By: Julian D. W. Phillips, Gold/Silver Forecaster - Global Watch - 22 October, 2010
Gold dropped to $1,314.5 before recovering to $1.325. It seems that this was due to the G-20 proposals from the U.S. indicating a possible attempt at calming currency markets. This weekend the G-20 is meeting to discuss the current currency turmoil in the markets. Usually this is a meeting where little happens, but this time the U.S. has proposed that countries in the Group of 20 limit current-account surpluses or deficits to no more than 4% of each nation's gross domestic product by 2015. Full Story
IT'S FIVE YEARS and $1.7 trillion of Chinese foreign reserves since the People's Bank of China ended its decade-long peg to the Dollar – the one at CNY8.3 which it had defended through the late '90s Asian Crisis and again as the Dollar first began its long decline in the early Noughties. Full Story
Amid the recent rout of the USDollar, fears of an all-out trade war have been stoked globally. The G20 finance heads are currently struggling to find common ground on current account imbalances that will avert the inevitable. The point should not be lost on anyone that none of these leaders are really concerned about why these imbalances exist, but rather are only focusing on avoiding the negative consequences of poor fiscal behavior stacked up over the past several decades. Full Story
The last month was one of those classic speculative runs that makes everyone who trades resource stocks feel pretty smart. We’re feeling kind of clever ourselves but we have been through enough markets to view self-congratulatory impulses with great suspicion. Mr Market loves hubris. Full Story
Regular Casey Report contributor James Quinn is the head of strategic planning for one of the world's most prestigious business schools and the host of TheBurningPlatform.com blog. In this article, he is presenting historical indicators that may tell us what’s in store for the U.S. economy. Full Story
By: The Gold Report and Bob Moriarty - 22 October, 2010
Predicting ongoing waves of mortgage delinquency, illiquidity and bank insolvency, 321gold's Bob Moriarty says the safest strategy is having "a $20 U.S. gold piece in your right hand and a 1 oz. gold bar in your left." In this exclusive interview with The Gold Report, Bob explains how the U.S. government "is lying" about unemployment figures and recommends investors have "a triangle of investments"—the most important of which are physical precious metals. Full Story
By: Adam Hamilton, Zeal Intelligence LLC - 22 October, 2010
Gold has enjoyed a relentless and rather one-sided rally since late July. Up 18.9% at best over an 11-week span where nearly 2/3rds of the trading days enjoyed gains, some traders are wondering if this metal is getting overbought. Tuesday’s sharp 2.9% retreat certainly amplified these fears. But interestingly, due to dollar distortion this recent gold rally isn’t as strong as it appears. Full Story
By: Chris Mack with Lorimer Wilson - 22 October, 2010
Global crude oil production has leveled off at 74 million barrels per day. However, now that economies are recovering, consumption levels are back on the rise and the result will be an inevitable rise in oil prices. Full Story
It has become increasingly clear, as the Fed-Generated post-September 1 Rally has continued to boost Apparent Equity, and many Commodity, Values, (see our comments last week on massive Fed POMO Injections confirmed by the Graham Summers September 28 Article “The Only Reason Stocks Rallied this Month”) that The Fed will brook no impediment to its recent policy of Inflating Nominal Asset Values. Full Story
Before I get to the meat of this short article I’d like to say that the correction in Gold is very welcome by myself. I was a bit early calling for it, but it was inevitable, and the chopping action would have just teared a trading position to shreds the past two weeks. I am glad we got out when we did. Full Story
In our eye’s, when it comes to investing “Relative Value” is ‘everything’! Why? Because currencies are controlled and manipulated by governments so “Price” (measuring an asset’s value with a currency) cannot be relied upon. Full Story
Austerity be damned, at this rate Mr. Bernanke will go down in the history books as one of the greatest money creators ever to have walked this planet! Never mind sky-high deficits and a crushing debt overhang, at its most recent FOMC meeting, the Federal Reserve all but guaranteed another round of quantitative easing. Full Story
The headline discussion in the financial press of late has been about the recently announced quantitative easing program that the Federal Reserve has said it will undertake in order to further stimulate the economy. Financial commentators have bled their pens dry in speculating what impact the so-called “QE2” will have on stock and commodity prices. Full Story
