This week we are stating some very painful truths about what is unfolding. It is a story of BETRAYAL by the people who run the United States and G7. Make no mistake, I love the United States but despise the government as it embodies the definition of immorality, incompetence, greed and hubris. Government is very competent at gathering power over others and making money for the people who run it and their contributors. Full Story
By: Bill Bonner & The Daily Reckoning Crew - 25 April, 2008
-A correction from a dear reader…a correction in emerging markets and other areas means only one thing to us: a buying opportunity… -The world of 'flation…views from the dark and sunny sides of the street… -We know the old adage is 'buy when there is blood running in the streets' - but it may be too early to start chasing ambulances…and more! Full Story
By: David Chapman, Union Securities - 25 April, 2008
For gold this time around we have been in a bull market for roughly seven years (low in February 2001 was at $255) and have gained roughly $660 or 258 per cent. What -- is that all? In the 1970s after eight years gold had already gained 448 per cent, and the NASDAQ after eight years had gained 378%. Full Story
By: Peter Schiff, Euro Pacific Capital, Inc. - 25 April, 2008
Those unfamiliar with marketplace dynamics may not recognize how government activity has created price distortions across our economy. But when these chains fail to restrain the market, the underlying forces become easier to see. Full Story
Distrust of Fiat Currencies, Treasury Securities, and other Paper is especially prevalent in societies like China and India where the Gold is traditionally regarded as a store and measure of value. Thus Gold is a prime candidate for National Accumulation and Hoarding. Full Story
By: Adam Hamilton, Zeal Intelligence LLC - 25 April, 2008
Crude oil is one of the hottest commodities on the planet these days. Almost without respite, it has surged 16% in April alone! It closed at new all-time record highs on 8 of the past 11 trading days. Pushing $120 per barrel now, the fabled $100 price point that the markets feared for so many years now seems modest. Full Story
By: Roland Watson, The Silver Analyst - 25 April, 2008
After dropping almost five dollars, silver has reached its 7 month trend line. What will happen now is important to the general silver situation for at least several months. If this line is decisively broken, I see no barrier to stopping silver heading down to its 200 day moving average and then some. If it rallies from here we could see another challenge at the old high of $21 set in March. Full Story
With the recent sell off in the gold shares this week plenty of short sellers, weak holders and investors that bought at the top are selling and creating a real wicked sell off. I would think that Friday the 25th or Monday the 28th will be the end of this sell off and a substantial rally could develop. Full Story
First of all, the answer is yes. I continue to hold a core of gold miner stocks. The answer would also be yes to the question "Gary, do you feel pain right now?". Fortunately, the answer to the question "Did you see the potential for this severe correction and 'trade your traders' and manage risk to an acceptable degree?" is also yes although as usual I wish I had done more of it ;-). Full Story
By: Richard Daughty, The MOGAMBO GURU - 25 April, 2008
The IMF, glorying as ever in its failures, just like the Federal Reserve, now promotes the laughable idea to 'tackle' rising food prices by having donor economies give other people money to pay higher food prices! Hahaha! Full Story
Citigroup’s shares have rallied 45% since bottoming five weeks ago. That might sound impressive, but the chart below puts it in proper perspective. As you can see, the stock has quite ways to go before long-term investors might be feeling anything close to a sense of relief. Full Story
By: David Galland, Managing Director, Casey Research, LLC - 24 April, 2008
Could the gold stocks double from here? In our view, that is the by far most likely scenario. And a scenario that we think the historical record supports. This opportunity won’t last overly long because sooner rather than later (and maybe as soon as the next wave of financials are released), the investment masses, led by the deep-pocketed institutions, are going to come to the conclusion that in this era of crisis and inflation, the single best place for their money is in gold producers. Get there first, and you’ll profit most. Full Story
By: Bill Bonner & The Daily Reckoning Crew - 24 April, 2008
-The great overreach continues…there's so much noise in the financial markets, one can barely think straight… -Housing slump may exceed the Great Depression…the profit parade in commodities marches on… -We pity the next president…the subprime debacle has produced a tsunami of lawsuits…and more! Full Story
