What is billed as the world’s largest gold factory is set to open in Jeddah in the Kingdom of Saudi Arabia before the end of the year, reported Arab News. Taiba for Gold and Jewels Company’s 220,000 sq ft facility is already under construction, and will employ 800 when completed. Full Story
Gold bulls continue to say that the current pullback is merely a buying opportunity. I think they’re right in terms of the long term picture, but as a futures market analyst my current position is that a shorter term trade top has been made. How long the top stays in place remains to be seen. But I see it as being in place. Full Story
By: John Browne, Senior Market Strategist at Euro Pacific Capital - 7 January, 2011
While the markets have known for almost three months that the 2010 election delivered the House of Representatives to the tea-infused Republican Party, I did expect a greater reaction on Wall Street to the formalities of the opening sessions of Congress yesterday. Full Story
We must all work for a hard currency system. I’ve described how that works, with the free exchange of gold for electronic credits and silver for electronic credits. It’s debt and fraud that destroy the productive man and woman. Under a hard currency system, those who have stolen our wealth through fraud will have to give it back in exchange for real goods and services. Wealth will flow to the productive. Full Story
There is much talk and concern presently in the gold and silver businesses over the fact that the big bank manipulators have been selling huge quantities of both gold and silver futures and call option contracts short (actually naked shorts). Certainly, there are more silver short contracts held by the big Cabal banks than there is available silver in the world. Rothschild linked JP Morgan Chase in particular has captured the attention of many people with its huge short position in silver. It even prompted much publicity from a London newspaper with a story entitled—Want to crash JP Morgan Chase? Buy Silver. Full Story
By: Richard Daughty, The Mogambo Guru - 7 January, 2011
As an example of the kind of sheer monetary insanity that is happening all around us and that is going to destroy the United States of America, and probably most of the world, too, the national debt of the United States of America hit a new, all-time record: An astonishing $14,025,215,218,708.52, which can be more conveniently referred to as $14.025 trillion, and which works out to a debt of $140,252.00 for every non-government worker in the Whole Freaking Country (WFC), the interest on which (at 5%) is $7,012.60 for each of those selfsame non-government workers. Per year! Full Story
As far as gold is concerned, the continued concerns over sovereign solvency - not the eurozone in particular, but globally, combined with the U.S drive to achieve growth at any cost, make the yellow metal worth considering. What's in your vault? Is your yellow brick road made of dreams or gold? Just because policy makers are dreaming, doesn't mean investors need to. Full Story
Having dwelt a lot on the topic of the gold:silver ratio from a technical and quantitative standpoint in our earlier essays, it is about time we examined the ratio fundamentally. In the strictest sense of mean reversion, the ratio between gold and silver should follow a straight line over time. However, as observed in the previous article, the ratio not only has a wide range but also fluctuates between extremes. This means that the prices of gold and silver are perceived differently in different market conditions and a concept of mean reversion is not enough to interpret the gold:silver ratio. Full Story
By: Jeff Berwick, The Dollar Vigilante - 6 January, 2011
The news that Paul Volcker plans to step down from a "panel of experts" advising Barack Obama today will likely whip market participants into a bit of a frenzy analyzing what this could possibly mean. But, the problem with their conclusions will be that they are starting from an incorrect premise. The great majority of market participants believe that Paul Volcker was responsible for ending the inflation of the 1970s. And, as usual, the great majority of market participants are wrong. Full Story
By: Richard Daughty, The Mogambo Guru - 6 January, 2011
I have to admit that I get awfully tired of people writing to me and asking, “Are you as stupid as you look and sound?” mostly because I have truthfully answered “Yes” to this question so, so many times that I thought it was, you know, common knowledge by this time. Full Story
By: Rick Ackerman and Cam Fitzgerald - 6 January, 2011
Cam Fitzgerald posted the following essay in the Rick’s Picks forum, but I am presenting it as a guest commentary because it discusses the all-too-real implications of America’s economic crisis so bluntly. Many of you, even the pessimists, will be troubled by this grim jeremiad, and some will disparage its conclusions. But four years into what has come to be known, probably euphemistically, as the Great Recession, it is time we asked ourselves whether a collapse indeed looms that could prove equal to what we have imagined in our most troubled moments. Full Story
