The Dow/Gold Ratio – a measure of the US stock market's valuation in ounces of gold – has sunk as equities have plunged but gold prices have jumped so far this summer. Dropping through 6.0 ahead of Friday's New York opening, the Dow/Gold Ratio hasn't been this low since early 1989, back when world equity markets were recovering from the Great Crash of Black Monday 1987. Full Story
By: Louis James, Casey International Speculator - 19 August, 2011
Whenever gold and silver hit a correction, those are the times that try men’s souls. But they are also a classic case of making volatility our friend. And there should be terrific bargains ahead on great stocks, if the market corrects from recent highs. It enables you to go long at prices as low as, or sometimes even lower than, those paid by speculators who picked winning plays early – but with the advantage of hindsight about the results of those companies’ exploration and development efforts. You get a combination of lower risk and lower prices. Full Story
As social and political upheaval and civil unrest have spread across the globe, it has become clear that the problems facing Western countries are neither transient nor temporary. Europe, the United Kingdom and the United States share a common set of problems over and above economic decline and sovereign debt issues linked to problems of the global financial system. Full Story
We are marking a dubious 40-year anniversary this week. It was on August 15, 1971 that President Richard Nixon unilaterally “closed the gold window,” severing the dollar’s ties to gold forever, possibly one of the most significant policy decisions in modern economic history. It was a part of dramatic measures meant to deal with the nation's huge balance of payments deficit, its weak growth, and inflation. Full Story
By: Adam Hamilton, Zeal Intelligence - 19 August, 2011
Gold has enjoyed an amazing rally in recent weeks, catapulted higher by the extreme fear sparked by the sharp stock-market correction. Naturally such big and fast gains have led to a surge in gold’s popularity among investors and speculators, as everyone loves a winner. But gold prices flow and ebb like everything else, and this metal has become very overbought today. Full Story
So, Doug London has suffered more damage from recent rioting than from anything else since the Blitzkrieg; the stock market had its most volatile week in years; gold shot well north of $1,800; and the U.S. government almost crashed into its debt ceiling. Smells like blood in the streets. What does a street fighting man like you make of all this? Full Story
Laser-like, Legendary Investor and Newsletter Writer, Uncle Harry Schultz homes in on the Perfidy inherent in the private for-profit Fed’s policies. Make no mistake The Fed’s policy of continuing to pay the Banks 25 BPS “interest” merely for keeping their Reserve Capital on deposit at the Fed is an anti-jobs, anti-Economic Recovery Policy. Full Story
In our most recent commentary we wrote about the relative strength in the gold equities. Gold equities have not only bucked the downtrend in the equity markets but in relative terms are breaking to new highs against equity indices. In the chart below we plot precious metals prices, GDX versus the Morgan Stanley World Index and GDX versus the S&P 500. Full Story
The news media will eventually figure out the truth — that stocks got pulped yesterday simply because they are in a bear market. The Mother of All Bears, quite possibly. The Dow finished the day down 419 points after trading more than a hundred points lower than that intraday. The selloff was attributed to the usual suspects: “fears” over Europe’s shaky financial condition, and America’s apparent relapse into recession. Full Story
By: Julian D. W. Phillips, Gold/Silver Forecaster - Global Watch - 18 August, 2011
There is a gold season but it has been changing its character for a while now, being swamped by the structural changes the gold world has experienced particularly over the last few years. To see the impact of the gold season may not be as easy as it was before. What is this gold season and what are the changes that are affecting its impact on the gold price now? Full Story
The recent financial slump has caused economists to take stock of the possibility of a “double dip” recession. Most of them, however, won’t admit that the economic contraction which began in late 2007 is still underway and, worse still, has a few more years to run according to the Kress cycles. In this commentary we’ll address this issue and have a look at where the cycles are leading the financial market and the economy. Full Story
By: Terry Coxon, Senior Economist, Casey Research - 18 August, 2011
The rebound from the recent recession is the slowest economic comeback in living memory – so slow that some doubt whether it is happening at all. The recession bottomed (the economy stopped shrinking) in June 2009, so the recovery is now two years old. Here’s how things looked 24 months into recovery from the last four recessions.
