By: Julian D. W. Phillips, GoldForecaster.com - 7 October, 2011
Bernanke may not be finished after attempts in August, September to strengthen record monetary stimulus with unconventional tools. The central bank’s near-zero benchmark interest rate and $2.3 trillion of housing and government-debt purchases since 2008 have failed to produce self-sustaining growth in the economy and employment. The Fed is scared of deflation; they’re more concerned with preventing deflation rather than containing inflation. Deflation destroys businesses and wounds the economy, long-term. Inflation just drops the value of money. Full Story
By: Adam Hamilton, Zeal Research - 7 October, 2011
Market history is crystal-clear in showing that oversold conditions are the best buying opportunities ever seen. And the more oversold the markets, the greater the fear and anxiety, the better the resulting bargains. It isn’t easy being brave when everyone else is afraid, buying low during intense uncertainty. But taking this prudent contrarian approach is the easiest and surest way to earn big money in stocks. Full Story
With the long-term bull market in gold and mining stocks in full swing, there exist several fantastic opportunities for capturing profits and maximizing gains in the precious metals arena. Yet a common complaint is that small-to-medium sized traders have a hard time knowing when to buy and when to take profits. It doesn’t matter when so many pundits dispense conflicting advice in the financial media. This amounts to “analysis into paralysis” and results in the typical investor being unable to “pull the trigger” on a trade when the right time comes to buy. Full Story
The US has, so far, been cautious of pushing China too hard on the revaluation issue, that might change.
This is an extremely interesting drama being played out on the world stage between two of the world’s most powerful nations and economies, it should be on everyone’s radar screen. Is it on yours?
By: John Browne, Euro Pacific Caital - 7 October, 2011
Last week, eurozone finance ministers postponed, yet again, the most difficult decisions on the Greek debt crisis. The assembled powers could have forced an orderly Greek default or they could have taken steps to push Greece out of the union. Instead, they simply bought time until the next major rollover of Greek debt - which comes due in November. I don't expect much to come from the brief respite. Full Story
"A rock and a hard place" is a long-running theme of Casey Research publications. It refers to the dilemma the US government has wandered into with its continued policy of rescue inflation. The "rock" is what will happen if the Fed pauses for long in printing still more money – the collapse of an economy burdened by an accumulation of mistakes that rescue inflation has been keeping at bay. The "hard place" is the disruptive price inflation that becomes more likely (and likely more severe) with every new dollar the Fed prints to keep the effects of those mistakes suppressed. Full Story
TC also notes that in looking at the TSX Venture Exchange/Gold ratio that the ratio is back at levels seen at the depths of the 2008 financial crash. If the past is portend of the future this suggests that the junior gold mining exploration stocks are as cheap now as they were at the depths of the 2008 financial crash. Many are trading for less than the value of their holdings in the ground and some are even trading below the amount of cash held in the bank. Full Story
By: Amine Bouchentouf and The Au Report - 6 October, 2011
Despite the recent pullback in metals prices, Amine Bouchentouf still believes that precious metals and mining stocks offer investors the best way to profit from the unfolding global economic mess. In this exclusive interview with The Gold Report, he talks about how mining stocks can offer investors the type of diversification and upside potential needed in today's rocky market environment. Full Story
However, the snap back for silver prices now has the capacity to be sensational, and far beyond the mini-spike in the first few months of this year from $30 to almost $50 again. So those who go seeking out physical silver to buy at current prices are going to be very well rewarded and soon, not in 31 years! Full Story
Obviously, there is more to quantitative easing than just bond rates. Bernanke himself admitted that quantitative easing was designed to boost asset prices as a whole. A rising tide, Bernanke believed, would raise all ships, and ultimately the economy. Full Story
By: Julian D. W. Phillips, GoldForecaster.com - 5 October, 2011
Cast you minds back to the recapitalization of U.S. banks under the TARP measures whereby the Fed bought the toxic debt investments of the banks against fresh money. When we say fresh we mean just that, newly created money in the trillions. This did lower the perceived value of the dollar inside and outside the U.S. The effect on gold was palpable as it rose back through $1,200 and onto new highs. Full Story
By: Bob Chapman, The International Forecaster - 5 October, 2011
Again, as much as your government manipulates markets, the only safe place to be is in gold and silver coins, bullion and shares and if you are not you will probably lose almost all the wealth you have, as did owners of wealth in 1933. The US government has given you a golden opportunity to again buy at bargain basement prices. Gold is off about $300 from just three weeks ago. Take advantage of it now, because it is going to go right back up again. Full Story
It may not feel like it after a 12% correction in the past 30 days, but Mike Maloney – founder of GoldSilver.com – is convinced that we’re in a gold bull market that will be life changing for those who participate. I interviewed him for our current edition of BIG GOLD and am sharing some of what we talked about here. You may be shocked at what you read, because he’s devoted a larger allocation to gold and silver than we have. See why he’s convinced a bubble is ahead for precious metals, how high prices will go, and why he stores some gold overseas. Full Story
