How to fly first class for next to nothing

From Dr. David Eifrig in Retirement Millionaire:

Desperate to attract as many high-value flyers as possible, many national airlines are trying to swell the ranks of their elite-status programs - and steal those customers away from their competitors.

They aren't advertising these programs, but the carriers are making it easier to join programs that offer a variety of perks, including free (or deeply discounted) business- and first-class upgrades.

I've just taken advantage of the American Airlines "premium" status challenge, which has put me in first class on about half of my flights in the past two months. Here's how it works:

American has an "elite challenge" program.

With American, you earn gold or platinum status if you accrue 5,000 (gold) or 10,000 (platinum) elite qualifying points within 90 days. If you're planning some long flights (for instance, if you're going to attend our S&A Alliance conference in Zurich, Switzerland), you can cross those thresholds with just a few flights. Normally to get gold or platinum status, you must compile 25,000 or 50,000 points, respectively.

Points are similar to traditional frequent flyer miles, except each mile is worth 0.5-1.5 points depending on how much you pay for your flight.

If you qualify for elite status, you can enjoy cheap ($30) upgrades and early boarding, which guarantees a space for your bag. Plus, you'll get to check in through the first-class lines and not pay for baggage for the next 14 months. That's worth at least a couple hundred dollars each year.

To try for elite status, call American at 800-433-7300 and connect to the AAdvantage desk (that's its frequent flyer program). Tell them you want to "challenge" for elite status. If you complete the challenge, you gain the elite status until the end of the following membership year. In this case, it's until March 1, 2012.

Crux Note: Dr. David Eifrig is the editor of Retirement Millionaire. Each month, "Doc" Eifrig shows his readers safe and simple ways to save money, stay healthy, and live a richer and fuller life.To learn about Doc’s favorite elite program and how you can get a year's subscription for an unbelievably low price, click here.

More on airlines:

An easy way to save big on airline travel

4 Hour Work Week guru names airlines you shouldn't fly with

Attention airline passengers: This may be the best $10 you ever spend

View the original article here

The first signs of hyperinflation could be appearing now

From Gonzalo Lira:

This post is gonna be short and sweet—and scary:

Back in late August, I argued that hyperinflation would be triggered by a run on Treasury bonds. I described how such a run might happen, and argued that if Treasurys were no longer considered safe, then commodities would become the store of value.

Such a run on commodities, I further argued, would inevitably lead to price increases and a rise in the Consumer Price Index, which would initially be interpreted by the Federal Reserve, the Federal government, as well as the commentariat, as a good thing: A sign that "the economy is recovering", a sign that "normalcy" was returning.

I argued that—far from being "a sign of recovery"—rising CPI would be the sign that things were about to get ugly...

Read full article...

More on hyperinflation:

Buy gold, silver, and tiny bottles of scotch

Legendary trader Vic Sperandeo sees serious risk of hyperinflation

Porter Stansberry: U.S. is headed for one of the worst inflations in history

View the original article here

<b>Gold</b> Declines for First Time in Three Days as Dollar Advance Curbs Appeal

Gold declined for the first time in three days as the dollar advanced, curbing the appeal of commodities as alternative investments.

Bullion for immediate delivery fell as much as 0.5 percent to $1,347.35 an ounce at 12:51 p.m. in Melbourne, after reaching an all-time high of $1,364.77 on Oct. 7. The dollar rose 0.2 percent against a basket of six major currencies. The precious metal typically moves in the opposite direction to the dollar.

“Given that we have seen solid upward movements in the gold price for some time now, it is just an opportunity for market participants to catch their breath,” said Gavin Wendt, senior resource analyst at MineLife Pty in Sydney.

The dollar rose before the Federal Reserve releases today minutes of its policy meeting on Sept. 21, when the central bank said it was willing to ease monetary policy further to sustain the economic recovery.

Gold for December delivery on the Comex in New York fell 0.4 percent to $1,348.90 an ounce. Futures have advanced 23 percent this year and reached an all-time high of $1,366 an ounce on Oct. 7.

“The precious metals markets remain range-bound since Friday afternoon, with very little interest coming from the physical market for gold and silver at current price levels,” Walter de Wet, an analyst at Standard Bank Plc in London, wrote in a note.

The dollar traded at $1.3864 per euro at 9:36 a.m. in Tokyo from $1.3876 in New York yesterday. The greenback last week reached the lowest level since January against the basket of six major currencies.

