By: The Gold Report and James Passin - 20 November, 2009
Today's extraordinary loose monetary conditions are "benefiting hard assets," according to James Passin, co-founder and manager of Firebird Global Fund and Firebird Global Fund II. Surplus liquidity is flowing into ETFs that buy commodity futures and physical commodities, which James says, is "creating a feedback loop" that is driving up the price of resources. Full Story
By: Peter Schiff, Euro Pacific Capital, Inc. - 20 November, 2009
During President Obama's high profile visit to China this week, the most frequently discussed, yet least understood, topic was how currency valuations are affecting the economic relationship between the United States and China. The focal problem is the Chinese government's policy of fixing the value of the renminbi against the U.S. dollar. While many correctly perceive that this 'peg' has contributed greatly to the current global imbalances, few fully comprehend the ramifications should that peg be discarded. Full Story
Summing up, based on this week's price action, it seems that gold may need to move higher before correcting in a meaningful way. The key driving markets for precious metals, USD Index and the general stock market don't provide decisive signals, and the former has been recently trading rather independently from PMs, so it may not be needed to ignite a rally or a sell-off in the metals. Full Story
It nearly slipped through the cracks this week as mediastocracy marveled at the apparent lack of inflation as the PPI and CPI reports hit the wires. However, just beneath the surface, the financial and economic metamorphosis continues unabated. I am talking about Qatar and its very successful bond sale. Full Story
GoldSeek.com is proud to sponsor a new national investor forum, the Gold & Precious Metals Guild (GoldPMG.com). This forum will be held monthly in cities around the country, flying in speakers from top gold and precious metals mining companies, top bullion brokers, and best-selling authors to discuss gold and precious metals investment strategies. Full Story
By: Daniel Aaronson and Lee Markowitz - 20 November, 2009
The key to understanding the future path of the US economy and the Dollar is to understand the origin of the current situation - Nixon’s suspension of the gold standard created the Dollar bear market and transformed the US into an asset-based economy. Since then, the moves in the Dollar bear market have determined whether the US would grow, recede or become an asset bubble. Despite the Dollar’s continuous loss of purchasing power, most people still do not realize that the Dollar continues to be in a 38-year bear market. Ultimately, the market will lose faith in the Dollar, and it will then be clear that the asset-based economy was not viable. Full Story
By: Adam Hamilton, Zeal Intelligence LLC - 20 November, 2009
Five years ago this week, an obscure little ETF called StreetTracks Gold Shares was born. As the first American ETF enabling stock traders to gain direct price exposure to a physical commodity, GLD was truly revolutionary. Now known as SPDR Gold Shares, this ETF has proven to be a smashing success. Full Story
Thanks to our wonderful friend Cary Coutelas, GATA Chairman Bill Murphy's appearance last night on Bernie Lo's "Asia Confidential" program on Bloomberg Television has been posted at YouTube in three parts here: Full Story
Did Ronald Reagan appoint a secret committee to implement the Gold Standard after the 1981 Gold Commission released its final conclusions? That was the theory behind my first “Road to Roota” article written in 2007 and almost everything that has transpired since has reinforced my original conclusions. Full Story
The IMF (with the U.S. Federal Reserve) is facilitating the Demise of the U.S. Dollar for their own purposes of Profit and Power, by speaking of the U.S. Dollar’s demise as if it were a Fait Accompli. But in the short run Investors can profit from this IMF/Fed-led Cartel* attack on the U.S. Dollar and on Precious Metals by employing a Profit Parachute Strategy as described below. Full Story
In the last ten years, the financial world has experienced quite a few bubbles. Ten years ago there was the tech bubble. Then the housing bubble. And then the credit bubble. There was an Oil bubble too. With all these bubbles popping up, so to has an increase in bubble calling and contrarian thinking. As a result, sentiment analysis has become more popular. Full Story
