• HSBC expects buyers in the developing world to support gold prices...
Gold is one of the best ways for people in the developing world to preserve their wealth. HSBC explains why:
In important gold-consuming nations such as China, India, Indonesia, and Vietnam, as well as other EMs, consumers may have fewer tools at their disposal with which to protect savings and household wealth against rising prices or low or negative real interest rates.
It’s a good point. Emerging countries typically have shaky currencies and volatile stock markets. So people in these countries who want a stable store of wealth turn to gold.
Right now, emerging-market stocks as a group are at their lowest level since October 2011. And emerging market currencies are having their “longest stretch of weekly declines since 2000,” Bloomberg reports.
Louis James, editor of International Speculator, recently noted that gold is reacting to emerging market turmoil like a safe-haven asset should.
…China devalued the yuan, and gold jumped like it had been stung by a bee. More importantly, it reacted like a financial asset. Even more importantly, it reacted like a safe-haven asset should.
And that’s good news for gold investors. It means the laws of economics have not suddenly changed with the new millennium. It means our fundamental investment premises remain sound: gold is money, it’s on sale but that won’t last, and the leverage our gold stocks give us to the next big move should reward us very, very well.
Louis specializes in finding the best mining stocks with the highest upside. He’ll share his favorite moneymaking ideas with readers at the upcoming Casey Research summit in Tucson, Arizona on October 16-18. Louis will share the stage with a long list of impressive speakers, including James Altucher, Marc Faber, and of course, Doug Casey.
We hope to see you in Tucson. If you sign up today, you can still get “early-bird” discount pricing. But you should act now…this steep discount expires soon. Click here to learn more about the Summit .
Chart of the Day The S&P 500 has gained 2.1% in 2015…thanks to five huge stocks.
We explained earlier that the strong performance of Apple (AAPL), Facebook (FB), Google (GOOG), Amazon (AMZN), and Netflix (NFLX) is holding up the S&P 500.
Today’s chart compares the performance of “The Big Five” to the rest of the S&P 500. As you can see, if you stripped out gains from “The Big Five,” the S&P 500 would be close to flat this year.  |
