Gold Runs Wild

Written By Brian Hicks

Posted October 11, 2009

Welcome to the Wealth Daily Weekend Edition — our insights from the week in investing and links to our most-read Wealth Daily and sister publication articles.

 



All it took was a rumor. . . and gold just took off.

Rumor had it that a global group of European, Middle Eastern, and Asian nations were plotting to stop using the U.S. dollar to trade oil, according to the UK’s The Independent.

The report, which caught the eye of many in the media, claimed:

"Gulf Arabs are planning — along with China, Russia, Japan and France — to end dollar dealings for oil, moving instead to a basket of currencies including the Japanese yen and Chinese yuan, the euro, gold and a new, unified currency planned for nations in the Gulf Cooperation Council, including Saudi Arabia, Abu Dhabi, Kuwait and Qatar."

And gold ran north of $1,040 in the blink of an eye.

More on that in just a moment. . .

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For now, in case you’ve missed any of the recent top stories from Wealth Daily and our companion publications, we’ve included them below.

Bakken IPO: The Other Side of the Bakken
Wealth Daily reveals a new way for readers to invest in the Bakken oil formation.

The 94% Success Rate Portfolio: How to Profit, Again and Again
Oil prices are rising so fast that the International Energy Agency just increased its world oil demand forecast for 2009, mid-year. According to IEA analysts, we can expect demand to spike an average of $3.6 million barrels a month. . . and we plan to be right there to profit, again and again.

Solar Stocks for 2010: Delivering Next Year’s Winners. . . Right Now
Energy & Capital Editor Nick Hodge shares his top solar stocks for 2010.

Investing in Combustible Ice: The Role of Flaming Ice as an Energy Solution
Wealth Daily‘s Christian DeHaemer talks about methane clathrate’s potential as a future energy source and the compound’s effects on climate.

The Silver Stock that Paid Annual Gains of 852%Unknown Company Delivers Profit for 9 Straight Years
Investors knew that a massive silver strike would give this unknown company the fifth-largest silver mine in the world — a mine expected to produce 10.9 million ounces a year. What you should know before this company becomes a household name. . .

Canadian Wind Energy: Plutonic Power and Enbridge: Canadian Energy’s Odd Couple
Editor Sam Hopkins reveals the key players behind a massive expansion of Canadian wind energy investment and capacity.

You Have 82 Days: That’s All the Time You Have to Buy this Stock Before it Soars 112%
The 8th-largest economy in the world will mandate the use of this company’s wind power. . . but there’s still time for you to get in on this moneymaker.

Roubini, Soros and Prechter… Oh My: Too Hot They Say
Wealth Daily‘s Steve Christ comments on a Bloomberg story this week: "New York University Professor Nouriel Roubini said stock markets may drop and billionaire George Soros warned the ‘bankrupt’ U.S. banking system will hamper its economy, highlighting doubts about the sustainability of the global recovery."


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Does the dollar story have any standing?

"In the next two to three years, it is highly unlikely to see the dollar replaced," said an economics professor at Cornell University and a senior fellow at the Brookings Institution in Washington. "Over the next decade, though, we would expect to see other currencies play a much more significant role."

But the mere mention of even the possibility of that happening could send gold and oil skyrocketing. . .

The weak dollar won’t just impact gold; oil could hit $100 a barrel by 2011. According to a new Bank of America Merrill Lynch report, the price of gold and oil will increase "as emerging market growth creates shortages. With emerging markets likely to lead the global recovery, too much money chasing too few barrels could bring another spike in oil prices."

And if it happens, it’s great news for domestic oil companies right here in the U.S. — and could bring even more attention to the latest Bakken IPO flying off the shelves.

With the U.S. Dollar Index breaking through 76 to the downside, the next support test is 74. And if that fails, we’re looking at 72 and below.

The good news: we’ll be there every step of the way, profiting heavily from commodities.

Ahead of the Curve,

Ian L. Cooper
Wealth Daily

P.S. Many investors consider gold the best hedge against a falling dollar. Yet a growing number of investors actually prefer silver right now… thanks to its ability to outperform gold 6 to 1.  And in his new report, Luke Burgess explains the one silver play that could pay investors 450% gains— in as little as 18 months. Read it here.

 

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