Throughout history Fiat currency and credit systems have failed upon the greed and avarice of those who controlled them and this episode will be no different. The currency and bomb…er…bond markets are GROUND ZERO of the unfolding Societal and financial system destruction. The money printed to date will be dwarfed by what is to come. This is the greatest OPPORTUNITY in HISTORY for applied Austrian investing and the demise of the KEYNESIAN PONZI model. Full Story
By: The Gold Report and John Kaiser - 15 February, 2013
Is the end near for the TSX Venture Exchange, the victim of "algo traders," low volume and lack of institutional investors? If newsletter writer John Kaiser is right, as many as 500 of the 1,484 resource companies listed on the Venture Exchange will go under this year due to lack of money in the bank. In this Gold Report interview, Kaiser suggests that a crowdsourced valuation system may give the investors the information they need to invest with confidence and fend off the proprietary traders. Full Story
When, not if, this War starts to Rage out of control in the next few months, that will mark the beginning of Phase 3, which is inexorably approaching. And Investors and Traders alike must be prepared for Phase III. And those Investors and Traders who have prepared for Phase 3 can get rich, while those who are unprepared will be devastated. Full Story
By: Adam Hamilton, Zeal Intelligence - 15 February, 2013
Gold has suffered a tough slog lately, unable to advance despite central banks aggressively inflating their money supplies all over the world. Seeing gold stuck in the mire despite very bullish fundamentals has certainly exacted a psychological toll on traders. They are irritated and discouraged after watching the yellow metal inexplicably languish for months. But technically gold still remains in a young upleg. Full Story
This week price moves in the gold market could certainly give investors the creeps. The yellow metal opened at around $1,668 on Monday, closed $1,634 on Thursday and is currently (at the moment of writing these words) at $1,606. Full Story
The market is offering a free profit to anyone who will sell a gold bar and buy an April contract. For whatever reason, no one is either able or willing to take the bait. This is proof that the market for physical gold metal is drying up. Speculators in the futures markets may believe that the gold price “should” fall because the central banks say they are not going to competitively devalue their irredeemable paper currencies. Owners of real metal are increasingly reluctant to part with it at the current price. Full Story
By: Cambridge House International - 15 February, 2013
Rick Rule, legendary resource investor and chairman of Sprott US Holdings will be speaking, along with Peter Schiff of Euro Pacific Capital, John Mauldin of Mauldin Economics, David Morgan of The Morgan Report, and many others. If you have not had a chance to meet these one of a kind leaders in the investment world, come out, attend the show, and speak with them personally. Full Story
The world's governments and central banks (central bank purchasing was up 29 percent over Q4 2011 marking the eighth consecutive quarter of official sector net purchasing, 2012 saw the highest levels of central bank purchasing since 1964 rising 17 percent over 2011) are not only bringing home their gold but buying gold, a lot of gold. Perhaps they already know what Joe and Suzie are just starting to figure out - the supply of fiat paper money is infinite while the supply of gold is finite. Full Story
The ‘race to debase’ is on and the majority of nations are now involved in competitive currency devaluations. For instance, in addition to America, Euro zone and Switzerland, even Japan has now affirmed that it wants to weaken its currency. Furthermore, almost every country in the developing world is also expanding its monetary stock. Consequently, the world is being flooded with currency units and unless the monetary system changes, it is likely that this policy will continue. Full Story
Lately we’ve been writing about the negative correlation between the equity market and the precious metals market. This phenomenon has been in place since summer 2011 and has re emerged in the past few months. Since November 23, the S&P 500 is up 8% while the gold shares are down 14%, Silver has lost 11% and Gold 7%. Full Story
The financial backdrop to the current prices of precious metals like silver and gold is that trillions of dollars and other currencies have been created in order to reflate stock markets and attempt to create a recovery in the property market, which will only serve to re-inflate real estate prices back to their former unsustainable levels once again. This seems so utterly obvious, and yet it is rarely discussed. Full Story