Federal Reserve officials downplayed the consequences of the falling dollar, underscoring that deflation is still a threat. Jim Rickards, of Market Intelligence; Mike Jackson, of AutoNation; and Larry Lindsey, of the Lindsey Group, share their insight. Full Story
Newspapers and TV stations across America this past week carried pictures of US President Barack Obama making a very low, half-body bow (to almost double) before the Japanese Emperor Akihito during Obama’s visit to Japan. Drudge carried it as a lead story with a picture of the act this past weekend. Full Story
By: Rick Ackerman, Rick's Picks - 20 November, 2009
In a moment, I’ll get to the deadness of Goldman shares and the fatal implications this may hold for U.S. stocks. But first let me share with you a link to “The Day the Dollar Died,” an extraordinary (and scary) script for a day that is probably coming. Full Story
Gold’s Seasonal Chart has historically displayed a loss of upside momentum in mid-November. We’re at the point where it either happens or not. The 15-year seasonal charts shows that the momentum loss has not lasted long. Historically speaking, the month of December tends to have upside momentum. Full Story
By: Gary Dorsch, Editor, Global Money Trends - 19 November, 2009
The Swiss franc is counted among the top-5 reserve currencies in the world, alongside the US-dollar, the Euro, the British pound, and the Japanese yen. The Swiss franc holds this top distinction, even though the Swiss economy does not find its place among the top five economies of the world. Instead, its annual output of $488-billion of goods and services ranks as the world’s 22nd largest. Full Story
By: Jason Hommel, Silver Stock Report - 19 November, 2009
The best witty observation this week came from Bill Murphy with www.gata.org. Bill noted the irony of how media pundits who bash gold will argue that gold is in a bubble (gold's expensive) in one breath, and then bash it again by saying it's a bad investment because gold has underperformed (gold's cheap) inflation rates since 1980's peak. Murphy's main point is, "how can an asset be in a bubble if it's underperforming inflation?" Or, as I'll put it, how can gold be cheap and expensive at the same time? Full Story
Just about everywhere you look these days in the financial media, when the topic of discussion turns to the plunging U.S. dollar, you'll hear someone saying something like, "Unless the Fed raises interest rates, the dollar's got nowhere to go but down". And then someone invariably says, "But the central bank can't raise interest rates. Not with the unemployment rate at over ten percent!" What's a central banker to do? Full Story
By: David Coffin and Eric Coffin - 19 November, 2009
We believe there is room for more gold price gain, near term. A “true” gold market in which the yellow metal is being treated as an asset class in its own right is building around the uncertainties in other markets. That is different from recent warehousing cycles when gold moved most strongly during the final up stage of a resource/economic cycle. Full Story
The new realities of the precious metal markets are inescapably obvious. In the classic - three legs up, two legs down - bull market pattern, we are undoubtedly in the second "institutional" or "big money" stage. For Elliott Wave fans this would be the 'C' wave, characterized as the longest with a potential break mid-way. Full Story
By: James Turk, Founder & Chairman of GoldMoney.com - 19 November, 2009
Investors are moving out of paper gold and into physical gold due to increased risk aversion, James Turk, chairman and founder of GoldMoney, told CNBC Wednesday. "In this current run I think you're going to see 1,200 to 1,400 (dollars per troy ounce) by the end of this year and next year I think it's going to continue," he said. Full Story
“I have always depended on the kindness of strangers,” said Blanche DuBois, in the final words of the play A Streetcar Named Desire. Well, don’t we all. Many citizens probably still cling to the old saw that public debt doesn’t matter because “we owe it to ourselves.” Wrong. Debt always matters. And as for whom we owe it to, it is a lot of kind (or, at least, not yet unkind) strangers. Full Story
By: John Browne, Senior Market Strategist, Euro Pacific Capital - 19 November, 2009
The U.S. economy is in uncertain times. Analysts are split between those seeing recovery and those fearing a second downturn. This confusion is being echoed in the highest levels of government as President Obama simultaneously speaks about the need for more federal spending and warns of the dangers of increased debt. As the volatile markets indicate, investors are not only confused - they are seriously concerned. Full Story
