Gold Prices Dropping Like a Hot Potato

Gold prices have taken a stunning hit on the same day that a small terrorist attack in Boston dinged the stock market. Monday's 9% drop was the biggest one-day decrease in gold values since 1980 and caps an overall 25% reduction since October 2012. Many investors fear the normally "safe" precious metal investment is no longer a sure bet.

One of the biggest causes of the drop was evidence showing a major slow-down in the growth of the Chinese economy. A new report released this morning showed that China grew at only 7.7 percent since the beginning of 2013, compared to around 8% at the end of 2012. A combination of bad manufacturing data from the US and the Boston Marathon attacks led to a stock market sell-off on top of the gold price implosion.

After a decade of incredible prices increases, it looks like the "magic" of gold seems to be vaporizing. It's value has seen a steady decline since reaching a historic high of nearly $1900 an ounce in the summer of 2011. Combined with the 4% price reduction of last Friday, Monday's drop pushed gold into an official "bear" market (defined as a 20% drop from  recent high value).

The drops have come as a huge surprise to many, especially the thousands of Americans who have invested most or all of their retirement savings in physical gold or gold-related investments in recent years. Many financial experts have been expecting gold prices to begin rising again due to the Federal Reserve's stimulus-focused bond-buying/money-printing actions.

Also, to the dismay of many right-wingers and Obama-haters in the US, the country's economy is slowly improving and massive inflation has not hit. The 2012 election has not yet led to the dramatic economic problems so many have been betting on with gold. According to metals trader Matt Zeman:

"Gold has had all the reason in the world to be moving higher — but it hasn’t been able to do it... The situation has not deteriorated the way that a lot of people thought it could."

We say: Oh good, now we can afford to buy some more gold! :)

Learn some mo': Price of Gold Takes a Flashy Fall; Other Markets Follow

New Oil Find Could Turn Australia Into Energy Powerhouse

New drilling and seismic exploration studies show that southern Australia may hold more than $20 trillion in untapped "shale" oil, enough to turn the oil-importing country into an exporter. Brisbane-based  Linc Energy estimates the oil reserves in "Arckaringa Basin" at as much as 233 billion barrels, a gigantic amount that could change the oil and gas energy industry worldwide.

According to Linc managing director Peter Bond:

"If it comes in the way the reports are suggesting, it could well and truly bring Australia back to (oil) self-sufficiency."

Linc says it will invest hundreds of millions of dollars to make sure the new studies are correct. Experts say the find could lead to a new "shale oil boom" like the one going on in the US and Canada.

We say: As long as it lowers gas prices, we're extremely happy!

Learn some mo': $20 trillion shale oil find surrounding Coober Pedy 'can fuel Australia'

Another Worldwide Recession May Be Starting

The US stock market took a huge dip on Thursday -- with the biggest 1-day drop since the 2008 crash -- and now the rest of the world's markets are following closely behind. Stock markets in London, Germany, France, Japan, China, and Hong Kong are all taking huge percentage hits.

The crazy thing is that almost every type of investment is dropping, even so-called "safe harbor" stuff like precious metals. Many experts believe that the US -- and probably the entire world -- is entering into a new recession in 2011. Some even claim that the US has already been in a recession since May!

The big question now is what will happen to European and US markets in the next few days. If the sell offs continue many financial experts say governments may have to take some type of emergency response to keep the global economy from diving headfirst into a depression.

Here's the good news: oil prices are dropping like a rock. Looks like it may be time to take your savings out of the bank, head to Vegas (please!), and let it all ride on the roulette table!

Learn some mo': World stock prices plunge amid 'general fear' of a new US recession, European debts

Gas Prices Near Record Highs!

Gas prices are getting close to all-time highs, according to a new survey. The average price of gasoline in the United States is currently around $3.75, about 20 cents higher than just 2 weeks ago, and just 35 cents under the all-time high of $4.11 set in July 2008!

That's bad news for places that depend on tourists, such as our hometown of Las Vegas!

Crude oil prices have jumped in recent weeks, mainly due to the problems in the Middle East but also because of a weak US dollar and greatly increasing demand in developing nations (we're looking at you China). Experts say that unless the crude prices drop soon we can definitely expect gasoline prices to jump significantly within the next month or so.

According to the new survey, the lowest average gas price in the US -- $3.41 -- is in Tucson, AZ and the highest -- $4.13 -- is in the San Francisco Bay area. We're hoping that things, especially crude oil prices, cool off soon!

Learn some mo': Gas prices in 'firing range' of all-time high

$5/Gallon Gas: Coming to the US Soon?

$5 per gallon gasoline is on its way to the United States, according to some experts. Why? Because lots of people in the Middle Easy are pissed off at their crappy governments and are protesting/revolting against them. After the success of the Egypt protests, political unrest is exploding in Libya and may spread to many other oil-producing nations. Social chaos in those countries could quickly result in lower crude oil production and that could mean $5/gallon gas by summer 2011.

That's a serious problem for a US economy that's just starting to get back on its feet!

Oil prices are already at their highest levels since 2008, mainly due to the violence that's erupting in Libya. Over 300 people have been killed there so far, mainly by government police forces. But the bigger threat is Iran, which is a huge OPEC nation who pumps out tons of crude. Its crazy leaders have already stirred things up in recent days by sending 2 naval ships through the Suez Canal for the first time since the 1979 revolution.

If the Iranians (or the Saudia Arabians) start their own major uprising things could quickly break bad for the US and even the global economy. When energy costs skyrocket, the prices of LOTS of things go up. That will hurt already weak consumer spending and could stifle the fragile economic recovery currently taking place in most developed nations. If things really get out of hand and oil prices get to $150+ per barrel (a definite possibility), economists say that the US and many other countries will rapidly be pushed back into a recession.

We think maybe it's time to start seriously developing true alternative energy sources... don't you??

Learn some mo': If Libyan unrest spreads, gas could reach $5

Superfood Quinoa Boosting Poor South American Countries' Economies

Quinoa is probably the world's healthiest grain and definitely one of the healthiest foods... and it's exploding in popularity. During one of the worst global recessions in history, demand for quinoa has helped to increase exports in two very poor countries: Peru and Bolivia. Since the wholesale price of the Andean grain has jumped sevenfold since 2000, these two down-trodden South American nations have definitely benefited economically.

The indigenous Bolivian indians who grow quinoa are among the poorest peoples in the Western Hemisphere. But the discovery or, really, re-discovery of quinoa's amazing nutritional properties has made it a popular health food item in the United States, Japan, and several European countries. As exports increase native Bolivians are seeing an improvement in their economic conditions.

Two of us have spent time in Peru, the other major "Quinoa connection" in the world. When we were there it was still considered "comida de pobres"... or poor people food. Although it was beginning to catch on among the upper classes as a health and weight loss food. It really is a very delicious, high-protein grain that's also rich in fiber and "good" carbohydrates.

Although there are already signs of over-farming, many experts believe that Quinoa production could be one of the keys for lifting very poor Latin Americans out of poverty. It could be, if handled properly and carefully grown organically, the next major crop for these countries.

Learn some mo': Quinoa's popularity boon to Bolivians