It is obvious that during the summer of 2011, as the European debt situation unravels, the solvency of the United States is questioned and inflated economies the world over show signs of deceleration, the public has taken an incremental step toward acknowledging gold as a viable asset in a sensible portfolio. Full Story
Monday, August 15, 2011 marked the 40th anniversary of President Richard Nixon dropping his bombshell on the world’s financial markets by announcing that he was ending the convertibility of the US dollar into gold. At the time gold was fixed to the dollar at a price of $35 per troy ounce. That now seems almost laughable as gold prices are currently above $1,800. Full Story
August 15, 1971 was just like any other day for most people, and President Nixon’s unprecedented decision to cut the US dollar’s gold international convertibility was largely ignored by the public. The majority of citizens didn’t understand the implications for their financial future. Contrast that to today, where a historic downgrade of US debt and a very public $2-trillion increase of the debt ceiling dominated headlines and the television news. Full Story
By: Jeff Berwick, The Dollar Vigilante - 18 August, 2011
It's probably the #1 question on gold stock investors' minds. Are we on the verge of a repeat of the 2008 wipe-out. Just by the very fact that we have had so many subscribers ask us this question, we can almost on this evidence alone say no. Massive crashes never happen when everyone is looking for them and afraid of it. However, there is much more evidence than this. Full Story
Dollarization is term coined to describe the dollar’s influence as the reserve currency of choice around the globe. In 2010, the US dollar comprised 62% of the world’s foreign exchange reserves, dubbing it a very powerful player in the world of finance. But what about the second place reserve currency? Full Story
Gold and Silver have emerged in the last 12 months as the dominant asset group. They led the entire 2000 decade, still gathering disrespect. They do not require respect from the Wall Street and London crowd. They serve as effective protection during the slow motion crumbling process to the global monetary system. The sovereign bond crisis has circled the peripheral nations, rendered its wreckage, and is working toward the center where the USTBond and UKGilt reside (worried). Italy and Spain are squarely in the crosshairs for financial assaults, but France and the United States lie closer to the core of Western nation sacred debt territory, soon to become sacred burial grounds. That must sound drastic and melodramatic, but just wait. Full Story
By: The Gold Report and Frank Holmes - 17 August, 2011
Whether out of fear or love, everyone is running to gold, says Frank Holmes, head of investment firm U.S. Global Investors. The lengthy Congressional battle to raise the debt ceiling left many investors clinging to gold for safety. But a growing world population continues to stock up on the honeyed metal for weddings and holidays. In this exclusive interview with The Gold Report, Holmes explains where our love-hate relationship with gold is headed and how to profit. Full Story
Author, speaker, and founder of GoldSilver.com, Mike Maloney, discusses the truth about our economic systems and why precious metals have achieved record high prices while the global economy is collapsing. As Mike points out – the events we are living through today are just a repetition of the surest economic cycle in history – the flight from unbacked, fiat paper currency to real money—gold and silver. Full Story
By: Bob Chapman, The International Forecaster - 17 August, 2011
Since April the market as measured by the Standard & Poor’s stock index is off about 18% and momentum has fallen 40%. The recent catalyst for lower prices has been the drop in the debt rating by S&P of US Treasuries. In addition the economy is showing a pronounced slow down, as are many other countries. There is liquidity at major banks and corporations, but it has yet to be employed into the economy. Full Story
By: Rick Ackerman and Doug Behnfield - 17 August, 2011
With unemployment above 9% and productive capacity heavily underutilized, the U.S. economy is slipping back into official recession. In a letter to clients, our friend and financial advisor Doug Behnfield has predicted that deflation is about to return with a vengeance -- presumably with bullish implications for high-quality bonds and, get this… municipal bonds. For Doug’s take on the stock market, fixed-income securities and a Baby Boomer cohort that is ill-prepared financially for retirement, read on. Full Story
