Salient to Investors: William Pesek writes: No country is more vulnerable to the dreaded slowdown in China than resource-rich Australia, as the mining boom that fueled nearly all of Australia’s recent growth is nearing a cliff of economic risk. Exporting natural resources led to the neglect and atrophying of other critical
READ MORE... →Salient to Investors: Gold dropped 23 percent this quarter, heading for its biggest loss since at least 1920 in London. A lack of accelerating inflation and mounting concern about the strength of the global economy is hurting silver, platinum and palladium, which are used more in industry than gold. Bart Melek at
READ MORE... →Salient to Investors: Jim Rogers writes: China has a major water problem and the only way the China story runs into big problems is if they run out of water. They will solve it so buy companies that are working to fix that problem. The Chinese stock market is getting
READ MORE... →Salient to Investors: Nouriel Roubini writes: Gold spikes in times of serious economic, financial and geopolitical risks, but that does not make it such a safe investment – cf sharp falls in gold prices during crisis periods of 2008 and 2009. Gold performs best in times of high inflationary risks
READ MORE... →Salient to Investors: Shane Oliver at AMP Capital Investors said he was not worried until this week because things are much different in China than expected and potentially pose risks for global growth. Oliver said we relied on the Fed and China so much over the last few years that
READ MORE... →Salient to Investors: Ken Fisher at Fisher Investments said: The rally that began in 2009 is only in its middle stages because most investors still underestimate the strength of the economy – in between the transition from skepticism to optimism It is amazing that people do not marvel at the power of
READ MORE... →Salient to Investors: Gold’s 14-day relative strength index was below the level that indicates a rebound may be imminent. Jeffrey Christian at CPM said it is too soon to predict if a buying frenzy will be repeated because the enthusiastic buyers in April have become more cautious, though says the worst
READ MORE... →Salient to Investors: 15 analysts are bearish for gold prices next week, 6 are bullish and 5 are neutral – the largest proportion of bears since Jan 2010. Frederique Dubrion at Blue Star Advisors said the Fed’s comments are the last signal for the soft hands that the bull market in gold
READ MORE... →Salient to Investors: Benjamin Salisbury at FBR Capital Markets said advances such as fracking are leading to record production that may outstrip refinery capacity within 18 months to 3 years. Salisbury said you have to see the rig count fall and then and only then can we have a decision
READ MORE... →Salient to Investors: Ted Harper at Frost Investment Advisors said the concern about the Fed removing QE signals a strengthening in conditions, which helps the dollar and at the margin hurts gold. Harper said John Paulson’s returns are emblematic of the difficult environment for gold. The World Bank raised its 2013 US growth
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