By: Peter Schiff, CEO of Euro Pacific Capital - 17 August, 2012
For much of the past few generations, the debate over balancing the federal budget has been a central feature of every presidential campaign. But over time, the goalposts have moved. As the amount of red ink has grown steadily larger, the suggested time frames to restore balance have gotten increasingly longer, while the suggested cuts in government spending have gotten increasingly shallower. Full Story
BASEL III is an accord that tells a bank how much capital it must hold to safeguard its solvency and overall economic stability. It's a global standard on bank capital adequacy, stress testing, and market liquidity risk. Here's the important bit: At the top of the proposed changes is the new list of "zero-percent risk weighted items," which now includes "gold bullion," right after "cash." Full Story
By: Adam Hamilton, Zeal Intelligence - 17 August, 2012
With the odds for a new stock bear growing, prudent contrarian investors are looking for bear-resistant destinations for their hard-earned capital. Plain old cash tops the list, as it will not only preserve wealth but increase its relative stock buying power as the markets grind lower. But why merely sideline capital if it can still be grown even during a stock bear? Gold has proven its ability to thrive in such markets. Full Story
Is it risk on, or risk off? Are we looking at a fear trade situation where gold is the only true safe haven asset? Or will the world’s central banks open the monetary floodgates as many suspect is going to happen? The actions of the world’s central banks should be on everyone’s radar screen. Are they on yours? Full Story
Bank of Canada may be ahead of all its peers in ensuring its banks meet the Basel capital requirements. And it may have done a better job in regulating the banking sector, but they are not innocent of allowing bubbles in Canada to form. Even Mark Carney feels that the housing market is overheated. Carney made recent comments about the health of Canadian banks. Full Story
Consider the Grain Giant Cargill’s CEO’s extraordinary statement recently that the U.S. Government Mandate that Corn be used to make Ethanol for fuel, could lead to a 40% to 50% rise in food prices! Though the story was reported in the MainStream Media (MSM) it has not been followed up on, yet should have been because a potential 40% to 50% rise in food prices is highly significant. Typical. Full Story
It was the launch of exchange traded funds that gave the gold price a huge hike in the last decade. Now China is poised to launch its first gold ETFs bringing this easy way to own gold to its population of 1.3 billion. Full Story
Well, it's that time again. Every two years our senses are assaulted as politicians spew an endless stream of nonsense in the attempt to garner votes from a mostly unsophisticated American population. This year the major topic, not surprisingly, is jobs. Each and every politician would like you to believe that he or she has the cure for the persistent unemployment problem. Full Story
As the world collectively muddles through 2012, it is has become increasingly apparent that we still don’t get it. Even after the collapse of 2008 and the completely fabricated and bogus ‘recovery’ that the lapdog presscorps still insists is ongoing, plus the various financial and economic ‘accidents’ that have happened along the way since, such as MFGlobal and PFGBest, plus the annexing of entire countries by the banking syndicate (Greece and Italy for starters), we still don’t get it. Full Story
The summer dog days are upon us leaving investors cooling off in the shade waiting for a refreshing breeze of market-moving news. They are anticipating something important that will energize the gold price for an upward move, perhaps another round of quantitative easing by the U.S. Federal Reserve that could possibly be announced at the Fed’s Jackson Hole, Wyoming annual gathering in late-August, or at the next meeting of the Fed’s Federal Open Market Committee in September. Several U.S. economic reports released Wednesday failed to significantly impact the precious metals. Full Story
In a gold-based monetary system, every asset is ultimately backed by gold. This does not mean that every debtor (including banks) keeps the full amount of its liability in gold coin just lying around. Why would one bother to borrow if one did not need the money? Full Story
I got a call from a young friend the other day complaining of writer’s block. It wasn’t that he couldn’t think of anything to write, exactly; he couldn’t think of anything to satirize. “You’re crazy,” I said. “What’s not to satirize?” Brief silence. “I can see you don’t know a thing about satire.“ He sighed. “Satire requires an audience who would appreciate it. Look, you don’t tell jokes to yourself, right? You tell them to others. If no one gets them, they’re not jokes.” Full Story
With U.S. stocks blithely on the rise against a darkening global economic picture, we keep telling ourselves it’s only a movie, it’s only a movie, it’s only a movie. Except that it isn’t a movie. It’s an epochal tide of delusion; it is quite real; and if it hasn’t yet reached flood levels, it will soon, inundating stock markets around the world. Full Story
By: Julian D. W. Phillips, Gold/Silver Forecaster - Global Watch - 16 August, 2012
