Industries Showing Great Resilience This Earnings Season
“Resilience” was this week’s theme as better-than-expected market data came to light. Earnings season has begun, and so far reports have proven the doomsayers wrong. Even industries that have been hardest hit by the economic downturn, including air travel, are expressing optimism that we’re at the “end of the beginning” in terms of recovering from the worst health crisis in 100 years.
October Is Already Living Up to Its Reputation as the "Jinx Month"
Investors should try to avoid getting distracted by the feuding political parties within the U.S. A lot of the infighting is being fueled by outside actors, who thrive on the chaos and the division. Russia’s Putin and China’s Xi Jinping are delighted that we’re so divided right now.
Keep Calm and Stay Long: This Gold Price Correction Is Normal and Healthy
You may have seen headlines questioning whether this is the end of the gold rally. Hardly. Corrections are normal and healthy. During the rally of the 2000s that culminated in gold hitting its previous record high of $1,900, there were several significant pullbacks, some of them exceeding 20 percent.
The Urban-to-Suburban Exodus May Be the Biggest in 50 Years
This “exodus,” as some are already calling it, may end up being among the biggest in U.S. history, or at least the biggest since the 1950s and 60s. A record 27.4 percent of homebuyers sought to move out of their metro areas in the second quarter, according to Redfin data.
Got Gold? Bottom-Barrel Rates to Last for Years to Come
At least through 2023: That’s how long the Federal Reserve expects near-zero interest rates to last as it seeks to support an economy that’s seen more than 60 million jobless claims since mid-March. Gold has thrived in this low-rate environment, hitting an all-time high of $2,070 an ounce in early August...
Ivanhoe Set to Begin Production at World's Second-Largest Copper Project
One of our favorite natural resource companies, Ivanhoe has returned more than 146 percent in the past six months alone as investors anticipate the start of production at the Kakula Mine, which has the potential to become the world’s second-largest copper mining complex, with annual output projected to be 800,000 metric tonnes a year.
Wheels Up! Airlines and Travel Stocks Have Taken Off on Pent-Up Demand
Travel stocks—including airlines, cruise lines and hotels—were among the best performing equities during the month as new daily COVID-19 cases have declined in the U.S. from their mid-July highs.
Is Headline CPI Inflation “Fake News”?
The Federal Reserve just tweaked how it thinks about inflation, and this could have a huge impact on gold and gold mining stocks. But Fed Chair Jerome Powell’s speech raises the question yet again if we’re even measuring inflation accurately in the U.S.
A Gold Correction Was Expected After Nine Straight Weeks of Gains
The price of gold had its first down week since early June, ending a spectacular nine-week rally. The yellow metal briefly fell below $1,900 an ounce on Wednesday as stocks neared their all-time closing high and the 10-year Treasury yield jumped on record supply.
Markets Have Outperformed When a President Seeks Reelection
By now you’ve all heard the news. Joe Biden, the Democrats’ presumptive nominee for president, has selected as his running mate Kamala Harris, junior senator from California and the state’s former attorney general.
I Believe Gold and Silver Are Just Getting Started
We all know that past performance is no guarantee of future results, but you can see in the chart below that the white metal could possibly be setting up for another epic run-up. At this stage of the bull market, silver’s current price appreciation is ahead of any previous rally.
Gold Is Within Striking Distance of Its All-Time High. Here's How to Play the Rally
Both gold and silver have been on a tear this week, with the yellow metal touching a nine-year high of $1,897 in intraday trading on Thursday. Silver was trading above $22.70, up 94 percent from its 52-week low on March 18.
How Robinhood Investors Beat Buffett at His Own Game
Weeks before the S&P 500 bottomed, many millennial Robinhood investors began picking up coronavirus-impacted airline stocks. The buying spree continued even after Warren Buffett announced that he’d dumped his holdings.
Precious Metals Were the Winners in H1 2020… And It Wasn’t Even Close
Precious metals were the big winners for the first six months of 2020. Spot gold took the first place position, rising over 17 percent, followed in second place by silver, up nearly 2 percent. Palladium rounded out the top three, essentially flat at negative 10 basis points.
3 Charts on the State of the U.S. Airline, Restaurant and Hotel Industries
As you may have already heard, the European Union (EU) just released its list of 15 countries that are permitted to visit the 27-country bloc starting today, and the U.S. was not among them.