Currency traders have long used a grid system as a way to systematically buy into a currency at differing points and average in their positions. With silver emerging as a currency of choice among ordinary investors and even institutional hedge funds, it’s high time silver investors do the same. Full Story
There is a belief among some persons that the Rothschild Cabal somehow hates gold and doesn’t want it at all. I disagree on this premise. The Cabal loves gold but wants it in quantity only if and when the Cabal can own it all or almost all. Full Story
By: Richard Daughty, The Mogambo Guru - 22 October, 2010
You can see that it is difficult to get the message out about buying gold, silver and oil as a defense against the government and Federal Reserve destroying us with overspending and over-creation of money, respectively. But you will be happy to know that buying gold, silver and oil stocks is so easy that you will say, “Whee! This investing stuff is easy!” Full Story
By: Rick Ackerman and Chuck Cohen - 22 October, 2010
Our friend Chuck Cohen, a New York-based financial consultant and a raging bull on bullion, recently turned cautious on precious metals – but extremely cautious on stocks, which he says are setting up for a crash that could be worse than last May’s. The report below was prepared by him more than a week ago, but Chuck notes that sentiment extremes in gold and silver have corrected nicely since. Full Story
By: Gary Dorsch, Editor, Global Money Trends - 21 October, 2010
“Everything depends on proper listening. Of ten people who listen to the same speech or story, each person may well understand it differently. Perhaps, only one of them will understand it correctly.” How should traders interpret the latest remarks by US Treasury chief Timothy Geithner, who shocked the currency markets on October 18th, citing his determination to defend the value of the US-dollar? Full Story
Finally and with the greatest of reluctance – the US government has begun the defense of the US economy. This essential and long overdue defense is likely to be extremely painful for US investors, precisely because it is so long overdue. To return strength to a US economy mired in growthless depression requires an extraordinary action – the Federal Reserve and US government are openly going after the value of the US dollar. Full Story
When the global economic crisis began in 2008, many forecasters doubted that the world economy could return to growth without the US consumer. But the world is learning what Peter Schiff has long predicted: that the US consumer is a drag on the world economy, not an engine for growth. Full Story
In short, there is nothing necessarily right or wrong with claiming the U.S. should go into greater hock because the economy is on the verge of collapse. As per Keynes, perhaps there comes a point when the economy would be better off if people were paid to dig ditches and fill them in again? Nevertheless, there is something intellectually suspect with the contention that low interest rates and debt creation can coalesce to generate spectacular ‘returns’ given that any rational look at U.S. history claims otherwise. Full Story
Days ago I was watching Peter Schiff on Yahoo Tech Ticker. Normally, I find myself in agreement with Schiff. This time, however I disagreed with his comments on the gold stocks. He was saying to buy GDX because the large-cap stocks were priced for a decline in Gold. He also said the speculative juniors were going nowhere. These things may be true and play out in his favor over the coming months and years. Full Story
By: Richard Daughty, The Mogambo Guru - 21 October, 2010
Bloomberg had the news that the Labor Department released its new report to show that “Including volatile food and energy costs, wholesale prices rose 0.4 percent” from the prior month, which is pretty bad. Included was the snippet that “The cost of food increased 1.2 percent in September from a month earlier, the most since March.” Yikes! Full Story
By: Julian D. W. Phillips, Gold/Silver Forecaster - Global Watch - 20 October, 2010
What is new to the gold market and has tipped the scales to the future gold price has been the change in central bank selling to central bank holding or buying. A central bank by its nature only buys gold to hold for the long-term. They no longer have the concept of selling if the price goes too high. It is an important reserve asset and always will be. Full Story
The Chinese are clever people. Their leaders play a good game of chess in the global scramble for commodity supply and financial dominance. Their patient strategy has tied the arms & legs of the USGovt, using their own debt securities as the binding rope. The accumulate almost reached a staggering $1000 billion, the ugly fruit of the Low-Cost Solution to invest in China from a decade ago. While much attention has come to saber rattling over currency manipulation and tiny 25 basis point interest rate hikes, even battles over rare earth metals, something has been happening in Europe of importance that involve a Chinese back door to dump USTreasurys. Full Story
