For investors, it means gold is going to have a good solid run at US$1,000. It’s in the neighbourhood already. But in the lead up to the G-20 leader meeting in Pittsburgh later this month, we wouldn’t be surprised to see gold price in a lot more fiat money creation.
September 7th, 2009 | Dan Denning | 15 comments | ContinuedAll Posts Tagged With: "Diggers and Drillers"
Gorgon LNG Deal with China a Really Big Deal
Well just a day after highlighting the size and scope of the Gorgon LNG project in Western Australia, we have news that it really is a big deal. It is so big, in fact, that Martin Ferguson, the Federal Minister for Energy and Resources, said Australia is emerging as an “energy superpower.”
Shazzam!
August 19th, 2009 | Dan Denning | 5 comments | Continued
Giant Costco Opens in Melbourne!
Mind you, we don’t have any problem with lower prices. There’s a bit of snobbery about American attitudes toward Wal-Mart and other giant retailers like Costco. After all, isn’t it a good thing when a large part of the population can reduce the amount of money it spends on basic food and necessities?
August 18th, 2009 | Dan Denning | 11 comments | Continued
Property Sector Has Seen the Value of its Assets Wiped Out
The “wipeout” in the sector was especially bad news for Babcock & Brown, Rubicon Asset Management, and Record Funds Management. These heavily leveraged firms didn’t survive the steep rise in global borrowing costs. It didn’t help that asset values began tumbling when the leveraged dried up.
August 17th, 2009 | Dan Denning | 1 comment | Continued
What Assets are Going to Beat Inflation in the Coming Ten Years?
Last night was trivia night in Elwood. Your editor sat across from Australian Wealth Gameplan editor Kris Sayce. Between questions about how many venomous snakes there are in Australia and whether New South Wales is larger than South Australia (it’s not), we found the time to query him about whether buying inflation indexed bonds from the Australian government was a good investment strategy.
August 14th, 2009 | Dan Denning | 4 comments | Continued
The Cash Flows Are Coming
National governments are demanding a larger portion of global savings. Government welfare transfer schemes and bailouts have to be funded from borrowing (unless from money printing), which also makes capital harder for private companies to get. Corporate cash flows will revert to the mean in the absence of huge infusions of credit to finance the growth of the balance sheet.
August 10th, 2009 | Dan Denning | 13 comments | Continued
Diggers & Drillers and Australian Small Cap Investigator Being Republished
Of course it’s very difficult to prevent people from violating copyright in the digital world. So we will rely on an old-fashioned technique: shame. If you’ve published copyrighted material in the past, please don’t do it in the future.
August 5th, 2009 | Dan Denning | 7 comments | Continued
Equity Premium Will Be Replaced With a Tangible Asset Premium
Geez. Last Friday we made the case that the equity premium in stocks is going to revert to its historic mean. Remember that the equity premium is your willingness to pay more for future corporate earnings today because you believe stocks do better than bonds and cash over time.
July 27th, 2009 | Dan Denning | 2 comments | Continued
Latest Energy Bull Market Won’t Be Confined to Crude Oil
That said, coal stocks stand to lose the most from cap-and-trade or emissions trading schemes that put a price on carbon dioxide. Even so, there ARE plenty of unconventional hydrocarbons out there that can provide transportation fuel or gas streams for turbines to generate electricity.
May 25th, 2009 | Dan Denning | 1 comment | Continued
Uranium: A Carbon-friendly Substitute for Coal
You don’t have to worry about a uranium supply glut quite yet, though. It’s a subject we’ve been covering over at Diggers and Drillers. There are other, smaller ore bodies that could enter into production if the uranium industry ever gets off the ground in Queensland.
May 22nd, 2009 | Dan Denning | 4 comments | Continued
Big-picture Case for Energy Stocks is Pretty Bullish
Kris Sayce has been banging on the LNG drum, meanwhile, over at the Australian Small Cap Investigator. If you’re wondering what the difference is between his energy stock coverage and ours at D&D, we’d say it’s risk. Kris has been researching and recommending LNG plays in Queensland’s budding coal-seam-gas industry.
May 15th, 2009 | Dan Denning | 2 comments | Continued
Government Debt Bubble is What Directly Precedes Inflation
First things first. The budget comes out tomorrow. Blah blah blah. What is really left to say? The Treasurer predicts collapsing revenues from the GFC and has cut spending in some places while increasing it in others. The annual deficit could be around $70 billion (we expect it to be lower so it’s ‘not as bad as we expected’)…
May 11th, 2009 | Dan Denning | 9 comments | Continued
Plan to Survive 2009
Editor’s Note: In today’s essay space, we bring you comments from fellow Daily Reckoning readers on how they will survive and prosper 2009. Inflation, deflation, depression, recession, there is a plan for all seasons!
April 23rd, 2009 | The Daily Reckoning | 10 comments | Continued
Is China Trying to Back its Currency With Metal?
A smattering of articles in recent weeks has highlighted the stockpiling of metals by the China State Reserves Bureau. The Bureau scarfed up 329,000 tonnes of copper in February and 375,000 tonnes in March.
April 22nd, 2009 | Dan Denning | 13 comments | Continued
Rule Scrapped: Banks to Value Assets Using Mark-to-Market
Banks and others have complained that this rule distorts the price of assets for which there is currently no market, or which the banks intend to hold to maturity (meaning the current price is largely irrelevant). It’s a clever argument.
April 6th, 2009 | Dan Denning | 19 comments | Continued
