By: Peter Schiff, Euro Pacific Capital, Inc. - 7 May, 2010
As Americans observe the chaos in Greece, most assume that the strength of our currency, the credit worthiness of our government, and the vast expanse of two oceans, will prevent a similar scene from playing out in our streets. I believe these protections to be illusory. Full Story
For many years, the common viewpoint has been that an inverse price relationship between the United States Dollar and gold constitutes the First Monetary Commandment, and that this Commandment is chiseled into a stone tablet before which markets must genuflect. This false and misleading “Dollar up, gold down” religion has been proselytized at enormous, covert, public expense by the best market manipulations the high priests of Dirty Money have ever been able to buy. Full Story
With the cost of insurance on European bank bonds surging to a pre-Lehman high, it is apparent that at the very least, there is again a severe ripple in the credit system, this time at a sovereign level. Given debt levels around the globe it is quite likely that damage control will take precedent over containment. Full Story
Historically, the “fear index,” or the VIX, had minimal impact on the price of precious metals. However, as investors forgo treasury bonds in search of even safer investments, the VIX is correlating very well with the price of precious metals. Full Story
By: Adam Hamilton, Zeal Intelligence LLC - 7 May, 2010
As gold stocks continue to power higher in their usual spring rally, they are starting to attract investors’ attention again. This includes some value investors, a group that is always concerned with valuations. Unfortunately, valuation analysis of gold stocks is fairly rare. But I’ve been researching this thread for over 6 years now, and this week is a great time for an update. Full Story
This increase in notional value of silver derivatives represents approximately 220 million ounces, which is 125 percent of the global production of silver during the quarter -- and that is only the increase. The entire notional value represents 106 percent of annual global production. What possible legitimate purpose could such a monstrous derivative position be serving with a maturity of less than one year? Full Story
China could be the single-most important factor in trying to solve the global financial crisis. Clif Droke, editor of the Momentum Strategies Report, looks at questions surrounding China's near-term future and the momentous impact on our own financial futures in this exclusive article for The Gold Report. Full Story
I certainly do not yet know exactly what happened in market today. The CNN link above mention issues with Proctor and Gamble stock, but the fact remains the stock market is not a great bellwether for the economy anyways. With rampant unemployment caused by the government, and events in Greece and elsewhere unfolding quickly, we certainly are living in unsustainable and wildly unpredictable times. Full Story
For several weeks we have been warning that an Equities Takedown was impending, culminating with last week’s Article entitled “Trap For Equities Bulls! Opportunity for Others”. So what next? Full Story
As the price tag for the EU/IMF bailout for Greece has steadily grown over the past several months and contagion within the euro-zone has commenced, US investors are beginning to realize that the widening European sovereign debt crisis may indeed have some significant implication on our side of the pond. Full Story
I’ll be the first to admit that I do not know how the Greece debt crisis/saga will end. What I do know is that when the rating agencies first warned on Greece’s debt back in December this should have been when policy makers urgently started to develop contingency options (assuming some were not already in place). Full Story
Let the speculation begin. With the Dow falling farther and faster than it ever has before, the financial media begins its search for the “reason” it happened instead of what we really need to know about. Full Story
Over the past month or so I have been pointing out in this Report that gold’s near term fate lies with how the European Union (EU) and International Monetary Fund (IMF) handle the Greek sovereign debt issue. Unfortunately as of this writing there has been no real resolution. In my opinion the EU has allowed contagion to spread to other parts of the EU and world financial markets. Full Story
By: Louis James, Senior Editor, Casey’s International Speculator - 7 May, 2010
Last month I visited Peru again, penetrating perhaps a bit deeper but certainly higher up in the Andes than I’ve gone before. No nose-bleeds, but I’m not ashamed to admit that scrambling over rocks in search of boiling textures at 5,300 meters (17,400 feet) elevation left me wheezing like Darth Vader. Full Story
