Wednesday, April 24, 2013

Net Asset Value Premiums of Certain Precious Metal Trusts and Funds – Record Asian Buying / By Jesse /
The Gold/Silver Ratio is now around 61.
And still hardly anyone is talking about silver in this recent market takedown.
The last chart shows a YTD comparison of gold and silver.  It shows what is meant when one says that ‘silver is more volatile.’  It tends to higher highs and lower lows as compared to gold.
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Investing in REITs Instead of Property: Our Pick / By Dennis Miller
I get a lot of questions from readers about holding real estate as an investment. Indeed, many are in response to another newsletter editor who was recently advocating that the only way for retirees to make decent income was to own property.

Personally, I wouldn’t hold physical property in our portfolio for three reasons.
First, it’s very illiquid; that makes it an instant failure on our Five-Point Balancing Test.
Second, you won’t get yield from a property for three to five years, but will instead pay to own it.
And third, depending on the size of your portfolio, an investment in physical real estate could throw off your balance. Allocating too much of a portfolio to a single industry is never a good idea. With a piece of property worth $100K, $200K, or more, you can suddenly find your retirement very dependent on the outcome of a single asset class.

However, at the same time, it’s hard to ignore that something is happening in real estate. The post-crash taboo around it is starting to disappear as prices increase. Are we so bullish on real estate that we would buy properties in Las Vegas? No, we’re not there; but at the same time, we wouldn’t mind dipping our toe into the shallow end of the pool with some more conservative opportunities.
Furthermore, rather than invest in physical properties directly, we’d rather invest in real estate investment trusts (REITs), which are traded on stock exchanges like any other stock. REITs are corporations that buy, sell, and rent real estate for their shareholders.

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Wabash National Corporation (NYSE: WNC)

Wabash National Corporation engages in designing, manufacturing, and marketing standard and customized truck trailers, intermodal equipment, and transportation related products in North America. It operates in three segments: Commercial Trailer Products, Diversified Products, and Retail. The Commercial Trailer Products segment manufactures truck trailers; proprietary composite products; dry van trailers; standardized sheet and post, and refrigerated trailer products; and steel and aluminum flatbed, and dropdeck trailers. The Diversified Products segment focuses on diversifying its product offerings using intellectual technology. It offers complementary products to company's truck trailers and transportation equipment; AeroSkirt, an aerodynamic solution for over-the-road trailers; and customer-specific solutions to original equipment manufacturers and aftermarket customers. The Retail segment operates 12 retail branch locations, which sell new and used trailers, aftermarket parts, and services throughout the United States.
To review potential trading opportunities with Wabash's stock, please take a look at the 1-year chart of WNC (Wabash National Corporation) below with my added notations:
1-year chart of WNC (Wabash National Corporation) WNC formed a double top price pattern (red). Double tops are reversal patterns and are as simple as they sound: Rallying up to a point (T), selling off to a support, and then rallying back up again to approximately the same top (T). As with any price pattern, a confirmation of the pattern is needed. WNC confirmed its pattern by breaking the $9 support (purple) that was created by the double top pattern.
Chart patterns can also provide price targets. Simply take the height of the overall pattern and add or subtract that amount to or from the breakout or breakdown point to get the minimum price objective. For example, since the double top pattern for WNC is $2 high ($11 - $9), WNC should fall to a minimum of $7 ($9 - $2). Chart pattern price targets are certainly not guarantees, but they are often fulfilled.
The Tale of the Tape: WNC has broken down from its double top and should be moving lower overall. A short trade could be made on any rallies back up to $9, while a long trade could be made if the stock were to break back above the $9 level.
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Low Gold Sentiment Means......

"Gold lately has had about as much luster as a rusty tin can," wrote Time magazine -- in August 1976.

"After that article was published," EverBank's Frank Trotter reminds us, "the yellow metal rallied about 600% in the following four years. I tell you this story because investors' sentiment toward precious metals is also terrible today."

Look no further, says Frank, than the Hulbert Gold Newsletter Sentiment Index. "It's a survey that shows what gold newsletter writers are telling their subscribers. Right now the index is showing a reading of 31% net short, a historical record low since the inception of the survey in 1997. This means the average gold newsletter adviser is recommending that clients and subscribers short gold with 31% of their portfolio. 

"Since 2000," Mr. Trotter continues, "this index has registered a reading below 20% only three other times. The chart below shows the performance of gold since 2002 and the readings of the index. As you can see, gold had a huge rally on all three of those occasions. 

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Investment Education 101: Compound Interest

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Goldman Closes Gold Short / By Tyler Durden / April 23, 2013,
It appears Goldman (together with virtually everyone else focused on physical not paper gold) has bought enough gold from its clients. Now, there is only upside.
Goldie on gold:
We closed our short trading recommendation on gold
We have closed our recommendation to short COMEX Gold, as prices moved above the stop at $1,400/toz. We have exited the trade significantly below our original target of $1,450/toz, for a potential gain of 10.4%. The move since initiation was surprisingly rapid, likely exacerbated by the break of well-flagged technical support levels. Our bias is to expect further declines in gold prices on the combination of continued ETF outflows as conviction in holding gold continues to wane as well as our economists’ forecast for a reacceleration in US growth later this year.
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Jim Sinclair: Get Out of the System Now! Significant Deposits & Retirement Accounts Are in Banksters’ Cross-Hairs!

Jim Sinclair has turned his sights from warning investors to protect themselves with gold to urgently warning them to exit the financial system immediately, and take possession of physical gold held in your own possession.   Sinclair, who Friday warned investors that the US will be Cyprus’d and gold will reach $50,000/oz sent an email alert to subscribers Monday night warning that merely owning gold and storing is not enough, and that:
How you own and store becomes of critical and possibly terminal importance. Investors with significant deposits at in the system banks and brokers are in the dead center of harm’s way. Retirement accounts are also in the cross hairs of central planners.
Sinclair urges readers not to become a casualty of the central planners via the coming bail-in deposit confiscations, but to protect yourself by owning physical gold held outside of the financial system.
Read More @ Silver Doctors
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