Daily Gains Letter

Silver

A precious metal used to hedge against inflation, silver is also an excellent conductor of electricity and has a wide variety of applications.  Because silver is a tangible asset, its price can be affected by inflation, fluctuations in currency, and deficits and interest rates.

In January 1980, during the early days of the recession, silver hit a record high of $48.70 an ounce.  In the face of an enduring global economic slowdown, the price of silver has remained strong.

Silver has a wide variety of uses, and can be found in: insulation, plastics, polyester, solar panels, photography, automotive, windows and glass, medicine, nanotechnology, batteries, bearings, and electronics.  Silver also plays a key role in the production of ethylene oxide and formaldehyde, both of which are essential to the plastics industry.


Gold Prices Setting Up for Profitable Trading Opportunity?



Bullish gold pricesWith the stock market scrambling to find buying support and with the May West Texas Intermediate (WTI) back up around $50.00, I’d like to take a closer look at gold prices.

Why Gold Prices Are Catching My Attention

Everyone is aware the Federal Reserve will likely take the next steps and begin to raise interest rates either in July or by September, which will help drive up the dollar. A strong dollar translates into lower gold prices, which will help to keep some pressure on the demand side for the precious metal. Yet a look at the charts shows a potential trading opportunity in the works, despite the futures chain showing the price of gold staying around $1,200 to $1,215 an ounce for much o ... Read More


This Cheap Sector Set to Outperform in 2014



Outperform in 2014With the new year just beginning, many investors will begin looking at their portfolio and trying to figure out how to shift their investment strategy to include sectors that should outperform in 2014. One investment strategy I like to use during the beginning of the year is to look for a situation where fundamentals are improving, but market sentiment remains weak. At year-end, many times you will see tax loss selling occurring. Essentially, investors are selling those holdings that have gone down the most to crystallize the losses for tax purposes. This also presents an opportunity—if the long-term investment strategy is sound. One sector that has been hit hard is the precious ... Read More



The “For Sale” Sign on Precious Metals



Sign on Precious MetalsDo you feel wealthier today compared to last year? According to the Federal Reserve, you should, as the household net worth of Americans rose 2.5% between the second and third quarters of 2013 for a total of $77.3 trillion. (Source: “Financial Accounts of the United States,” Federal Reserve, December 9, 2013.) The Federal Reserve calculates household net worth by looking at the value of stocks, homes, and other assets, minus mortgages and debts. In fact, the nominal total wealth is at a record high. Adjusted for inflation, the current level of net worth is approximately one percent below the peak prior to the Great Recession. On paper, it appears as though econom ... Read More



How the Trend Is Changing for Silver



Trend Is Changing for SilverOne of the interesting things about investors is how so many become complacent over time. When precious metals like silver were rising steadily, more and more people jumped on the bandwagon. But times have changed.

With few people in the media talking about precious metals, I think it’s a good time to take a look at silver, as 2014 could potentially be a very strong year for the metal. Obviously, we know that 2013 was a tough year for most of the precious metals, as investors began to believe that economic growth was going to accelerate globally. Over the ... Read More


How to Profit Big from Gold Mining Stocks Left for Dead



Gold Mining StocksLeft for dead: that’s what appears to be what most investors have done to gold mining stocks. With the price of gold bullion down significantly in 2013, it appears many are simply ignoring all gold mining stocks, lumping them into one category and avoiding the group as a whole. Personally, I love buying when things are on sale. I hate paying full price on anything, no matter if it is for a stock or clothes. When it comes to gold mining stocks, the market sentiment hasn’t been this bearish in years.

