By: The Gold Report and Alain-Jean Beauregard - 23 December, 2011
While many jurisdictions are working hard to prevent mining or mineral exploration, the province of Quebec is encouraging it. In this exclusive interview with The Gold Report, Alain-Jean Beauregard, founder of Geologica Inc., a geological consulting firm based in Val-d'Or, talks about the shining future of gold mining in Quebec. Full Story
Why anyone would rather stuff their Christmas stockings with fiat currency than with physical gold is beyond understanding. To us “dash for cash” seems rash. There has certainly been very little Christmas cheer for gold bulls recently. The beating is tough, but it’s not the first time we’ve experienced it, nor is it likely to be the last in a secular bull market that has still has years to run. Gold takes four steps forward and then three back. We just have to stay in the game. Full Story
By: Adam Hamilton, Zeal Intelligence - 23 December, 2011
Recession is a four-letter word in the financial markets, striking terror into the hearts of everyone. And if reports since August are to be believed, there is a recession hiding behind every tree. For a myriad of reasons, economists have argued we are due to plunge into the next one any day now. But speculators and investors have to understand how recession talk is spawned, sometimes leading to recession crazes. Full Story
The bottom line is to be patient with your chosen management teams. If a company’s goals for its projects are being met and management is increasing shareholder value while successfully telling their story then your patience will be rewarded. You need the confidence that stems from having a thorough understanding of the reasoning behind your investment and the story management is painting. Have the patience and discipline to watch and monitor and not jump ship to play the latest flavor of the month or hot tip – it’s best to ignore the cheerleaders. Full Story
I must admit that I do not prescribe to the 2012 end of the world or end of an era phenomenon; however, my recent analysis suggests that 2012 could indeed be a very significant year. I have been following a fractal (pattern) on the Dow chart for the last couple of years. I have written about it before, in a previous article. Basically, the Dow chart is forming a similar pattern to that which was formed in the late 60s to early 70s. If this pattern continues in a similar manner to that of the late 60s to early 70s pattern, the Dow could indeed have an annus horribilis (horrible year). Full Story
By: Terry Coxon, Casey Research - 22 December, 2011
By keeping all your assets in the country where you live, you commit, ahead of time, to ratify whatever policy your home government might adopt, no matter how objectionable, unreasonable or pernicious that policy happens to be. If the next new mandate is "Register today to get a nail pounded into your head," you're already signed up. Full Story
Claims that the gold bull market has ended are incorrect. One of the main causes of recently lower precious metals prices is the fact that the U.S. dollar has strengthened against the Euro. Since the U.S. dollar is the world reserve currency, a stronger dollar lowers the U.S. dollar prices of global commodities. Also, financial flights to safety, e.g., out of the Euro or European sovereign bonds, temporarily increase demand for U.S. dollars and U.S. Treasuries, strengthening the U.S. dollar against other currencies and lowering U.S. Treasury yields. Full Story
At the beginning of 2011, analysts everywhere championed a "renaissance" of nuclear power. The Japanese tsunami and subsequent Fukishima nuclear accident in March challenged market sentiment; spot prices and stocks alike suffered setbacks. The Energy Report has been there for the entire wild ride, interviewing industry experts, sharing sector news and scouting out the best companies for any market. Read on for a retrospective of expert commentary on this still-promising sector. Full Story
Rising U.S. Equities Markets from the September, 2002 low (or for that matter, the March, 2009 low) through the Summer, 2011 highs lulled some investors and several commentators into believing that they had Real Gains as of May, 2011. Unfortunately, when properly measured, many of these Ostensible Gains actually are not. Full Story
There is no significant decoupling in our current global economy. As I am typing this, the Chinese stock market (Shanghai Index or $SSEC) is making new lows (intraday basis) for the current decline it has been undergoing. Is the Chinese market signaling what comes next for developed stock markets like the US and Germany? Is the tail predicting what the dog will do? I think it is. Full Story
Americans are living in a world of central bank profligacy. This has been true ever since 1914, when the Federal Reserve System opened for business. But the most recent bank-created economic crisis, which began in December 2007, has received more attention than ever before. This is mainly the result of Ron Paul's 2007 candidacy for the Republican nomination for President. He warned that this crisis would happen. He also spelled out the reasons: Federal Reserve policy. Then the crisis hit. Full Story
