On November 30, Switzerland’s citizens will cast a very critical vote. Through a referendum, they will vote for or against the Swiss National Bank increasing its gold bullion reserves to 20%, the central bank halting the selling of gold, and the storing of gold bullion in the country. (Source: Kitco News, September 30, 2014.) If the results are in favor of the referendum, it will mean Switzerland’s central bank will be forced to buy a significant amount of gold bullion. According to the most recent data from the World Gold Council, Switzerland has 1,040 tonnes of gold bullion in its reserves, equal to only 7.8% of its total reserves.
The Mining Report: What effect is the strong U.S. dollar having on base metal prices and base metal equities? Stefan Ioannou: Base metals are priced in U.S. dollars, so as the dollar rises in value, base metals fall in value. Right now, copper is testing the $3 per pound ($3/lb) level, and zinc is drifting down toward $1/lb.
Investors have had to endure much more volatility in the past few weeks. We may know why — the Federal Reserve put an expiration date on its $3 trillion-plus bond-buying program. But some investors don’t know how to proceed. The Fed’s easy-money policy — mainly known as quantitative easing, or QE — probably will end next year.
Company Update: Apple Inc (NASDAQ:AAPL) – Ralph Nader urges Apple to reduce buybacks, improve wages – WSJ
[Reuters] - REUTERS - Consumer advocate Ralph Nader sent a letter to Apple Inc Chief Executive Tim Cook urging the company to reduce its spending on share buybacks and use the money to raise wages, the Wall Street ... Read more on this. Apple Inc. (AAPL), with a current value of $617.24B, opened at $105.12. Today, shares have traded between $104.53 and $105.49 per share with a one year range of $70.51 to $105.49. Apple (AAPL) shares are currently priced at 13.72x this year's forecasted earnings, which makes them relatively inexpensive compared to the industry's 24.32x earnings multiple for the same period. And for those looking to make a return holding the stock, the company pays shareholders $1.88 per share annually in dividends, yielding 1.80%.
Since the inception of the Investment Company Act of 1940, investors have grown to expect every mutual fund, closed-end fund (“CEF”), and exchange traded fund (“ETF”) to be treated as a “pass-through vehicle” for tax purposes. The entity itself would not pay any taxes, and all tax liabilities would be passed-through to the shareholders. That was the status quo for decades, until master limited partnership (“MLP”) funds came along.
UBS (UBS) rolled out the ETRACS Diversified High Income ETN (DVHI) on Thursday (9/19/13). The new exchange traded note (“ETN”) is targeted at investors desiring significant monthly income from a diversified multi-asset mix. It will track the new NYSE Diversified High Income Index minus the 0.84% annual tracking fee. The underlying index has a current yield of 7.7%, and the ETN will make monthly cash distributions.