I recently watched the classic man-eating fish movie “Jaws” and the latest action in the precious metals space reminded me of the tagline for the film, “Just when you thought it was safe to go back into the water…” Is it safe to swim in the water?… Read More

Gold is one of the most malleable and least reactive elements known to man. It’s used for both practical and symbolic purposes. Historically, gold has been one of the most common forms of monetary exchange throughout human history. Its secondary place to paper currency did not come about until the 20th century. And after continuously rising to new highs even after a multi-year bull market, one other thing can be said about gold: It can also make traders a lot of money… With gold rallying to… Read More

Gold is one of the most malleable and least reactive elements known to man. It’s used for both practical and symbolic purposes. Historically, gold has been one of the most common forms of monetary exchange throughout human history. Its secondary place to paper currency did not come about until the 20th century. And after continuously rising to new highs even after a multi-year bull market, one other thing can be said about gold: It can also make traders a lot of money… With gold rallying to record highs almost daily, it’s seen increasingly as a way to protect oneself against worldwide currency inflation. Inflationary worries were prominent news this trading week. China’s central bank raised its interest rates — for the fourth time since mid-October — to head-off price increases running at nearly 5% a year. The European Central Bank also raised rates for the first time in nearly two years, in order to curtail rising food and energy costs. In the United States, rising interest rates may… Read More

New income investors sometimes make the mistake of looking no further than a stock’s current dividend yield. After all, a stock such as biotech firm PDL BioPharma (NASDAQ: PDL) looks mighty enticing, based on its 10% yield. But looks can be misleading. A closer look at PDL reveals a dividend that may be in trouble. The company’s net income fell by more than 50% last year, and PDL paid out more in dividends than it earned as income. The company earned $92 million, but paid $130 million in… Read More

New income investors sometimes make the mistake of looking no further than a stock’s current dividend yield. After all, a stock such as biotech firm PDL BioPharma (NASDAQ: PDL) looks mighty enticing, based on its 10% yield. But looks can be misleading. A closer look at PDL reveals a dividend that may be in trouble. The company’s net income fell by more than 50% last year, and PDL paid out more in dividends than it earned as income. The company earned $92 million, but paid $130 million in dividends. When earnings decline sharply, even blue-chip companies can sometimes find their dividends in danger. A good example is General Electric (NYSE: GE), which was forced to trim its dividend by two-thirds during the economic downturn. Quarterly payments dropped from $0.31 to just $0.10. [See: “Forget GE, Buy These Stocks Instead”] Another high-profile casualty of the downturn was oil refiner Valero Energy (NYSE: VLO). Valero cut its quarterly dividend from $0.15 to $0.05, which is where the dividend remains today. So how do you protect yourself… Read More

By some estimates, the sum total of gold mined from the time of the ancient Egyptians through today would fit neatly into a 25-meter cube. That makes it pretty scarce. But for every 10 ounces of gold dug up from the ground, miners extract less than 1 ounce of platinum. And these precious metals are downright plentiful compared to promethium, a trace element that comprises just four parts per quintillion in naturally occurring ores. The entire global supply is thought to be a mere 500 grams — about the weight of a football. Read More

By some estimates, the sum total of gold mined from the time of the ancient Egyptians through today would fit neatly into a 25-meter cube. That makes it pretty scarce. But for every 10 ounces of gold dug up from the ground, miners extract less than 1 ounce of platinum. And these precious metals are downright plentiful compared to promethium, a trace element that comprises just four parts per quintillion in naturally occurring ores. The entire global supply is thought to be a mere 500 grams — about the weight of a football. Promethium is the rarest of the “rare earth metals,” a series of 17 obscure elements with unusual properties and valuable commercial applications. These metals aren’t exactly household names just yet. You might not even be able to pronounce ytterbium, let alone know what it’s used for. But if the combination of tight supplies and booming global demand intrigues you, then you’ll want to take a few minutes to familiarize yourself with this group. Because even after posting red-hot gains of 100% or more during the past year, stocks in this sector still have untold upside… Read More

The current social unrest spreading throughout the Middle East has its roots in many causes. In some places, despotic leadership is no longer being tolerated. In other instances, such as Bahrain, religious groups that constitute a majority of the population have been shut out of important roles in the economy. Yet in all of the countries involved, one clear theme has emerged: The citizens are tired of corrupt, sclerotic and nepotistic leaders, and simply want improved access and a shot at a better lifestyle. What’s in the interests of these citizens is also in the… Read More