Mining companies have all the risks of a commercial enterprise except the difficulty in selling its products. What it has little to no influence on is the price it sells its product at. It is at the mercy of all the market factors that contribute to price-making. The only impact the company has is its contribution to supply. Full Story
Wall Street wants Bernanke to pump out more funny money to keep the stock market going for the rest of the year… here's why he might disappoint. Full Story
By: John Browne, Senior Economic Consultant at Euro Pacific Capital - 16 August, 2012
The current environment for investors is perhaps one of the most confusing that many have ever encountered. Unpredictable markets now appear to take no clue whatsoever from underlying economic data, and maxims long cherished by traditional money managers are being abandoned in favor of seemingly illogical choices. Full Story
A discussion with James Turk this week renewed my interest in his Fear Index. So I decided to calculate the current figure. Given the 2.8% GFI figure listed in the equation below, clearly the gold market mania phase is only beginning, when compared to the 1980's peak. Full Story
Although there are many useful factors for deriving home prices, such as regional market conditions, pool of available buyers, access to easy loans (FHA), low interest rates, unemployment level, and new home construction, the quantitative analysis takes over where qualitative analysis finishes. Full Story
By: Jeff Berwick, The Dollar Vigilante - 16 August, 2012
Of course, the very fact that all the gold is gone from backing all the currencies - and even from the Olympic medals - and that people think gold colored plastic credit cards are actually something with which to impress others... are signs that we are nearing The End Of The Monetary System As We Know It (TEOTMSAWKI). Full Story
The markets are holding on for more quantitative easing (QE). This is what we keep hearing. Every day we hear reports of the gold price still maintaining its narrow ‘trading range’ of the last month. In fact, since May it hasn’t broken out of the $100 trading range. Full Story
What do the following have in common? LIBOR, Bernie Madoff, MF Global, Peregrine Financial, zero-percent interest rates, the Social Security and Medicare entitlement funds, many state and municipal pension funds, mark-to-model asset values, quote stuffing and high frequency trading (HFT), and debt-based money? The answer is that every single thing in that list is an example of market rigging, fraud, or both. Full Story
To successfully keep your head above water during this economic crisis, it is not an option, but a necessity to convert your fiat digital currency into something tangible and real like physical gold and physical silver. To be successful in this game, one must understand the paradigm in which these two precious metals operate. Full Story
Good news: Vice Presidential candidate Paul Ryan may put the focus of the presidential campaign on the sustainability of the U.S. budget. Bad news: Ryan’s plan delivers some tough medicine; if the European experience is any guide, “austerity” makes bad politics. What are the implications for the U.S. dollar? Full Story
By: The Gold Report and Ron Struthers - 16 August, 2012
Ron Struthers has crunched the numbers and his indicators are telling him the gold markets are poised for a big jump up. The editor of Struthers' Resource Stock Report called a double-bottom in July and is ready to deploy his liquid reserves so he will be ready for the next bounce. In this exclusive interview with The Gold Report, he makes recommendations for optimal portfolio diversification. Full Story
By: Julian D. W. Phillips, Gold/Silver Forecaster - Global Watch - 15 August, 2012
This is perhaps one of the most asked questions among gold investors today. But the answer is not a simple one. It goes to the basics of which people invest in gold in the first place and what form of gold they buy. In this, the first of a two part article, we delve deeper into this subject. Full Story
Now let’s consider the ECB’s second “Hail Mary” option: the issuance of Euro-bonds and across the board backstopping of EU banking deposits. For starters, Angela Merkel has said that there will not be Euro-bonds for “as long as [she] live[s].” This is not a bluff. The issuance of Euro-bonds goes against the German constitution. If Merkel were to even consider this option she would likely be kicked out of office (remember she’s up for re-election next year). Full Story
Hyperinflation is always a possibility for any national government or central bank. If a national government is running massive deficits, it can call upon the central bank to buy treasury bills or treasury bonds with newly created money. This digital money is transferred to the treasury, which then spends the money into circulation. Full Story
Veteran investor and an early spotter of the commodities bull market, Jim Rogers says if he could only invest in one precious metal this summer it would be silver. Why is that? Silver prices are more volatile than gold. And over the past five years gold has actually been a slightly better performer. The central banks hold gold, not generally silver. Full Story
By: Richard Daughty, The Mogambo Guru - 15 August, 2012