As all gold bugs know, gold’s historic rise since 2001 has largely been attributed to the dilution of the U.S. dollar. Trade deficits, government overspending and the more recent sub-prime mortgage debacle have all helped deflate the greenback while driving up the price of gold. Full Story
By now it should be abundantly clear to even the most recalcitrant pessimists that the stock market is well along its route to recovery. The internal momentum structure hasn’t looked this promising in weeks if not months. Full Story
At this moment, June Gold is in a short-term Downtrend. Yes, a Downtrend. One that I think will stay in place until prices reverse and trade through 931.9. I expect to see support unfold at the 893-price level. Should a test of 893 occur and not hold, a retest of 876.3, the low made on April 1st, is my next downside target. Full Story
The numbers in the title of this article look absolutely shocking side-by-side, even though there is plenty of evidence to suggest that even those numbers are merely rest stops on a chart with a perpetual sky-reaching tilt. Full Story
The two primary engines pushing the USDollar down are extraordinarily low borrowing costs and extraordinarily high monetary growth. Money is very cheap to borrow, which encourages speculation for basic reason that many investments are rising in price. That covers the demand side for money. The money supply is growing out of control. It is hard to describe any modern day monetary event as like Weimar German times, but this is becoming close. Full Story
By: Bob Chapman, The International Forecaster - 24 April, 2008
Uncle Ben Bernanke is currently pumping out federal reserve notes, or electrons with binary encoding as the case may be, like they were going out of style in order to save the miscreants on Wall Street and in order to postpone economic catastrophe for the benefit of our incumbent sociopaths in Congress, who are the best politicians that money can buy. Full Story
By: Richard Daughty, The MOGAMBO GURU - 24 April, 2008
This TFC-not-expanding thing is Bad, Bad News (BBN) because this is the stuff that the Federal Reserve creates at their whim, which causes credit to appear on the books of the banks, which turns into money when someone takes out a loan at a bank. Full Story
How much more of this schizophrenia are we going to have to put up with? Will the stock market have to break out of its 2008 range before we have a clear winner in the Democratic primaries? Or, conversely, is an Obama victory in the upcoming North Carolina and Indiana ballots needed to send stocks soaring/plummeting decisively? Full Story
Hugo Salinas Price, president of the Mexican Civic Association for Silver and the world's foremost advocate of restoring silver's role as a circulating currency, addressed GATA's recent conference in Washington by video. His address, "Dorothy's Silver Slippers," detailed his proposal for the issuance of a circulating silver ounce coin for Mexico -- a coin that, not being imprinted with any particular peso value, would never be at risk of withdrawal from circulation because its melt value had come to exceed its face value. Full Story
By: Bill Bonner & The Daily Reckoning Crew - 23 April, 2008
-Poking through dusty ruins looking for our future…just because we say it, doesn't mean you can… -Greenspan and Bush accomplished a great feat…an explosion of spending that has blown up in our faces… -The U.S. still on a slip-n-slide…a Philistine is pardoned a 4-hour tour of the Vatican…and more! Full Story
By: Bill Murphy, Chairman, Gold Anti-Trust Action Committee Inc. - 23 April, 2008
GATA has been working for nine years to expose the manipulation of the gold market by a very cunning Gold Cartel, but one who is now on the ropes. Nonetheless, over a short period of time, they can make life very miserable for our gold/silver camp, as they did a few weeks ago with their orchestrated raid on both markets. Full Story
The reality is that since August of last year, the shift from paper assets into hard assets has begun to accelerate. As these charts show, gold and gold shares have a long way to run. Now Let’s take a look at just gold by itself. Below is a long-term daily chart followed by my analysis. Full Story
The big question that has puzzled the investment community over the last few years has been “inflation, deflation, or both?” Those who make the case for inflation would point to the amount of fiat money printed over the last decade by central banks all across the world. Full Story
By: David N. Vaughn, Gold Letter, Inc. - 23 April, 2008
What do you do when you no longer believe in something? I used to believe that economically things would eventually bottom out but I now believe we are due for hard times longer than I originally imagined. There are so many factors and fundamentals that refuse to quiet down. Instead, these issues are continuing to grow with a snowball effect. The momentum just grows higher and higher. Full Story
