Global Mining Investing $69.95, 2 Volume e-Book Set. Buy here.
Author, Andrew Sheldon

Global Mining Investing is a reference eBook to teach investors how to think and act as investors with a underlying theme of managing risk. The book touches on a huge amount of content which heavily relies on knowledge that can only be obtained through experience...The text was engaging, as I knew the valuable outcome was to be a better thinker and investor.

While some books (such as Coulson’s An Insider’s Guide to the Mining Sector) focus on one particular commodity this book (Global Mining Investing) attempts (and does well) to cover all types of mining and commodities.

Global Mining Investing - see store

Click here for the Book Review Visit Mining Stocks

Download Table of Contents and Foreword

Friday, September 28, 2007

Gold breaking out! Confirmed

Friday's trading in NY gave us clear confirmation that the price of gold is just about to rally. The gold price closed at $US743.70/oz, the highest level in 27 years (since Jan 1980). And if you think thats significant consider that inflation over the last 27 years is likely to have discounted the gold price by 60% by the distorted CPI measure , and probably 120% in real terms. You would need to look to see how the money supply has expanded over that time.

The break is convincing in several respects:
1. Gold broke the previous high of $730.30 set on the 8th May'06.

2. The gold price rally was convincing in itself - up $9.75/oz
3. The gold price closed near its daily high
4. The gold price move is supported by strong fundamentals

But if we look at the following chart we can see that the current rally in the gold price is partially due to gold fundamentals (in as much as the gold price is rising in terms of all currencies) and partly due to a weaker USD (in as much as the USD denominated gold price has risen more). Of course what we would like to see is the gold price break out in Euro & Pound terms, as well as Yen and AUD.

A real increase in the gold price in terms of multiple currencies communicates a growing distrust of monetary units. The reason for this distrust is the relative decline in the valu of those currencies. Currencies decline in value in real terms because the amount of currency in circulation is growing faster than the productive capacity of the global economy. You might think this is a signal to buy other tangible or physical assets as well, but actually this is not the case because their prices are already too high. Most asset markets are high priced because in a period of prolonged monetary expansion, those assets become priced (not on the basis of cost + profit margin) but your ability to pay and your belief in the sustainability of those high prices. The consequence is thus, asset prices are too high, and they will only offer gold buying when interest rates have risen to an extent that property holdings have been deleveraged. You might ask what level of deleveraging has to occur. Well that depends on each country's monetary expansion over the last 20 years less the amount of productive capacity added. Those countries like Australia which have huge exposure to metals are more vulnerable, even though they are helped by gold mining capacity.
You might ask 'why gold' since it is an asset? Well the reason is that gold has under-performed as an asset class over the last 5 years compared to other assets. The reason that it has under-performed is because it offers a low return - assuming you lease the metal, and none if you dont. Its this criticism of gold that makes it the most attractive investment, along with other precious metals. But gold is the best at this stage of the cycle because other precious metals will suffer eventually from a 'demand shock' as higher interest rates curtail industrial demand for commodities.
But gold is a financial asset as well, and as such, its possible for companies to leverage themselves into gold, so prices will in times of uncertainty be volatile. Financial intermediaries will be inclined to sell gold to cover other loss-making positions. But gold will recover like no other financial instrument - at least until the market is deleveraged. In times of instability markets tend to over-react.
Over the last 20 years western governments have been competing in a money expansion fest. Rising inflation will undermine that. Governments can conceal inflation, but they can't conceal the financial burden that places on 'real' people, so there will be a backlash. Higher gold prices will raise attention to this fact. Why is gold over $400/oz if not inflation? Afterall it offers bugger all return. The reason is - its real money when fiat paper is not trusted. The other sign of high inflation is wages...and with falling housing prices, reseting interest rates, tight labour markets, we can expect higher rates.
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Global Mining Investing $69.95, 2 Volume e-Book Set.
Author, Andrew Sheldon

Global Mining Investing is a reference eBook to teach investors how to think and act as investors with a underlying theme of managing risk. The book touches on a huge amount of content which heavily relies on knowledge that can only be obtained through experience...The text was engaging, as I knew the valuable outcome was to be a better thinker and investor.

While some books (such as Coulson’s An Insider’s Guide to the Mining Sector) focus on one particular commodity this book (Global Mining Investing) attempts (and does well) to cover all types of mining and commodities.

Global Mining Investing - see store

Click here for the Book Review Visit Mining Stocks

Download Table of Contents and Foreword

Japan Foreclosed Property 2015-2016 - Buy this 5th edition report!

Over the years, this ebook has been enhanced with additional research to offer a comprehensive appraisal of the Japanese foreclosed property market, as well as offering economic and industry analysis. The author travels to Japan regularly to keep abreast of the local market conditions, and has purchased several foreclosed properties, as well as bidding on others. Japan is one of the few markets offering high-yielding property investment opportunities. Contrary to the 'rural depopulation' scepticism, the urban centres are growing, and they have always been a magnet for expatriates in Asia. Japan is a place where expats, investors (big or small) can make highly profitable real estate investments. Japan is a large market, with a plethora of cheap properties up for tender by the courts. Few other Western nations offer such cheap property so close to major infrastructure. Japan is unique in this respect, and it offers such a different life experience, which also makes it special. There is a plethora of property is depopulating rural areas, however there are fortnightly tenders offering plenty of property in Japan's cities as well. I bought a dormitory 1hr from Tokyo for just $US30,000.
You can view foreclosed properties listed for as little as $US10,000 in Japan thanks to depopulation and a culture that is geared towards working for the state. I bought foreclosed properties in Japan and now I reveal all in our expanded 350+page report. The information you need to know, strategies to apply, where to get help, and the tools to use. We even help you avoid the tsunami and nuclear risks since I was a geologist/mining finance analyst in a past life. Check out the "feedback" in our blog for stories of success by customers of our previous reports.

Download Table of Contents here.