It has been a hectic week here educating clients about global capital flows and debt cycles. One of the really interesting factors at play Down Under has been the unwinding of the carry trade which accelerated last night. The message it not always understood so I will be preparing a file to explain how this works as further education in the Members area of my site as soon as time allows. Full Story
The Rothschild plan to make money and rule the world is laid out in excruciating detail in an article on Understanding Money and War, Part XIV, at www.analysis-news.com. This article describes an ancient writing reportedly written by or for old man Mayer Amschel Rothschild some 250 years ago. Full Story
By: Richard Daughty, The Mogambo Guru - 7 May, 2010
I have long maintained that there is, actually, nothing new under the economic sun for (checking my watch for the precisely correct time) the last few thousand years or so, and if you look deep into my Serious Mogambo Eyes (SME), you will see, as the acronym suggests, total sincerity when I tell you that there have always been the usual few things; income, taxes, spending, saving, borrowing and debt, and something along the lines of interest, which is not to forget, of course, money itself. Full Story
The panic we’ve all been waiting for hit like a tsunami yesterday, sending the Dow Industrials into a thousand-point dive, 700 of it occurring in under ten minutes. We’d warned of this just a few days ago when we wrote that the market was “vulnerable to a sudden, even spectacular, selloff.” Yesterday’s selling was indeed so ferocious that it might have gone on for another thousand points if not for Mr. Market’s addiction to round numbers. Full Story
Markets never repeat themselves but they often rhyme. This rally feels like the same sonnet we experienced in 1987. As in a sonnet, it is following a strict rhyme scheme and specific structure. Full Story
As the currency and financial systems of the developed world’s social-welfare-states head towards their doom, the battles between King Kong (Mother Nature and Darwin) versus Godzilla (public servants and banksters) continue. After generations of defying the reality that you must produce more than you consume, the social welfare states are being presented with the bill for their unpayable social obligations. Full Story
The week of May 3rd to 6th has rocked the financial world. Stock markets fell around the globe with an almost 2% one-day drop in equity values across 23 developed nations (per the MSCI gauge), and a 5.2% fall in three days. The S&P 500 hit a two-month low in the US. The euro plunged against the dollar for two straight days, reaching a 14-month low. Full Story
By: The Energy Report and Victor Goncalves - 6 May, 2010
Equities and Economics Report writer Victor Gonçalves says the cobalt story is still yet to come. In this exclusive Energy Report interview, Victor also explains how to tell the real rare earth companies from the wannabes. Full Story
GATA has long maintained that the IMF has little to no gold. It has only pledges of gold that are part of the central bank gold reserves of IMF member countries. This view is supported by the inability of the IMF in 2008 to tell GATA Secretary/Treasurer Chris Powell exactly where the IMF's gold is stored and if it is audited. Full Story
The worst part of the world’s current financial crisis is still on its way. The enormous debt levels present in our financial system is central to this crisis. This huge debt levels could cause the world’s monetary system to collapse, starting with the weaker currencies and quickly making its way to the major ones. Day by day the premier signal (gold price) of this collapse is getting clearer and should encourage more people to run for cover. Full Story
By: Richard Daughty, The Mogambo Guru - 6 May, 2010
At work the other day, I was actually considering either doing some actual work or taking the afternoon off, after, of course, I finished reading the government’s Bureau of Economic Analysis release of the news that “Real gross domestic product – the output of goods and services produced by labor and property located in the United States – increased at an annual rate of 3.2 percent in the first quarter of 2010, (that is, from the fourth quarter to the first quarter)” and that last quarter of 2009, “real GDP increased 5.6 percent.” Full Story
Silver quotes have come back down to earth with a thud, so perhaps it’s time to review our outlook, which was, and still is, quite bullish for both the intermediate and long-term. The Comex July contract has shed a hefty 10 percent of its value since Tuesday, settling at 17.51 yesterday after peaking just two days earlier at 18.89. Full Story
