Can gold miners make a comeback in 2012?

It's something that has wrong-footed and infuriated me in recent years. And it's a theme that I, and many others like me, keep coming back to. I’m talking about the relative underperformance of gold miners versus the metal. That is, gold has risen, but the miners haven't. Why is this happening? And can we expect more of the same? Or will the tide finally turn in 2012?

Gold Proves Safest as Goldman Forecasts Record: Riskless Return

Gold provided the best returns of all commodities in the past five years when adjusted for volatility, and Goldman Sachs Group Inc. says the rally will continue as options traders signal no change in the metal’s relatively low risk.

Eric Sprott - Aggressive Chinese Buying Will Spike Gold Price

Today billionaire Eric Sprott told King World News the Chinese cannot continue to buy gold as aggressively as they have been without there being a dramatic increase in the price.

Fed Signals That a Full Recovery Is Years Away

The Federal Reserve, declaring that the economy would need help for years to come, said Wednesday it would extend by 18 months the period that it plans to hold down interest rates in an effort to spur growth.

America overcomes the debt crisis as Britain sinks deeper into the swamp

Britain has sunk deeper into debt. Three years after bubble burst, the UK has barely begun to tackle the crushing burden left by Gordon Brown. The contrast with the United States is frankly shocking.

Ageing Japan faces 'chronic' trade deficit after Fukushima

apan has racked up its first trade deficit in 31 years as the country's ageing crisis hits home and the Fukushima nuclear disaster raises dependence on imported fuel.

It's now up to China to save capitalism

It's official. Britain is sinking back into recession. OK, so technically we are not yet in one. A recession is defined by two successive quarters of economic contraction. We've only had one quarter formally confirmed. But not many would now bet on a positive outcome for the first three months of 2012.

Davos can't work miracles but it may see the start of one

It’s Davos week, and despite a programme packed with distractions for the elite of world finance, business and public policy, there’s only one thing participants really want to talk about - the eurozone debt crisis.

As Soros says, things could be worse for the UK: we could be in the euro

George Soros may be a retired hedge fund manager but he is still well practiced in the art of inventing a market neutral position.

Angela Merkel defiant as IMF leads attack on Germany

German Chancellor Angela Merkel has defied calls for a radical shift in strategy to lift Europe out of crisis but is increasingly isolated as the International Monetary Fund and key global bodies join ranks to force her hand.

EU ratchets up pressure with Greek default threat

European Union officials have stepped up pressure on Greece and its creditor banks in a complex game of three-way brinkmanship, signalling that they will allow a Greek default to run its course unless both sides accept more pain.

Greek debt talks stall over interest rate on bonds

Crucial talks between Greece and private creditors on debt restructuring stalled over the weekend, with a dispute over the interest rate to be paid on new bonds.

Italy and Spain call for eurozone rescue fund booster

Political leaders in Italy and Spain have called for a massive boost to the EU rescue fund and a blast of monetary stimulus by the European Central Bank (ECB), putting them on a collision course with Germany over the handling of the eurozone crisis.

3D Chips Will Deliver an Era of Radical Change

Forget about the "Tablet Wars." That's yesterday's news. The same thing goes for the long-predicted "Death of the PC." You see, the mainstream media has unleashed a torrent of technology predictions for 2012. They're all a mile wide and an inch deep. No one seems to get the big picture. The single most important computing trend that will unfold this year is getting almost no buzz. And yet... This is the year when the technology sector will enter a whole new dimension. It's called 3D computing.

Sprott bearish on base metals, positive on gold, oil

Prominent Canadian fund manager Eric Sprott said on Wednesday he was bearish on cyclical commodities such as industrial metals because of the economic slowdown, though he remained positive on gold and crude oil.

China's property price slide gathers speed

Property prices are falling at an accelerating rate across China and unsold inventories have reached the highest level in recent history, raising concerns monetary tightening may have gone too far.

The Madness of Crowds: How to Play Bonds, China, and Gold in 2012

I read Charles Mackay's 1841 classic, "Extraordinary Popular Delusions and the Madness of Crowds" long before it ever became fashionable. Even so, when you think about it, 2011 must set some kind of record. As investors, that means we need to decide whether this madness will continue in 2012 and which direction to take. Take the madness in the bond world, for instance. Long-term bonds of a country with an out-of-control budget deficit and a worrying trade deficit are currently yielding 1.6% below inflation. In other words, year after year, investors are willing to pay 1.6% of their capital to hold them. On top of that, investors have been so keen on this miserable asset in 2011 they have bid up its price by no less than 26%. Conversely, China is revolutionizing the world economy. Year after year, China puts up growth rates of 8% or more, and the latest data suggest that will continue throughout 2012. What's more, Chinese stocks stand on a bargain-basement price-to-earnings (P/E) ratio of less than 8-times earnings. Yet, in 2011, investors shunned these bargains, giving the Chinese market a pathetic return of minus-22%.

The IMF is no longer serving its purpose?

To save the eurozone, the International Monetary Fund needs to dispense tough love, not endless bail-outs.

When, oh when, will Europe face the truth?

Countries with a triple-A credit rating are becoming an endangered species.

After a brief seasonal break, the euro crisis is back in full force

There's no such thing as a good downgrade. No matter how brave a face the French put on Standard & Poor's cut to its credit worthiness, they cannot brush off the loss of their AAA rating.

IMF slashes global forecast on eurozone crisis, with drastic falls in Italy and Spain

The International Monetary Fund has slashed its global growth forecast for this year and exhorted the European Central Bank to boost liquidity to stave off a deeper eurozone crisis.

