We wanted to congratulate our fast money traders who were able to see a high of 15% on this morning’s breakout.
China coming to Europe’s aid:
If anyone has the fundamental ability to go in and aid a country at this point, it’s China. The weakness in the air regarding the European economy is so strong and the Chinese have definitely picked this up. However, China believes that it is in their best interest to intervene and protect their future. What was once something that was kept somewhat private is now being stated openly by Chinese diplomats which is, China is now scornful on Britain’s economic outlook. On the Prime Minister’s visit to China, discussions about increasing bilateral UK-China trade to $100B by 2015, from its 2010 target of 63B. China really is in a comfort zone that’s making it so hard for them to break away from being a cheap labor exporter to a producer that doesn’t depend on the world for their sales. Another example of world fixations of trade and strategic alliances that are supposed to boost relative economies.
Spain decides to cut socialist spending. The Spanish government decided to set a spending limit of 117.4B euros and a 3.8% budget cut for the year. This is actually a smaller less drastic cut compared to their last years cut of 7.9% cut. The mentality is that cuts in spending coupled with economic growth will get the country out of the mess it’s in over time.
Beware When Buying Gold: 5 Ways
1. Don’t overpay. As simple as this sounds, it is important to always check on the spot price and verify that what you are paying is in the ballpark of spot price of gold. Typically even legitimate dealers charge a premium over spot, but to go out and spend significantly over spot is irresponsible and unnecessary.
2. Don’t buy gold for collector’s value. For investors, those that are looking for ways to hedge against inflation, going out to purchase gold with a high collector’s premium is something that we don’t suggest at CrushTheStreet.com. Stick with gold for what it is. Typically, these coins have no extra value other than their melt value.
3. Don’t buy from shady dealers or someone that may be looking to make a quick buck in the heat of a dishonest transaction. Unless you are familiar with gold and can verify the legitimacy of the metal, you should always go to a reputable dealer or someone that you trust. Cheap gold may be too good to be true at times.
4. Don’t pay premiums based on confiscation scares. Yes, it is true that FDR confiscated gold from its citizens in 1933 because bank panics were draining the Federal Reserve’s gold supply. The executive order 6102 exempted rare coins from being confiscated. Some gold dealers use this historical fact to charge extraordinary premiums to their buyers saying that they have coins that are exempt from confiscation based on a broad definition of “rare and unusual” which are not to be confiscated. Again, it’s a broad definition that some dealers are making a killing on.
5. Don’t pay premiums for proof coins. Proof coins are finely polished and have mirror finishes. Typically, the only people that value these proof coins are other collectors. The high premiums that you pay may decrease or even disappear depending on the market value and collectors desirability.
Opt-out of conventional wisdom!!!