By: Rick Ackerman, Rick's Picks - 22 December, 2011
U.S. markets appear to be trudging wearily toward the finish line as 2011 draws to a close. With seven more trading days to go, the broad averages went flat yesterday after uncorking one of the biggest rallies of the year the previous day. Gold and silver futures did likewise, running up sharply into the wee hours before succumbing to the pull of gravity. Both ended the day little changed. We have our doubts that stocks have merely paused to regain strength for another big thrust. More likely is that Tuesday’s price explosion was driven mainly by panicky shorts caught off guard by news that Spain’s latest debt auction had gone reasonably well, and that housing construction in the U.S. upticked. Full Story
Divergence between paper gold and physical gold price is happening, the process begun. Actual physical shortages have kept the price up. The naked shorting of futures has kept the paper price down. The fraud cases and lawsuits, with no hint of prosecution, provide the levered force to create much wider divergence, as traders and entire firms depart the tainted crime scene that is the COMEX. Trust has vanished along with private accounts. At the center of the backdrop for the divergence, apart from the criminal events, is the economic deterioration and asset market downdraft. It leads to margin calls, loan payment obligations, fading investor confidence, negative sentiment, and a desire to avoid loss. Full Story
By: The Gold Report and Eric Sprott - 21 December, 2011
On November 30, Eric Sprott, chairman of Sprott Inc. and one of the largest holders of physical silver and silver equities globally, issued a call to action to 17 of the world's largest silver producers to limit the sale of the metal until prices increase. In this Gold Report exclusive, we asked the activist investor and insiders what impact such a declaration could make in one of the most volatile subsets of the resource sector. Full Story
Paul Krugman’s article in the December 15 issue of The New York Times under the title G.O.P. Monetary Madness takes G.O.P. presidential candidate Dr. Ron Paul to task for his ‘ideological’ stand on money. For excellent reasons, not all of which had to do with fear of a Zimbabwe-style hyperinflation, the Constitution explicitly prohibited manipulation of the dollar such as Bernanke’s threefold increase of the monetary base in three years. Full Story
There are clear signs of a liquidity crunch in the asset markets right now, and the question I keep hearing is, Is this 2008 all over again? No, it’s worse. Much worse. In 2008 there was a lot more faith and optimism upon which to draw. But both have been squandered to significant degrees by feckless regulators and authorities who failed to properly address any of the root causes of the first crisis even as they slathered layer after layer of thin-air money over many of the symptoms. Full Story
Assessing the relative levels of greed and fear in the market at a given point in time is an effective way of timing the market. This article outlines the 6 most popular momentum indicators and concludes that trading gold using just 3 of the indicators would have generated an annual return of 39.6% compared to the YTD buy-and-hold return of only about 13%! Let me explain how, why and where they should be used and examine their specific application relative to the price movements in gold and the HUI. Full Story
By: Bob Chapman, The International Forecaster - 21 December, 2011
Debt repayment is a subject few want to discuss, or that few understand. We know most of the largest banks in the world are broke along with at least 6-euro zone nations. There are many others, but the most concerning are the debts of major nations, which are supposedly solvent. Needless to say the US is deeply indebted and the Super-Congress Enabling Committee couldn’t even lay politics aside to cut spending increases. Full Story
By: Jeff Clark, Casey Research - 21 December, 2011
It wasn't a fun week for gold. By the close on Friday, the metal was down 6.7% (based on London PM fix prices), the biggest weekly decline since September. It got downright irritating when the mainstream media seemingly rejoiced at gold's decline. Economist Nouriel Roubini poked fun at gold bugs in a Tweet. Über investor Dennis Gartman said he sold his holdings. CNBC ran an article proclaiming gold was no longer a safe-haven asset (talk about an overreaction). Full Story
It's clear that Europe's debt problems can now be wrapped up into the term credit crunch. In light of operations by the Federal Reserve, the amount of money available for credit appears to be shrinking, while risk premiums demanded by banks are thickening. Full Story
The European Central Bank loaned 523 banks an unprecedented $645 billion over three years at just one per cent in a new initiative to keep the banking system afloat. That so many banks were prepared to borrow so much just underlined the gravity of the crisis in the eurozone which it still far from resolution. Full Story
By: Rick Ackerman, Rick's Picks - 21 December, 2011