Portugal to need "debt haircut" as economy tips into Grecian downward spiral

Portugal's borrowing costs have jumped to record highs and are tracking the moves seen in the culminating phase of Greece's debt crisis, dashing hopes that the country will be able to stave off contagion by embracing drastic austerity.

World Bank fears Europe's crisis could set off deeper global slump than Lehman collapse

The World Bank has slashed its global growth forecast and told developing nations to prepare for the worst, warning that Europe’s debt crisis could trigger an even deeper slump than the post-Lehman collapse three years ago.

Hungary faces ruin as EU loses patience

The European Commission has launched legal action against Hungary's Fidesz government for violations of European Union treaty law and erosion of democracy, marking a dramatic escalation in the war of words with the EU's enfant terrible.

Summarizing 2011 In Nine Easy Charts

If one had to summarize 2011 in one sentence, it probably would be: "a year in which the market ended unchanged, in which the world got within seconds of global coordinated bankruptcy, and in which central planning finally took over everything." Simple. On the other hand, conveying a comparably concise message full of hope and despair at the same time, using charts would actually be slightly more problematic.

New draft of EU treaty signals victory for Cameron and Britain

European leaders have dropped plans to alter the rules of the single market as part of a new fiscal compact in a move that signals a significant victory for Britain.

Codelco's gambit will facilitate a deal with Anglo American

Anglo American's row with Chilean miner Codelco over ownership of a disputed copper mine is becoming a real headache for the FTSE 100 mining giant.

ENRC investors should be the winners as row over Congo mine is settled

For a major legal battle over a disputed copper mine in the Democratic Republic of Congo, the ding-dong between FTSE 100 miner Eurasian Natural Resources (ENRC) and Canadian rival First Quantum has reached a remarkably speedy end.

Awaiting a Greek Payout

Could Greece’s next rescue payout go straight into the pockets of London hedge funds?

How Banks Are Using Your Money to Create the Next Crash

n 2008, reckless credit default swaps nearly obliterated the global economy. Now comes the next crisis - rehypothecated assets. It's a complicated, fancy term in the global banking complex. Yet it's one you need to know. And if you understand it, you will get the scope of the risks we currently face - and it's way bigger than just Greece. So follow with me on this one. I guarantee that you'll be outraged and amazed - and better educated. You'll also be in a better position to protect your assets at the end of this article, where I'll give you three important action steps to take. So follow along...

Paul Krugman is Dead Wrong: Debt Matters

Paul Krugman, the Princeton University economics professor, Nobel Prize winner, and regular New York Times op-ed contributor says, "Debt matters, but not that much." Not only is he off the reservation on this one, but he's completely fallen off his high horse. In the real world, debt actually matters a lot.

Be prepared for a big disappointment from China this year

Back in the days before the financial crisis really kicked off, we went through a 'bad news is good news' phase in the US. This was around six or seven years ago, when the notion that interest rates go up as well as down was still uncontroversial. In any case, the Federal Reserve was gently raising rates. Wall Street wasn't too keen on this. So when economic data disappointed, you'd see markets rise. Why? Because it meant that maybe rates wouldn't rise so fast, or maybe even go down.

The battle for the City will define the UK role in Europe

As their economic and political situation deteriorates, the eurozone leaders are clearly trying to isolate the UK, as the latest draft of their treaty reveals.

US tax cutting is the spur for employment that Britain needs too

Two currency unions and two pieces of news. In the US, 200,000 non-farm jobs added and an unemployment rate down to 8.5pc from 9.4pc a year ago.

2012 will be another year of crisis, bail outs and emergency summits in Europe

First, in the interests of transparency, let's see how my 2011 predictions turned out.

2012 could be the year Germany lets the euro die

So we enter Year IV of the Long Slump, the cruellest yet though not the most acute. The shrinking AAA core will leave Germany propping up the EFSF bail-out fund, until the weight of contingent liabilities endangers Germany itself.

Paul wants to check Fort Knox for gold

Ron Paul said Thursday that he’s eager to find out how much gold the United States really owns. A supporter at a town hall meeting asked about Fort Knox: “Would you reveal as president whether there’s actually gold there?” Here is Paul’s full response: “Yes, and if I couldn’t accomplish that then there’s big trouble in this country. I may need to get some help for you. I tried for years to do this…I never went to Fort Knox. I made a request when the gold commission came up in the early 1980s. We had a study of the role of gold in the monetary system. There were 17 members, and I couldn’t get one other person to endorse the principle that we ought to go to Fort Knox and find out if there’s gold.”

$135 Billion Redeemed From US Equity Mutual Funds In 2011, 34 Of 35 Consecutive Weekly Outflows

Half of absolute return funds fail to turn a profit

They are meant to make money come what may. The reality is different.

Eurozone collapse 'starts this year' says CEBR

Europe's single currency is almost certain to disintegrate within the next decade, a leading think tank has predicted, with Greece and Italy potentially abandoning the euro this year.

Chinese are the new Big Spenders in town

High-spending tourists from China were out in force at the sales in London stores this week.

Eurozone is closer to break-up, warns Standard Chartered's Peter Sands

The chief executive of Standard Chartered has warned that there is an increasing likelihood of a country falling out of the eurozone because of the inability of politicians to resolve the crisis.

Oleg Deripaska: 'wealthy time' has ended for the eurozone

Oleg Deripaska, one of Russia's leading business figures, has warned Europe that its "wealthy time" is over and that Russia's newly agreed membership of the World Trade Organisation opens up fresh possibilities for British businesses.

Eurozone credit crunch fears on M3 money contraction

Europe is at mounting risk of a fresh credit crunch after the eurozone money supply contracted for a second month in November and the volume of private loans began to shrink.