Stock markets around the world appear to be cooling off as the recent rally comes to an end, while the new all-time high of $1,145 for gold is flashing a warning signal as investors back the traditional safe haven. Full Story
In 1964 the USGovt introduced the zinc dimes clad with silver. They at least admitted the debauchery publicly. Now pre-1964 silver coins are all considered different, and valued differently too, higher. Rome committed the same coinage fraud 1900 years ago. Their Empire went bust as the city burned almost concurrently. Ayn Rand is a guiding light for Alan Greenspan, the enabling destroyer of the US banking system, destroyer of the US household archipelago, and dispatcher of the US industrial base to Asia. He is the hero icon worshipped by Wall Street. The irony is thick, that his career was spent following Old Europe orders that delivered the slow motion coup de grace to the American Empire. Full Story
The U.S. dollar has changed from being a paper certificate for a tangible asset to a fiat currency - a paper note declared legal tender. By looking at the history of American paper money one can clearly see the distinction. Full Story
If you or the gold bug in your life needs reassurance this winter that, in the long-run at least, gold's constant purchasing power is as rare and precious as its substance, you could do much worse than treat them for Christmas. Just don't expect to see much of him (or less likely, her) outside your library on Boxing Day. Full Story
Charles Goyette is a veteran radio guy, a libertarian who supported Ron Paul before it was fashionable. Now he’s written his first book, The Dollar Meltdown, and from beginning to end it’s a pleasant surprise. Goyette writes as smoothly as he speaks and his perspective is unapologetically libertarian. So he gets it right on both content and delivery. Full Story
By: Bob Chapman, The International Forecaster - 18 November, 2009
The Federal Reserve faces the biggest blows to its authority and independence in five decades under legislation championed by its lead overseer in the U.S. Senate. The financial-regulation overhaul proposed yesterday by Senator Christopher Dodd would strip the Fed of its role as a bank supervisor and give Congress a greater voice in naming the officials who set interest rates. The measure opens the door to interference from politicians who might disagree with any move by the Fed to raise rates from record lows, former central bank officials said. Full Story
In 1999, the price of gold bottomed after having ridden the post-Volcker era down along with treasury yields. This was due to the sound policies the former Fed chief rammed home and the confidence that ensued. Full Story
By: The Gold Report and Louis James - 18 November, 2009
In this exclusive interview with The Gold Report, Louis James, Senior Editor of Doug Casey's International Speculator, reiterates his conviction that the dollar is on death row with no one prepared to grant a stay of execution. Dismal as it is, this situation gives rise to increasingly positive prospects for gold and other commodities that may ultimately stand in as the world's reserve currency. And there are some pretty hot speculative prospects—Louis' "best of the best" —waiting in the wings for the market's next big leg down he's been forecasting. Full Story
The gold conspiracy world is a buzz with recent articles from Rob Kirby about tungsten bars that were plated with gold. According to Kirby's sources 1.3M-1.5M these 400oz bars currently reside in Fort Knox as well as have been sold into the global gold markets over the past 15-20 years. Full Story
Inflationary practices are the primary driver of growth in the value of precious metals, and they are already in play to combat the credit crunch. Although the Federal Reserve is planning its exit strategy, there is little chance one will actually be enacted – which means that inflation will continue to bulldoze the value of the US dollar. Full Story
By: Sol Palha, Tactical Investor - 17 November, 2009
Right now we have an extreme development in the natural gas market; natural gas prices have dropped to a multi year low and the oil to natural gas ratio and Gold to natural gas ratio are both trading in the extreme ranges. History illustrates that all extreme moves nearly always produce counter moves in the opposite direction which are just as strong if not stronger. Full Story