Doug, I'm in Belarus this week, a pit stop to help some of my students with their various business ideas. I'm struggling with my Russian, but getting along. And that has me thinking about Russia's role on the global economic stage. I know this is something you've given some thought to… What do you think? Is Putin out to take over the world? What do investors need to keep in mind? Full Story
By: John Browne, Senior Market Strategist, Euro Pacific Capital - 5 May, 2010
In the decades that preceded Greece's adoption of the euro in 2001 the country papered over its chronic inefficiency and lack of competitiveness with its northern neighbors through regular devaluations of its currency, the drachma. But as a prerequisite to join the Euro Zone, the dominant powers of the Continent, most notably Germany, required financial housecleaning and promises of fiscal discipline. When these goals were apparently met, the Greeks came aboard. Full Story
By: The Gold Report and Bob Moriarty - 5 May, 2010
Talking heads are waxing enthusiastic over signals that the recession is receding, but debris from the derivatives debacle won't go away without a total financial system collapse, according to 321gold.com founder Bob Moriarty in this exclusive Gold Report interview. Full Story
By: Jason Hommel, Silver Stock Report - 5 May, 2010
Many people today are cashing out their CD's to buy silver and gold. Why? The obvious. The CD's pay next to zero interest, and gold and silver continue to head up by 20-30% per year. Full Story
To build wealth (or to avoid losing it), it is obviously important to discern where to put your money and where NOT to put it. That discernment is greatly tied to understanding which securities or assets will have are experiencing bullish or bearish conditions. In recent years many investors were fooled into thinking that a particular asset class was in a bull market when in actuality it was a in a “bubble”, which is the precursor to a bearish decline. Full Story
Numerous baby boomers in the US, Japan and the UK have been fortunate that government bonds have yet to enter a true nasty bear market. While the various bonds haven’t performed as well as Gold, they have proven to be a safe haven. However unlike Gold, government bonds are not a hedge for what is coming. I sincerely hope that baby boomers and others consider a move from bonds and cash into Gold while they still have time. Full Story
By: Bob Chapman, The International Forecaster - 5 May, 2010
There are only two kinds of gold and silver to own. Physical gold and silver that are located above the ground and that are also in your possession (which can be owned via coins, bullion, jewelry, etc.), and physical gold and silver that is located below the ground (which can be owned through producer shares which represent an ownership interest in the ore containing the raw and unprocessed metals). Full Story
The fall out from the Greek debt crisis refused to die down yesterday with markets fearing similar debt crises in Spain and Portugal. The euro fell below $1.30 and acted as a transmission mechanism taking the mayhem across the Atlantic to give markets their biggest sell-off since January. Full Story
By: Chris Powell, Secretary/Treasurer, GATA - 5 May, 2010
Another unexplained sale of gold by the International Monetary Fund turned up today in another Reuters story based on another statement from the World Gold Council. This time the sale is said to have been 18.5 tonnes unloaded in March. Two weeks ago the WGC reported that the IMF had sold 5.6 tonnes in February. Full Story
By: David Galland, Managing Director, Casey Energy Report - 5 May, 2010
Willie Shakespeare may have summed it up best when, borrowing the voice of King Richard III, he penned “A horse! A horse! My kingdom for a horse!” History is replete with examples of how, but for the proverbial horse, kingdoms have been lost. My reference point is an accident that will almost certainly lead to tragic miscalculations and havoc down the road. And, I might add, an exceptional opportunity for the patient and attentive investor. Full Story
By: Richard Daughty, The Mogambo Guru - 5 May, 2010
Henry CK Liu, writing at atimes.com, has, unlike the Securities and Exchange Commission, apparently not been spending his days downloading pornography on his computer, and instead has looked at the sheer amount of money that was lost worldwide since October 31, 2007, when “the total market value of publicly traded companies around the world reached a high of $63 trillion. A year and four months later, by early March 2009, the value had dropped more than half to $28.6 trillion.” Full Story
Bruised and bloodied bears must have felt a rare sense of exhilaration yesterday as trading on the NYSE drew to a close. That, and a twinge of anxiety about whether U.S. stocks could actually fall for two days running. Some traders evidently decided not to bet on it. The best rally of the day came in the final half-hour. Who would have had the guts to take a short position overnight in a market that has been on a wilding spree for 14 months? Full Story
