By: John Browne, Senior Market Strategist, Euro Pacific Capital - 21 May, 2010
The European Union's debt crisis, the threatened collapse of its fledgling 'euro' currency, and the uncertainties created by the UK elections may seem very far removed from the American ship of state, but, in reality, this turbulence threatens to capsize our fragile economy. Full Story
By: David Galland, Managing Editor, The Casey Report - 21 May, 2010
There is a lot of “noise” being tossed out by the politicos and their preferred pundits about how the U.S. economy is on the mend. Thus it is important to try and separate fact from fiction about where things really stand. Full Story
By: Daniel Aaronson and Lee Markowitz - 21 May, 2010
European debt problems have become the center of market attention. However, it is only a matter of time until markets turn their focus to the financial problems of larger countries such as the United Kingdom, Japan and the United States. Full Story
USELESS for pretty much everything except storing wealth (its economic value is social, not industrial), gold acts as inflation-proof money when investors need it most – right in the middle of an asset-price deflation. Full Story
By: Adam Hamilton, Zeal Intelligence LLC - 21 May, 2010
The condition of Europe has become the psychological linchpin governing the world’s financial markets. Even the notoriously insular American investors are fretting about Europe’s woes on an hour-by-hour basis, which is incredible. The euro currency has become the focus of the global Europe fears, trying unsuccessfully to shoulder this crushing burden. The result is the euro’s recent panic-like plunge. Full Story
The European Crisis is proving to be more of an unraveling than a contagion. I have long written that the European Monetary Union (EMU) constitution and Euro currency should be viewed in the context of a risky bet versus a sound regional monetary strategy. The odds of the EMU’s survival are presently reflected in a plunging Euro, despite a historic and unprecedented intervention. This indicates that the EMU’s existence in its current form is now a bad bet. Full Story
Gold has recently reached a nominal high of $1,237/oz, whereas Silver, although up too, has lagged somewhat behind. And there are Manifold Causes for Gold, the Ultimate World’s Reserve Currency, to have hit record highs. Among them are the increasingly threatening Sovereign Debts bubbles, the as-yet-unresolved System-Threatening Financial Regulation Issues, and a Middle Class and Housing Market that are not recovering. Full Story
It’s time to put on your battle gear and man your stations as the “when hope turns to fear” (see 2010 outlook in Tedbits archives) moment has arrived. As the G7 financial systems lurch towards their demise, insanity is on plain display in the capitals of the developed world, with the purchasing power of all G7 currencies (Pounds, Swiss Francs, Euros and Dollars of all stripes) in free fall -- as measured in the only REAL currencies in the world: GOLD and SILVER. Full Story
By: The Energy Report and Eric Nuttall - 21 May, 2010
"If you want to talk about the Gulf and the oil leak in terms of investment, I think it's creating some pretty interesting investment opportunities," says Eric Nuttall, portfolio manager of Sprott Asset Management's Energy Fund. The straight-shooting Nuttall never fails to opine or shine as he explains why onshore oil plays are solid investments and talks oil and gas juniors, shales and prices in this exclusive interview with The Energy Report. Full Story
Gold proponents for the last couple of months have watched some major developments in the gold markets where the impacts have prompted some different interpretations. As of right now, on May 20, the most common reaction has been happiness and joy among gold investors because of price moves of precious metals. But there is some developing apprehension over the losses in the past week. For my part, there is agreement, but with a further word of caution. Full Story
By: Richard Daughty, The Mogambo Guru - 21 May, 2010
Chartoftheday.com sent me, this week, a chart of the Dow Jones Industrial Average adjusted for inflation, going back to 1925, which was before I was born, believe it or not, which means it was a long time ago. Full Story
Bullion has been hit pretty hard this week, to be sure, and it was taking yet another pounding Thursday night as we went to press. But we doubt that sellers can keep it up, lacking as they do a persuasive argument that paper money will stand the test of time (as when has it ever?). Full Story
How about the investor who purchased gold at $260 (the first price visible in this essay) and held on for ten years to the current $1180! His or her profit is 353%. On an annual basis that works out to 35% per year! From this essay we draw the conclusion that investors make far more money (with very few exceptions) than do traders. Full Story
Chairman of the U.S. Federal Reserve Board, Ben Bernanke, is now famous for declaring his willingness to use a helicopter to dispense dollars to stop U.S. deflation. In the spirit of shock and awe, he promised the indiscriminate firing of dollars into the U.S. and global economy, without concern for friendly fire casualties. Granted, indiscriminate firing of dollars near innocent savers and trading partners is not friendly fire, but stick with this analogy, it gets better. Full Story
Recent decades have witnessed an amazing shrinkage of the American manufacturing sector, from #1 in the world to virtual non-existence. Companies, taking advantage of cheaper labor costs abroad, have either outsourced some portion of the workforce or relocated their entire operations offshore. Remember the “great sucking sound” that Ross Perot claimed he could hear? Full Story