By: Andrey Dashkov, Casey Research - 16 August, 2011
In the first quarter of 2011 (Q111), net gold hedging was reported by GFMS and Société Générale. A gold mining company may hedge its production on expectations of falling gold prices in order to lock in high prices and possibly avoid losses. As gold hits one nominal high after another, is such behavior a sign that the bull market in gold is over? Full Story
I’m glad to see some more gold analysts speaking about gold revaluation. Unfortunately, most of them speak of revaluation as a solution to the crisis. That idea qualifies as… error of the century. There is no solution to the crisis, because of the size of the OTC derivative debt bomb. There is only a coming end to the crisis, and that end involves the impoverishment of creditors and the public, via gold revaluation and/or all-out money printing. Full Story
By: Michael Pento, Senior Economist at Euro Pacific Capital - 16 August, 2011
Paul Krugman sounded the war cry this Sunday on Fareed Zakaria's program Global Public Square. After all, he asserted, only spending equivalent to another World War could lead us back to prosperity. That, and a healthy dose of inflation. Full Story
The solution for the PIIGS' economies is the same as the solution for all economies: to get out of the government debt trap, not to take more debt. But Keynesianism is based on government-subsidized debt. So, there is therefore no solution for Keynesians, other than more of the same. Full Story
Events have been moving so quickly recently that one can barely catch one’s breath. Did we mention that nothing is supposed to happen in August? This is the month that the “sell in May and go away” crowd heads out to the beach or the mountains. Just for your information, history shows that August is not all suntan lotion and poolside cocktails. Full Story
By: Jeff Berwick, The Dollar Vigilante - 16 August, 2011
The collapse of the US Government and US dollar is really turning into some of the best entertainment you can find. We've been enjoying it for the profit alone with our large position in gold and hard asset related investments. Just the humor, however, is worth the price of admission. We've stopped watching comedy movies. Will Ferrell can't beat this. Full Story
A five-ounce bullion coin featuring the President of the UAE, His Highness Sheikh Khalifa bin Zayed Al Nahyan has been unveiled by the Dubai Multi Commodities Centre as the importance of gold to the future of the emirates as a trading hub is recognized and much higher prices seem imminent. Full Story
Gold has shown impressive strength over the past couple of weeks having risen as high as the $1800 area. On our 6-year chart we can see how it has punched through the resistance at the upper boundary of an important inner trend channel, and despite now being hugely overbought, appears to have its sights set on the outer trend channel boundary now in the $1900 area before this strong upleg is done. Full Story
By: The Gold Report and Joe Mazumdar - 16 August, 2011
Suffocated by staggering unemployment and economic woes, many mining jurisdictions around the world are finding the nearly $1,800/ounce gold too good to pass up. Joe Mazumdar, a senior mining analyst with Haywood Securities in Vancouver, talks to The Gold Report about it in this exclusive interview. Full Story
We wish Google all possible success in taking on playground bullies Apple and Microsoft in a battle that has crucial implications for the use of patents to stifle competition. Google’s $12.5 billion purchase of cell phone maker Motorola Mobility, its largest acquisition to date, is a shot across the bow of more established competitors who would seek to throttle the search engine giant’s cell phone development and other promising technologies by suing them to death in patent court. Full Story
Our 2011 KIVA Team GOLDSEEK.COM Goal will be $10,000 (by 31-DEC, 2011).
This year's KIVA drive will provide resources for hundreds of men and women around the world to create new opportunities in their lives and for the lives of those around them.
GoldSeek.com and SilverSeek.com would like to thank the Top 3 Lenders in the $10,000 KIVA Challenge with a new 1-Ounce US Silver Eagle.