The title implies a bear writer about to write bearish things. I get it. I guess I am a bear writer now because I can no longer be a bull writer. That is because my b/s detector is calibrated to its most sensitive setting and usually begins sounding early. The b/s detector went off early last May and the bullish analysis had to endure through a very volatile summer. Now it is the same, in reverse. Full Story
Bearish noises in the gold pit have lowered prices again this week but the real reason for the price fall is the absence of the world’s most voracious buyers, the Chinese who are on a national holiday this week for their New Year, though they have been buying in the gold souks of Dubai instead. Full Story
By: Julian D. W. Phillips, Gold/Silver Forecaster - Global Watch - 14 February, 2013
Talk of a Currency War is becoming much more frequent these days. What’s meant by this is that the competitive devaluations of currencies, which has gone on for such a long time –many years in fact—is going to become destructive to real currency values! This brings into question the entire system of exchange rates. Full Story
One has to wonder what all the fuss is about that has seen homebuilder shares in the US soar 11% (as measured by the iShares Dow Jones US Home Construction (ITB-NYSE)) in 2013 thus far and a 78% in 2012. The chart above shows actual sales of new homes and that shows that despite all of the hoopla new homes are simply not selling. That certainly has not stopped construction though as the chart below demonstrates. Full Story
It appears that Virginia is the latest state to take steps toward adopting some sort of metallic currency as lawmakers recently approved a measure to study the creation of alternate money in gold and silver coin form. This follows similar moves by other states in recent years that included the decision last year by the state of Utah to recognize gold and silver coins from the U.S. mint as legal tender. Full Story
By: Gary Dorsch, Editor, Global Money Trends - 14 February, 2013
With frigid temperatures expected to hover between 15-degree and 23-degree Fahrenheit this weekend in Moscow, it’s a wonder why the world’s most powerful finance chiefs and central bankers would schedule their Feb 15-16th meeting in Vladimir Putin’s backyard. Instead, a better venue for the Group-of-20 would’ve been the Cayman Islands. The Islands are warm year-round, with average highs holding steady in the 80’s. January and February are the coolest months with lows averaging in the lower 70’s. However, Russia holds the presidency of the G-20 this year, - so finance chiefs will have to endure the frozen tundra. Full Story
The collapse of the USSR in 1991 was seen as the triumph of capitalism over communism. The 40-year cold war was over and the West had won. That perception, however, was as premature as it was misleading. The struggle of world powers wasn’t over. Today, the struggle continues in a far more fundamental venue; on capitalism’s home court in the arena of paper money. Full Story
Does this sound familiar? “Gold is going nowhere – up one day and down the next! I’m scared! Maybe I should bail out.” Unlike buying stocks, which Wall Street and the media are constantly touting, gold is difficult to buy and hold. Proof: The S&P500 Index has made essentially no gain in 13 years, while gold has increased in price about 15% per year for the past 13 years. Full Story
By: John Mauldin, Millennium Wave Advisors - 13 February, 2013
For all the focus on the unfunded liabilities of Social Security and Medicare, there is another unfunded crisis brewing, and this one is in your own back yard. It’s coming to you even if you live outside of the US; it just might take a little longer to get there. I wrote ten years ago that state and local pension funds might be underfunded by as much as $2 trillion. It turns out that I was being overly optimistic. Full Story
INVESTMENT experts keep telling us two things. One, you must diversify your savings. Nothing works for ever. Two, your annual returns are set to be miserable, because there's no return to the out-sized gains of the 1980s and '90s. The last 10 years prove that. Now, we don't doubt Point 1. Not even people buying gold in 2001 could in fact see the future (though we might tell you different tomorrow). That second claim needs a closer look, however. Full Story
Stocks are catching the bid again, trading higher. The S&P 500 has topped 1500, a level not seen since 2007. The Dow has also recovered from its lows to pre-meltdown levels, above 14,000. Stock traders shrugged off fiscal cliff fears, to extend the rally into the new year. Small investors are now joining the professional buyers, who have viewed stocks as undervalued assets for over a year. They are cashing in their bonds and emptying the mattresses to put money into stocks. What has propelled US equity markets? The answer may surprise you. Full Story
By: The Gold Report and Brian Post - 13 February, 2013
