By: Bill Bonner & The Daily Reckoning Crew - 22 August, 2008
-I.O.U.S.A. - not merely a documentary film…a friend offers some kind words about our part in the film… -Paying a billion dollars for a happy ending…"massive failure of the brains of the economy"… -A room made of tinder - and everyone has a match…and more thoughts from our colleague, Dan Denning… Full Story
By: Peter Schiff, Euro Pacific Capital, Inc. - 22 August, 2008
In football, when a running back intends to cut to the left, he often first fakes right. This move is designed to make the defense commit their resources in the wrong direction. It is my experience that markets often follow a similar path. Just prior to a major move in one direction, markets often make a sharp move in the opposite direction first. With respect to the dollar, gold, oil and other commodities, many on Wall Street have bought into the head fake, and will soon be watching in amazement as the runner sprints to the end zone. Full Story
It’s been a long – very long – wait, but now it looks like it’s time to jump back into uranium. In fact, uranium is looking like it could be one of the best places to have your money over the next year. And there are two trampled down stocks that should perform very well from uranium’s reboom. Full Story
By: Adam Hamilton, Zeal Intelligence LLC - 22 August, 2008
Back in mid-July, as Fannie Mae and Freddie Mac teetered on the edge of collapse, the flagship S&P 500 (SPX) stock index plunged to 1215 on a closing basis. Fears ran high as the markets waited for the next shoe to drop in the ailing financial companies. The near-term outlook for US stocks seemed pretty bleak. Full Story
The recent widespread shortage of silver for retail purchase coupled with a price collapse appears to have shaken these analysts’ confidence that the COMEX silver market is operating ‘fair and square.’ Well it should, since there is no rational explanation for a significant price decline going hand in hand with product shortages other than collusive manipulation. Full Story
Rising U.S. Equities Markets from the September, 2002 lows (or for that matter, the 2005 lows) through the September, 2007 highs lulled some investors and several commentators into believing that they had gains as of September, 2007. Unfortunately, when properly measured, many of these ostensible gains actually are not. Full Story
There has probably never been a better moment to buy UAE stocks and precious metals. Both asset classes have suffered a dramatic and completely unjustifiable sell-off over the long summer months of thin markets, and the upside looks considerable for anybody with the courage to invest. Full Story
By: David Morgan, Silver Investor - 22 August, 2008
We can see from this weekly chart that gold clearly outperformed silver from 1999 until 2003. The gold/silver ratio reached a high near 82 to 1 in early 2003. The trend has been down since then, meaning that silver has outperformed gold from 2003 to present, but not by much. Full Story
By: Jason Hommel, Silver Stock Report - 22 August, 2008
The cost to privately mint 10,000 pieces of silver, would surely cost well over $1 per coin today, with the size of each piece being completely unimportant. Therefore, when you are buying 90% silver dimes, consider that you are paying what might be less than the cost to mint them or make them, and thus, the silver itself, is free. Full Story
It’s no wonder precious metals investors are unloading despite swearing they would not be fooled into panicking when the financial system began to come apart at the seams. Make no mistake; what we are seeing in the gold and silver markets is an all out attack by the financial powers that increased in intensity on July 15th when it became apparent that Fannie Mae and Freddie Mac are, for all intents and purposes, insolvent. Full Story
By: Richard Daughty, The MOGAMBO GURU - 22 August, 2008
The bad news is that their money is all gone, but the good news is that I have effectively doubled our family income if one is allowed (like the government and Social Security) to double-count the money I borrowed from them as still being in their accounts, although I spent it! Accounting magic! Full Story
Once again, crude is leading bullion around by the nose, causing the price of gold to track a presumably doomed energy rally that has been wrongly attributed to “tensions” between the U.S. and Russia. Of course, nothing of the sort is driving oil quotes higher; it is short-covering, is all, and it is unlikely to last. Full Story
Previous articles on the Goldsmiths used the word “interventionalists” to describe them, along with manipulators and other appropriate descriptive terms. Since the word “interventionalists” is not a dictionary word, some explanation is now forthcoming. Full Story
