference between the "seasons" in the markets and the economy. [Let me explain the four "seasons" and why we might very well be in the "fall" season and, if that is indeed correct, why] it is time to pack away the summer allocations and break out the winter coats to hunker down for what may be a chilly 2012. Words: 1016

The past few years have seen the development of the notion that GLD and SLV represent uncorrelated plays on the market, making them safe haven bets for your portfolio. Looking at historical trends (aside from 2011), [however,] one would have to go back to 2007 to find a year where these two metals weren’t highly correlated to the S&P 500. For all of 2011, both ETFs have featured low correlation, but as recent trading weeks have shown, old habits die hard, as the two ETFs have fallen back into a highly correlated trend. Let's take a look at the particulars.] Words: 672

A Barclays Capital research [report] notes that gold prices are vulnerable to a recession - more so than some of the other commodities. In the last recession of 2008, gold prices appreciated the least among precious metals. Below is a table that ranks 30 different commodities. Words: 571

Whilst it is true, more often than not, that mining stocks move in the same direction as gold [and historically outperform that of the physical metal based on their better beta statistics] there are periods where this relationship does not hold. That is one of the reasons we currently have no interest in trading or investing in mining stocks. Why form a bullish view on gold and buy mining stocks based on this view, only to see gold rise and mining stocks fall? [Instead,]... our preferred strategy to optimize and maximize potential profits... is using options that are directed based on the price of gold with no other factors influencing their performance. [Let us explain why.] Words: 1235