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Gold and Crude Oil Could Prove to Be Next Winning Couple

NEW YORK (MainStreet) — As prices for both crude oil and gold have declined recently, the regular correlation between the two commodities appears to be ending, according to precious metals experts.

While gold and crude oil prices have had a strong relationship in the past, the recent massive drop in oil has broken that correlation, said Scott Carter, CEO of Lear Capital, a Los Angeles precious metals firm which sells physical gold, silver and palladium to retail investors.

Crude oil’s rapid decline occurred because of the “severe” economic slowdown occurring in Europe, China, Japan and Russia, which are fighting deflation, he said. Central bankers in those countries have turned to printing more fiat currency or money that is not backed by gold or other currencies to fight deflation.

Read More: Best Ways to Invest in Gold

Gold investors view this as a “predictable response” from the central banks and are maintaining their gold and silver positions, Carter said.

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“If the Central Banks of Europe, Russia, China, Japan, and the U.S. continue to keep interest rates at zero and also begin to print fiat currencies to spark their respective economies, then gold and silver should appreciate materially,” he said. “If the printing presses start up in every major country, gold will increase by 15% to 20% in 2015.”

The correlation between gold and oil is really more of a function of the

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Price of Silver in 2015: Why It Could Bounce Higher

Silver bars. Source: Flickr user Sprott Money.

In 2014, silver once again suffered a substantial loss, following up a 36% crash in prices during 2013 with more double-digit percentage declines. Yet even though investors have had to live through a crushing precious-metals market environment during the past two years, many investors now believe that the price of silver in 2015 could finally bounce higher and give bullion owners some long-awaited relief. Let’s look more closely at what’s moving silver prices, and how those factors are likely to affect silver prices in 2015 and beyond.

Can the price of silver in 2015 really rise?
Silver offers a unique mix of attributes of both precious and industrial metals. On one hand, silver has traditionally moved closely with gold, given the two metals’ historical use in monetary systems around the world. Yet, to a much greater extent than gold, silver has many industrial uses, and industrial demand gives silver a more concrete connection to the health of the global economy than gold.

Source: Wikimedia Commons.

With respect to its status as a precious metal, silver hasn’t gotten any favors from gold recently. Despite cheaper prices for precious metals, many investors worry that the coming rise in interest rates from the Federal Reserve will raise financing costs for holding bullion, and greater income opportunities elsewhere in the financial markets will lead to greater divestment of gold and silver. The strong U.S. dollar has also made silver more expensive

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Gold price recovers on fresh demand; silver remains weak

Gold price recovers on fresh demand; silver remains weak

New Delhi: Gold prices recovered by Rs 85 to Rs 27,310 per ten grams at the bullion market in the national capital on emergence of buying by jewellers and retailers at prevailing levels even as the precious metal weakened overseas.

However, silver remained under pressure on sluggish demand from consuming industries and fell by Rs 460 to Rs 36,140 per kg.

Traders said emergence of buying by jewellers and retailers at current levels mainly supported the upside in gold prices but a weak trend in gold in global market limited the gains.

Globally, gold traded a shade lower at USD 1,194.20 an ounce in New York yesterday.

In Delhi, gold of 99.9 and 99.5 percentpurity prices were up by Rs 85 each to Rs 27,310 and Rs 27,110 per ten grams respectively.

Sovereign, however, continued to be traded at last level of Rs 23,700 per piece of eight gram.

Silver ready declined further by Rs 460 to Rs 36,140 per kg on reduced offtake by consuming industries but silver weekly based delivery rose by Rs 330 to Rs 36,940 per kg on speculative buying.

Silver coins also dropped Rs 1,000 to Rs 59,000 for buying and Rs 60,000 for selling of 100 pieces.


First Published: Saturday, December 20, 2014, 17:30

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A once-in-a-decade opportunity in resource stocks could be here now

From Dan Ferris, editor, Extreme Value: 

I hate the idea of timing the market.

It’s impossible to predict short-term movements in individual stock prices, let alone whole markets containing thousands of stocks. Much of the time, it’s a fool’s errand.

I recommend you buy, hold, and sell stocks based solely on business value and business results. But as I mentioned in DailyWealth, there’s a timing opportunity in dirt-cheap small-cap natural resource stocks right now that you should take advantage of.