U.S. stocks showed unbridled enthusiasm yesterday for the changing of the guard in North Korea, tacking 337 points onto the Dow Industrial Average. Could heir apparent Kim Jong Eun be the Man of Peace the world has been waiting for? It sure looked that way on Wall Street, where a wave of optimism about something fabulous swamped sellers from the opening bell. Full Story
One thing that is intriguing about the precious metals sector is the vast composition of the companies in the sector. The entire equity sector can be divided in so many forms and ways. We can divide the gold and silver stocks, the producers and non producers, the explorers and the developers, the royalty companies and non-royalty companies as well as those making money and those not making money. To make money in this sector one really needs to have a plan and know what they are doing. Specifically, one needs to define an investment and a speculation. Full Story
All eyes are now on China as a source for consumer strength in the developed world. Customs data released on December 10 tells a concerning story - China's overseas shipments are growing, but at their slowest pace since 2009. Full Story
By: Euro Pacific Capital Research - 20 December, 2011
Commodity prices can be very volatile, oftentimes more so than just about any other asset class. These large price swings, which have been particularly evident in recent years, have given commodities their reputation for high risk. Those investors who lack a large buffer of disposable risk capital are repeatedly advised to steer clear. But for those investors who can bear the risk, and who look to invest in commodities as an inflation hedge, there is some evidence to suggest that commodity prices move in long term "supercycles," which play out over years and even decades. By observing and understanding these movements, these investors may be able to be more strategic in their approach. Full Story
SO 2012 will mark the fifth anniversary of the global financial crisis. There's little reason to think it's reached its end yet. Merry Christmas. Banking and household leverage in the rich West has barely ticked lower from the credit bubble's historic peak of 2007. Financial leverage has only been reduced by a fraction, while governments have been stuffed like a French goose with that new debt spurned by the private sector since 2008. Full Story
For all practical intents and purposes, is there is anyone left with gold to sell, to drive prices lower, that hasn’t sold already? Many investors think gold is going down to around $1400, and then to $1000, and they plan to buy at those prices. Then gold will rise to new highs, making them happy. Perhaps that will occur, but perhaps at gold $1000, numbers like $300 and $400 an ounce will be discussed very seriously by the pundits, creating even greater levels of fear amongst amateur investors. Full Story
By: Steve Saville, The Speculative Investor - 20 December, 2011
Last week's price action proved that the correction/consolidation in the gold sector that began in December of last year is still in progress. The following weekly XAU chart shows that it has been a 'water torture' type of correction in that the decline has been slow, but relentless. Full Story
By: Rick Ackerman, Rick's Picks - 20 December, 2011
It’s getting a bit late for a Santa rally, but you can’t blame DaBoyz for trying – trying every night, actually, after most U.S. traders have gone to bed and there are almost no sellers to resist the stock market’s natural buoyancy in a time of unprecedented monetary easing. We’ve lost track of how many times in the last month index futures hit their highs in the wee hours, only to fall into the red during the regular trading session. It happened yet again Sunday night when the E-Mini S&Ps wafted the equivalent of 90 Dow points higher on volume-less trading before dropping sharply to close off a hundred points. Full Story
Gold stocks have historically ranked among some of the most volatile asset classes. Over any given one-year period, it is a non-event for gold stocks to move plus or minus 38 percent. This DNA of volatility is about three times that of gold bullion, which carries an annual volatility around 13 percent. Full Story
By: Chris Powell, Secretary/Treasurer, GATA - 19 December, 2011
Market analyst Paul Mylchreest's latest Thunder Road Report, published today, elaborating on and denouncing the socialism and fascism destroying Western economies with market intervention, quotes GATA sources at length. Full Story
By: The Gold Report and Dale Mah - 19 December, 2011
This year has been difficult and confusing for many investors in the resource sector. Despite that, many junior companies with credible projects have continued to show good progress toward future production. In this exclusive interview with The Gold Report, Dale Mah, equity research analyst with Mackie Research Capital, talks about the general market environment and discusses his selection criteria. Full Story
By: Dr. Ron Paul, U.S. Congressman - 19 December, 2011