The U.S. Federal Reserve has forgotten the most essential rule. They should first do no harm. In a rush to bailout the bankers from their self inflicted mortgage mess, the Federal Reserve has seriously distorted the U.S. monetary system. Full Story
By: Richard Daughty, The MOGAMBO GURU - 23 April, 2008
A lot of people have a lot of theories as to why gold is going down, when the theory and the entire history of economic mankind say it should be going up, and most of them are right, to one degree or another, as there are as many reasons for acting as there are actors, and there are eight million stories in the naked city. Full Story
The Dow fell a mere hundred points yesterday – an amazing show of strength, considering the disturbing tenor of the news. For starters, it was reported that existing-home sales for March fell by 2%, pushing the median price down to $200,700, or 7.7% less than a year ago. Full Story
By: Bill Bonner & The Daily Reckoning Crew - 22 April, 2008
-Thinking the unthinkable…profiting from a vacuum in the news stream… -Millions of causalities in the war between inflation and deflation - but no clear winner…emerging markets are now using more oil than the United States… -Sad news from Zimbabwe…an updated version of The Demise of the Dollar and more! Full Story
By: John Browne, Euro Pacific Capital - Senior Market Advisor - 22 April, 2008
Last week, as the corporate “earnings season” got underway and some 30 percent of S&P 500 firms reported their results from the first quarter of 2008, investors seized on any shred of positive news in the first wave of reports and sent share prices surging. Full Story
Recently, the price of silver has been at levels not witnessed since 1980, some 28 years ago. That’s a pretty good chunk of time. For instance, 28 years ago, half the world’s 6.5 billion population had yet to be born. On a personal basis, it was almost half a lifetime ago for me. How old were you and what were you doing in 1980? Full Story
My study of the causes of the Great Depression have led me to believe that America has now gone too far to go back, that Americans because of their foolishness, the duplicity of their leaders, or a combination thereof are today incapable or unwilling to understand what is now about to occur. The lack of understanding, however, will not prevent its occurrence. Full Story
By: Steven Saville, Speculative Investor - 22 April, 2008
Since the birth of the floating (sinking?) currency regime at the beginning of the 1970s, the best bull market of any decade has always continued until the beginning of the next decade. To help illustrate what we are talking about we present, below, three charts that represent the best bull markets of the 1970s, 1980s and 1990s, respectively. Full Story
By: David Galland, Managing Director, Casey Research, LLC - 22 April, 2008
Now, one could comment endlessly on these sorts of market movements. But I think it is a waste of time. No question that traders will continue trying to spot the patches of blue through the thick gray overcast. But this storm, according to everything we see and reliably report on in our various publications, is just getting rolling and before you know it, lightning and hail the size of grapefruit will be sending the equities market running for cover. Full Story
By: Bob Chapman, The International Forecaster - 22 April, 2008
Another factor that everyone keeps passing over is that we now have the potential for a dollar carry trade. If you are a large bank, just come on over to the US and get your 2.25% interbank or 2.5% discount window dollar-denominated loan, and use your loan proceeds to buy euros so you can get better-yielding German Bunds denominated in a currency that is appreciating against the dollar. Full Story
By: David Bond, Editor The Silver Valley Mining Journal - 22 April, 2008
Why cannot we blow up the evils of the United Snakes Fednote as well? A nice rendition of a Paulson, or a Bernanke, or a Brownspan, a Nixon or a John D. Rockefeller, puffed out in all their pusillanimous glory, perhaps all holding hands together, blown to Kingdom Come, thereby declaring our freedom from the Central Banks? Full Story
By: Richard Daughty, The MOGAMBO GURU - 22 April, 2008
The total value of the existing global gargantuan globular glut of derivatives is estimated to be more than $700 trillion! Compare this stupefying fact to the associated fact that global GDP is only about a lousy $50 trillion! Full Story
Bank of America got off pretty easy yesterday after posting a 77% drop in earnings. The stock fell just $1.06, suggesting that investors may have gotten used to big banks routinely announcing multibillion losses every quarter. In B of A’s case, the actual write-downs totaled nearly $8 billion, including $1.91 billion for losses from investment banking and another $6 billion from bad credit. Full Story
By: Bill Bonner & The Daily Reckoning Crew - 21 April, 2008