It could be the beginning of the five- and 10-bagger returns I expect to see in a lot of small resource stocks over the next few years.

Let me explain…

Humans aren’t built for the stock market. They LOVE to hang onto a losing position way too long. They say they’ll sell “when it bounces back.” Despite a brutal three-year thrashing, investors have hoped and prayed to sell their small-cap resource stocks at less embarrassing price levels.

The market doesn’t care about your desire to exit with some shred of dignity. The Market Vectors Junior Gold Miners Fund (GDXJ) has fallen 34% since January 1, to all-time lows. The Market Vectors Gold Miners Fund (GDX) is down 44% in the past three months alone.

And that’s where our opportunity lies. We could be a couple weeks away from one of the greatest buying opportunities in natural resource stocks of the next decade or two. The opportunity comes from a phenomenon that’s well-known among the best resource investors…


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Gold And Silver Nothing Is Ever As It Seems And No Respite For PMs

Commodities / Gold and Silver 2015
Dec 20, 2014 – 07:01 PM GMT

By: Michael_Noonan

An eminent collapse of the US fiat petrodollar? China and Russia, with their enormous build-up of physical gold over the last several years, waiting in the wings to lead a new gold-backed currency? The growing BRICS alliance to unseat the elite’s Western NWO and its banking system?

A growing likelihood on the first question, and no and no to the latter two questions. In fact, the elites are probably doing more to destroy the fiat Federal Reserve “dollar” than any other group or alliance. There has been talk about the US destroying the dollar for at least the past four years. Kyle Bass even made the pronouncement whereby a senior Obama administration official told him, “We’re just going to kill the dollar.” That is exactly what is happening and coming from “inside information.”

What most people refuse to understand, if not even acknowledge, is the extent to which the elites have an utter stranglehold on the world’s financial system, and by world we do not mean just the Western world. China and Russia are included. There is no single country that can exist without the machinations of the elite’s banking system. They have been running the world for a few hundred years and are masters at it.

Russia has enough gold to back

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Gold Drops on Week; 2014 Silver Eagle Record Tops 43.5M

Pure silver bullion bars

Precious metals settled lower this week. American Eagle silver bullion coins added to their sales record.

Gold closed slightly higher Friday, adding to smaller gains from the previous two sessions. As such, losses earlier in the week were barely dented and the yellow metal logged a 2.2% weekly decline, snapping a two-week winning streak and sliding back into the red for the year.

Gold for February delivery on Friday settled up $1.20, or 0.1%, to $1,196 an ounce on the Comex division of the New York Mercantile Exchange. Gold prices may be sticking near this level until 2015, some analysts opine.

“With everyone now focused on the holidays, most analysts are not expecting to see any major movement in the gold price in the next two weeks,” noted Neils Christensen of Kitco News. “The trading week in North America will be disrupted as markets are closed on Dec. 25 for Christmas and January 1 for New Year’s Day. Analysts said that liquidity will be extremely leaving most market participants will sitting on the sideline, waiting for activity to pick up in 2015,” Christensen added.

Gold prices have slipped $6.30, or 0.5%, since ending 2013 at $1,202.30 an ounce. Though, in another comparison, gold is actually 40 cents higher than its close exactly one year ago.

Silver, Platinum and Palladium Futures

Also up for a third session, silver for March delivery tacked on dime,

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Why a Federal Reserve rate hike won’t help your savings account

From Bloomberg: 

The biggest U.S. banks pay as little as 0.01 percent per year to their savings account customers. At that rate, through the magic of compound interest, their deposits will double in, oh, 7,000 years.

In a statement [yesterday], the Federal Reserve omitted a pledge to keep rates near zero for a “considerable time” and instead vowed to “be patient” on any rate increases. This suggests it’s getting ready to raise interest rates in 2015. That raises hopes that savers will start earning real money on their deposits next year. Unfortunately for diligent savers, higher rates set by Fed Chair Janet Yellen won’t automatically mean higher rates at the bank around the corner. Americans could be stuck earning pennies on their savings well into 2016, even as banks charge borrowers more.