Global holdings in exchange-traded products fell about 1.2 metric tons to 2,083.55 tons on Oct. 11, according to Bloomberg data from 10 providers, after reaching a record 2,097.01 tons on Sept. 30.

Silver fell 0.8 percent to $23.1078 an ounce at 12:44 p.m. Melbourne time after gaining as much as 1.6 percent to $23.6325 an ounce yesterday, the highest price since 1980.

Platinum gained 0.3 percent to $1,691.38 an ounce, while palladium was little changed at $587.63 an ounce after reaching a nine-year high of $604 last week.

To contact the reporter on this story: Wendy Pugh in Melbourne at wpugh@bloomberg.net

To contact the editor responsible for this story: Richard Dobson at rdobson4@bloomberg.net

View the original article here

<b>Gold</b> Declines for First Time in Three Days as Dollar Advances

October 12, 2010, 6:45 AM EDT By Nicholas Larkin and Wendy Pugh

Oct. 12 (Bloomberg) -- Gold declined for the first time in three days in London as a stronger dollar curbed demand for the metal as an alternative asset and as some investors sold bullion after its rally to a record.

The dollar gained as much as 0.7 percent against the euro today. Gold, which usually moves inversely to the greenback, reached a record $1,364.77 an ounce on Oct. 7. Bullion’s rally had driven the relative strength index above 70, a sign to some analysts and traders who study technical charts that prices may be poised to drop.

“The U.S. dollar is a bit stronger, which is a negative,” Peter Fertig, owner of Quantitative Commodity Research Ltd. in Hainburg, Germany, said today by phone. There may be “a bit of profit-taking,” and lower prices for other commodities are pressuring gold, he said.

Immediate-delivery bullion lost $11.35, or 0.8 percent, to $1,342.70 an ounce at 11:20 a.m. in London. Gold for December delivery was 0.8 percent lower at $1,343.40 an ounce on the Comex in New York.

Bullion fell to $1,343.50 an ounce in the morning “fixing” in London, used by some mining companies to sell output, from $1,351.50 at yesterday’s afternoon fixing. Five of the six main industrial metals on the London Metal Exchange and crude oil futures in New York declined today. Silver, platinum and palladium also fell.

Gold should account for 15 percent of a portfolio on a three-year view and 13 percent on a six-month view, Fredrik Nerbrand, global head of asset allocation at HSBC Bank Plc, said in a report today.

Winning Streak

The metal is “not merely a hedge against inflation but one of the few assets that hedges against tail risks,” Nerbrand said in “The Allocator” report. “The fact that gold is still under-owned and opportunity costs are still low should boost investor appetite further.”

Gold, up 23 percent this year, is heading for its 10th consecutive annual gain, the longest winning streak since at least 1920. Bullion has outperformed global equities, Treasuries and most industrial metals, prompting record investment in gold- backed exchange-traded products. The metal rallied as central banks and governments maintained low borrowing costs and spent trillions of dollars to stimulate economies.

“Gold has run so hard in the past couple of months that it was ready for a bit of a breather and we are just seeing a bit of consolidation,” said Ben Westmore, a minerals and energy economist at National Australia Bank Ltd. in Melbourne. The movement in the dollar was likely a catalyst today for some weakness in the metal, he said.

Quantitative Easing

The dollar rose before the Federal Reserve releases today minutes of its policy meeting on Sept. 21, when the central bank said it’s willing to ease monetary policy further to bolster the economy. The Fed may next month announce about $500 billion of bond purchases as it undertakes further quantitative easing, Goldman Sachs Group Inc. said in an e-mailed note.

Gold assets in ETPs declined 1.22 metric tons to 2,083.55 tons yesterday, according to data compiled by Bloomberg from 10 providers. Holdings reached a record 2,097.01 tons on Sept. 30 and are up 16 percent this year.

Prices may gain to $1,400 in three months, $1,525 in six months and $1,650 in 12 months, Goldman Sachs analysts David Greely and Damien Courvalin wrote in a report dated yesterday.

“With U.S. real interest rates pushing lower off the slowdown in the pace of the U.S. economic recovery and the growing prospect of another round of quantitative easing, we expect gold prices to continue to climb,” the New York-based analysts wrote.

Silver for immediate delivery in London fell 1.3 percent to $22.99 an ounce, after yesterday reaching $23.6325, the highest price since 1980.

Platinum lost 0.7 percent to $1,674.75 an ounce, and palladium declined 1.9 percent to $576.75 an ounce. The metal last week reached a nine-year high of $604.