Market sentiment tends to oscillate, and for the long-term ... Read More



Why I Recently Turned Bullish on Gold Mining Stocks



Gold Mining StocksA friend of mine asked me the other day about the best way to build a long-term investment strategy. This is a great question, but it’s also one of the most difficult ones to answer. Obviously, different people have various goals and objectives, especially when it comes to risks. For me, the way I put together an investment strategy is by looking to buy things when they are on sale, including stocks. Over the past couple of months, if you’ve been following my articles, you’ve likely noticed that I’ve started to become quite bullish on gold mining stocks. This is the classic investment strategy ... Read More



Top Metal for Profits Right Now



How to Get In On the Bullish Move in ZincA look at precious metals shows gold and silver are devoid of any momentum at this time, while copper has been steadily retrenching from its recent highs. Copper is playing off of the global economic growth, but a metal that is surging on the charts and catching the imagination of metal traders on the London Metal Exchange is zinc. Zinc is used in numerous industrial and consumer applications. Steel companies use zinc as a rust inhibitor, so it’s quite important to manufacturing. The United States Mint also uses zinc to make pennies. The problem is that the world supply of zinc is contracting. However, zinc is currently around a three-year high and looks good as an Read More



Three Silver Plays That Can Weather a Short-Term Downturn



Three Silver PlaysTechnically, the Federal Reserve’s job is to oversee the monetary policy (short-term interest rates) of the world’s biggest economy. Obviously, it does, but it’s also important to remember that its opinion and carefully chosen words also have a major impact on the global markets and world economies. If the Federal Reserve says the U.S. economy is doing well, investors flood the markets. If, on the other hand, the Federal Reserve says the U.S. economy is having difficulty gaining traction, investors turn their attention to precious metals to hedge against a weak U.S. and global economy and inflation. It’s worked like clockwork since the Federal Reserve stepped in to help kick- ... Read More



Will 2013’s Worst-Performing Metal Rebound in 2014?



Metal Rebound in 2014The year 2013 was not kind to gold; the yellow metal closed the year down about 28%—its biggest annual drop in three decades. But in spite of the awful year for gold, it wasn’t the worst-performing metal in 2013. That dubious distinction goes to silver. On the heels of quantitative easing, a devaluation of the dollar, and inflation, safe haven investors were expecting silver prices to trade in the $30.00–$50.00-an-ounce range. Sadly for these investors, that did not come to fruition. After starting 2013 at $30.00 an ounce, the white metal finished the year around $19.50 an ounce—an annual loss of 36 ... Read More



Fundamentals & Technicals Pointing to Silver as the Next Big Trade



Silver as the Next Big TradeI have been a very big advocate of using both fundamental analysis and technical analysis together to get a better idea of what to expect next when it comes to prices, be it for stocks, precious metals, currencies, or other investment instruments. But when I use this strategy to look at silver, I can’t help but be bullish. First, let’s look at the technical side: As you can see in the chart below, silver hasn’t performed well since the beginning of t ... Read More



A Bullish Case for the “Other” Precious Metal



Precious MetalSilver has been one of my favorite precious metals. One of the reasons I like the white metal is because not only is it used as a store of value, but it also has industrial uses. With that said, this shouldn’t suggest that I don’t like gold. The yellow metal has its own place; it provides a hedge against inflation and uncertainty. Silver, however, I see as having much more potential than gold when it comes to percentage change. Putting it simply, for silver to increase 100% in value, it will have to go to $40.00, ... Read More



Silver a More Profitable Investment Than Gold This Year?



zulfi09092013 Gold bullion gets a lot of attention in the financial media and economists talk about it regularly. Sadly, another precious metal, silver, isn’t usually a topic of discussion. This metal moves in line with gold bullion, and for investors, it can serve as an alternative to owning the shiny yellow metal. When gold bullion prices started to tumble in late April and then declined even further in June, silver prices did the same. Please look at the chart below of silver and gold prices. The golden line represents the spot price of one ounce of gold bullion, and the red and green line represents silver prices per ounce. Just like gold found support at the $1,175 area, silver prices found support at around the $19.00 leve ... Read More



How to Not Own Precious Metals but Profit from Them



250213_DL_zulfiqarAfter the financial crisis, precious metals have gained a lot of attention. Investors are running to precious metals because governments are spending extensively and central banks around the world just keep on printing more and more money. Take a look at the demand: Demand for Silver Coins To say the least, there seems to be a “silver rush” currently happening around the world. In January, the U.S. Mint halted sales of silver coins. It sent a letter to coin dealers stating that the U.S. Mint was sold out of its stock of silver Eagle coins (Source: Schortgen, K., “U.S. Mint halts sales of silver eagles as agency runs out of the precious metal,” Examiner, January 17, 2013, last a ... Read More