By: Ira Epstein, The Linn Group - 20 October, 2010
Today’s rally back in metals is important as you’ll see the break and rally off the break are taking place against its 18-Day Moving Average of Closing Prices. You’ll also see that upside momentum for the time being has turned down, which means price rallies a missing internal upside momentum. The Slow Stochastic Study is now working off an overbought condition. Full Story
Instead of typical article format, I’ve created a fictional character and will chronicle his interaction with the President of the United States during these trying times of global crisis. Atticus McShrugg, a staff member in the National Security Council (NSC), is making his debut in order to speak into the fast-paced developments in the international political economy and global financial markets. Full Story
By: David Galland and Andy Miller - 20 October, 2010
Given the importance of real estate to the economy, it’s not surprising that we get a lot of questions about the sector. There's a growing awareness of the problems with mortgage-backed securities and foreclosures, so let’s start there. What's the buzz in the industry? Full Story
By: The Gold Report and Mickey Fulp - 20 October, 2010
Junior resource companies have been on a wild ride since 2009 and Mickey Fulp, the author of The Mercenary Geologist newsletter, thinks most of them are as overvalued as they've ever been. In this exclusive interview with The Gold Report, Mickey discusses the overall precious metals sector, junior market, risk management and cherry picking. Full Story
Amid the increasing talk of a “gold bubble” these days (and with many investors not likely caring too much that the “bubble” they now see isn’t all that impressive as compared to the “bubbles” they saw two years ago, four years ago, and six years ago as noted in this item earlier in the week), putting a real gold bubble from 1979-1980 up on the same chart with the more recent moves seemed like an interesting exercise. The result is shown below. Full Story
The US economy is being SHUTDOWN at a rapid rate by the radical Marxists in the beltway, whom having never met a businessman that they like other than those who pay political tolls -- known as campaign contributions – consider the rest of the WEALTH generating private sector to be the proverbial red headed step child. Ripe for abuse… Full Story
By: Bob Chapman, The International Forecaster - 20 October, 2010
As we write the US dollar is in the process of trying to find at least a temporary bottom at 76.50 and to launch a countertrend rally. We would think a rally back to 80 is achievable, but we do not believe it’s sustainable - only some stabilization through the election. Japan drew a line in the sand at 82 and finished last Friday trading at 81.37. That does not smack of success, but we see improvement over the next two weeks. Full Story
Whether or not the Federal Reserve previously intended to announce QE2 this November is now irrelevant. The fact that the financial markets have priced in hundreds of billions of dollars in more quantitative easing for this November effectively means that the Fed has been backed into a corner and the decision has now been made for them. Full Story
By: The Gold Report and Alberto Arispe - 20 October, 2010
Mining is big in Latin America. The mining sector represents the lion's share of the main Peruvian indexes, and Chile and Argentina have significant mining operations as well. Kallpa Securities CEO Alberto Arispe talked exclusively with The Gold Report about the prospects of Peru, Chile and Argentina trading under a single exchange and what that might mean for the future of mine financing and investment opportunities. Full Story
By: Richard Daughty, The Mogambo Guru - 20 October, 2010
With gold and silver going up in price like they are, I spend a lot of time secluded in the Big Mogambo Bunker (BMB), greedily calculating my profit with each little up-tick in price. I am so delighted that I alternate between, on the one hand, happily dreaming of happier days to come when silver and gold have gone up so much in the roaring inflation caused by the Federal Reserve creating so much money that... Full Story
By: Rick Ackerman, Rick's Picks - 20 October, 2010
Let’s see if we understand yesterday’s earth-rumbling response to China’s 25 basis-point increase in a yuan lending rate. For starters, the dollar had its biggest one-day rally since August (which rally went nowhere, to remind you; the dollar wafted slightly higher, then scuddled sideways for nearly a month before resuming its long-term bear market). Another effect of China’s decidedly un-momentous change, which supposedly was aimed at damping real estate speculation and inflation, was that bullion had its worst day in recent memory. Full Story