By: Nick Barisheff, Bullion Management Group - 5 October, 2011
Gold will continue rising in value over the coming years for one reason: The primary buyers are purchasing physical gold for wealth preservation, and there simply isn’t enough physical gold to satisfy their appetites. The recent pullback was by no means the bursting of the gold bubble. Bubbles are characterized by months of extended exuberance and consistently higher highs—not the two- and three- hundred-dollar corrections we’ve seen twice in the past few weeks. Such pullbacks are healthy as they indicate gold has much, much farther to go. Full Story
If you would like to participate in Operation Payoff, do what the Central Banks will be doing: Sell your long term treasuries to the Fed and then brace for the next round of dollar devaluation and inflation which will soon be on the way. Full Story
It appears that the news out of Europe, that the EU is looking at further measures to recapitalize the banks, was enough to halt what was likely going to turn into a very nasty drop into the employment report on Friday. Full Story
No better example of U.S. politicians’ failure to face reality could be cited than yesterday’s news that the Senate will seek to sanction China with tariffs for allegedly manipulating its currency. The senators, voting 79-19, would have us believe that a supposedly underpriced yuan is a significant cause of our economic woes. Just what we need: a trade war with China! Full Story
By: Jim Willie CB, Hat Trick Letter - 4 October, 2011
Some truly dangerous winds are blowing. Restrictions of gold purchase are being imposed in Central Europe. Wall Street has openly mentioned their menacing arbitrage targeted against Europe in exploitation of their financial crisis. The Mexican disintegration continues apace, with no coverage except the illicit weapons sales from the USDept Alcohol Tobacco & Firearms. The Mexican Peso is down to 14 per USDollar. The Saudi transition continues behind the curtains, as they adapt to a new Chinese protector in the Persian Gulf, and watch the global pendulum swing from an oil-based pivot to a gold-based pivot. Russia is busy preparing channels to Central Europe for commodity supply. That is not new, but the financial underpinning might be, since not based upon the USDollar. JPMorgan CEO Jamie Diamond bickers with the Canadians and overlord Swiss bankers. Perhaps is all show. Perhaps instead JPMorgan stands on far fewer legs than a couple years ago, and what we observe is twitching and teetering. Goldman Sachs CEO Lloyd Bunkfein struggles to avoid a perjury indictment. Lies to the Levin Committee might have come back to haunt him. They were blatant. The prestige of the US bankers is fast vanishing. Full Story
The US dollar could soar in value. Gasoline could return to under $2 a gallon, possibly even $1.75, and filling up a near empty tank could once again be done for under $30. The prices of clothes, shoes and a shopping trip to Wal-Mart could drop significantly, providing much needed relief to retirees on fixed-incomes. In the midst of global economic crisis, there could be an "Indian Summer" in the United States with a return to cheap oil and abundant imports at prices well below current levels. Standards of living could briefly rise - for those fortunate people who still have jobs and/or stable incomes. Full Story
Last week the Federal Reserve began the second incarnation of "Operation Twist", an attempt to drive down interest rates by purchasing long-term Treasury debt and selling short-term debt. This is just the latest instance of the central bank desperately flailing around doing something merely for the sake of doing something. Fed officials still do not understand-- or admit-- that the Fed itself caused the financial crisis by driving interest rates too low and relentlessly expanding the money supply. Thus, this latest action will just exacerbate the problem. Full Story
By: Kevin Brekke, Casey Research - 4 October, 2011
Where is the US and global economy going? What will happen to the dollar and euro? And how can investors protect themselves from the fallout? All these questions and more were answered at the Casey Research/Sprott, Inc. Summit When Money Dies. Kevin Brekke reports live from the conference… Full Story
By: Peter Schiff, Euro Pacific Capital - 4 October, 2011
In today's investment landscape, risk can come in all shapes and sizes. When structuring a stock portfolio most investors try to gauge the risk in buying particular stocks. Savvier investors also factor in sector risk, business cycle risk, and recession risk. Cautious investors may try to mitigate these risks by favoring bonds over stocks. But even then they must contend with default risk, interest rate risk, and in the case of sovereign debt, political risk. Full Story
By: Steve Saville, Speculative Investor - 4 October, 2011
We aren't ruling out the possibility that the deflationists are finally going to be right. We hope they are going to be right, because more inflation will only lead to an even bigger problem down the track. It's just that they are, in effect, betting that devotees to the central planning ideology will suddenly realise the error of their ways and let nature take its course. The odds are very much against this bet paying off. Full Story
By: Sally Lowder and Steven Butler,The Gold Report - 4 October, 2011
Steven Butler, senior precious metals analyst at Canaccord Genuity, didn't expect mining equities to fall as hard as they did after the gold price tumbled from a high of $1,900/oz. In this exclusive interview with The Gold Report, Butler talks about how the unexpected plunge has created some welcome bargains in the space. Full Story