The current social unrest spreading throughout the Middle East has its roots in many causes. In some places, despotic leadership is no longer being tolerated. In other instances, such as Bahrain, religious groups that constitute a majority of the population have been shut out of important roles in the economy. Yet in all of the countries involved, one clear theme has emerged: The citizens are tired of corrupt, sclerotic and nepotistic leaders, and simply want improved access and a shot at a better lifestyle. What’s in the interests of these citizens is also in the interest of investors. Corruption-free, merit-based economies are always the best place to do business. That’s why the Heritage Foundation annually issues a Freedom Index of 10 components that measure a series of “economic freedoms” such as business freedom, trade freedom, fiscal freedom, property rights and corruption. It’s no coincidence that Iran, Syria, Algeria, Yemen, Tunisia and Morocco all occupy the bottom half of the Freedom Index rankings. Unless you are a member of the elite in these countries and have the ability to bribe and cajole your way into key business relationships, you… Read More

You’ve no doubt heard plenty as to why commodities are going through the roof. Yes, turmoil in the Middle East plays a part. As does a weakening U.S. dollar. But perhaps the underlying catalyst in the commodities pits is China. The… Read More

About 20% of the world’s energy supply comes from 440 nuclear power plants, located in 25 countries around the world. About 12% of these nuclear reactors are in Japan. As the headlines describe, the devastating earthquake and tsunami that struck Japan on March 11 triggered a series of explosions, leading to the partial meltdown of a nuclear plant, located 150 miles outside of Tokyo. The impact of the meltdown has spread far beyond Japan, affecting nuclear-power companies worldwide. Observers suspected plans for many of the world’s 60 new nuclear plants could be stopped, or at the very least halted, for… Read More

About 20% of the world’s energy supply comes from 440 nuclear power plants, located in 25 countries around the world. About 12% of these nuclear reactors are in Japan. As the headlines describe, the devastating earthquake and tsunami that struck Japan on March 11 triggered a series of explosions, leading to the partial meltdown of a nuclear plant, located 150 miles outside of Tokyo. The impact of the meltdown has spread far beyond Japan, affecting nuclear-power companies worldwide. Observers suspected plans for many of the world’s 60 new nuclear plants could be stopped, or at the very least halted, for some time to come. This week, the Swiss government announced the suspension of approvals for new nuclear plants. The German government followed suit. Furthermore, Germany’s seven nuclear facilities, built prior to 1980, will be shut down until at least May. This step leaves the country with only 10 operating nuclear facilities. In France — where 80% of the country’s electricity comes from nuclear power — the Green Party has called for a referendum on the future of nuclear power. And even China, which has had big ambitions for nuclear power-expansion, announced Wednesday, March 16, that it was… Read More

The era of very low inflation seems to be coming to an end. Food prices started to perk up in 2010, oil prices are on the rise now and, before long, a wide range of companies may need to push up their prices to account for their own rising costs. This can end in one of two ways: with higher — but still manageable — inflation, or it could trigger a vicious cycle of rising inflation expectations that create even greater inflationary pressures. It’s not just about food, oil… Read More

The era of very low inflation seems to be coming to an end. Food prices started to perk up in 2010, oil prices are on the rise now and, before long, a wide range of companies may need to push up their prices to account for their own rising costs. This can end in one of two ways: with higher — but still manageable — inflation, or it could trigger a vicious cycle of rising inflation expectations that create even greater inflationary pressures. It’s not just about food, oil and other raw materials, either. There’s a also a macro-economic concern: if the United States starts to struggle to find buyers for its debt, it will need to offer far higher bond yields, the dollar would come under pressure and imports into the U.S. would be subject to major inflation pressures. Right now, this doomsday scenario is no sure thing. And it would take several years of pressure to really put inflation on the boil. But you need to start thinking about it now, gradually adjusting your investment exposure as any… Read More

The acquisition of wealth is paramount to our financial futures. Most Americans have historically depended on home ownership for accumulation of wealth, the recent crisis notwithstanding. But most people don’t realize that there’s a better way. One of the greatest… Read More

Almost everyone knows Harvard University is one of the premier names in the world of college academia. What most of the world may not realize, however, is that the geniuses managing its $27.6 billion endowment have become the envy of other Wall Street… Read More