Gold is viewed as tangible money right around the world, and has been for millennia. When the trading herd wakes up to the fact that neither the U.S. dollar nor the euro, nor any other fiat currency, will protect them against the monetary storm that will soon begin tearing the roofs off their cozy offices, they’ll fall all over themselves in the rush for something that will: gold and other tangibles. Full Story
By: Jason Hommel, Silver Stock Report - 21 August, 2008
The silver market is tiny. Too tiny. And the silver price is cheap. Too cheap! Too cheap to motivate Johnson Matthey to make enough bars for us. In silver, the jewelry business is still much larger than the investor market. Silver going into jewelry is still probably about 3-6 times as large as silver going into investment products. Full Story
By: Bill Bonner & The Daily Reckoning Crew - 21 August, 2008
-Private investors are in no mood to ante-up for Fannie and Freddie…gold is only useful because humans are stupid… -More students community college…your editor makes a fool of himself - twice… -Dan Denning reports from Melbourne, Australia… Full Story
The big question now is what propels the markets going forward. While Crude Oil this morning hit its upside objective, Gold and Silver have not and in my opinion have room to move higher, in Gold at least up to the 18-Day Moving Average of Closes. Full Story
Which 'flation will win – inflation and soaring prices...or deflation and a collapse in all things but cash? Richard Russell remarked way back in 2004 that a battle between inflation and deflation then lay ahead. Looks like they're both re-arming today. Private investors fearing collateral damage might want to take cover. Gold bought near $800 an ounce might just provide some kind or armor. Full Story
Some years ago I spoke to a director of one of the large securities houses in London about the issue of independent thinking in the investment world. He said "that does not work, as we have to be careful of several things. (1) We cannot afford to upset the establishment, nor the major players, (2) we cannot go against the major trends, as the traders would be seen as suspect, loose cannons, even if successful. Let me put it this way, the unwritten rule is, it’s better to go to Hell in good company than go to Heaven alone". Full Story
With SLV baskets more like water now than sand, we may see the premier silver ETF go on an absolute gobbling spree in the months ahead. This on top of SLV being possibly one of the most strongly held investment vehicles out there with virtually no decline in its holdings after a 40%+ price drop. The future of SLV and silver could be quite interesting! Full Story
By: Bob Chapman, The International Forecaster - 21 August, 2008
The way to defeat the Illuminists and their plans for The Big Sting Two is to simply sell any and all dollar-denominated, paper assets such as stocks, bonds and derivatives. All interests in gold and silver ETF's and in mint certificates should be gradually liquidated with the proceeds used to purchase gold and silver bullion, coins and their related resource stocks. Full Story
Volatility tends to run very high during years in which the Kress 6-year cycle is bottoming. Volatility has indeed been a major factor this year and it has been years since we’ve seen it as high this year. As I’ll attempt to show you here, this increased volatility can be ascribed to the influence of the 6-year cycle which has been “hard down” this year and is due to bottom in later September. Full Story
By: Richard Daughty, The MOGAMBO GURU - 21 August, 2008
So, from now on, if you ever want to buy some silver, MSS will sell it to you at the lowest price possible; the spot price! All you have to do is just send the money to me, in cash, in a plain brown envelope addressed to 'Occupant', and I will gladly send you a piece of paper that says I sold you some silver. Full Story
With Fannie Mae shares apparently headed for zero, we went bottom-fishing yesterday, looking to catch a dead-cat bounce from a Hidden Pivot at $5.20. The stock fell so hard, though, that we never even got a chance to get in trouble. Our strategy had called for buying October 6 calls for 1.10 if and when Fannie fell to the target. Full Story
The crumbling state of the financial sector comes as little surprise to readers of GoldSeek.com. The rate at which the process is unfolding is causing high levels of anxiety among those who respect the gravity of the situation but confusion within the gold and silver investment community. Despite some short-term disparity I find tremendous opportunities exist in the precious metals markets in the months and years ahead. The ingredients to take gold and silver significantly higher are in place and soon the manipulative forces within the sector will again be overcome thus resulting in an explosive move. Full Story