This Could Be the “Perfect Storm” that Pushes Gold to a New Record High
A “perfect storm” of surging government debt levels, plunging real bond yields, rising coronavirus cases and deteriorating economic forecasts pushed the price of gold to an eight-year high this week, and some analysts now project the metal to top its all-time high within the next 12 months.
What Is a Luxury Good?
We like to go a bit further with our definition and add that luxury goods are those for which demand has tended to grow faster than potential buyers’ disposable incomes. This contrasts with “necessities,” for which demand growth has been more in line with income growth over time.
Are We Heading for a Second Wave of Lockdowns?
Coronavirus cases and hospitalizations are spiking again in several countries, including the U.S. California had its biggest one-day jump in infections. Arizona, Florida and Texas are also turning into new hotspots.
Why We're Overweighting Renewable Energy
It may not feel like it, but West Texas Intermediate (WTI) oil just posted its best month on record. The American benchmark for crude soared more than 88 percent in May, from $18.84 per barrel to $35.50, as businesses cautiously began to reopen and people returned to work following the coronavirus lockdown.
Airline Stocks Just Posted Their Best Week on Record
Warren Buffett “should have kept airline stocks because the airline stocks went through the roof today,” President Trump said this week. It’s a good thing that investors chose not to follow Buffett’s lead, as airline stocks are up 50% since his exit.
Wheels Up! Economic Recovery Could Be Faster Than Expected
As troubling as these developments are, it’s important not to lose sight of the good that appears to be taking place right now. Investors that focus only on the negative tend to miss out on the opportunities.
You Can't Just Print More Gold
Against this backdrop of anything-goes spending, the idea of having a national currency backed by a real asset like gold seems less and less crazy to some. Doing so, it’s believed, would force lawmakers to practice fiscal discipline, reign in inflation and normalize international trade.
Investing in Airlines Amid COVID-19
The airline sector may be experiencing some turbulence now with COVID-19, but the industry has flown through storms before. After all, airlines stocks managed recoveries after the 9/11 attacks, the SARS outbreak in 2003 and the global financial crisis in 2008.
Bitcoin Is “Right Where Oil Was in 1890”
The bitcoin halving that occurred this past Monday is only the third such event in the cryptocurrency’s 11-year history. In the months following the first and second halvings, bitcoin prices surged as it became abundantly clear that at some point in the near future, new bitcoin issuances will come to a halt.
Electric Vehicle Sales Are Surging. Can Mineral Producers Meet Future Demand?
Elon Musk isn’t known for playing by the rules. The 48-year-old tech billionaire got himself into hot water with regulators a couple of years ago by tweeting that he was “considering taking Tesla private at $420.
Gold Royalty Companies Report a Solid First Quarter on Higher Metal Prices
A month is all it took to wipe out a decade of jobs growth. With so many people out of work as we head into the second quarter, the next earnings season for S&P 500 companies is undoubtedly going to be one for the history books.
Gold Royalty Companies Report a Strong First Quarter on Higher Metal Prices
For more than a couple of months now, I’ve said that gold mining companies will have a strong first (and second) quarter thanks to higher metal prices. Stock prices, as you know, are largely driven by revenues and free cash flow (FCF).
Texas Leads the Nation in Reopening Its Economy
Today is “reopening” day for Texas, home state of U.S. Global Investors. Restaurants, retail stores and malls can now open their doors to customers again, so long as occupancy is kept at 25 percent of what it normally would be.
These 10 U.S. States Are Best Prepared for a Deep Recession
By some estimates, states could be facing their deepest budget shortfall on record due to the COVID-19 crisis. States could collectively see a budget deficit of $290 billion in 2021, which would be greater than during the 2001 recession and 2007-2008 global financial crisis.
Seeking Free Cash Flow? Gold and Precious Metal Miners Have Got You Covered
Physical gold continued to catch a bid this week, trading above $1,760 an ounce, on a host of head-spinning economic news, from millions more Americans filing jobless claims to record money-printing to negative oil prices.
Make America Go Back to Work Again?
President Donald Trump unveiled guidelines for “Opening Up America Again,” a three-phase approach to be executed by state and local officials. Some governors have already expressed interest in easing restrictions sooner rather than later.