Recently, I have been scrutinizing the junior resource sector far more keenly than even I am prone to do. Gold posted its recent peak at $572 on February 2. The HUI, which represents a number of major gold and silver producing companies, touched its similar $349.48 top on January 31. Yet, despite the fact that both of these markets have entered secondary corrections, the small exploration and development companies have not performed as one should expect given their long, consistent history. Full Story
By: Bill Bonner & Chuck Butler, The Daily Reckoning - 17 March, 2006
-New American epics...American Wealth: Gone With the Wind...Catcher at the Fed... -History has her favorite plots...her habitual characters...her familiar twists and turns... -Debt ceiling raised again...investors get what they have coming - but what is that exactly?...and more! Full Story
By: Peter Schiff, Euro Pacific Capital, Inc. - 17 March, 2006
In light of the mind-blowing lengths to which Wall Street has gone to minimize the importance of the enormous deficits posted in the fourth quarter current account and in January’s monthly trade figures, I thought a simple analogy would be helpful in putting this situation into its proper perspective. Full Story
The spyders rallied to within 0.30 points of our hidden-pivot target at 131.77 yesterday – close enough to imply that a correction could be in the works, though not quite close enough for us to get short at the high. We attempted to do so by purchasing some April 131 puts for up to 1.35; however, they traded no lower than 1.50 intraday. Our 1321.75 projection for the Mini-S&P got even closer to the actual high, since it occurred at 1321.50, just a single tick from where advertised. Full Story
By: Bill Bonner, Eric Fry & S.R. Nunnally, The Daily Reckoning - 16 March, 2006
-The United States' ticking time bomb...if debtor is slave to the lender, what does that make Americans? -The mistress of creative destruction...just close your eyes and wish your way to prosperity... -Which is worse - no ideas, or no backbone?...we've managed to slip past the Ides of March...and more! Full Story
By: Bob Chapman, The International Forecaster - 16 March, 2006
Every currency, particularly the major currencies, have broken down versus gold. Money is the most important thing in society and when its value is threatened people buy gold because it’s the ultimate store of value and method of payment. Gold is the only form of money that cannot be debased by the authorities that print paper fiat currency. A rising gold price is a barometer of currency debasement. It is the only financial medium of exchange that is not someone else’s liability. Gold is the ultimate form of real money. To remember the peak in gold prices at 21 years old, you’d have to be 46 years old. To remember the gold standard, you need to be at least 55 years old. The vast majority of people currently working in the financial sector, even in senior positions, are younger than this. They do not know the history of gold. They do not know what real money is. They do not know that fiat currencies always fail. Full Story
By: Julian D. W. Phillips, Gold Forecaster - 15 March, 2006
In 1971 Nixon closed the gold window on the $ and turned the European nations away from redeeming Eurodollars into gold at the price of $42.35, thus devaluing the U.S. $ by the extent the gold price rose. This was keenly felt in all the markets across the globe because it was a particularly visible blow for the $ and for the sterling as the "$ Premium" was imposed in the U.K. to prevent a wave of capital exiting the country. Full Story
By: Axel Merk, Merk Hard Currency Fund - 15 March, 2006
Protectionism is on the rise in the U.S. – can we afford it? If we tell our trading partners that their money is not welcome, they should be excused if they invest elsewhere. Because of its massive current account deficit, the United States must attract over US$2 billion in foreign investments every day to keep the dollar from falling. To illustrate why we should be concerned about a potential decline in the dollar, look at inflation: just about everything around us has been getting more expensive, except for the goods we can import. As the dollar falls, inflation – and with it interest rates - may pick up significantly. Full Story
By: Bill Bonner, Eric Fry & John Mauldin, The Daily Reckoning - 15 March, 2006
-A General Theory of Grinding...without theories, data is meaningless... -The authorities are getting nervous...nature loathes a monopoly... -Slow, slight and fragile progress in human affairs...buy the tropics...and more! Full Story
By: Richard Daughty, The MOGAMBO GURU - 15 March, 2006
Total Fed Credit went down by $5.4 billion last week, which was surprisingly out of character for the new Bernanke Federal Reserve Monetary Regime Of Inflationary Horror that is on record as officially actually wanting inflation, although they call it "targeting" inflation, which is sort of apt, as what they are targeting is my wallet in their crosshairs. Full Story
By: David N. Vaughn, Gold Letter, Inc. - 15 March, 2006
Gold continues to show clear evidence of a major bull market. And extreme volatility both up & down are the hall marks of a strong & robust bull market. But no matter how far the price pendulum swings south gold just rebounds that much quicker higher. Full Story
By: Roland Watson, New Era Investor - 15 March, 2006
Whilst watching the current correction in gold and silver prices, I decided to hold back on further precious metals investments. This is quite a normal action to take but in my quest to decide which strategy to enact on prices bottoming out, I found myself propelled into a dark and unfamiliar domain. It was a domain where the rules of engagement seemed to be different and was populated by a different set of investment creatures altogether. Full Story
By: Larry LaBorde, Silver Trading Company - 15 March, 2006
Before you tell yourself that this will never happen in the US, remember that FDR stole 40% of the middle class savings when he devalued the dollar 3 generations ago. (My wife’s grandmother NEVER forgot or forgave FDR’s theft until the day she died at 99 years of age.) Nixon did further damage when he pulled the dollar peg on gold entirely. Just look at how much the dollar devaluation accelerated afterwards. Full Story
Anybody who has been lending money to the US federal government by buying T-Bills and its other debt instruments received a brutal one-two punch last week. It was hopefully a sobering experience, causing them to question why they would want to hold any US government paper. Full Story
The dictionary defines shortage by using the word deficit. Therefore, by definition, the structural deficit in silver has been a structural shortage. What I think you’re asking is why the silver shortage is not apparent to everyone. A shortage is measured in degrees, it’s not an all or nothing proposition. With industrial commodities shortages show up first in the form of delays, which have been present in silver. If you’ve read the Silver Users Association’s critique of the ETF, you know they are nervous because it would cause a pronounced shortage in silver. What greater confirmation does anyone need? Full Story
By: Dr. Ron Paul, U.S. Congressman - 15 March, 2006
For government, the federal budget is essentially a credit card with no spending limit, billed to somebody else. We hardly should be surprised that Congress racks up huge amounts of debt! By contrast, responsible people restrain their borrowing because they will have to pay the money back. It's time for American taxpayers to understand that every dollar will have to be repaid. We should have the courage to face our grandchildren knowing that we have done all we can to end the government spending spree. Full Story
The FED stands ready to inflate its way out of the next recession. It seems already to have begun. This is the case for the precious metals. But it is a long-run case, not a full-time case.