By: Gary Dorsch, Editor, Global Money Trends - 20 August, 2008
Gold dealers detected a binge of buying from India, after prices fell below $800 an ounce, helping to stabilize the market after a brutal 25% correction from its all-time highs of $1,035 /oz. However, the gold market could encounter resistance until Sept 27th, the end of the fiscal year for 15-European central banks to sell as much as 500-tons of gold. So far, the 15-signatories have sold only 320-tons. Full Story
I believe the failure of all fiat currencies is eminent. The pending nationalization of Fannie and Freddie should be the final nail in the coffin for the banking system as well as the entire fiat money system. The US can't afford to do it, but "the system" can't afford not to do it. This will be "check mate" for the US Dollar. Full Story
By: Bill Bonner & The Daily Reckoning Crew - 20 August, 2008
-The good times are killing us…CDO values are free falling… -Times are getting tight - and they need to get even tighter…is the whole world economy falling into a soft, Japan-like nap? -A calamitous situation on our hands…a tearful good-bye…and more! Full Story
By: Frank Holmes, CEO and Chief Investment Officer - 20 August, 2008
Faced with slowing global growth, macro investors began dumping commodities and commodity-related stocks, with small- and mid-cap stocks hurt the most. This commodities sell-off, which began in July and has continued into August, also corresponds to the long-term seasonal cycle in which prices for many commodities tend to bottom out in late summer before rebounding in the fall. Full Story
By: Jason Hommel, Silver Stock Report - 20 August, 2008
For a long time, people have been asking me, "When will silver run out?". They know that the world uses up more silver each year (about 850 million ounces) than the world mines (about 600 million ounces), and that existing demand can only be met by selling existing inventory (such as recycling 200 million ounces, or goverments selling 50 million ounces), so it's a natural question to ask. Full Story
By: Peter Zihlmann, Zihlmann Investment Management AG - 20 August, 2008
In 2006, the gold price reached a fresh recovery high of $720.1 after a steep rise of roughly 80%. The correction that followed took it down to $560 or 22% before the gold price started to climb again. As per closing price of Friday August 15, gold has fallen 21% from its high reached in January 2008. Full Story
As a young man in the 1960s, it began to dawn on me that the US government was spending money all over the world irresponsibly. It was easy to put two and two together and realize that hyperinflation would ultimately set in and the dollar would be destroyed. It was not a question of whether; but rather only one of when. The when may be very close--here in 2008. Full Story
By: Richard Daughty, The MOGAMBO GURU - 20 August, 2008
I think there's a Big, Big, BIG Freaking Opportunity (BBBFO) for America and Canada to export pork to China! As one hog-industry observer put it, 'The potential for further Chinese importation of pork is almost incomprehensible.' Full Story
There was good news yesterday for all those who mistakenly think inflation is worth worrying about: The U.S. money supply experienced its sharpest contraction in modern history. For the rest of us, this can only spell one thing: ruinous D-E-F-L-A-T-I-O-N. Full Story
By: Bill Bonner & The Daily Reckoning Crew - 19 August, 2008
-A little break is in store for The Daily Reckoning…the premier of I.O.U.S.A. is right around the corner - do you have your tickets yet? -We will stick with our views and investments until we are proven wrong or go broke, or both…the great dollar-based expansion is going to end with a bang and a whimper… -Blunt words on the worldwide credit crisis…a damning article in the Post…and more! Full Story
By: Fitzroy McLean, Without Borders – Casey Research - 19 August, 2008
The following points are likely subject to question and interpretation: 1) What’s causing this, 2) How bad can it get, and 3) What can be done to limit its effects? It seems clear to us that the political and media establishment have jumped immediately to question 3 without really stopping to consider the first two. Full Story
By: Jason Hommel, Silver Stock Report - 19 August, 2008
This is an opportunity that is available only to those people who actually have silver. This opportunity is not available to those people who have paper silver, nor is it available for people who write for companies who claim to have silver. Full Story