Before we discuss this issue lets focus on some facts. Many individuals claim that Greece has to be bailed out to maintain stability in the financial markets. This is a bogus argument, in the short term it might be true, but in the long term it just delays the day of reckoning and makes the situation infinitely worse. You do not help an alcoholic by chastising him and then allowing him free access to booze; it won’t work. Full Story
Investment banks are predicting a wave of mergers and acquisitions in the precious metal mining sector over the next year as the major players position themselves for higher and higher gold prices. Full Story
Nowhere was Ayn Rand’s influence felt more than on Wall Street. The selfishness and greed that Ayn Rand exalted found a natural home among Wall Street banks, especially Goldman Sachs where Senior Partner Gus Levy succinctly summed up Goldman’s strategy as long term greed. It was a mission statement Ayn Rand could be proud of. Full Story
By: The Gold Report and David Morgan - 4 May, 2010
It's often called the "Poor Man's Gold," but according to "Silver Guru" David Morgan of The Morgan Report and www.silver-investor.com, silver is poised to outperform gold. "The amount of silver mined meets industrial and investment demand. We've reached equilibrium," Morgan explains. In this exclusive interview for The Gold Report, Mr. Morgan gives us the straight skinny on silver. Full Story
By: Richard Daughty, The Mogambo Guru - 4 May, 2010
And so I stand up Proud And Loud (PAL) to say, with a wry smile of Mogambo Arrogant Self-Assurance (MASA), that if you are not buying gold, silver and oil in response to such monetary and fiscal insanity, then I not only laugh at you, but Laugh In Scorn (LIS) at your screwing up something so easy, so easy that one is compelled to squeal girlishly in delight, “Whee!” Full Story
Hunting for relative bargains yesterday morning, we waited in vain for the index futures to come down below Friday’s levels. Alas, prices held relatively firm in the opening hour, eventually inducing yet another flight of fancy by the broad averages. By day’s end, the Dow was up 143 points, recouping most of Friday’s losses while adding further to the one-way tedium of this Mother of All Bear Rallies. Full Story
By: Julian D. W. Phillips, Gold/Silver Forecaster - Global Watch - 3 May, 2010
With central banks now buyers, the significance of gold as a reserve asset has been heightened, considerably. Other investment buyers see this they realize that it is dramatic support for the gold price, far outweighing smaller factors in the market place. Full Story
And this is quite possibly the sweetest shorting opportunity in stocks since the tops in either 2000 or 2007, as key measures are indicating we definitely have ‘shades of a stock market mania’ that in fact go beyond the two tops witnessed last decade. Full Story
Here we see the daily basis chart of gold for the past 6 months. This shows a head and shoulders bottom, one of the most widely known chart patterns and featured in Technical Analysis of Stock Trends by Edwards and Magee. On Friday, gold broke cleanly above its neckline (at $1,170) and closed at a relative high above $1,180. A gap for the day punctuated the signal. Full Story
When I saw Thursday's WSJ headline concerning Spain, I was struck with the thought that I had seen this scenario played out sometime in the past. After a little pondering, it finally occurred to me that the variables we're seeing set up right now are, in some ways, similar to the situation we saw in the spring of 1998. Full Story
Well, Technicolor changed the unforgettable color of Dorothy's shoes from silver to ruby red, but Baum's work had multiple interpretations, including an allegory for sound money. The silver shoes danced on the "yellow brick road" made of solid gold to the Emerald City of Oz, where everything seen was faked through green glasses (the greenback or dollar) run by the little man behind the screen (the FED/Congress). Full Story
Retiring Senator Chris Dodd's financial reform bill is now open for debate in the U.S. Senate. For the next few weeks, the public will be treated to media sound-bite snippets of Senatorial debate on various aspects of the Senate version of the reform bill. The bill is supposedly designed to prevent a replay of the 2008 crisis, in which 75 years of Federal financial reform laws proved utterly useless in preventing the crisis. Full Story
Europe was putting the finishing touches on yet another bailout for Greece over the weekend, even as new scrutiny fell upon the growing problems of Spain and Portugal. Under the latest rescue package, the IMF and 15 nations – presumably including Spain and Portugal – will pony up $133 billion to keep Greece from defaulting. Will that be enough to do the job? Full Story