The Euro Zone situation has become even more unsettled in terms of public sentiment. That perception of instability has brought fear to the financial markets. That fear could have driven gold prices higher, but it did not. Rather, it drove gold down nearly $75 from its current market top of $1251.4. Full Story
As I've mentioned repeatedly in the past, gold is perhaps the most misunderstood asset in the world. Try to explain to people the true nature of gold and expect to be greeted with petulant disdain. It took more than a little arm twisting for me to convince people that gold is a currency and not a commodity. With a bona fide meltdown hitting Europe, people are starting to wake up and smell the roses. Full Story
When the Rudd Unworkable Super Tax (RUST) was first announced I stated that we may not be the only ones here in Australia to suffer from this type of tax. Governments in many countries are worried about falling revenue as economic contraction bites. Plucking the goose that lays the golden egg is now thought to be contagious according to Evy Hambro of BlackRock Investment Management Ltd. Full Story
Gold, silver and platinum, unlike little colored coupons, cannot be produced by a bald monkey pushing buttons on a computer that add digits to a database on some server. Additionally, almost all the monetary and mind calming reasons an investor would desire to hold gold also apply to silver and platinum. Full Story
The economic problems faced by all countries are rooted in paper money systems. In fact, paper money systems are one of the root causes of socialism and socialist thought. Paper money also gives capitalism a bad name. Right now the temporary solutions from bail-outs and printing money will change the short and medium term outlook for many investments. Full Story
As the saying goes, a picture speaks a thousand words and the charts below quite clearly illustrates that the Dow has not put in a single new high in the past 3 years. Full Story
Things are growing quietly desperate, in short. Your personal finances are set to become very political, not least if you have something to lose. Sorry, something to share. For the good of the state, you understand. Sorry, for the good of the country...if not the world. Full Story
By: Richard Daughty, The Mogambo Guru - 20 May, 2010
I was sitting alone in The Mogambo Bunkeroo (TMB) thinking to myself that it seems unnaturally quiet around here lately, probably as a result of everyone holding their breath in anxious dread and anticipation since the Federal Reserve is not creating money with their habitual insane abandon, and Total Fed Credit was actually down $1.2 billion last week, which, given the total Fed Credit is a staggering $2.310 trillion, is a rounding error. Full Story
We backed off the inflation/deflation debate a few months ago when we started feeling sorry for the inflationists, who seemed hopelessly out of touch with the real world. As far as we were concerned there was nothing to debate, since, other than what we’ve referred to as grocery-store inflation, no evidence existed that prices were about to rise, let alone explode. That is still true. Full Story
By: David Galland, Managing Director of Casey Research - 19 May, 2010
In a nutshell, the monetary inflation, quantitative easing, and insane spending of the U.S. government, emulated by countries around the globe, have set the table for a large serving of currency depreciation down the road. Full Story
The sharp sell-off in gold caused by the unwinding of the short Euro/buy gold carry will, in time, be viewed as a buying opportunity. We know the mechanical market situation over the short-term. We know the fundamental situation over the long term. And when there’s a short-term sell-off in an asset with great (and improving!) fundamentals, we know it’s an opportunity. Full Story
As gold climbs to new highs, you will get a real-time lesson in why most people make very little if any money investing. Gold is the most obvious bull market of our generation and the public still refuses to participate in force because of nominal prices. This is baffling, but I'm not complaining since this widespread inability to pull the trigger on gold has allowed me to accumulate at relatively cheap prices. Full Story
By: The Gold Report and Lawrence Roulston - 19 May, 2010
One of the first things mainstream journalists in Western media learn is how to tease angles out of stories that play on fear, scandal and disaster. Bad news sells. Resource Opportunities Editor and Publisher Lawrence Roulston would agree. His advice to Gold Report readers in this exclusive interview? "Take a broader, longer-term view" to avoid missing out on phenomenal opportunities developing on the other side of the world. Full Story
Recently, I had written about how a deflationary impulse in the capital markets would be a catalyst for the gold stocks. This turned out to be accurate as stocks and commodities weakened while treasuries and the US Dollar advanced. Gold and gold stocks also moved higher. Nevermind the comments I received about how we are in an inflationary period and Gold will go down in a deflationary period. Full Story
By: Bob Chapman, The International Forecaster - 19 May, 2010
World markets are dysfunctional and stability doesn’t exist. Man set distortions and economic imbalances - a system that functions without regulation, derivatives and unbridled and unfettered speculation, surrounds us. Leveraged speculation dominates the markets, particularly debt instruments. Unfortunately, this speculation is fostered by government and central banks perpetual willingness to bail out everyone in banking and finance just to keep the system afloat. Full Story