So I will be sitting out this market madness while opportunists will be piling into gold and silver for the next round of the bull run. Even the US dollar rally is bad for exporters who have been the only thing keeping the US out of recession. This downturn has much further to go and systemic failure will be the catalyst for very much higher precious metal prices. Full Story
By: Steven Saville, Speculative Investor - 19 August, 2008
Over the long term there should be a relationship between the US$ gold price and the difference between the rates of dollar and gold supply growth. However, using this relationship to determine a correct value, or "theoretical price", for gold is fraught with pitfalls because assumptions must be made that aren't necessarily correct. Full Story
Perhaps the most important goldsmith of all time was Mayer Amschel Bauer-Elhanan of Frankfort, Germany in the mid 18th century. As had been true for ages with his relatives and associates, Mayer decided to change his name to one which would be more useful in deceiving and cheating the local people of Germany. Mayer chose Rothschild (meaning a red sign or shield). Thus, the famous international banking house of the Rothschilds came into being. Full Story
In order to understand where you may be going, it is important to understand where you have been. Nowhere is this more true than in silver. The historic price sell-off, coupled with the obvious shortages in almost all forms of retail physical silver present the lessons of a lifetime. I believe that how we learn from this lesson will determine our future financial situation, good or bad. Full Story
By: Richard Daughty, The MOGAMBO GURU - 19 August, 2008
All of this unemployment must be impacting demand for goods and services, which may be what prompted Jim Sinclair of jsmineset.com to ask a lot of questions, including 'Do you really believe that present inflation is demand driven?' Full Story
Even when crude was down by $2 a barrel yesterday traders were unable to rally stocks, so worried were they about the rapidly deteriorating condition of Fannie and Freddie. What a difference a day makes! For the last month or so, it almost seemed as though Wall Street had forgotten that the two mortgage Leviathans even had a problem. Full Story
By: Bill Bonner & The Daily Reckoning Crew - 18 August, 2008
-The meltdown of gold and commodities continues…foreclosures are still on the rise in California… -The curious way in which statistics become confused with knowledge…where is tomorrow's surprise coming from? -Reports of inflation's death may have been exaggerated…why your editor is an 'anti-social fuddy duddy' and more! Full Story
Talk of failures and bank holidays is becoming increasing wide spread as each day passes, with good reason. Combine this with the fact it appears both price managers and the market itself are out of touch about the possibilities, and this increases potential for a 'self-fulfilling prophecy' in this respect. Full Story
Confusion reigns supreme as markets correct, in predictable manner, allowing the Main stream financial press, G7 central banks and poorly prepared investors dream of the days when the financial wind was at their backs, rather then brutally in their faces. Full Story
THE SHARP DROP in world gold prices starting in late July knocked the cost of physical metal more than 20% off its record top of mid-March at last week's low point. That level – just above $750 per ounce – also happens to sit right where the uptrend starting in Sept. 2005 now lies. Meaning, for technical analysts at least, either a test (and perhaps collapse) of the bull market...or a screaming opportunity to Buy Gold on the cheap. Full Story
By: Roy Martens, Resource Fortunes LLC - 18 August, 2008
We’ve witnessed metals and mining stocks plunge in the past, but hardly with as much vengeance as we’re experiencing now. Could this be the end? Or is this just the great shake out before the next stage of the bull market can begin? To attempt at answering this question we will look at the charts for Gold, Silver, Oil, and the US Dollar in order to try and establish a clear(er) view of what is taking place. Full Story
It looks likely that gold and silver have bottomed. Although I thought a sharp August sell off was probable, the severity of this week’s drop was a bit more than I anticipated. I started buying heavily once silver hit its 300 DMA and bought more around $14.50. I also finished purchasing a lot of quality mining companies in the past week and a half. Full Story
