Investors to Silver: “Let’s Get Physical”

The scramble for physical gold and silver is intensifying. People increasingly want to own the real thing, and not some paper substitute, all of which comes with counterparty risk. This conclusion is apparent from the fact that the futures prices for gold and silver have moved into “backwardation.”
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Any way you look at it, the backwardation in gold and silver is a truly rare event and an exceptionally bullish one too. So be prepared for an upside explosion in the price of both precious metals as the scramble for physical metal intensifies even further, and investors increasingly choose to hold the metals themselves, instead of paper promises

Read more: Investors to Silver: "Let's Get Physical" http://dailyreckoning.com/investors-to-silver-lets-get-physical/#ixzz17euFwtZJ

America’s Next Great Commodity Boom

If you’re interested in making money in energy commodities over the coming decade, I have two important numbers for you…
The first is the price of natural gas in the US – which is less than $4.50 per million British thermal units (mBtu). The second is the price of natural gas in Asia, where people will pay $10 per mBtu for natural gas they import from overseas.

So put together Callahan’s data on exports and imports with the glut in the US and the lack of export terminals. I think it’s pretty clear we’ll see more export terminals in the US. It’s too big of an opportunity to ignore. The US could become the leading exporter of natural gas in the next decade.
It’s also pretty clear that worldwide, we’ll see the LNG trade grow significantly to make up the shortfalls that are emerging in South America, Asia, Europe, and the Middle East.
It’s a great time to buy infrastructure firms that build these plants. It’s also a great time to look at companies with lots of North American natural gas reserves. With natural gas in the dumps right now, these assets are cheap…but they won’t stay that way for long.

Read more: America's Next Great Commodity Boom http://dailyreckoning.com/americas-next-great-commodity-boom/#ixzz17es28100

Why Commodities are Rallying as Currencies Decline

 
The nearby chart tells the tale. Commodities, as an asset class, have become quasi-currencies.
“Reports Barron’s: ‘This year, for the first time ever, China has been investing more overseas in assets like iron, oil and copper than it puts into US government bonds.
Natural resources should still be a good sandbox to play in to make a lot of money and protect your wealth against inflation.”
Read more: Why Commodities are Rallying as Currencies Decline http://dailyreckoning.com/why-commodities-are-rallying-as-currencies-decline/#ixzz15wqUfeIS

Anticipating Volatility and the Rise of Emerging Markets

Interesting reports about volatility and seasonality
While short-term factors like the U.S. dollar’s volatility and the Federal Reserve’s QE2 program seem to grab the most attention, I believe the doubling of the world’s population, massive infrastructure expansion like China’s subways and the “free market policies” being embraced by the government leaders in the emerging world are much more significant
Read more: Anticipating Volatility and the Rise of Emerging Markets http://dailyreckoning.com/anticipating-volatility-and-the-rise-of-emerging-markets/#ixzz15uUjWASE

Three Reasons to Consider the Chilean Peso

Investments in China and Brazil are a bit overdone at the moment. Where can an international investor seek higher rates of return? Try the Chilean peso.
1. Chile’s economy is absolutely booming. It is expected to grow by 5.1% this year and rise to 6.1% next year (extensive copper export)
2. Accelerations by a healthy employment rate
3. The phenomenal increases in employment are helping increase the country’s corporate investment and spending. But more importantly, the gains in the labor force are helping to support income growth and personal spending. Chilean domestic consumption skyrocketed in the first three months of the year — vaulting higher by over 11%.
As the Chilean economy expands, higher consumer prices are inevitable — but so are higher central bank rates
Read more: Three Reasons to Consider the Chilean Peso http://dailyreckoning.com/three-reasons-to-consider-the-chilean-peso/#ixzz15uMDv1i3

Read more: Three Reasons to Consider the Chilean Peso http://dailyreckoning.com/three-reasons-to-consider-the-chilean-peso/#ixzz15uHpuK9x

Dollar to Become World’s ‘Weakest Currency,’ JPMorgan Predicts

The dollar may fall below 75 yen next year as it becomes the world’s “weakest currency” due to the Federal Reserve’s monetary-easing program, according to JPMorgan & Chase Co.
With monetary easing in the U.S., Japan and Europe likely to bolster the global recovery and increase demand for yield, the yen is poised to weaken against other currencies beside the dollar to levels last seen in early 2007