By: The Gold Report and Mike Niehuser - 5 January, 2011
As we start the new year, Rock Research Founder Mike Niehuser has doubts about growth and believes that inflation may spook stocks and bonds. In this exclusive interview with The Gold Report, Mike recommends looking for leverage to the metal price through investment in exploration and development metal stocks with large world-class assets. Full Story
Excluding 2001, the average gain is 20.4%. Tossing out the additional weak years of '04 and '08, the average advance is 24.8%. So we can make some projections based on what it's done over the past 10 years. From the 12-31-10 closing price of $1,421.60, if gold matched… Full Story
Heaven knows there are a myriad of good reasons for Western stock markets and other equity prices to be falling, and of course for the most part they are in real terms when measured against gold as the ultimate benchmark. We have Europe under increasing fiscal stress and rioting because of this (coming soon to a theatre near you); Chinese stocks looking very toppy; along with what looks to be a trend change from top to bottom in the debt markets that promises to turn into a global contagion likely sooner than later with all the money printing going on today. Of course all the problems listed above can be attributed to the global fiat currency economy that has been running loose since Nixon officially went off the gold standard back in 1971, where now fully matured, we are witnessing it’s death spiral, and what will probably amount to an end to the Fed within the full measure of process. (i.e. this is the ultimate reason you want physical gold and silver.) Full Story
By: Bob Chapman, The International Forecaster - 5 January, 2011
With Ben Bernanke as our Shepard how can we go wrong? He tells us quantitative easing is not inflationary. He says that with assurance because he knows all the CPI statistics are as realistic as a Madoff Ponzi scheme. He also tells us he doesn’t create money out of thin air. He fails to mention that he does so digitally. His job is to further enrich the elitists who own the Fed and want to create a new world order. Prices are up 6-3/4% across the board as official inflation has only risen 1.2%. Full Story
Heading into 2011, the consensus outlook on precious metals is slightly positive but the consensus believes that higher interest rates will ultimately support the US currency and in turn engender a move out of Gold. The Gold naysayers are using “rising rates” as a way to dismiss Gold. Let me explain why this belief is not only false but utterly dangerous. Full Story
The truly staggering valuation of $50 billion that Goldman Sachs has placed on Facebook, the Internet social networking website is significantly higher than the estimated $30 billion value of silver held in the vaults of the world. Does this mean that Facebook is hugely overvalued in a tech stock bubble reminiscent of the 2000 crash? Or that silver is massively undervalued as a commodity that still trades for less than its all-time high 30 years ago? Or both? Full Story
You know the arguments for gold as money. So why am I touting gold as the magic elixir to save the transaction processing system of the world? Why not just pass around gold and silver? Why not come up with pseudo currencies to feed into the transaction processing system? Full Story
Safe and stable? The Fed doesn't explain what they mean by these terms. Can we say that a currency is safe and stable if people use it in everyday transactions? If so, then there's no question the Federal Reserve Note is at least somewhat safe and stable, because people, in spite of their complaints, have not abandoned it for anything better. True, legal tender laws force Americans to accept the Fed's money regardless of what they might prefer, but history shows that people will abandon the legal tender currency if it becomes too worthless or inconvenient to perform its function as a medium of exchange. Though we're not to that point yet, we've been heading in that direction since the Federal Reserve first rolled up its sleeves. Full Story
By: Richard Daughty, The Mogambo Guru - 5 January, 2011
The lights of the Mogambo Security System (MSS) glowed dimly in the gloom of the bunker as I cowered in the darkness, and there were no sounds except the thumping, thumping, thumping of my terrified heart at The World Outside (TWO), a place I consider to be a vicious, hostile environment containing not only enemies of every sort, both real and imagined, but family members who want to know if I am coming out for dinner, or to tell me that someone is on the phone for me, or that somebody is going to greedily eat the last of my treasured Double-Stuf Oreos, somehow trying to get me outside and into their clutches so that they can take all my money and ask me to sign various forms and documents. Full Story