Here, the question must be asked--how is it possible that these prices can collapse in just a matter of days? For the answer, one must address the subject of the historic goldsmiths and how they are still around today and still making money--like never before. This article and two succeeding ones will broach this theme. Full Story
By: David Bond, Editor The Silver Valley Mining Journal - 18 August, 2008
Ask delivery of $12.80 silver and $790 gold, today. There are 300 million of us. A single ounce of physical silver for every man, woman and child in the United Snakes would squeeze these rat-bastards harder than the Hunts could ever do. There were two Hunt brothers in 1979. There are 300 million of us in 2008. Even in this country, there aren't enough jail cells to hold us all. And we could take their pants off, once and for all. Full Story
By: Jason Hommel, Silver Stock Report - 18 August, 2008
Many people agree there is a shortage of retail investor silver, but they get confused by the lower price. They think a lower price means more silver must have come into the market. That is not how our markets work. Our markets are affected by paper silver futures contracts, and very few people ever attempt to take delivery of that silver, they buy it on leverage, for the investment returns, not for real silver. So, some people can sell "silver promises" to excess, and never deliver, and if they sell more "paper silver" than exists, that can manipulate the price. Full Story
Well I guess this past week will be remembered for both gold and silver, with silver declining twice as fast as gold. Stocks also took a bounding but they have been taking a bounding for some time now. What next? That’s really the $64 question. Full Story
Another week, another waterfall decline in precious metals. This week I am looking at the three year chart to get an idea of where support may fall since all shorter term charts are useless after the falls. Full Story
1st Hour: Headline news & Market Weatherman Forecast. Spotlight Stock Picks with big dividends. The International Forecaster and Host Chris Waltzek answer listener questions. 2nd Hour: -Jim Rogers Full Story
By: Bob Chapman, The International Forecaster - 17 August, 2008
Gold is more oversold than in June of 2006. This is the sharpest correction in the 48 years I’ve been tracking these markets. In May and June gold fell 25% and silver 41%. The HUI fell 33% and this time silver 35%. As we said it is de-leveraging, central bank lease-sales and naked shorting. When real interest rates, that is bond yields less CPI, gold soars. The rate is minus 0.3871, which tells us that the Fed may be planning to drop interest rates. If that were to happen gold would rocket, which could explain the preemptive gold attack. Full Story
The extent of the losses in some of the largest banks and financial institutions is only now coming to light. When you think that Citicorp, America's largest bank, has lost over $55 billion in the last year as a result of subprime mortgage losses, you begin to get a sense that all is not well. Merrill Lynch lost $52 billion. UBS, the Swiss bank, lost $44 billion. On and on the list goes. Full Story
By: John Mauldin, Millennium Wave Advisors - 17 August, 2008
Today, we look at evidence that this might not quite be the case. And if it is not, those who look for diversification in global markets may be disappointed. Also, I quickly look back at my January forecasts and feel it may be time for a mid-course correction. It seems I may have been a little too optimistic. It should make for an interesting letter. Full Story
By: Richard Daughty, The MOGAMBO GURU - 17 August, 2008
And with a fiat currency and a demonstrated willingness on the part of Congress, and every other government on the face of the planet, to abide every possible corruption…they can spend and spend and spend, and it will never end until it collapses in a Big Stinking Heap (BSH)! Full Story
The carnage has been worst in silver, down 43 percent from high to low since peaking on St. Patrick's Day. Platinum has fallen nearly as much, 40 percent, trailed by gold, off 26%. We wish we could assure readers that the worst is over for this correction – and it's possible that it is, given that September Gold on Friday bottomed within a dollar of the 778.80 target sent out to subscribers the night before. Full Story
We are not a third of the way through the current credit crisis. The subprime debacle was the tip of the iceberg. Fannae Mae and Freddie Mac exposed a bit more. Guesstimates of the costs started at $1 trillion, now they are up to $2 trillion. I would not be surprised to see $3 trillion or more. Waiting for the next shoe to drop, and thinking it to be the last, is like Imelda Marcus running out of shoes. Full Story
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