After a rate increase, banks are usually quick to raise rates on mortgages, home equity loans and credit cards. It’s the savings accounts and certificates of deposits that can take forever to adjust, a 2013 Fed study found. Banks wait an average of 8 months to boost savings account rates after a Fed rate increase. And most raise rates just a fraction of the Fed’s total increase. If banks fully reflected a Fed rate increase, the study estimates, in the first year savers would bring home $100 billion more in interest payments.

Banks act this way for a reason: The wider the spread between what they charge borrowers and what they pay savers,

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Doc Eifrig: What you need to know about colds and flu this winter

From Dr. David Eifrig, MD, MBA, editor, Retirement Millionaire: 

‘Tis the season for flu and colds… But can you tell the difference between the two? The Cleveland Clinic has put together a concise list to help you figure out if you’re fighting the flu or a cold and how to combat each one.

Flu: Use the acronym FACTS – Fever, Aches, Chills, Tiredness, and Sudden Onset. Sudden onset is one of the key differences between the flu and a common cold. If you’re older than 65 and feel flu symptoms come on fast, get to your doctor quickly. The sooner you can take antiviral medications, the better. The flu usually lasts two to four days when treated with bed rest, liquids, and over-the-counter flu medications. Avoid antibiotics for the flu, since the flu is a virus. Antibiotics target bacteria, so they’re useless against the flu.

Cold: You can feel a cold “coming on” for a while before you really get sick. It typically lasts from one to three weeks. Symptoms include a runny rose, congestion, sneezing, sore throat, and coughing. You can treat it with over-the-counter cold medicine and vitamin C. The common cold also comes from a virus, so skip the antibiotics here, too.

If you feel yourself getting sick, do what I do. Wash your hands with non-antibacterial soap and take plenty of vitamin C. I also use a Neti pot to wash out my sinuses and help clear up my

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If you’re a trader, this could change your life

Whenever I see the words “life-changing opportunity” or something like that, I immediately dismiss it as a lame gimmick or hyperbole.

And while I am truly reluctant to use those often misused words, I can honestly think of no better way to describe Puerto Rico’s tax incentives for traders, hedge funds, private equity firms, and asset managers of all stripes.

This is truly a life-changing opportunity for them, and that’s not BS.

By the end of this article, you’ll see why.

It’s not for no reason that investment legends like hedge fund manager John Paulson and Nick Prouty have planted their flags there. But you don’t have to be a big name to benefit too. As you’ll see, obtaining Puerto Rico’s tax incentives is really a no-brainer for anyone who makes their living off of capital gains.

But first, you need to understand a few things about the uniquely burdensome American tax code to see why this is such an unparalleled opportunity.

No Escape… Until Now Americans are in the uniquely unfavorable position of having arguably the worst tax policies and a government that relentlessly enforces them everywhere in the world.

For many, the US tax system is a tight and suffocating leash. It’s no wonder then that a record number of Americans are giving up their citizenship to escape these punishing requirements. Besides death, renouncing your citizenship was really the only way to get out of the US tax system… until recently.

Puerto Rico has long promoted itself as a tax-friendly jurisdiction open to Americans in order

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Get ready… Hundreds-of-percent gains are coming to this surprising sector

From Amber Lee Mason, editor, DailyWealth Trader: 

One of the world’s biggest “boom and bust” markets is moving from bust… to crisis.

And as longtime readers know, a good crisis always sets up great trading opportunities… Buying an asset in crisis, and owning it as things go from “bad to less bad,” is one of the most profitable trading strategies ever created. You can find opportunities to make $4, $5, even $10 for every $1 you put at risk.

It just takes a bit of patience waiting for the right opportunity to buy… And that’s what we’re waiting for in the energy sector.

In July, I warned my DailyWealth Trader readers about an “extreme” in the oil market. Speculators were at near-record levels of bullishness… a signal that regularly leads to big selloffs.

Over the next three months, U.S. oil prices fell from $102 to $80… a huge drop. Oil stocks got hammered… An index of major oil companies, like ExxonMobil and Chevron, was down 11% from its peak. Smaller producers, oil-services stocks, and tiny oil explorers had fallen more than 30%.

By late October, I was looking for a trade… But I wasn’t ready to pull the trigger. Remember, the first rule of trading a crisis is to wait for prices to stop falling.

And prices have not stopped falling… The U.S. oil price is now down nearly 46% from its June peak. It just hit a five-year low.

Oil stocks

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