Even one month ago the speculative money was not so involved in precious metals. The recent carnage in equities and in Europe precipitated the selloff in precious metals which has caused all the remaining speculators to exit the market. Sure, we could see the metals move a bit lower and have sentiment turn even more bearish. It’s not impossible. However, Gold and Silver are rallying today and will soon begin a bottoming process. Sentiment tells us a bottom is very likely. Now we need the price action to confirm. Full Story
Now we have a different atmosphere - expected by this writer and indicated by the chart above so many months ago - with deflation and systemic collapse at the forefront of the collective financial and economic mindset. Austerity? Please, give me a break. The Vampire has already received his invitation, but having been scorned so soundly earlier this year, he sits back and lets the call become louder by the week. Full Story
This is no mere correction nor is it just a brief hiccup for the financial markets. This is the GREAT COLLAPSE and the markets will be going to new lows (below the March 2009 lows) in the coming months. Full Story
By: Felix Zulauf and James Turk, GoldMoney Foundation - 4 October, 2011
They discuss the current economic situation and similarities with 2008. Felix explains that Greece is bigger than Lehman and thus we can expect more market turmoil than in 2008. Felix also explains that he expects higher gold prices in the coming months. Felix quotes Einstein’s definition of insanity: “doing the same thing over and over again expecting different results”. Full Story
Whatever financial regime awaits us, many investors will continue to use gold bullion as a 'monetary bridge' – a way of storing some value until the dust settles. Gold, after all, has been used to try and survive just the kind of value-destruction we now face for thousands of years. Full Story
Our prediction is that the protests, far from fizzling out in a few days, weeks or even months, will attract bigger and bigger crowds from an inexhaustble army of online recruits, replacements and budding young revolutionaries. A new Woodstock beckons, but we adults shouldn’t be surprised if peace, love and music do not emerge thematically to temper their behavior. To the contrary, because of the very serious problems that an intractable recession has imposed on their young lives, there is every likelihood that the protests will turn ugly. Full Story
By: Peter Schiff, Euro Pacific Capital - 3 October, 2011
Do not get caught in the exuberance or pessimism of short-term movements, even if they're sharp. Observe the fundamentals - the events in Europe, the looming budget calamity in the US, central bankers' steadfast strategy of debasement, and emerging markets' continued diversification into precious metals. These are the main drivers for gold's long-term appreciation. Full Story
There has been a lot of talk about the coming Pan Asian Gold Exchange which is scheduled to open in China this coming spring. It’s not news that Chinese are heavy into gold and this will facilitate their hunger to a degree and it will also help drive and perhaps even begin to control or dictate the price of gold. Full Story
By: Bob Chapman, The International Forecaster - 2 October, 2011
Germany’s finance minister, Wolfgang Schäuble says there is no secret plan to leverage the EU’s bailout plan from $595 billion to $2.7 trillion. This increase, illegal in Germany, would cause a downgrade in the sovereign debt rating of the solvent states. If there is a secret master plan put together with the help of the Fed, it will destroy Germany’s constitution and democracy. Social Democrats denounced the back-room dealing and the secrecy. The real implications of such a deal is to put Germany’s domestic finances under the control of the EFSF and eventually the European Monetary Union, the EMU. German citizens are being taken to the cleaners, they do not know about these back-room deals. It could lead, once exposed, to a referendum and a new constitution, which would destroy Germany’s democracy in order to form government by bureaucrats, who would prepare the EU for the new world order. Full Story
By: Chris Powell, Gold Anti-Trust Action Committee Inc. - 2 October, 2011
Contrary to Connor's assertion, the gold cartel is hardly "invisible." It has been visible since before any of us were born. But the visibility here is like that in the Hans Christian Andersen fable "The Emperor's New Clothes," as it is bad business to get in the way of powerful governments and financial institutions generally, and bad business particularly for those who would make a living applying traditional technical analysis to markets to admit that they may have been dissecting mere holograms.
Gold price suppression is "conspiracy theory" only to those who refuse to examine the documentation offered to them. Full Story
In previous commentaries we’ve talked about how the 6-year cycle is scheduled to peak around Oct. 1. That now appears to be all but certain following the last few trading sessions. Although the cycle has a 1-2 week standard deviation (plus or minus), it appears that it peaked on scheduled last week and that the stock market has lost the last remaining cyclical support it had throughout most of September. Full Story
If you want to know the future, pay attention to the decisions European policymakers will have to make regarding debt, says Scott Gardner, chief investment officer at Verdmont Capital. In an exclusive interview with The Gold Report, he shares his analysis of debt policy investment implications. Full Story
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