Category: Gold

Top 5 Must-Have Stocks For 2016

stock-market-3 Join the gym. Stop smoking. Cut out fast food. Be kinder. These are just a few phrases that will be uttered to ring in the New Year. If you’re like me, the resolutions may only last for a short while, but at least you tried, right? Unfortunately for us, change is difficult and it seldom happens that we find a resolution worth keeping. That’s where Anthem Vault’s own John Stuart comes in with his Responsible Resolutions, encouraging you, the reader, to save more money and to make wise investments.

In order to help you become a wise investor and increase profits as a consequence, here are my Top 5 Must-Have Stocks For 2016:

  1. Alibaba

If you don’t know much about this Chinese e-commerce juggernaut, Anthem Vault’s Michael Scott wrote a compelling piece about Alibaba and what he sees for them in the near future. Though 2015 started off slow, there was no greater market presence than Alibaba in the second half of the year. Since the beginning of October, we’ve seen stocks grow by 41% in that short period. Alibaba also happens to be the largest e-commerce site in the world with 1 in 5 Chinese consumers as active shoppers. Alibaba offers a widespread tech market, and with China’s tech-savvy young consumers, they look to increase website traffic and business significantly in 2016. It’s no secret that the buyer is back in control at Alibaba, and with CEO Jack Ma aiming to make the company a global force through the partnerships with tMall, Starbucks and Disney, Alibaba should be one of the top stocks on your watch list.

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2016: Take charge and #BeResponsible

fotolia_98074017It’s always a mind-numbing task to review the year that just passed, trying to piece together the puzzle of events – and 2015 was no different. From the investment side, precious metals had a slow and low year. Technology took some massive steps forward with the release of driverless car prototypes, ubiquitous Uber, a wide variety of drone applications, robots, 3D printers… the list goes on.

While technology has been punching away at the world’s troubles, ‘government’ has provided the endless background hum as we approach the 2016 elections. I won’t bore you with the details but amid heated talk of the war against ISIS, it is regulations and taxation that have continued their insidious influence, growing in reach akin to the way the money supply grows in such a speedy and unethical fashion. No, we aren’t here to remind you of the grim realities of the world; just to send some motivation and energy into your day-to-day life, and to ensure you are seizing each day and making it count!

We bring you the #BeResponsible campaign for 2016!

Give the Gift of Gold!

gift-card-of-goldSeason’s Greetings from your gold and silver providers at Anthem Vault, send gold to your loved ones via email for the holidays!

We are so excited to offer our customers an effective last-minute gift option for the holidays. One that will not only be exciting for those receiving it, but you can also rest easy knowing your loved one has begun or is continuing to protect their wealth from inflation.

Gold and silver are popular gifts all around the world. Jewelry, furniture, art, sculptures are given out each year during the holidays. Giving the gift of gold as a form of savings is no different. Christmas Day is right around the corner, and getting your physical gold and silver may be tough this late in the gifting game. However, you can easily send gold or silver via email to a loved one and show the appreciation you have for them in a few easy clicks.

It’s easy! And will surely put a smile on their faces!

Log in to your Anthem Vault account (if you haven’t signed up yet start here), in the righthand corner where it says “Buy Metal”, select the drop down menuScreen Shot 2015-12-21 at 10.57.09 AM and click “Buy Gift Certificate”. This will take you to a page where you can simply plug in your special person’s email and a special message, choose the amount of gold or silver you’d like to send and move forward with the payment process. It takes no time at all and will be a wonderful last minute gift that they will remember forever.

If you have any questions about your gift certificate, feel free to reach out to our support staff at support@anthemvault.com or call 1-855-428-2858. Happy Holidays to you and yours! May your holidays season be blessed with love, gratitude, and joy!

Anthem Vault has some wonderful products and services coming in 2016. Be on the look out for updates and if you haven’t joined our newsletter yet, now is the time! Sign up here – it’s free and informative…not to mention some awesome deals are released each month!

This easy gift of gold can be purchased year round at Anthem Vault. The option to purchase on Christmas morning is here! You don’t have to worry about not having a gift in time ever again! Same goes for birthdays, anniversaries, wedding gifts, and other special occasions. Give the gift of gold!

 

The Fed Finally Hikes Interest Rates – Is All Well?

Federal_ReserveThe Federal Reserve concluded its meeting this past Wednesday, choosing to increase their interest rate target by a quarter of a percentage point. The move was expected by the market because the Fed had been signaling it was planning on raising rates before the end of the year. Many market participants are cheering the move, saying it shows the Fed has confidence in the economic recovery and that things will be returning to normal. However, this is quite unlikely for a number of reasons that will be discussed below.

First the facts. The Federal Reserve increased the federal funds range from 0% to 0.25% (where it had been since December of 2008), to a higher range of 0.25% to 0.50%: essentially a quarter point increase. Yellen noted that the rate increase was due to the Fed’s confidence in the U.S. economy. The Fed’s projections put interest rates at a median 1.375% by the end of 2016, implying gradual rate hikes through next year.