The economic establishment in this country has come to the conclusion that it is not a matter of "if" the United States must intervene in the bailout of the euro, but simply a question of "when" and "how". Newspaper articles and editorials are full of assertions that the breakup of the euro would result in a worldwide depression, and that economic assistance to Europe is the only way to stave off this calamity. These assertions are yet again more scare-mongering, just as we witnessed during the depths of the 2008 financial crisis. After just a decade of the euro, people have forgotten that Europe functioned for centuries without a common currency. Full Story
The latest short position report for stocks was released earlier in the week for positions held as of Nov 30. This was the report that I had speculated would show a decline in the short position of SLV, the big silver Exchange Traded Fund (ETF). Contrary to my expectations, the short position for SLV increased by more than 2.2 million shares to 25.2 million shares. This represents almost 25 million ounces of silver. Full Story
Our work with Gold is based on a “Model” off the late 70’s Gold Bull that has been replicating nicely since we started the Fractal Work with Gold back in 2002 and 2003. Short-term volatile moves in Gold, as we have seen over the past weeks, do not affect our projections based on the model, leaving the expectation of a move in Gold up to $3,000 into mid-year based intact as outline in our previous article entitled Gold Tsunami: on the Cusp of $3000+? Full Story
Orwell would be amazed – disgusted and amazed – things have gotten so out of control in the West today. Because increasingly, for the average citizen, it’s like chapter and verse from his classic Animal Farm, once used as a standard in all classrooms to teach children of the horrors associated with communism, the ‘demon of the day’, used by still maturing Western bureaucracies all those years ago. But alas, throughout the years something has gone terribly wrong, the lessons forgotten, the teachings replaced with ideals of why dictatorial conformity is good, and why you should think like a barnyard animal. Full Story
Whenever one gets a huge washout breakdown day, as was experienced in the gold market on December 14, the gold bears come out of the closet declaring that the gold bull is dead. Well-known columnist and analyst Dennis Gartman did so the day before, declaring that he was out of gold and that he is seeing "the beginnings of a real bear market, and the death of a bull." Mr. Gartman was not the only one, as others were also touting the end of the gold bull market and saying that the bubble had burst. Full Story
By: Rick Ackerman, Rick's Picks - 19 December, 2011
Does the chart below of the Dow Industrial Average make you feel bullish? Bearish? Neutral? We’re not sure ourselves. Although we’ve been using technical analysis for nearly 40 years, the chart doesn’t speak to us. At best, it leaves us with only a moderately bullish bias for the near term – and a vague feeling that the meaningless price swings that have ruled the markets in 2011 could continue for longer than we would care to imagine, let alone explain. Full Story
GUESTS: James Turk, GoldMoney.com Louis Navellier, The Little Book That Makes You Rich Gerald Celente,Trends Research Institute Peter Grandich,The Grandich Letter Full Story
Last week saw a severe breakdown in the Precious Metals sector that is now viewed as marking the start of a bearmarket, and that means the onset of a deflationary episode that is likely to prove more serious than that we witnessed in 2008, because it will involve countries going bust rather than "just" banks and large corporations as was the case in 2008. Full Story
By: Bob Chapman, The International Forecaster - 18 December, 2011
The Fed’s third quarter audit data shows a total system debt of 355% and of GDP, in spite of so-called de-leveraging. It is down from the second quarter’s 375% of GDP, but up from 264% a dozen years ago. Financial sector borrowing fell almost 50% in the quarter but non-financial debt increased while financial debt fell – a push so to speak. Unfortunately most of the debt growth emanated from Washington. That growth was $557 billion, of at a 14.1% annualized rate. Of course, what the federal government is doing is the antithesis of what they should be doing. Will these borrowings and debt continue, of course they will. Full Story
By: John Mauldin, Millennium Wave Advisors - 18 December, 2011
This coming week we shall likely see Congress pass an extension of the "temporary" payroll tax cut, first enacted as a stimulus to the economy in January of 2011. As I write, the extension is just for two months. We'll leave aside the politics and look at the economic implications of the extension, and then go on to examine the deficit in the US. Full Story
Precious metals investors are counting their losses this weekend but should remember that we saw the same kind of sell-off and then recovery in 2008. If you have no stomach for such volatilty you should get out of this asset class. Full Story
It was another pretty tough week and doubly so in the precious metals arena with the metals being hit hard and the shares being hit even harder. This is being compounded by the forces that be not wanting precious metals higher during this time of crisis as well as tax loss selling en masse right now in the mining sector. Full Story
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