Do you want to make serious money in the gold market? The large money in gold over the next 12 months is going to be made in gold stocks. Gold bullion at $1000 back in 2008 on the first touching of that key plateau was not the same “gold stock rocket fuel” that it is now. Full Story
By: Richard Daughty, The Mogambo Guru - 19 October, 2010
Junior Mogambo Ranger (JMR) Phil S. sent me a link to an article in The Economist titled “Let’s Get Fiscal,” which is an obvious reference to the song “Let’s get physical,” which is not about, as I originally thought, how you should be holding a lot of physical gold and silver before you start investing in the paper world of ETFs. Full Story
Instead of punching adrenaline through the chest wall again, Dr.Ben's more likely this time to put up a drip (so analysts think), flushing $100 billion or so into the system each month, and reviewing America's vital signs before changing the bag every quarter. Full Story
By: Steven Saville, Speculative Investor - 19 October, 2010
As at the end of September, our preferred measure of US money supply (TMS2) had a year-over-year growth rate of 11.2% and had spent 20 months in double digits. This obviously constitutes substantial monetary inflation, although apparently not substantial enough for the Fed. Full Story
The Federal Reserve’s (Fed) extraordinarily low interest rate policies have encouraged fixed income investors to take on evermore exposure to credit risks. With the global economic recovery looking more and more unstable with every new piece of economic data released, fixed income investors may be following a strategy akin to gambling at the roulette table. Investors may want to be careful not to let this transpire into a bad vacation in Vegas; we are concerned many investors may find themselves left out of pocket, hung-over with a bad taste in their mouth. Full Story
The past week saw gold mining stocks surpass their 2008 high but they did not get much above this level and thus this breakout is not really significant yet. The performance of gold itself was much stronger and on Thursday the mining stocks actually declined on a day when gold prices moved higher. Anomalies such as this are often seen around local tops and this is yet another sign supporting the likelihood that gold’s rally may be coming to a close. Full Story
By: Nu Yu, Ph.D. with Lorimer Wilson - 19 October, 2010
There has been a great deal of excitement about the recent performances of gold and silver with most analysts extremely optimistic regarding their potential. That being said technical analysis shows that gold is in for some very choppy seas ahead compared to the surging seas of the Chinese stock market. Perhaps today the refrain "Got Gold?" should be replaced with the words, "Buy Chinese Stocks!" Full Story
The Gold Report attended the early October Colombian Mining Conference in Medellin, and had the opportunity to speak with Chris Berry, founder of the New York-based mining research firm, House Mountain Partners, LLC, and the highly respected geologist, Miller O'Prey, COO of Solvista Gold Corp. Full Story
By: Dr. Ron Paul, U.S. Congressman - 18 October, 2010
Inflation fears are heating up this week as Fed Chairman Ben Bernanke gave a speech in Boston on Friday, causing further frantic flight into gold by those fearful of the coming “quantitative easing” the Fed is set to deliver in November. Others who view gold as a short term investment engaged in immediate profit-taking after Bernanke's speech. Full Story
By: Peter Schiff, Euro Pacific Capital, Inc. - 18 October, 2010
Congressional Republicans and Democrats are engaged in a heated debate over which Americans deserve not to have their taxes raised, with both claiming that some form of tax cut will stimulate the economy. The primary point of divergence is what type of cuts will be most likely to get Americans spending, and whether the wealthy will wastefully save their extra cash or use it to create jobs. Full Story
The debate is on. People are saying even if there is not deflation, at the same time there is no inflation, which is of course wrong. In the first place, inflation, which is defined as an increase in money supply (not prices), although growth rates are not hyperinflationary, still, they are rising. So, on the most basic level the premise these people are operating under is completely false. Full Story
The Hera Research Newsletter (HRN) is pleased to present the following exclusive interview with Eric Sprott, Chairman, Chief Executive Officer and Chief Investment Officer of Sprott Asset Management LP and Chairman and CEO of Sprott Money, Ltd. With over 35 years of experience in the investment industry, Mr. Sprott is the Senior Portfolio Manager for numerous funds comprising several billion dollars in assets. Full Story
