By: Bill Bonner & The Daily Reckoning Crew - 7 March, 2008
-Watching our formula at work…consumers are getting squeezed from every direction… -Not so sure about the second half recovery anymore…the thin blue line of feds… -First the money goes…then the economy…finally, society itself…and other uplifting thoughts and advice to take you into the weekend! Full Story
By: Julian D. W. Phillips, Gold/Silver Forecaster - Global Watch - 7 March, 2008
Gold and silver prices are making new ground every day and are consolidating, seemingly in preparation for an attack on $1,000. Thereafter, who will buy gold and pay over $1,000? It seems a daunting price for any new Investor or even one with a sizeable holding already. Full Story
By: Peter Schiff, Euro Pacific Capital, Inc. - 7 March, 2008
The current line at CNBC is that, prior to the “unexpected” contagion emanating from the subprime mess the U.S. economy was experiencing a “Goldilocks” era of optimal health. They now believe that if the Fed and the Government can divine the right combination of fiscal and monetary policy, Goldilocks will once again be blissfully picking daisies…or more precisely, buying SUV’s. Full Story
THIS WEEKEND in Basel, Switzerland, central bankers from the G-10 group of rich nations meet up for one of their regular hoe-downs. You can guess the main event in between canapés and champagne – academic chit-chat about interest rates, political pressure and banking supervision. The global financial crisis will surely get plenty of air-time, too. Full Story
By: Adam Hamilton, Zeal Intelligence LLC - 7 March, 2008
After sliding to its lowest levels in history this week, the flagging US dollar has captured the limelight. And it certainly should. The dollar is like nothing else, a critical linchpin that links every market and asset of global importance. The implications of the dollar’s fall from grace are profound and universal. Full Story
Naturally, putting your neck out for a gold price leads to the next logical question and that is, “What price will silver reach at its high point?” This question is much more difficult to answer, because silver is not considered to be money in any government’s monetary base, either officially or unofficially. Full Story
The title should really be “Psychology of 1000-20-100” to give respect to the major signpost price targets. The $1000 gold target is within reach. The $20 silver target has been breached. The $100 crude oil price has been breached. Before long, all three price levels will serve as support. Full Story
Not only does the sacrifice of the U.S. Dollar penalize savers, as pointed out in the interview, it also hurts the purchasing power of all Americans and, particularly the middle-class and working poor. Indeed the purchasing power of the Dollar has declined over one-third in the past five years, vis-à-vis other major currencies. That is one reason why everything costs so much more. Full Story
I don’t know when gold and silver will peak, but I’m confident we aren’t near there yet. My bet is that the final highs will be much higher than most people expect. I only said I am taking a few profits off the table now, and planning to buy back into a future correction. The most that I am willing to sell is 25% of my maximum position. Full Story
By: Gary Dorsch, Editor, Global Money Trends - 7 March, 2008
“Too much money, chasing too few commodities,” might be the best way to explain the historic rally that has lifted the Dow Jones AIG Commodity Index into the stratosphere. Central bankers in 18 of the top-20 economies in the world have been expanding their money supplies at double digit rates for the past several years, trying to prevent their currencies from rising too quickly against the terminally ill US dollar. Full Story
By: Richard Daughty, The MOGAMBO GURU - 7 March, 2008
There is no known example, in the history of the world, where a fiat currency was debased in a wild fractional-reserve multiplication by the greedy banks that did NOT end badly. And 100% of the time is as close as you can get to 'guaranteed'. Full Story
The catch-phrase “subprime mess” is giving way to a new financial buzzword: “counterparty risk.” Although we’ve yet to hear Katie, Brian or Bob use the term on the evening news, it’s been surfacing with increasing frequency in print, and it got a real workout yesterday when it was needed to explain why two financial giants that had not even been rumored as troubled suddenly turned up on gurneys in the emergency ward. Full Story