In the last several days I received many letters in which Readers commented on my analysis of the seasonality on the silver market (thank you), so I decided to provide you with more detailed analysis of silver in the following essay. Full Story
By: Andrew Mickey, Q1 Publishing - 17 November, 2009
Although day-to-day it never feels quite the same and emotions, left unchecked, will quickly cloud out reality, we know it’s never different this time. And there’s no reason to expect this rally to play out any different than every one that has come before it and every one that will come again. Full Story
By: Bill Bonner, The Daily Reckoning - 17 November, 2009
The US now has the highest unemployment rate of all major economies. Even France – historically, an economy with high jobless rates – is at 9.5% unemployment, while the US is 10.2%. As for inflation, the lowest inflation rate among the world’s larger economies is in – you guess it – Japan. After 20 years of on-again, off-again deflation, it’s on again in Japan…with inflation at NEGATIVE 2.2%. But inflation is negative in the US too – at minus 1.3%. Full Story
“I believe deeply that it’s very important to the United States, to the economic health of the United States, that we maintain a strong dollar,” U.S. Treasury Secretary Geithner recently told reporters. Indeed, it seems to be a pre-requisite to apply for the position of U.S. Treasury Secretary to be able to utter these words. In the meantime, the greenback seems to be falling further and further; the ‘strong dollar commitment’ appears to have become a farce. Just what, then, would be a strong dollar policy? Full Story
Most Gold bulls are silver bulls. The 1970s is the reason why and because inflation that occurs when a secular commodity bull cycle is in effect tends to flow into both precious metals. I have been less than wildly bullish on silver lately. Full Story
By: Rick Ackerman, Rick's Picks - 17 November, 2009
It was less than a week ago that the Wall Street Journal reported that the central banks of the world, even Russia’s, were acting in concert to prop up the U.S. dollar. With gold’s powerful thrust to new all-time highs yesterday, however, it looks like the bankers will have to come up with a new plan. Our longstanding target for the Dollar Index is 72.93, implying the dollar has a further 2.5 percent to fall before it is likely to find traction for a rally attempt. Full Story
By: International Monetary Fund - 16 November, 2009
The International Monetary Fund announced today the sale of 2 metric tons of gold to the Bank of Mauritius, the nation’s central bank. The sale was conducted on the basis of market prices prevailing on November 11, 2009 with proceeds equivalent to US$71.7 million. This transaction is part of the total sales of 403.3 metric tons approved by the Executive Board in September 2009 (see Press Release No. 09/310), and it adds to the 200 metric tons already sold to the Reserve Bank of India. Full Story
Gold is in the headlines right now because of India’s announcement to buy half the announced IMF sale, and possibly more. But this is not why gold advanced so strongly yesterday. It blew past previous highs because we are in a significant cycle down time for equities right now, and the perception is if stocks are not to follow the natural path in this regard, authorities will need to hyperinflate. Full Story
The gold stocks caught on fire over the past fortnight. They have lagged behind the metal in relative strength, but, since they are more volatile than the metal, bigger profits are the result. For example, gold is well above its early September levels, but the XAU and the HUI have only broken above their corresponding levels just last week. Full Story
The next issue I wanted to write about in this post is this whole notion of ballooning reserves at the Fed, and how we get to hyperinflation if this money were to ever be lent out and multiplied across the economy. Reserves might have gone from 10 Billion in August 2008, to about 1 Trillion today, but in fact, this money is not being lent out – it is simply sitting there at the Fed, earning interest. Full Story
Silver may yet outshine gold in 2010 as spot prices for the white metal respond to the prospect of a surge in industrial demand. With a little additional help from investment demand, silver may even rally into the $25 an ounce range. Full Story
Overall the performance of the Australian gold sector has been brilliant and if the AUD gold price heads north as I expect we may see even better times – I certainly hope and expect so. I just wish I had a bigger truck to back up but keeping your feet on the ground is the key to safe trading. Full Story