--Editors: John Deane, Dan Weeks.

To contact the reporter on this story: Nicholas Larkin in London at nlarkin1@bloomberg.net; Wendy Pugh in Melbourne at wpugh@bloomberg.net.

To contact the editor responsible for this story: Carpenter at ccarpenter2@bloomberg.net.

View the original article here

<b>Gold</b> Falls for First Time in 3 Days on Investor Sales, Dollar

October 12, 2010, 6:45 AM EDT By Nicholas Larkin and Wendy Pugh

Oct. 12 (Bloomberg) -- Gold declined for the first time in three days in London as a stronger dollar curbed demand for the metal as an alternative asset and as some investors sold bullion after its rally to a record.

The dollar gained as much as 0.7 percent against the euro today. Gold, which usually moves inversely to the greenback, reached a record $1,364.77 an ounce on Oct. 7. Bullion’s rally had driven the relative strength index above 70, a sign to some analysts and traders who study technical charts that prices may be poised to drop.

“The U.S. dollar is a bit stronger, which is a negative,” Peter Fertig, owner of Quantitative Commodity Research Ltd. in Hainburg, Germany, said today by phone. There may be “a bit of profit-taking,” and lower prices for other commodities are pressuring gold, he said.

Immediate-delivery bullion lost $11.35, or 0.8 percent, to $1,342.70 an ounce at 11:20 a.m. in London. Gold for December delivery was 0.8 percent lower at $1,343.40 an ounce on the Comex in New York.

Bullion fell to $1,343.50 an ounce in the morning “fixing” in London, used by some mining companies to sell output, from $1,351.50 at yesterday’s afternoon fixing. Five of the six main industrial metals on the London Metal Exchange and crude oil futures in New York declined today. Silver, platinum and palladium also fell.

Gold should account for 15 percent of a portfolio on a three-year view and 13 percent on a six-month view, Fredrik Nerbrand, global head of asset allocation at HSBC Bank Plc, said in a report today.

Winning Streak

The metal is “not merely a hedge against inflation but one of the few assets that hedges against tail risks,” Nerbrand said in “The Allocator” report. “The fact that gold is still under-owned and opportunity costs are still low should boost investor appetite further.”

Gold, up 23 percent this year, is heading for its 10th consecutive annual gain, the longest winning streak since at least 1920. Bullion has outperformed global equities, Treasuries and most industrial metals, prompting record investment in gold- backed exchange-traded products. The metal rallied as central banks and governments maintained low borrowing costs and spent trillions of dollars to stimulate economies.

“Gold has run so hard in the past couple of months that it was ready for a bit of a breather and we are just seeing a bit of consolidation,” said Ben Westmore, a minerals and energy economist at National Australia Bank Ltd. in Melbourne. The movement in the dollar was likely a catalyst today for some weakness in the metal, he said.

Quantitative Easing

The dollar rose before the Federal Reserve releases today minutes of its policy meeting on Sept. 21, when the central bank said it’s willing to ease monetary policy further to bolster the economy. The Fed may next month announce about $500 billion of bond purchases as it undertakes further quantitative easing, Goldman Sachs Group Inc. said in an e-mailed note.

Gold assets in ETPs declined 1.22 metric tons to 2,083.55 tons yesterday, according to data compiled by Bloomberg from 10 providers. Holdings reached a record 2,097.01 tons on Sept. 30 and are up 16 percent this year.

Prices may gain to $1,400 in three months, $1,525 in six months and $1,650 in 12 months, Goldman Sachs analysts David Greely and Damien Courvalin wrote in a report dated yesterday.

“With U.S. real interest rates pushing lower off the slowdown in the pace of the U.S. economic recovery and the growing prospect of another round of quantitative easing, we expect gold prices to continue to climb,” the New York-based analysts wrote.

Silver for immediate delivery in London fell 1.3 percent to $22.99 an ounce, after yesterday reaching $23.6325, the highest price since 1980.

Platinum lost 0.7 percent to $1,674.75 an ounce, and palladium declined 1.9 percent to $576.75 an ounce. The metal last week reached a nine-year high of $604.

--Editors: John Deane, Dan Weeks.

To contact the reporter on this story: Nicholas Larkin in London at nlarkin1@bloomberg.net; Wendy Pugh in Melbourne at wpugh@bloomberg.net.

To contact the editor responsible for this story: Carpenter at ccarpenter2@bloomberg.net.

View the original article here