It is clear where this will end: default. The investors who trust government bonds will be ruined. Also, voters who rely on government deficits to maintain their above-market incomes will be ruined. Both groups trust Keynesianism, and they are going to get it, good and hard. Full Story
If the implications of the recent Greek tragedy were not so serious it would have been seen more as a Greek comedy (of fiscal errors). In fact, however, to deploy another metaphor, Greece's sovereign debt is seen as the proverbial canary in the coal mine - a microcosm of the relentlessly growing sovereign debt that has taken much of Europe by storm and is threatening to spread to the U.S. Full Story
Will the laws and rules in place to protect individuals in their attempt to set something aside for retirement be safeguarded by the representatives elected to advocate for them in Washington? Will the principles and moral integrity of the political class keep them from appropriating the trillions of dollars held in 401k's and IRA's? I'm not so sure! Full Story
By: Richard Daughty, The Mogambo Guru - 19 May, 2010
In my darker moments, usually just before I go freaking berserk and start yelling and screaming about how “We’re freaking doomed!” from the idiotic Obama administration deficit-spending So Freaking Much (SFM) money and the idiocy of the Federal Reserve creating So Freaking Much (SFM) money, all of which is guaranteed – guaranteed! Full Story
When the euro staged a brief rally the other day, we professed to have been vexed. Why, we wondered, should there be any euro buyers at all at these levels – currently around $1.20 U.S. – when even the village idiot knows the currency is on its way down to 80 cents or lower? Of course, it’s not the little guys who have been goosing the euro into fleeting rallies the whole way down, but rather the central banks. Full Story
By: Peter Schiff, Euro Pacific Capital, Inc. - 18 May, 2010
Last week, the European Central Bank abandoned all pretense that the euro would be the worthy heir of the Deutsche mark; based on the enormity of the nearly $1 trillion bailout of Greece and the moral hazard it creates for other spendthrift member-states, the euro is instead on its way to becoming the worthy heir of the drachma. While the bailout was intended to restore calm to the continent, thereby strengthening the euro, the result is a currency that has lost its shot at glory. Like Terry Malloy... it coulda been a contender. Full Story
Higher Gold and Petrol prices are one of the clearest signs that inflationary forces are gathering steam. Do not confuse inflationary forces with inflation; inflation is defined as an increase in the supply of money. Full Story
By: Marin Katusa, Chief Investment Strategist - 18 May, 2010
The Obama administration is all for going as “green” as possible, but realizes that wind and solar are not going to cut it. Thus, after thirty years in the doghouse, the nuclear option has regained the respectability in America that it enjoys among nations such as China, where ten new plants per year are proposed (our last new construction project broke ground in 1977). Full Story
April ushered in both broader evidence of recovery in parts of the Western economy, and a series of both ecological and economic “events” that are quite worrisome. It’s unlikely any of the April events (including, we fervently hope, sovereign debt) would be, in and of itself, shattering. Full Story
Perhaps more than stock and bond investors, precious metals investors must be privy to important macroeconomic indicators. Of the most important is money supply, followed immediately by lending and credit availability. These three factors all come together to establish how expensive or inexpensive paper currencies are and how silver and gold should be relatively priced to their paper counterparts. Full Story
By: Steven Saville, Speculative Investor - 18 May, 2010
A point we've made numerous times over the years is that gold is not primarily a play on a decline in the US dollar's foreign exchange value; it is a play on a general decline in monetary confidence. Full Story
The Federal Reserve's practice of indiscriminately printing money is the chief culprit that has led to the surge in gold and demise of the euro, Rep. Ron Paul (R-Texas) told CNBC Monday. Full Story
By: Richard Daughty, The Mogambo Guru - 18 May, 2010
A recent email blared, “The National Inflation Association says there is reason for grave concern”, to which I thought to myself, “Well, welcome to my world, chumps, because all I do is bewail the horrors of the coming inflation in prices that will follow such huge inflations in the money supply!” Full Story
By: Julian D. W. Phillips, Gold/Silver Forecaster - Global Watch - 17 May, 2010
Even after the massive rescue package [$750 billion] was delivered, confidence in the € seeped away and it weakened to $1.2320. With U.S. sovereign debt at unacceptable levels too, the debt fear ‘contagion’ cross the Atlantic? More than that, if bond values continue to drop will the lending banks to the debts issued survive. Can this happen in the States and will their banks be dragged into the crisis? Full Story
The spotlight remains on the Greek sovereign debt crisis as the riots continue. The terms of the Greek bailout from the IMF and Eurozone countries remain contentious with citizens on all sides. Europeans hate having their governments throw public money away as much as Americans do. The Greeks are not happy about having their taxes raised while their pensions and salaries are cut. Full Story