So accustomed have we become to seeing bullion’s worst days matched lurch-for-lurch by the stock market’s that yesterday’s chastening of gold and silver bulls, if no one else, came as a rude surprise. Up until now, the exhilarating pleasure of watching the stock market get the crap kicked out of it whenever gold and silver were falling was our consolation prize. Yesterday, however, with gold down nearly $50 at one point and trading $42 lower at settlement, the Dow thumbed its nose at bullion bulls by rising a token 20 points. Ouch! Full Story
By: Julian D. W. Phillips, Gold/Silver Forecaster - Global Watch - 4 January, 2011
Germany is the richest and most powerful nation in the Eurozone and the most important lender on the bailout scene. But how far can they go before they have lent too much and how far can the Eurozone go before it too, is overextended in helping the distressed members of the E.U.? What then? Full Story
By: Terry Coxon, Editor, The Casey Report - 4 January, 2011
You’ve seen the proof in real time. Once-dominant industrial companies, e.g., General Motors, can run out of money. The biggest banks, e.g., Bank of America, can run out of money. Even sovereign governments, e.g., Greece, can run out of money. Yes, all those organizations are still limping along, but only after being rescued by other giant institutions, such as the U.S. government, the less unhealthy European governments, the European Central Bank, and the International Monetary Fund. Full Story
The debt crisis that has taken down banks and even countries threatens more than 100 American municipalities this year. According to Meredith Whitney who works as a US research analyst, local and state debts are the biggest concerns to the US economy today. It is large enough to derail economic recovery. She said that, “There’s not a doubt on my mind that you will see a spate of municipal bond defaults. You can see fifty to a hundred sizable defaults – more. This will amount to hundreds of billions of dollars’ worth of defaults”. Full Story
As we embark on 2011, gold continues to climb and investors are questioning its future price direction. Is gold in a bubble? Have the price gains of the last decade-which beat out stocks, bonds and several other favored asset classes- peaked? Did today's investors miss the opportunity to buy? Full Story
By: Peter Schiff, CEO of Euro Pacific Precious Metals - 4 January, 2011
Last month, I addressed the hype around gold confiscation, and debunked the myth that collectible or numismatic coins would offer effective protection. But there is another sales pitch that many dealers will use while trying to "up sell" you to numismatics. They may argue that on investment merits alone, numismatics are a better bet. While this may be a more rational line of thinking than the typical confiscation con, it is bad advice for investors hoping to protect their assets in an economic slump. Full Story
Today’s move down to $1407 has filled those buys in the 1430-1410 zone, and brought the bigger 1310-1370 range back into play. Note the gold pyramid shown in this 2nd look at the gold price. That’s in play now. Feather your risk capital into price, starting now, allocating ever-more capital into price down to approx $1360 or $1350, if it happens. Full Story
Upon finishing the report, I find myself feeling a bit more bullish on the immediate term than I was before I started writing. If I had to take a guess, I would lean toward continued bullish activity in most everything outside of the USD, which sports a chart that does not look very good. But at some point there should be a strong reversal and with any luck at all, we will be able to find some negative divergence somewhere to indicate its impending arrival. Full Story
Millions of people out there looking for the truth about what is wrong with our economy, our political system, our corporate ecosystem, have found a black hole of despair on the internet. Yes, the world is messed up. You already know that. What you need to understand is that there is a solution. As this drama plays out, the people who have brought this mess down upon our heads will grab for the same solution as everyone else. Full Story
By: Richard Daughty, The Mogambo Guru - 4 January, 2011
I was intrigued that a guy named David Thurtell, of Citigroup, surprisingly said, “The liquidity pumped out by central banks means that there is a lot of money sloshing around that needs to find a home.” I was so intrigued that I was tempted to use it as the basis for my first report to the new supervisor for this quadrant of the galaxy, Karpus Klegg the Implacable, at his new office at Intergalactic Headquarters after the “palace coup” and interstellar personnel shake-up that I just found out about. Full Story
