Precious Strength

The precious metals complex is outperforming today and may be set to rally.  Is Santa Coming Early for Gold & Gold Mining Stocks?  Chris Vermeulen

“Continuing problems in the U.S. economy suggest that the Federal Reserve may not be providing enough stimulus, a central bank official said Tuesday.”  WSJ  Conflicting data at Economists View.

Ambrose Evans-Pritchard discussing the Chicago Plan in The Telegraph with seriousness should make readers lightheaded and send savers to gold.  A bit on those debts to be monetized:  Testosterone Pit.

The history of silver:  Visual Capitalist.  The great Richard Russell on silver stocks:  King World News.

“Silver demand in China, the world’s second-largest user, is set to jump as much as 10 percent next year to a record as investors look to preserve wealth, according to Beijing Antaike Information Development Co.”  Bloomberg

Tonight, skip that billionth Seinfeld rerun.  Instead, watch How I Learned To Stop Trading And Love The Farm by Stephen Diggle.  Better yet, watch it now!

Further, who knew a technician could give a presentation which would match the fundamental outlook of ISAJC Parets

Why be careful with high yielders, you ask?  OXF reduced its distribution and the small coal MLP is down 28% this morning.  The new yield is still 10%.

3 thoughts on “Precious Strength

  1. Love those Visual Capitalist presentations!!
    This one was excellent, with Hans picking a pointer or two.

    Say boss, what are your thoughts on OXF.?.Is it doable in a Roth or SEP.?

    “may not be providing enough stimulus” certainly not true for those on the Bob Dole…

    I am Hans Nieder and I approve this message.

    • My only thought on OXF is be very careful; I am completely unfamiliar with the company.

      Further, I do not believe MLP’s work great in tax exempt accounts. But consult your tax professional, not random internet sites:

      http://www.investmentu.com/2012/May/mlps-retirement-accounts.html
      “The tax implications for MLPs are totally different than corporations for both the company and its investors. MLPs don’t pay corporate taxes. Instead, taxes are considered “pass through,” meaning liabilities and expenses are passed through to the investors. MLP investors may write off partnership expenses, depreciation, and other things against income on their tax returns.

      However, the tax benefits you get in a MLP can work against you if it’s put in a retirement vehicle like a 401(k) or IRA because you’ll miss out on some great tax breaks. And there’s a possibility that you could get hit with additional taxes you weren’t expecting.

      MLPs in a retirement vehicle fall under the tax rule of Unrelated Business Taxable Income (UBTI). You pay this when cash distributions from an investment are considered unrelated to the structure that gives an entity its tax-exempt status. In other words, income from oil and gas is unrelated to saving for retirement, so Uncle Sam wants his cut. This primarily comes up when an investor has a big position in a MLP. But it could affect the average investor who has a particularly successful hit.”

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