This, along with the likely advent of a deflation scare / system failure / economic collapse now underway, is why governments will print money to infinity starting anytime now as budget deficits go parabolic. And all this added together is why gold can go to $3,000 in fairly short order, as again, increasing numbers escape our faulty and fraudulent markets, and more so, simply escape a fundamentally corrupt fiat currency economy being managed by the morally incomprehensible. And because this is a global phenomenon, this is why gold is becoming the world’s reserve currency despite continued efforts to discredit it (and silver) by the bureaucracy. Full Story
Gold is charging up to new highs, so it’s no surprise that the level of interest in this financial asset is charging up as well. Last week I did interviews with CNN, CNBC, USA Today and Reuters, and in most cases a specific question came up – “Should people be buying or selling gold right now?” Full Story
The recent price action in gold provides many examples of good speculation. Indeed, good speculation is not complicated. The main problem with modern speculative analysis is that it is so full of false theories. It reminds me of Ronald Reagan’s statement, “Well the trouble with our liberal friends is not that they are ignorant. It is that they know so much that isn’t so.” (Of course, in my book that could be a pretty good definition of stupid.) Full Story
You know you're beyond help when a big, scary down trading day in the stock market gets the government to investigate. If the stock market goes down, there has to be an investigation. For everyone deserves prosperity. Be honest for just a minute and answer this question: would governments investigate the market if it suddenly went 2,000 points higher (whether by accident or due to intentional manipulation) in the course of an hour? Are there circuit breakers for overly fast bull moves in the stock market? Full Story
By: John Mauldin, Millennium Wave Advisors - 17 May, 2010
And that is what Europe did last weekend. They threw a Hail Mary pass in an attempt to avoid the loss of the eurozone. Jean-Claude Trichet blinked. Merkel capitulated. Today we consider what the consequences of this new European-styled TARP will be for Europe and the world. We do live in interesting times. Full Story
To conclude this first section of this special Got Gold Report for gold futures, we think that it is now apparent that at least on the COMEX bourse in New York, the very largest of the paper gold sellers – the exemption-using bullion banks among them - have now become more isolated as “the sellers of last resort” for gold futures. Full Story
So far in 2010, all eyes in the gold market have been looking up at $1225 wondering whether gold get back to that all time high? Now that question has been answered yet another arises, where next for gold? Full Story
[Lately, Mother Earth has been angrier than we can ever recall. A friend of ours with a keen interest in the predictions of seers alerted us a few years ago to the prospect of a dramatic increase in seismic activity around now, so we were naturally eager to have him update the forecast. He has obliged with the grim predictions detailed below. Full Story
1st Hour: Headline news & the Market Weatherman Report. Spotlight Stock Picks. Host Chris Waltzek & The International Forecaster discussion and listener's questions. 2nd Hour: Jim Rogers, Rogers' Holdings Kevin Kerr, Kerr Trading Full Story
By: Julian D. W. Phillips, Gold/Silver Forecaster - Global Watch - 16 May, 2010
All of us follow COMEX in New York and assess the ‘net speculative long position’ there, so as to see the actual weight of opinion on the gold price. It gives us a clear market opinion after all. But many of you out there may believe that COMEX is a very large factor in the gold price. Is it? Full Story
By: Bob Chapman, The International Forecaster - 16 May, 2010
Wednesday was another wild day to the upside in precious metals. Spot gold rose $22.80 to $1,242.70, as June rose $18.00. Spot silver rose $0.37 to $19.64 and June rose $0.23. As you can see after the Comex spot close the shorts went to work on both metals again. It is interesting that the CME traded 241,207 contracts Thus, the late closes of the outside months are becoming more important due to their increasing volume. Full Story
I think it is a given that Greece will have to default, everyone knows this, but they are just playing cat and mouse for now. Most Greeks are dead set against the new Austerity measures and they will likely throw this government out of power for the new changes they have instilled. The next government will cater to the people’s needs for fear of receiving the same treatment. Change is not wanted in Greece. Full Story
By: The Gold Report and Barry Allan - 16 May, 2010
In this exclusive and revealing interview with The Gold Report, Mackie Research Capital's Barry Allan, always among Canada's top-ranked mining analysts, says the European currency crisis and crippling debt problems will push gold—and the USD—higher through the rest of 2010. But gold and the greenback may not be the biggest winners as a result of a faltering euro. Allan suggests other currencies could have the most to gain as investors seek other havens. Full Story
Go back to the 1970s and the last precious metals boom. In the late 1970s gold prices rose eight-fold and silver by a factor of 25. Fast forward to today and you have ArabianMoney editor Peter Cooper publishing a book predicting a rise in gold prices to $5,000 as the world goes through something like a re-run of the mid-70s. Full Story
Bottom line: COT report suggests COMEX commercials NOT – REPEAT NOT aggressive on the sell side for gold and actually covered some shorts on silver! Gold +5.3% and the gold LCNS +4.1%. Silver +8.2% and the silver LCNS actually declined -5.2%. Full Story
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