-A whole lot of flation goin' on…it should be onwards and upwards from here on out… -What will happen when we see a real bottom…the new economies start to pull away from the old ones… -When the working man was king…on the usefulness of the modern college degree…and more! Full Story
In the face of excessive money, lenders tend to adopt laxer standards for making loans. Borrowers and investors tend to use higher amounts of leverage. Asset prices rise. When the rate of money creation slows or halts and asset prices begin to decline, those who have bought houses at high prices, perhaps with little or no equity of their own, quickly find themselves in a position of negative equity, with their promised loan payments exceeding their house values. This induces default and foreclosures. Full Story
By: Captain Hook, Treasure Chests - 21 April, 2008
The joke this April Fool’s Day was on the short sellers with yet another squeeze higher in stocks. Of course this has not been a problem since last summer as stocks have been (and remain) in a bear market. Unfortunately for short sellers this time around however, this bounce will likely be more robust than previous occurrences in that important cyclical influences have now gone positive, which will act as a tail wind for the bulls in fits and starts (choppy price action) right into the second quarter of next year. Full Story
Silver and gold are not merely valuable commodities, investments, and media of exchange. More importantly, they are key "checks and balances" in America's legal and political institutions. Full Story
By: Boris Sobolev, Resource Stock Guide - 21 April, 2008
Recent history shows that investors made very easy money in the 1995-2000 period betting on the broad market - the S&P 500 returned 240% in just five years. By the end of the run, a vast majority of investors and analysts were in a state of euphoria. At the same time, a book called “Dow 36,000” went into print. Full Story
The USD appears as an ending diagonal triangle pattern, currently in wave 4 of wave (5). The last update indicated that the USD was possibly in a (contracting) triangle but it will likely complete as an (ending diagonal) triangle. Full Story
Gold had a nice week until Friday when the trend line broke down early morning at the usual time right about when NY opened. It looks like it was set up as a bit of a small bull trap as Gold closed right on the 50 day MA Thursday which should have provided support for an up day Friday. Full Story
It looked for a while there like gold could break above its previous rally high but a weak momentum and weak volume action put a halt to that idea. Now what? Full Story
There’s no inflation if you don’t have to buy food, oil, or gas. Food shortages are occurring worldwide. The price of rice is up almost 150% in the last year. People get a bit angry when their kids are starving. Such conditions do not auger well if allowed to continue. Full Story
We’ve explained here a dozen times that these rallies have just one cause: short covering. Seen in that light, Friday’s surge occurred simply because sellers, having anticipated the worst, had done all their selling before Friday, leaving “no one” to weigh down shares when the bad news came. Full Story
1st Hour: Headline news & market forecast. Spotlight Picks with big dividends. The International Forecaster and Chris Waltzek answer listener questions. 2nd Hour: -William Fleckenstein Full Story
By: Chris Powell, Secretary/Treasurer, GATA - 20 April, 2008
Remarks by Chris Powell, Secretary/Treasurer Gold Anti-Trust Action Committee Inc. GATA Goes to Washington -- Anybody Seen Our Gold? Hyatt Regency Crystal City Hotel, Arlington, Virginia Friday, April 18, 2008 Full Story
By: John Mauldin, Millennium Wave Advisors - 20 April, 2008
A few weeks ago I asked for readers to send me questions and said I would try and answer them while I was in Switzerland. Some of them were quite good and have given me ideas for whole newsletters but will require a lot of research. But a lot of them fell into two basic camps. This week we look at a number of questions from readers about my thoughts on the Muddle Through Economy. Full Story
As the painful process of de-leveraging, aka the "Great Unwind," accelerates, calls for containing inflation and concerns over lowering interest rates will eventually become distant memories. As an investor, it will be increasingly important to own hard assets because they will retain their value and require more and more units of currency (the dollar) to purchase them. Full Story
Once again lady luck smiled on us and our prediction came true within days of making it. From a high of 12530 last Tuesday, the Dow dropped to a low of roughly 12180 before mounting one of the largest one day rallies ever. Full Story
By: Richard Daughty, The MOGAMBO GURU - 20 April, 2008
My God! This is all inflation news that is beyond terrible, but it seems so much less than that after the 73% rate of crude goods! But the reality is that we're freaking doomed, whether it seems like it or not! Full Story
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