All you need do is look at a chart of Crude Oil to understand what is taking place in Gold. For reasons unknown to me, “Century Numbers” as I call them, are “large” numbers markets have never seen. Be it $3000 a foot real estate prices or $100 a barrel in Crude Oil, these numbers when hit often stall markets out. Full Story
By: Bill Bonner & The Daily Reckoning Crew - 6 March, 2008
-Gold, oil and other commodities hit all-new record highs yesterday…U.S. foreclosures hit record high; mortgage delinquencies at 23-year peak… -Everything is 'marked to meltdown'…Big Ben and good ol' Dubya are inching toward a bailout of epic proportions… -Looking back at the words of Bill Buckley…does this seem like the 1970's to anyone else?…and more! Full Story
It has been widely reported that the United States housing market fell by 8.9% in 2007. As we will explore in this article – when we include inflation, the real decline in single-family home values was 50% higher than reported. Full Story
Interest rates and funding costs will continue to rise until GREED outweighs FEAR, at which point the money will leave the sidelines and engage in lending once again. Re-pricing risk is the order of the day. Inflation is the POLICY OF THE G7 governments, make a note of it! Full Story
Ben Bernanke has attacked the threat of deflation with great zeal. We knew that he would. But what we don’t know is how Mr. Bernanke will respond to today’s stagflationary pressures, if at all, and/or whether or not the slumping dollar will eventually ignite a monetary policy response. Full Story
By: David Bond, The Wallace Street Journal - 6 March, 2008
What's different between 2008 and 1980 is that the above-described bag of tricks the Nixon-Carter-Reagan crowd were able to hurl at the silver market back then is exhausted now. There is nothing left of it but whole cloth. So when you see silver get to $137/ounce (in 2007-equivalent dollars, whatever those will be) do not fear a 1980-style blow-off. It will, at that point, be just getting warmed up. Full Story
Lately I've been getting a lot of inquiries from friends, acquaintances and flat out strangers about how to make money trading. And it's no wonder. Times are tough and people need extra money. Further, everyone knows that commodities are booming and the dollar is crashing. Full Story
By: Richard Daughty, The MOGAMBO GURU - 6 March, 2008
So if people could buy oil with gold, the price would have been unchanged for 60 years! Wow! Now you see the beauty of gold as money; prices never change! Your purchasing power is absolute! Full Story
Two of this year’s most powerful stock-market rallies have occurred on rumors that bond-insurer Ambac Financial Group was about to be bailed out. But isn’t it a little late to be talking about rescuing a company whose stock has shed 95 percent of its value since July? Full Story
By: Bill Bonner & The Daily Reckoning Crew - 5 March, 2008
-Challenging conditions for banks…indicators signaling a 'slumpy' economy… -At The DR, we always rise in defense of the poor…the downtrodden…the inebriated and the incompetent…even if it is Ben Bernanke… -Export tariffs driving the price of wheat up…the war on moles…and more! Full Story
What in the name is going on in the gold market? Yesterday saw a near gap down $30. It happened so fast I missed half of it. So what happened? Well some serious weight, as in tons, was dropped and all bids were filled....instantly. It blows my mind how sharply Gold was taken down as some nefarious group better known as a “cartel” tried to run stops and trigger margin calls scaring out everyone in their path. Full Story
WELL THAT CAME and went pretty quick! Gold Prices dumped almost $30 per ounce late Tuesday, only to pick them right back up again by Wednesday's close in London, before racing above $990 per ounce as New York wound down the day by itself. Full Story
By: David N. Vaughn, Gold Letter, Inc. - 5 March, 2008
We keep hearing about the dollar and honestly I have no idea what the bottom will be. I can say with certainty that I don’t think the bottom has been reached. Are you preparing for liftoff? Actually many would find that a dumb question since we are a little over 30 dollars from reaching and surpassing 1,000 dollars an ounce. Full Story
By: Richard Daughty, The MOGAMBO GURU - 5 March, 2008
With an M3 money supply of about $12 trillion, this means that if gold rose to $46,153.00 per ounce, the entire money supply could be 100% backed by gold! We'd get back to the gold standard required by the Constitution! Full Story