We thank all of those in the GoldSeek.com and SilverSeek.com community for joining us in our first ever KIVA team challenges! Full Story
By: Dr. Ron Paul, U.S. Congressman - 15 August, 2011
Politicians did not get much time to pat themselves on the back for supposedly rescuing the economy with the debt limit deal last week. The ink was barely dry when Standard & Poor's downgraded the US debt ratings anyway, roiling world financial markets. Anyone who has taken an honest look at the government's fiscal situation, taken into account how Washington works and the direction it is going would have a very difficult time arguing with S&P's decision, although a strong case can be made that this was too incremental a downgrade and that it took far too long for S&P to admit the obvious. Full Story
High volatility in the markets seems to have become the norm lately. Equity markets around the world have whipsawed investors, as the indices swing wildly up and down in roller-coaster fashion. And the unruly changes from one day to the other are not small. When the Dow shed 520 points in a day last week, it represented a loss of $1.6 Trillion in capital for equity holders. Full Story
The fall into that “Elusive Abyss” has been averted once again thanks to action by the ECB and the Fed. The Fed has just offered a new QE (QE = quantitative easing) program, technically speaking that is. The Fed has announced that it will keep rates at incredibly accommodative levels for at least two more years allowing the banks to play the yield curve. Banks borrow from the Fed and then, instead of lending it into the corporate sector and CME’s, they buy Treasuries to lock in guaranteed profits. Full Story
Savvy and experienced market technicans and traders will laud the concept and importance of relative strength. Relative strength analysis can be used on any time frame. On large time frames it can tell us which sectors could be future leaders. On shorter time frames it can also provide insight to the future. In this analysis we examine the relative strength of the gold stocks today and compare it to the past as some important insights can be gleaned. Full Story
On Sunday, August 15, 1971, Richard Nixon unilaterally brought to an end the last trace of an experiment in international monetary affairs that stretched back over a century. He announced that the United States government would no longer abide by the 1944 Bretton Woods agreement to deliver gold at $35 per ounce to any government or central bank. Full Story
By: Jeff Berwick, The Dollar Vigilante - 15 August, 2011
Today, August 15, marks the 40th birthday of the Federal Reserve Note as a completely fiat currency. On that date, on August 15, 1971, Richard Nixon commandeered the airwaves to announce the closing of the gold window. According to him, this was necessary to protect the US dollar from attacks from the "international money speculators'. Full Story
Headline news & the Market Weatherman Report. Spotlight Stock Picks. Host Chris Waltzek & Bob Chapman, The International Forecaster discussion and answer listener's questions. GUEST BIOS: Bill Murphy, GATA.org Arch Crawford, Stockmarket Cycles Full Story
By: Julian D. W. Phillips, Gold/Silver Forecaster - Global Watch - 14 August, 2011
In the last weeks we have seen the gold price jump from the price we alerted our subscribers of $1,555, to reach just over $1,800. Contrary to the view of many analysts, we do not see this as a frothy overrun from which it will pull back. On the contrary, this rise in the gold price has said so much more than simply, trading peak. Full Story
John Embry (www.sprott.com) and James Turk, Director of the GoldMoney Foundation, talk about the price of gold and the US debt downgrade. They discuss Sinclair’s $1,764 level and how the majority of observers still disparage gold, even if perception is slowly changing. They explain how the physical gold market is taking charge of gold price discovery and how strong physical demand will drive the price much higher. Full Story
Why not re-monetize the silver dollar? Re-monetization could put the silver dollar and its subsidiary silver coinage into circulation in parallel with FRNs – “Federal Reserve Notes”. There are several reasons that make this action possible, and only one that might be considered as an unimportant material obstacle. Full Story
By: Bob Chapman, The International Forecaster - 14 August, 2011
Markets have certainly fallen quickly. It was only on 12,721 on July 21 and now we are looking at a low close of 11.269 after a 500-point PPT arrangement. There is no question investors didn’t like the bill encompassing debt extension, nor the perceived cuts to be made. That was followed by a long awaited fall-in the debt rating of the US by the S&P. At the same time the financial and economic conditions in Europe worsen with Italy officially joining the ranks of near insolvency. These events were accompanied by calls for the president to bypass the Constitution or to use the 14th Amendment to bring about the debt extension. Full Story
By: John Mauldin, Millennium Wave Advisors - 14 August, 2011
I came away from Maine, and meeting with some of the most astute economists in the world, with a series of impressions that will be the core of this week’s letter. On Friday night, S&P downgraded US debt, and of course I need to comment on that. But as we talked the next two days and into the nights, I came increasingly to the opinion that this is indeed the Beginning of the Endgame. I must admit it has come about faster than I thought. But that is the nature of these things. And so, with no “but first,” let’s jump right in. Full Story
By: The Gold Report and Louis James - 14 August, 2011
Even with the turmoil in today's markets, Louis James, chief metals and mining investment strategist at Casey Research and the senior editor of International Speculator, Casey Investment Alert and Conversations with Casey, says business really does go on. He stresses that even in the face of what he calls "truly economically suicidal behavior on the parts of world governments," he remains very bullish on precious metals. In this exclusive interview with The Gold Report, James discusses what we can expect for the rest of 2011 and 2012. Full Story
Even with gold being hit hard late in the week it was up 5.08% for the week. I suggested early in the week that gold moving out and above of this steeply rising channel was cause for pause. We saw a nice spike higher above $1,800 briefly and now we’re seeing a nice needed rest. Full Story
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