Welcome to Gold World's new weekend review. Each week we'll take a look at the week that was and what's ahead, along with what you may have missed form our free sister sites, Wealth Daily, Energy and Capital, and our free blogs. Enjoy.
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Gold prices were higher Thursday, reaching a record $970 high on an inflationary mix of oil and dollar declines. Higher oil prices, a weak dollar, and fear that the U.S. economy is in a recession have forced traders to the safe havens of gold.
It's what sent gold up 32% in 2007 and another 13% since January 1, 2008.
Weighing on investors was Bernanke, who told Congress that rising inflation was making the Fed job harder and that the Fed stood ready to lower interest rates to boost the economy, which puts further pressure on the dollar and boosts the preciousness of metals.
At the same time, we're watching as crude rebounds strongly, rising more than $2 a barrel to new records, as a historically weak dollar and the prospect of lower interest rates attracted even more money flow to oil markets. Instead of viewing 0.6% Q4 GDP growth, coupled with rising unemployment numbers, as a negative, investors are using it as fodder for further interest rate cut arguments.
Combined, you have the perfect storm for the metal market. As long as Bernanke is on TV, telling every one he'll boost the economy with rate cuts, you'll have higher metal costs.
Gold for April delivery was up to $966.70 on Thursday after nailing $970. Silver for March delivery hit $19.70 after hitting a 28-year high of $19.845. Copper was up to $3.8965 a pound. And the dollar is trading lower against the euro, which now fetches $1.5197 as of Thursday.
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For the week of February 25, 2008, here's what we covered in Gold World and elsewhere.
Gold Mining in Chile
"Over 10,000 years ago, migrating Native Americans settled in the long and narrow coastal strip of land wedged between the Andes mountains and the Pacific Ocean in South America, which is now known as the Republic of Chile (República de Chile)."
Wheat Prices Hit Record High
Wheat for May delivery climbed 90 cents to $12.145 a bushel in after-hours Monday night trading on the Chicago Board of Trade, the grain's biggest one-day jump in five years. By the middle of Tuesday's trading session, prices had retreated to around $11.94 a bushel.
The 3 Hard Truths Facing the World... and Where the Money Will Be in Energy
Nick Hodge explains the reality of Grid Parity... and the bright future in renewable energy. Says Hodge, "Recent developments in renewable energy mean that solar is already achieving cost parity in locations that don't have easy access to fossil fuels... Hawaii is the perfect example. And just so you know I'm not making it up, here is a quote taken right from the BP(NYSE: BP) website: "In the USA, parity with the electricity grid at peak charging rates has already been achieved in northern California and Hawaii."
Investing in Nuclear Energy: 104 Reasons behind the Nuclear Energy Revival
Keith Kohl looks at the role nuclear energy will play in our world's future energy demand... and the best investing angles going forward. Says Kohl, "There are approximately 104 nuclear reactors operating in the U.S., accounting for roughly 20% of the total electricity we generate. If you really want to see where this industry is headed, just look at what we have planned for the future."
The Long-Term Investment on Post-Fidel Cuba
Energy and Capital's Sam Hopkins spoke of 4.6 billion barrels of Cuban oil, saying that even the United States Department of Energy can't play dumb when it comes to Cuba's oil reserves. Though, it's not just oil that has investors drooling.
Here's How to Cash in on New Balkan Banks
National Bank of Greece has sure benefited from taking a European perspective, acquiring majority stakes in regional banks like United Bulgarian Bank that give NBG first dibs on finance-hungry young economies in what used to be Europe's boondocks.
The Energy Trifecta Trades
According to Bloomberg, "U.S. natural gas is the cheapest it's been relative to oil since the 1991 Gulf War, raising the prospect of a windfall for investors who sell crude and buy the other heating fuel. Gas prices will probably rise because inventories are at a four-year low and below-normal temperatures are stoking demand... At the same time, he said, an increased supply of oil and a slowing U.S. economy will drag crude prices lower." Here's how to play it.
Wall of Worry: Tide of Bad News Rises
"Sometimes people ask me why I'm so negative these days. My answer, of course, is pretty simple," says Steve Christ. "When the data stops being so negative, I'll be more than happy to turn positive. But until then I just can't ignore it. That to me would be foolish."
That's it for this week. For more, visit your free EnergyandCapital.com, GoldWorld.com, and WealthDaily.com.
Have a great weekend,
Ian L. Cooper
http://www.goldworld.com
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