The savviest financial advisor we know has been buying municipal bonds hand-over-fist, but this time we can’t say that we share his confidence. Our friend Doug is a bear’s bear, an outside-the-box thinker and a full-throated deflationist who has contributed occasional commentaries to Rick’s Picks. Moreover, during the years we’ve know him he has done exceptionally well for his clients in good times and bad, even when his employer was breathing down his neck for going boldly against the crowd. When we spoke with him last week, he’d just put the finishing touches on a large purchase of tax-free munis with effective yields as high as 7.5%. Wasn’t he worried that such juicy returns implied rather substantial risk? Not at all, he replied. The muni bond markets are so spooked right now, he says, that they are ripe for buying. Full Story
The spot price of copper jumped to $4.40 on December 31, exceeding previous highs set daily over the past week. Today we discuss copper’s meteoric price rise during the past five months, dissect current supply and demand fundamentals, and opine on the direction of the market in the short term. Full Story
2011 is starting off with a bang for the precious metals. Price action for gold and silver continues to confirm massive breakout moves to the upside. Above we have the 1 year chart of Silver showing two ascending triangles since the clear breakout in September 2010. 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: Louis Navellier Jim Rogers Full Story
By: Bob Chapman, The International Forecaster - 3 January, 2011
Chairman of the Federal Reserve, Ben Bernanke, would have us believe that if it were not for QE1 unemployment would have been considerably higher. Since QE2 began in June, U6 has only improved by ¼%. Perhaps better numbers are on the way, but that has not been an auspicious start. If we remember correctly almost all the funds in QE1 and now in QE2 have been lent to financial firms in the US and Europe, transnational conglomerates and governments and central banks. Most of those funds have been held on balance sheets to fain solvency. Very little has reached the public or to reduce unemployment. All we have to show for 2-1/2 years is a financial sector hanging on by a thread and more massive debt in the trillions. Full Story
There are investors and traders that have been misinformed. They believe the application of Fibonacci ratios to stock market movements in price and time have been fully explored, suggesting there is nothing new in the remarkable discovery of Italy’s favorite son, Leonard Fibonacci, for investing and trading applications. Research at Long Wave Dynamics (LWD) suggests our understanding of the Fibonacci sequence and ratios, and their implication for human action and market cycles have barely scratched the surface. LWD has pioneered a new school of Fibonacci application in price and time. Deep mystery as old as time itself is manifesting itself in Fibonacci ratios in daily stock charts that will stun and amaze, if only you are willing to look. Full Story
By: David Coffin & Eric Coffin, HRA Advisories - 3 January, 2011
Gold and silver are also being well supported at these higher levels. They will be more influenced by US$ moves than copper, and at this point it appears the US Dollar should hold its own against the Euro. Another area of support for metals has been coming from inflation concerns in the growth economies. That may increasingly become the best gauge for metal price direction in 2011, so it will be important to keep an eye on tightening measures such as higher interest rates in those economies. Full Story
In fact, the responsible Baby Boomers who have saved and trusted the system are about to be wiped out by a wave of inflation, collapsing bond prices and declining inflation adjusted stock prices. Gold, silver and related assets are the only way for those approaching retirement to maintain their wealth. Inflation and hyperinflation, that wipes out debt burdens, helps the young, who have most of their careers ahead of them, but destroys people at the end of their careers. The propaganda is designed to maintain the status quo, to justify what is about to happen. Full Story
By: Rick Ackerman and Gregg White - 3 January, 2011
Fearful of spooking readers and angering advertisers, mainstream news sources have been reluctant to tell it like it is when reporting on the economy. Because they remain steadfastly in denial four years into the Great Recession, touting a recovery that has touched relatively few American lives, it could be a long time before we hit bottom, says Gregg White, a regular contributor to the Rick’s Picks forum who goes by the handle “3 Lions”. In the essay below, Gregg says the news media will have its hands full trying to put a happy face on things when America’s economic troubles deepen and spill out onto the street, as has already occurred in Europe. Full Story
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