Except for Thursday it was a pretty good week. So why am I feeling a little cautious? The action behind the latest up trend in gold just doesn’t “feel” right. With all of the world’s problems one would expect a robust advance but the strength behind this latest gold move just doesn’t compute right. Oh well, let’s see. Full Story
1st Hour: Headline news & the Market Weatherman Report. Spotlight Stock Picks. Host Chris Waltzek & The International Forecaster discussion and listener's questions. 2nd Hour: Harry S. Dent Jr., H.S. Foundation Peter Schiff, Euro Pacific Full Story
By: Julian D. W. Phillips, Gold/Silver Forecaster - Global Watch - 2 May, 2010
Let us start off by saying that we do not see the Euro collapsing and being shelved, at least not yet, anyway. No exit process was written into their rules anyway. But it is technically possible, so better to be forewarned. What would prompt such a collapse? The future of the Euro lies in the hands of its members, especially Germany - the richest and strongest member of the Eurozone. Full Story
I'm going to start off by stating that I don't think Bernanke is going to "get away" with the insane monetary policy he's chosen. Printing trillions of dollars, cutting rates to zero, trying to manipulate the bond market and generally tampering with the natural market forces is going to have consequences. Full Story
By: Bob Chapman, The International Forecaster - 2 May, 2010
America and the world face a financial conflagration of immense proportions. The world of fiat money and massive credit is buckling under the pressure of unpayable debt. Each day the safe haven of gold and silver related assets become more attractive. We ask where else do you go for safety? A conflagration is a fire out of control and that is exactly the conditions the world faces today. The inflationary depression has smoldered for 14 months and it will soon accelerate. Full Story
By: John Mauldin, Millennium Wave Advisors - 2 May, 2010
Everyone and their brother intuitively knows that the current government fiscal deficits in the developed world are unsustainable. They have to be brought under control, but that requires some short-term pain. Today we look at a rather remarkable piece of research from the Bank of International Settlements (BIS) on what the fiscal crisis may morph into in the future, how much pain will be needed, and what will happen if various countries stay on their present courses. Some countries could end up paying north of 20% of GDP just on the interest to serve their debt, within just 30 years. Full Story
The last meltdown was caused by the financial crisis in the United States, which was triggered by the onset of the housing and mortgage crisis. We now have the potential for a full blown currency crisis to unfold. Greek debt has been reduced to junk status and both Spain and Portugal have had their ratings lowered. This is going to make it much harder and more expensive for these 3 nations to borrow money, especially Greece and rightly so. Full Story
THERE IS NO last mover advantage in fleeing a debt default. Not least when it's so clearly flagged in advance. So whether or not the Greek government has to restructure its finances – screwing one set of creditors or another – you can't blame Greek savers for moving a chunk of their money out of the country since New Year. Full Story
I do not believe in "pure" technical analysis (i.e. in a vacuum). Knowing that we are in a secular general stock bear market and secular Gold and Gold stock bull market colors my views. A pure chartist may see blue skies from here to Dow 20,000, but a deflationary secular private sector debt collapse plus helicopter Ben and his crew does not equal a new secular general stock bull market in my opinion. Full Story
Gold and silver prices rallied sharply yesterday to close the week at $1,179 and $18.69 while US stocks fell by the most since January with the the Dow jones off 158 points at 11,008 and the S&P off 50 points at 1,186. Full Story
By: Richard Daughty, The Mogambo Guru - 2 May, 2010
I was sitting there, cool and comfy, wearing my new Mogambo Crisis Outfit (MCO), consisting of a pair of snazzy red cowboy boots, a combat helmet, a bullet-proof vest and a ballerina tutu (which, as an aside, does a lousy job of concealing a pistol in a shoulder holster), each piece of my dazzling and daring fashion ensemble carefully chosen for either maximum protection or maximum confusion to the enemy, which, at last count, is apparently everybody. Full Story
Markets in the US hit the last line of Fibonacci Retracement levels this past week, and gyrated like a bucking bronco. Where they’ll go from here is debatable. There are strong arguments for them to continue higher, fall, or even trade within a range for a while. Full Story
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