The risk-reward profile of resource companies resemble those of healthcare and biotech companies, according to Brian Post, an analyst at ROTH Capital Partners, an investment bank dedicated to the small-cap public market. Part of Post's mission is to educate his institutional clients about the value to be found in the resource sector. The value to be found in Mexico as a mining jurisdiction is one of the first lessons he offers. In his first interview with The Gold Report, Post focuses on Mexican silver and ventures to both North and South America to talk copper. Full Story
This week Casey Investment Alert issued the 500th alert in its near 20-year history of publication. To commemorate the milestone, Casey Investment Alert Editor Louis James is providing select financial publications and their subscribers with access to the alert, a special edition that celebrates the history and accomplishments of this unique precious-metals advisory. Full Story
By: Chris Powell, Secretary/Treasurer, GATA - 13 February, 2013
Central bankers will be taught how to trade gold at a three-day seminar on "gold reserves management" to be held in March at the University of California at Berkeley and co-sponsored by the World Gold Council. Apparently modern "gold reserves management" involves a lot more than making sure that the metal is safe in a vault, even if whether and how a central bank should account to the public for its gold trading do not seem to be subjects for discussion at the seminar. Full Story
The title of the video clip under review and subject of their discussion is: “Would returning to the gold standard end currency wars?” Obviously, countries which use gold as money would have to accept the fact that gold cannot be devalued. This would be a huge improvement over today. Full Story
A LOT OF TALK on the web right now says silver is significantly undervalued versus gold. Many of these pundits and talking heads like to point to the historical relationship between gold and silver prices, sometimes known as the "ratio". People even comment as to this connection as far back as thousands of years ago. Let's take a quick look at this. Full Story
Many investors are wondering what has been behind the relentless rally in stock prices. Look no further than corporate profits. Consider that in the third quarter of 2013, corporate earnings were $1.75 trillion, up 18.6% from a year ago. That took after-tax profits to their greatest percentage of GDP in history. For the most recent quarter, earnings for S&P 500 companies are estimated to have risen 4.7 percent, above a 1.9 percent forecast at the start of the earnings season. See earnings chart shown below. Full Story
You see, we do not have the same monetary backdrop as back in 2008. Back then money supply growth measures were decelerating and going down (in some cases into negative territory). This is definitely not the case today. Money supply measures are accelerating and at multi-year highs. The growth rates are not what they were in 2009 and 2010 though, which is partially what has been holding precious metals back. Full Story
Perhaps the single greatest danger facing investors over the long term is to be investing for the wrong paradigm. That may sound a little theoretical, but we have a very clear and quite dangerous real-world example going on in front of us right now, which is the false dichotomy between the "Mainstream" and the "Gloom & Doomers". Full Story
I realize that most investors and analysts believe that the EU Crisis is over. They think that because the S&P 500 closing in on its all-time highs shows that things are fine in the system. They are wrong. The only item that held Europe together in 2012 was the credibility of EU politicians and ECB President Mario Draghi. Please note that nothing fundamental improved for the EU’s financial system: EU GDP has since re-entered a recession and EU unemployment has a hit a new record. Full Story
President Obama gives his State Of The Fiat Union speech tonight. While I hope he takes the opportunity to recommend that America’s citizens purchase a bit of gold, somehow I don’t think that will be happening. Full Story
Precious metals mining stocks may not look too encouraging recently – with mostly declines in 2013 and lack of any spectacular rally. But other influential markets suggest that the situation is likely to change in the near future – the underlying metals seem poised to rally, the general stock market is rallying and the dollar is in a long-term downtrend. It is still hard to answer the title question, however, as the above factors do not give any crystal-clear signals. Full Story
It can be mighty hard to earn any interest at all in today’s banking environment. Many in¬vestors are looking to riskier investments to find the kind of returns they once got from an FDIC-insured CD or even a savings account. Full Story
By: Richard Daughty, The Mogambo Guru - 12 February, 2013