The events of the past few months have been dominated by the decision of the Federal Reserve to undertake a further, massive easing. Since the emphasis will not be on lowering interest rates (because they are effectively zero), it is being called a quantitative easing (an easing by virtue of the quantity of reserves which the Fed pumps into the banking system) and has acquired the name QE2 (quantitative easing 2). Full Story
The Mid term elections are upon us and we thought to consider what impact, if any, they may have on the stock market and precious metals. Whether you call it a recession, or depression, or deflation, or recovery, for tens of millions of Americans there’s little difference. Americans point to the troubled economy as their most burning issue this year when deciding how to vote for 435 House seats and 37 out of 100 Senate seats, according to a nationwide CNN poll. Full Story
By: Rick Ackerman, Rick's Picks - 18 October, 2010
Are stocks and Treasury bonds w-a-a-y too revved-up over the prospect of more quantitative easing? Our good friend Doug B. thinks so, and he is predicting that it’s all about to end badly for the bulls. Americans are about to experience a collapse in the standard of living, says Doug, and there is nothing we can do about it. The good news is that the pain and sacrifice that lie ahead will allow us to rebuild a balance sheet that has left the nation asphyxiated by debt. Full Story
The price of gold is a hundred dollars above its long term moving average line so one can surmise that there is no immediate danger of the gold reversing its long term trend anytime very soon. Shorter term moves may be something else but the long term remains solid. Gold remains above its long term moving average line. Full Story
1st Hour: Headline news & the Market Weatherman Report. Spotlight Stock Picks. Host Chris Waltzek & Bob Chapman, The International Forecaster discussion and answer listener's questions. 2nd Hour: Peter Schiff, Euro Pacific Puru Saxena, Puru Saxena Wealth Management Full Story
The critical issues in America stem from minimally a blatantly ineffective public policy, but overridingly a failed and destructive Economic Policy. These policy errors are directly responsible for the opening salvos of the Currency War clouds now looming overhead. Full Story
By: John Mauldin, Millennium Wave Advisors - 17 October, 2010
There's trouble, my friends, and it is does indeed involve pool(s), but not in the pool hall. The real monster is hidden in those pools of subprime debt that have not gone away. When I first began writing and speaking about the coming subprime disaster, it was in late 2007 and early 2008. The subject was being dismissed in most polite circles. "The subprime problem," testified Ben Bernanke, "will be contained." Full Story
By printing money the US Federal Reserve is devaluing the US dollar and thereby the value of US bonds held by foreigners. If the dollar drops sharply in value as it has over the past few weeks, then the tiny interest payments on bonds make these far from safe assets. The bond holders are losing money. Full Story
By: Bob Chapman, The International Forecaster - 17 October, 2010
Today’s great debate basically between the US and Europe is – should the Fed go full bore by implementing a second quantitative easing? In part it is a moot point, because they have been doing just that in the repo market for four months without letting anyone know what they were up too. Their mandate is to reduce inflation and create full employment. Real inflation is 7% and unemployment is 22-3/4%. Full Story
During the spring and summer of 2010, the price of silver was caught in a trading range of $17.00-19.50. But that all changed at the beginning of September. From a rally low of $17.50 last summer, the price has exploded to the $25 dollar area in barely two months. What happened? Full Story
How can we end the Federal Reserve System? Prior to 2008, this question would have been entirely hypothetical. It is still entirely hypothetical, because the Federal Reserve System is in charge of monetary policy; the Congress of the United States is not. Certainly, the voters of the United States are not. Nevertheless, I wish to indulge myself in a completely hypothetical speculation. Full Story
By: Richard Daughty, The Mogambo Guru - 17 October, 2010
My wife is on the intercom and asking about whether or not I am coming out of the cocoon-like safety of the Mogambo Screaming Heebie-Jeebies Bunker (MSHJB) to have lunch, or maybe get a shower, or say hello to her and the kids, or pick up my mail, and maybe just stop acting So Damn Weird (SDW) for a pleasant change. Full Story
With QE2 apparently coming within the next few weeks markets are shedding off the more common October blues and rallying. Leading stocks moved up quite well during the week as earnings season plays out, and everyone’s favourite search engine reported huge earnings which sparked a major rally after the bell on Thursday. Full Story
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