I know now, with the huge benefit of hindsight and a lot time spent with drunken friends explaining it all to me, how all my problems are somebody else's fault. I know that they are just being kind, of course, as there were a lot of the places where I personally went wrong along the worrisome, winding way of my worthless, wasted life, none of which, unfortunately, explains my bizarre use of such gratuitous alliteration that even I am embarrassed about it. Sorry. Full Story
With the E-Mini S&Ps and Apple shares stealing up on potentially important Hidden Pivot targets yesterday, we shorted both on the off chance that we might be catching the Mother of All Bear Rally Tops. Of course, we’re not so crazy that we actually believe we’re going to nail the exact top of a bear rally that is now well into its fourth year. Still, it’s great fun to try, especially if you’re a permabear who believes, as we do, that one of these days stocks are going to take a plunge so nasty that it will make the 1987 Crash look like a picnic. Full Story
By: Julian D. W. Phillips, Gold/Silver Forecaster - Global Watch - 15 August, 2012
New York gold closed at $1,599.60 down $8.70. London took gold down to $1,594 ahead of the Fix after which it Fixed at $1,594.74 as the euro stood at €1: $1.2328. In the euro it was Fixed at €1,293.600 down €12 on yesterday morning. Ahead of New York’s opening gold looked slightly stronger at $1,595.60 in the middle and in the euro at €1,299.40. Full Story
Gold blew out a year ago under the weight of its own momentum and suspect sponsorship as new buyers came into the monetary metal in a panicked, knee jerk fashion. Gold should be bought on the QT, on the sly, while it is being sold off or ignored. Rarely does panic buying work out well. Here is the current state of the gold correction as it ambles along on a road to nowhere. Full Story
Owners of the yellow metal are not selling, and others are not buying right now. That has not been the case throughout the year, so far. The buyers swarmed in back in February to bid the price up to nearly $1800/oz. And there have been some intermediate dips and rallies over the past several months. But here has not been enough selling pressure anytime this year to push the price of gold down below 1571 (the opening price on January 3rd) for very long. Full Story
People put too much store in central bankers and hang on their every word as if they are prophets with a direct line to the divine. It seems that no one does this more than gold investors. In the past gold has shown itself to be super sensitive to monetary policy announcements and investors hope that any indication of further easing would give gold a joy ride. Full Story
Gold is coming off a six-day win streak, and coiling within a very symmetrical triangle pattern. A downside break is possible, but unlikely. The upside target is approximately $1710. The quantitative easing issue has been relegated to the back burner by most analysts, but there has been a subtle change in the statements of Chairman Bernanke, and the statements of a number of key Fed governors. Full Story
In this article we will take a holistic approach to how individual short term, medium and long term pressures all come together to leave the government with effectively no choice but to create a substantial rate of inflation that will steadily destroy the value of the dollar. Full Story
The year 2012 has been relatively peaceful compared with the past 10 years. The lack of military aggression on the part of the U.S. has led many to believe that the America’s days of military adventures are over. But as we’ll see here, 2012 is simply a temporary respite in a longer-term “theater” of war that has only just passed the opening act. Full Story
As we alluded to last week, there is an overflowing amount of evidence that both the metals and the shares have bottomed. Price action, sentiment indicators and fundamentals more than confirm a market bottom. Does this mean the market is ready to zoom much higher? Not necessarily. The sector must contend with some overhead supply as well as repair technical damage that caused a loss of both short and long-term momentum. Full Story
One of the most fascinating aspects when watching a sporting event like the Olympics is the historical statistics highlighting the tremendous advances in athleticism over the years. In the spirit of the events this summer, BTN Research compared gold’s advancement from the beginning of the games in Beijing to the London Olympics. Full Story
By: David Galland, Casey Research - 13 August, 2012
For some time now – years actually – I have pondered the nature of liberty. Or more specifically, what liberty actually means to me. And to be extra clear, I am not talking about the meaning in abstract or philosophical terms, but tangibly – in much the same way I might answer if asked what my wife means to me. Full Story
By: Chris Powell, Secretary/Treasurer, GATA - 13 August, 2012
For years GATA has been glad to respond to the occasional question about the gold market from financial journalists in the mainstream news media but has always urged them to question the primary actors in the market, central banks, in light of the documentation we have amassed showing or suggesting their often-surreptitious intervention in the market: Full Story
Frankly, I don’t get it. The Euro, the currency without a country, has been nothing more and nothing less than an abject fiat fiasco since April 30, 2010 when the first Greek panic attack hit the stock markets. It was soon followed by the infamous fat finger flash crash that sent world equities on a three-hour wild ride that would make Mr. Toad proud. Full Story