In retrospect, it would appear bulls had grown too comfortable with the seeming inevitability of a push up to $1000. With all of them already on board for the ride, who was left yesterday to buy the Comex futures up to their historic destination. No one, apparently, and that’s probably why they dove, taking with them any trader who was not on a hair-trigger alert. Full Story
By: Bill Bonner & The Daily Reckoning Crew - 4 March, 2008
-The worst weather of the year may be yet to come…$1,000 gold is only days away… -The Fed's failed rescue mission…costs of the credit crunch continue to mount up… -Remember the Golden Rule? He who holds the gold, makes the rules…China succumbs to a force bigger than an economic slowdown…and more! Full Story
Is this the time for an epic short panic in silver? Perhaps, especially as more people recognize the problem. The combination of severe recent financial stress on the shorts, the fundamentals and index fund buying, combined with the impossibility of buying back the out-sized short position easily makes it a difficult situation for the shorts. A wounded animal is always dangerous, depending on how serious the wounds. They are up against a wall and, if not resolved soon, it is likely to fall on them. Full Story
By: Dr. Ron Paul, U.S. Congressman - 4 March, 2008
A topic that is on the lips of many people during the past few months, and one with which I have greatly concerned myself, is that of moral hazard. We hear cries from all corners, from politicians, journalists, economists, businessmen, and citizens, clamoring for the federal government to intervene in the economy in order to forestall a calamitous recession. Full Story
These are definitely interesting times we live in, and the markets are also in this category from a predictive standpoint. Many are now dependent on the stock market’s performance, so the stakes are high on numerous fronts. And for this reason you not only have participants remaining invested far past what would have historically been viewed as ‘prudent’, but master planners in our society feel justified in arriving at a desired outcome no matter the means. Full Story
Similar to credit as the lifeblood of the financial market, trust is everything about money. Otherwise paper is just a paper, only with trust, does a piece of paper suddenly have value, so we can preserve it or pass to someone else for goods and services. Trust becomes a bridge between two trading parties, just like credit as the critical link between two trades in the financial markets. Full Story
By: Jason Hommel, Silver Stock Report - 4 March, 2008
The silver shorts, who have been one of the key forces capping the price of silver ever since 1980, are buying back the silver they sold, the silver that they don't have, the silver that may not exist, and they are buying "contracts for it" from people who might not have it either, in a rising market, because the shorts have begun to panic. Full Story
A question I often receive is, "How high do you expect the price of silver and gold to reach?" The simple answer is that no one really knows for sure, but it will most likely be far higher than the average investor expects. Full Story
By: Richard Daughty, The MOGAMBO GURU - 4 March, 2008
Oops! Without demand, supply overwhelms supply, and prices plummet, and without new derivative sales to finance the existing clot of derivatives, things go from bad to worse! Full Story
With gold stealing up on the $1,000 mark, it’s silver bulls who are just coming to the party. Better late than never, we say. Silver would be trading for around $54 an ounce right now if it were keeping pace with gold the way it did in the early 1980s. In fact, you can still buy all the pure silver you want for around $20/ounce -- a relative bargain. Full Story
By: Roland Watson, The Silver Analyst - 3 March, 2008
Silver is rocketing, the silver shorts are sweating profusely and silver continues to outperform gold as the next big silver spike begins to take shape. The main question now is at what price will you exit your silver position? Full Story
You’d have to be a monk living in isolated penury to miss the fact that gold is on a tear. Specifically, it has risen from $277.75 on January 4, 2002 to $950 last week, a gain of 242% in just over 6 years. Over the same period, the trembling S&P 500 is up an anemic 22%. Full Story
By: Bill Bonner & The Daily Reckoning Crew - 3 March, 2008
-The Dow took a big hit on Friday…the economy is sinking, and inflation is pushing up consumer prices. Stagflation anyone? -Fed cuts just aren't doing the trick anymore…looking at the fantasies behind the boom… -Big Al is back in the news, with some interesting advice…the next Baby Boom…and more! Full Story
