Wealth=Wise(Investments+Strategies)

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1. UPDATE 5-Gold hits 16-month high above $700 after U.S. data : REUTERS UK.

The August report showing a fall of 4,000 jobs dented the U.S. currency against the euro, making dollar-denominated gold cheaper for overseas investors.
The data looked certain to increase pressure on the Federal Reserve to cut U.S. interest rates.

Full story here.

Picture Source : here.

2. Gold prices climb as stocks, dollar fall : CNNMoney.com.
NEW YORK (AP) - Gold prices advanced Friday as investors sought a haven from sinking stock prices, a falling U.S. dollar and heightened world political risks.

Wall Street slumped after the Labor Department reported payrolls dropped by an unexpected 4,000 in August — the first decline in four years and a shock for economists who projected the nation’s employers would add 110,000 jobs to the payrolls. The weakness bolstered the case for a cut in the Federal Reserve’s benchmark interest rate, and in turn undermined the U.S. dollar.

Investors have been wary of any sign that the housing slump or tighter credit conditions would spread and spoil growth in the broader economy, and the poor jobs data was ‘one signal that definitely contradicted the containment scenario,’ said Jon Nadler, senior analyst with Kitco Bullion Dealers.

Read Full story here.

3. Too Big to be Bailed Out by By Peter Schiff.

Now that home mortgage defaults are spreading like wildfire from coast to coast, there is a growing sense of certainty that the government will attempt to bail out homeowners and lenders. The ideas put forward last week by President Bush may be the camel’s nose pushing under the bottom of the tent. However, just as some things are too big to fail, this problem is far too big to fix.

Full Story here.

4. Wall Street giants: Liquidity crisis ? CNNMoney.com.

NEW YORK (Wall Street) — In the first half of the year, most Wall Street firms awarded themselves large profits from assets that are rarely traded and difficult to price, according to numbers contained in the brokerages’ recent financial statements.

But, with markets seizing up since the end of June, those assets could be even harder to value, potentially prompting investors and regulators to question Wall Street’s earnings.

Full story here.

5. Tight Credit = Higher Gold by James West.

The evolving metamorphosis underway in world financial markets is nothing more than the global re-allocation of available cash. The artificial liquidity created by government counterfeiting and accompanying facile lending policies is/was unsustainable, and the collapse of the sub prime mortgage business is merely the first symptom in what will continue to reorder the economic universe.

Several trillion dollars of imaginary money are in the process of evaporating.

Full story here.

Have you taken the first step to protect your hard earn money from the big melt down ?

Tags: Investment //