I am seriously considering changing careers. I have, to my dismay, discovered that being a paranoid, angry, cynical, Austrian School economist and all-around lunatic raving gold-bug whack-o slacker, who is absolutely sure that We're Freaking Doomed (WFD), is an occupation that does not have that certain glorious glamour and commanding cache to elicit the fawning adoration of hot chicks. Full Story
The illusory benefit of a weaker currency is to boost corporate earnings as companies increase their exports. That may well be true for the next quarterly earnings report, but ignores that their competitive position may be weakening. The clearest evidence of this is the increased vulnerability to takeovers from abroad. As the value of the U.S. dollar has been eroding, for example, Chinese companies are increasingly buying U.S. assets. The U.S. is selling its family silver in an effort to support consumption. Full Story
Action in gold and the gold shares continues to be brutal. But one thing that has really piqued my interest from a trading perspective was the high volume flushout in GDX back on January 25th. That was the highest volume GDX has done to date and really looked like it was the type of volume that reeked of total fear and emotion taking over and bad decisions being made. If you’ve followed charts for a while you’ll often see huge high volume days right at the bottom, when everyone wants to head for the exits at the same time. Full Story
By: The Gold Report and Ingrid Rico - 11 February, 2013
Within the universe of junior mining companies, investors need to be choosy, says Ingrid Rico, mining analyst at Toronto-based investment bank M Partners. In this interview with The Gold Report, Rico explains how analysts value miners and reveals how she will be looking at junior mining companies in 2013—with a skeptical eye, preferring those funded to complete exploration plans for the year and a management track record to deliver results. Full Story
The Big Story now is that there is evidence that powerful forces will be brought to bear shortly to support the ailing US Treasury market, which is close to crashing critical support, and those wielding the power will have no qualms about sacrificing either the commodity markets or the stockmarket to achieve this objective, if necessary. We will look at the outlook for the bond market and stockmarket later, after we have examined the gold charts and indicators. Full Story
The weekly stochastic and TDI indicators produced a “buy-signal” in the gold market (and various ETFs for gold) in January 2013. The most profitable “buy signals” occurred when the TDI was low and gold had just finished a large percentage correction, such as in late 2008. The January 2013 “buy signal” is similar to the “buy-signal” from 2008. Full Story
I see a lot of people lately agonizing over what we should have done. By that I mean it’s obvious to all by now that the correct move was to buy stocks back in November instead of precious metals and miners. I mean seriously, it’s obvious that liquidity was going to flow into every asset class except precious metals. Well it’s obvious now in hindsight anyway. Full Story
The purpose of keeping accurate accounts is to quantify net worth at any given point in time – as well as the change from a prior date. It goes without saying that the measure used, money, should be constant if comparisons over time are to mean anything. Only then do prices of capital goods, consumer goods and services truly reflect their changing values, giving important signals to businessmen. With unstable fiat money market signals lose much of their meaning. Full Story
In the most recent copy of the St. Louis Fed’s ‘Regional Economist’, two of its researchers query the status of corporate cash. Specifically, they’re interested in why companies are hoarding so much of it. Normally, such an article wouldn’t be noteworthy, but in this case we feel that delving into such an issue will be of assistance in terms of helping the average person to understand the truly broken nature of our economic and monetary systems. Full Story
The Dubai Gold and Commodities Exchange will launch its first-ever spot gold contract later this year allowing UAE traders to buy and sell physical gold on a local exchange for the first time. Gold traders based in the City of Gold are ecstatic about this news reported in The National today. Full Story
By: Rick Ackerman and John Skerencack - 11 February, 2013
Fifty years of inflation has been tough on households, but for millions of college grads unable to find work paying more than $10 an hour, it can be defeating. In the guest essay below, Rick’s Picks forum regular John Skerencack (aka John Jay) explains how an economic tragedy that has trapped young people took shape without anyone much noticing. Until now. Full Story
All in all it was another kind of strange week with some weak breakouts occurring Friday but I don’t trust them. The volume and action/conviction just isn’t there to push markets higher right now from what I see. Full Story
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