By: Bill Bonner, Eric Fry & Harry S. Dent, The Daily Reckoning - 14 March, 2006
-Believing with your heart what your head tells you isn't true...the higher the deficit, the lower the price of the national currency... -The precious metal with ants in its pants...history is bound to reassert itself sooner or later... -'I am the CEO of my life'...'investing is cool'...and other sayings you will only hear in America... Full Story
By: Dudley Baker and Lorimer Wilson - 14 March, 2006
In an earlier article entitled ‘Our Worst Nightmare: The Puncture of the Current U.S. Housing Bubble’ we noted that “The key to holding up the entire speculative US financial system with its current excessive levels of debt – federal (current account and trade), state, municipal, corporate and household – is maintaining the U.S. housing bubble. Anything less would result in America’s worst nightmare and, in short order, the entire world. One too many additional increases in the Fed rate may well turn out to be the U.S. economy’s Achilles’ heel. With at least two more increases expected in the first half of 2006 this could well be the year.” Full Story
Following the collapse of Enron, Worldcom and others, regulators were temporarily given the power to dramatically improve US accounting standards. To be sure, and as the passing of the Sarbanes-Oxley Act of 2002 will attest, restoring investor confidence became a top priority of politicians and Wall Street. Regulators could, and did, pass tough regulations with little resistance. Full Story
By: Bill Bonner, Chuck Butler & The Mogambo Guru, The Daily Reckoning - 13 March, 2006
-Why can't we just stop spending so much?!...confused and preposterous answers... -The deficit is really pretty simple. It takes years of expensive formal education to not understand it... -Opposite and unequal delusions...the nice thing about capitalism and democracy - they make history unnecessary...and more! Full Story
GoldSeek.com Internet Radio presents John Rubino is co-author, with GoldMoney's James Turk, of The Coming Collapse of the Dollar and How to Profit From It and David Coffin the "geology side" of HRA. Full Story
I was pretty surprised this morning when the preacherman on my radio started talking about inflation. “Inflation,” he said in his impressive Australian accent, “is an increase in supply. And America has lately seen an inflation in the supply of many things, including knowledge, entertainment, and money.” “So far, so good,” I thought. But I was soon thankful that the country roads on which I drive are sparsely traveled in the early mornings, for his next sentence nearly sent my car careening into the ditch. Full Story
Navel-gazing pre-occupied Wall Street on Friday as investors lifted the Dow Industrials 75 points on word of stronger than “expected” payroll growth in February. Seemingly overlooked by the revelers was that unemployment also rose slightly, to 4.8 percent. This might seem like a curious discrepancy, but who’s quibbling? Full Story
This is the 1st in many of such reports that will be broadcasted under the headlines key developments. The world is changing very rapidly and the Geo political landscape is not going to be the same in the next 9-18 years. The current trend of uncertainty creates a feeling of fear in the masses and as these levels of fear ascend individuals increasingly turn towards tangible assets. It is for this reason the price of almost all commodities across the board have been rising. Full Story
By: John Mauldin, Millenium Wave Advisors - 12 March, 2006
This week we look into my worry closet and ponder whether the Dubai port debacle is a one-off thing or does it signal a rise in protectionism. The recent polls suggest I will upset about 90% of you, but I look at the deal from the very negative economic impact it could have on this country. We then briefly look at the potential for more Fed rate increases and at a disturbing Federal Reserve Bank report on US wealth. Full Story
Today is the third in a row that metal prices have been hit hard. Friday through Tuesday saw the move downward that we normally see made on Fridays, which is done by the government's illegal gold manipulators (the "PPT" correlate for metals) so that the average investors have the weekend to sweat the price of gold. Full Story
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