THE EURO HIT fresh all-time highs versus the Dollar already this month – and we're only one trading day in. So might US investors want to switch out of gold bullion ahead of Easter this year and move into the single currency instead? Full Story
While there are many factors that might push the economy over the edge, the one to watch closely now are the foreign holders of the U.S. dollar. As we have mentioned more than once, the amount of U.S. dollars in the hands of foreign holders is at historic levels. In fact, the level of holdings, estimated at as much as $16 trillion, is unprecedented by an order of magnitude. Full Story
The world is still trending towards tighter credit and demand for commodities continues to grow. The only significant difference now is that the financial sector losses look set to be far far larger than previously thought of and therefore the stagflationary environment looks set to last that bit longer. Full Story
If history repeats itself, we will soon be recipients of the biggest windfall of the new millennia. Not since the Bank of England sold 400 tons of its gold in 1999 at the very bottom of the market have gold investors been presented with such good fortune. Ladies and gentlemen, get your pens and checkbooks ready. Full Story
By: Boris Sobolev, Resource Stock Guide - 3 March, 2008
In any bull market, it is important to continuously reassess the situation, recheck assumptions, and track investors’ sentiment. With the gold bull market now in its seventh year and gold price approaching $1,000 per ounce (nearly a 300% gain in eight years), it would not be unreasonable to expect the public’s interest in gold to rise substantially. Full Story
Most gold bugs devote a great deal of energy to studying the specific investments of the precious metals group. They may analyze the gold:silver ratio. They may study the relationship of the HUI to the price of gold. They may compare the blue chip gold stocks to the more speculative gold stocks. Full Story
With silver being in a critically overbought state and looking set to react very soon, we now have to “find reasons” for gold to react on its charts, since it is hardly likely that gold will continue higher while silver is reacting. Fortunately, if we look closely enough, it is not hard to find reasons for gold to react soon along with silver. Full Story
You can’t argue with success. The thrust by gold to get to that magic $1000 number looks within the grasp. Who knows? Another week or two just might do it. Full Story
The boom in world wide asset prices is a direct response to excess money and credit creation. The resulting brew has given birth to unprecedented debt levels that prostitute the future to enable consumption in the present. Full Story
By: Julian D. W. Phillips, Gold/Silver Forecaster – Global Watch - 2 March, 2008
When it was learned that the Treasury was to support the sale of 400 tonnes of gold all were surprised. We realized that Congress would still have to be asked to approve the sale. When the mist cleared and we saw in sharp focus what lay ahead we realized that much more needed to be done before the sales became a reality. Full Story
This long standing maxim seems to be in full force as the US debt concerns deepen. Not that all news has been good, but even where context would auger future gains it is only negatives the market is seeing at present. Efforts by the great and good to catch up to the reality that a major housing and debt based downturn is underway in the US certainly aren’t helping. Full Story
By: John Mauldin, Millenium Wave Advisors - 2 March, 2008
This week's topic was inspired by a discussion I had with George Friedman of Stratfor fame last night. He was suggesting the recession would be short and steep, and I of course think it is going to be shallow and with a long, protracted, and slow Muddle Through recovery. And it all hinges on how the Fed thinks about inflation. Full Story
By: Richard Daughty, The MOGAMBO GURU - 2 March, 2008
But price increases of such magnitude that they have never been seen before? And in the food business, which means that prices for food will rise faster (and probably higher) than at any time in history? Yikes! Full Story
With the economy going to hell in a hand basket, you might think it would be easy to make a bundle shorting the shares of some stock that’s getting there fast. We thought this ourselves about MGM Mirage, a savvy casino operator that has bet the ranch on boom times in Las Vegas – and not just boom times now, but more or less forever. Full Story
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