I previously wrote that I did not expect the Fed to raise rates this year. So yes, I was off in this prediction since the Fed did sneak in a small increase right before year end! My logic was that the Fed currently had more to lose than to gain with a rate increase, given the risk of increasing rates into a recession or pricking the stock and bond bubbles. Conversely, the Fed didn’t face much pressure to increase rates, given that inflation is currently low, and if inflation did increase, it could be blamed on other factors.

I still think that is the case, which is why the Fed’s first increase is a very small one. What may have prompted the increase could be two factors. First, since the Fed has talked about (and repeatedly delayed) increases, they may have felt it necessary to finally have one, lest they lose all credibility. It was getting to the point that the market expected it so much, that if they backed out, it could have signaled that the Fed was not at all confident in the U.S. recovery, which might have sent panic through the economy.

A Tough Year For Gold, But Positives Ahead

FuturesIt has been a disappointing year for gold investors in 2015 so far with gold gradually declining since the beginning of the year. Investors may be getting sick of the yellow stuff after the 2014 performance of gold going nowhere, and then the drop in 2013. However, it is during such times that it is important to review the reasons for owning gold and keep its performance in perspective. In this article, we will review the performance of gold, look ahead at the financial landscape, and review whether holding gold still makes sense.

Gold Continues to Outshine, Despite Short-Term Performance

Gold is currently down around 10% year-to-date, bringing its one-year performance down to about the same at -11%. The current price of $1,070 hasn’t been seen since November of 2009. The five-year performance of gold is now down around 21%. This comes after 2014, where gold was essentially flat for the year, and 2013 where gold was down around 28% after correcting from its big run-up to $1,900 an ounce.

Periods of poor performance are certainly painful, and years of poor performance can seem excruciating in the short-term. However, gold as an asset must always be viewed in longer time frames and should always be compared to the other options. From 2001 through 2012, gold had positive gains, with eight of those years showing double-digit gains.

The ten-year performance of gold is up 116% and the fifteen-year performance is a positive 303%, compared to the S&P 500 which is up only 65% and 55% respectively! Gold is clearly holding its own, considering it should be an underperformer because it doesn’t represent a business or return a cash flow.

11 Economic Insights on Ghana and Gold

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We live in vast world – yet in some ways, it is quite small. I was reminded of this last week when I found myself in a random conversation with a complete stranger who lives in Ghana. Oh, the wonders of Google Hangouts.

Here’s what I initially discovered about Ghana. This small nation in West Africa has a population of 25.9 million and is richly endowed with an abundance of natural resources like diamonds, manganese ore, bauxite and oil. But Ghana is better known for is it’s mother-lode of gold deposits, making it Africa’s 2nd largest gold producer, after South Africa.

Curious about this, I mined for further information about the significance of this precious metal for Ghana’s economic fortunes. Here are 11 nuggets that I was able to unearth:

  1. Ghana has consistently been ranked in the top ten of gold production worldwide.
  2. Ghana’s mining industry accounts for over 5% of the country’s GDP. Gold makes up over 90% of the total mineral exports, and it represents nearly 50% of the country’s revenue.
  3. Because of its heavy dependence on gold exports, Ghana’s economy has been tepid. This is due to the overall price decline of gold from $1,900 per troy ounce in 2011 to below $1,200 in 2015.
  4. Obuasi, a gold mine that has been in operation since 1897 after it was launched by three Ghanaian merchants, has struggled of late amid this fall in gold prices. Today, miners have to dig deeper and manage expenses more closely just to stay afloat.
  5. With gold-mining weighed down by record levels of debt as well as prices that are near a five-year low, a growing number of Ghanaian miners are fearful of having their employer merge with others just in order to survive.
  6. Many parts of Ghana remain unexplored in terms of potential gold production. This particularly holds true for the northern Upper West region of this resource-rich country.
  7. A major policy emphasis on the part of the government is ensuring that modern and environmentally-friendly extraction methods are being used so that the surrounding ecosystem doesn’t become irreparably damaged; this may lead to the closing of some mining operations and an ensuing reduction in exports.
  8. Although known as an epicenter of global gold production, Ghana (like its neighbor Nigeria) has struggled with an energy crisis, meaning that the majority of its citizens have no electricity. This is due to the nation’s lack of infrastructure capital, compounded by broken promises from the government in addressing the issue. Ghanaians affectionately call this DUMSOR (meaning ‘on’ and ‘off’), because of the highly unpredictable energy supply.
  9. In addition to the aforementioned fall in gold prices, other factors that are adversely impacting the Ghanaian economy include a sharp currency depreciation as well as rising inflation and interest rates.
  10. In 2013, Ghana deported thousands of Chinese nationals involved in the illegal mining of gold
  11. Aside from gold, Ghana is the world’s second largest producer of cocoa, behind Ivory Coast. Cocoa is Ghana’s third largest export after oil and gold.