We have been bullish about gold since 2001 but unlike some of the die-hard gold bugs, images of our children living in shanty towns do not keep us awake at night. In our view, gold is not a mystical metal, rather it is the ultimate store of value which tends to do well when fiscal and monetary policies are poor. Full Story
One of the big news items these past few days is an intriguing article in the London Telegraph on Nov 11th by Ambrose Evans-Pritchard on “Barrick shuts hedge book as world gold supply runs out.” Drudge carried it as a major story on both Saturday and Sunday. Full Story
By: Rick Ackerman, Rick's Picks - 16 November, 2009
We’ve got a nickname for the bear rally begun last March on Wall Street: the “Red Shoes Market”. The metaphor alludes to the classic 1948 British film based on Hans Christian Andersen’s dark fairy tale. Every cinema buff knows the story of the ballerina, played by Moira Shearer, who couldn’t stop dancing after she put on a pair of enchanted crimson ballet slippers. Full Story
1st Hour: Headline news & The Market Weatherman Forecast. Spotlight Stock Picks. Host, Chris Waltzek & The International Forecaster discuss Superstar Investors & answer listener's questions. 2nd Hour: Catherine Austin Fitts, Solari Inc. James Turk, Gold Money.com Full Story
By: Julian D. W. Phillips, Gold/Silver Forecaster - Global Watch - 15 November, 2009
We have been prepped for this for so long now. It seems that the [concocted] cloud from the expected I.M.F. gold sales has been a threat to the gold price, for years. Now the clouds of speculation are being blown away and reality is presenting itself in a way never expected. Full Story
By: Andrew Mickey, Q1 Publishing - 15 November, 2009
Gold has made a good run over the last eight years, but the biggest money will likely be made in the next eight years as a lot more money piles into the “utter nonsense” that is gold. Full Story
On longer-term charts gold looks great here as it accelerates away from its recently completed 20-month consolidation pattern. The prospect is for a powerful, steep multi-month advance, punctuated by mostly brief periods of consolidation. In the last update we examined the long-term charts to divine the big picture and as this has not changed since, we will in this update look at the shorter-term charts to consider the immediate outlook as gold is now overbought, and also pay attention to the dollar and euro, which are on the cusp of big moves that obviously have important implications for all markets. Full Story
By: Bob Chapman, The International Forecaster - 15 November, 2009
One of the outcomes of Fed policy of near zero interest rates is that seniors cannot live on an income of 1-1/% and that pension funds, insurance companies and endowments cannot fulfill their commitments. As yields eventually rise, although the Fed has signaled that is at least a year away, and if Japan is any guideline, we could be 19 years away from solving the problem of fiduciaries. Full Story
By: John Mauldin, Millennium Wave Advisors - 15 November, 2009
No one goes into Wal-Mart and asks to pay extra sales tax. Thus sales taxes are reasonable barometers for retail sales. This week we look at how taxes are doing in a period of economic recovery. Then we turn our eyes to a very interesting (and sobering) analysis of possible future unemployment rates. Full Story
By: Bill Bonner, The Daily Reckoning - 15 November, 2009
It doesn’t occur to them that the problems in the housing industry are almost exclusively the fault of the federal government in the first place. The feds subsidized mortgages, encouraged mortgage lending to people who should have been renting, and lowered interest rates. These fixes created a bubble in the housing sector. No bubble expands forever. Eventually, they all blow up…which is what happened. Full Story
By: The Gold Report and Eric Sprott - 15 November, 2009
Although "quantitative easing" (QE) may be propping up the U.S. economy for the time being, it solves nothing. That's how Eric Sprott, Chief Executive Officer & Portfolio Manager of Sprott Asset Management and Chairman of Sprott Money Ltd., sees it. Full Story
The major US indices resumed their rallies this past week but that didn’t stop the metals from moving higher also. It looks as if the US markets will continue higher for now. The rally concerns me and is something we need to keep a close eye on. Full Story
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