By: The Gold Report and John Doody - 13 August, 2012
John Doody doesn't run off chasing down Indiana Jones' lost gold mines in Peru. He focuses on producers or near-producers whose reserves have been verified as economic to produce. A former professor and the author of the Gold Stock Analyst, Doody has been lying in wait for the market to reach bottom, at which point he's ready to deploy the one-third of his portfolio he's been holding in cash into his top 10 stocks. In this exclusive interview with The Gold Report, Doody shares the metrics he uses to nail down those companies. Full Story
By: Dr. Ron Paul, U.S. Congressman - 13 August, 2012
I recently held a hearing in my congressional subcommittee on the subject of competing currencies. This is an issue of enormous importance, but unfortunately few Americans understand how the Federal Reserve and Treasury Department impose a strict monopoly on money in America. Full Story
We are coming up to the fifth anniversary of the financial crisis, at least for the UK’s banking system, because it was five years ago that anxious depositors were queuing up to withdraw their money from Northern Rock, leading to its inevitable rescue by the tax-payer. Anniversaries are often a time for reflection. The Northern Rock failure marked the popping of the UK’s residential property bubble. Full Story
In last week's article "Three Weeks Left" I outlined a brief synopsis of what I was expecting based on how the daily cycles were unfolding. So far markets are playing out pretty much as anticipated. This week I'm going to go a bit more in depth and tie cycle’s analysis with the upcoming fundamental calendar, namely the next two FOMC and Jackson Hole meetings. Full Story
By: Rick Ackerman and Erich Simon - 13 August, 2012
In the guest commentary below, Erich Simon sees Quantitative Easing as the death rattle of the U.S. economy. Americans will be taxed just to stay afloat as the financial system edges toward a seemingly inevitable day of reckoning. And although the gold coins you’ve socked away will probably be easy to barter in very hard times, they will not save the day for a global economy that can be brought back into balance only by a violent wrenching of the gears. Full Story
High frequency programs which now account for a significant share of trading activity have rightly fallen into disrepute in recent times. They might be useful in some cases such as avoiding market impact while placing large orders. However, unequal access to the market is questionable as are highly technical efforts which are ultimately done only to pull money out of the pockets of slower market participants. Full Story
The weekly close above $1,620 was an important bullish development near term in my opinion. What is so significant about this weekly close? If you look at the price action the prior eight days on the 30 minute chart (left hand side below) you can clearly see that an overwhelming majority of trades were placed beneath the $1,620 price level. What makes this significant is because futures have a "long" and a "short" for every contract of "Open Interest". Full Story
By: Eric Sprott & Etienne Bordeleau - 12 August, 2012
When we wrote Part I of this paper in June 2009, the total U.S. public debt was just north of $10 trillion. Since then, that figure has increased by more than 50% to almost $16 trillion, thanks largely to unprecedented levels of government intervention. Full Story
By: John Mauldin, Millennium Wave Advisors - 12 August, 2012
I have contended for some time that Europe is faced with two choices: Disaster A, which is the break-up of the eurozone, or Disaster B, which is the creation of a fiscal union, which keeps the euro more or less intact. Over the last few months I have come to realize that there is indeed a third option, which now looks increasingly possible. This is rather sad, as the third option is just an even worse Disaster C. Full Story
The economics guild today is burdened by a century of erroneous monetary theory. Central planning is the universal doctrine still: central planning of money. The quest for power through politics has been the dream of all would-be philosopher kings from the days of Plato. It is the dream that politicians will listen to experts at all times, especially times of crisis. This dream is inherently crackpot. Why would anyone with any understanding of politics take it seriously? But economists do take it seriously – all except the Austrians. Full Story
Our groundwater is being used up at record rates and claims to ownership are becoming increasingly contentious. It won't be long before the first water war begins. There's a lot of water on the planet we inhabit – an estimated 326 million trillion gallons or 1,260,000,000,000,000,000,000 liters. Full Story
By: The Gold Report and Louis James - 12 August, 2012
It's so outrageously simple that few investors can actually do it: buy low and sell high. The manic highs and lows of the market are actually good news for those investors who have mastered the discipline of buying low and waiting, according to Louis James, the senior editor of the International Speculator and Casey Investment Alert. In this exclusive interview with The Gold Report, James talks about how not to be fooled into timing the market and how he finds value in precious metals by scouring some knock-out jurisdictions like Mexico and China. Full Story
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