By: Julian D. W. Phillips, Gold/Silver Forecaster - Global Watch - 26 August, 2011
The rise in the gold price has continued and shown a break up above the trend line. This has always been a sign that the gold, silver prices have ‘spiked’. This has always been a signal to be ready to take profits and be ready to go back in lower down. Full Story
The Fed surprised the market by extending its policy of 0 to 0.25% Fed funds rate to mid-2013. The way the Fed manages to drive rates lower is to buy Treasuries with newly created money – driving the price up and the rates down. The big question is whether the policy will have a sizeable effect on markets. The chart below shows the historical jump in the Fed’s combined policy tools that were used to lower rates and bail out financial institutions through a variety of programs. These include the big purchase of mortgage-backed securities (MBS) called QE1 and the large purchase of Treasuries called QE2. Full Story
By: The Gold Report and Chen Lin - 26 August, 2011
Chen Lin stumbled into investing. While working on a doctorate at Princeton, he turned $5,411 in his wife's retirement account into $1.5 million. In his newsletter, What is Chen Buying? What is Chen Selling?, Lin shares the fruits of his analytical aptitude. In this exclusive interview with The Gold Report, Lin reveals his latest finds in gold, and why he has high hopes for silver, too. Full Story
By: Richard (Rick) Mills, Ahead of the herd - 26 August, 2011
Today many governments are looking at ways to get more money from miners as companies report record profits - the higher the returns and the higher the profits, the greedier governments become. As commodity prices rise governments try to boost their share of the proceeds from their countries energy and mining sectors. Full Story
By: Adam Hamilton, Zeal Intelligence - 26 August, 2011
Fear is the greatest buy signal ever seen in the stock markets. This overpowering emotion flares fast, driving excessive selling that rapidly hammers stock prices down to irrational oversold levels. These fear-driven lows are the ideal time for investors and speculators to buy low, necessary before selling high later. Provocatively stock fear has an effective ceiling, absolute levels that demand aggressive buying. Full Story
The Eloquent Eminent Midas of Le Metropole Café, Bill Murphy, has for years been describing the shocking and continuing attacks by the Fed-led Cartel* on Gold and Silver Prices, and by exposing their nefarious operations, has provided a substantial public service. Full Story
Summing up, although stocks could move either way from here, it is more likely that higher prices will be seen in the short term. The direction of the market beyond this timeframe is uncertain. Based on the persistent negative correlation between the stock market and precious metals the expected short-term rally in stocks would likely have a negative impact on gold and silver. Full Story
The S&P 500 has been consolidating for two weeks now between 1100 and 1200 ever since the dramatic plunge earlier in the month. The question now is do we get a bear market rally that would logically retest the 1260 level on the S&P 500? Or does the market come under much more severe pressure with an acceleration in the European debt crisis? With the instability of the current situation it’s hard to make a call either way, which is why it’s prudent to be prepared for either situation. Full Story
Placing one’s chips on the “Don’t Pass” line when Warren Buffett holds the dice may seem ill-advised, but we’re not so sure about that $5 billion bet he just made on Bank of America. The news media inferred with all its might that it was a vote of confidence — not only in B of A, but in the U.S. banking system. Yeah, well, maybe. But it would be just like Buffett to make the kind of deal that will return all of his capital come hell or high water while allowing him to reap a windfall if the bank should rise from the grave. Full Story
Peter Spina, CEO of GoldSeek.com, and James Turk, Director of the GoldMoney Foundation, talk about gold. They discuss how little media attention is paid to gold and how that is slowly changing. They also talk about the differences between investing in gold bullion and gold mining shares. They talk about many aspects of gold mining, such as the differences between junior and senior miners, the importance of location and of new discoveries, as well as the dangers of nationalisations and other geopolitical risks. Full Story
By: John Browne, Senior Market Strategist at Euro Pacific Capital - 25 August, 2011
With investors now emerging from a state of panic after the harrowing losses of late July and August, stock markets are now rising and gold is finally falling after a record run that pushed its price north of $1,900 per ounce. The buoyant mood is largely undergirded by the hope that on this Friday, August 26th, Fed Chairman Ben Bernanke will announce another round of stimulus to stop the U.S. economy from slipping back into another recession. Full Story
By: Ed Bugos, The Dollar Vigilante - 25 August, 2011
As far as gold stocks go, while they will likely fall when gold prices fall, we don’t expect them to fall that much. Moreover, we expect a big gold stock rally when and if gold prices stabilize anywhere above $1500, or if they get to $2100. If the short-term top is in at $1900, I see the market holding that level as well. Either way, this next dip may be our last chance to buy gold shares cheap. After that, they may still continue to rally with gold but the risk-return won’t be the same, so buy the dip. Full Story
Gold versus Gold stocks. A topic near and dear to my heart. One that I have studied relentlessly for the past several years. I am no mining expert. I am not the one that can point you to the next "ten bagger" in the junior mining sector. But I have been right in insisting that my subscribers favor Gold over Gold stocks and I continue to favor Gold (and silver) over the companies that dig these metals out of the ground. This is sector analysis, not an individual firm analysis. Full Story
Gold is in the second phase of a Bump-and-Run Reversal Top pattern, which typically occurs when excessive speculation drives prices up steeply, and is now at a critical juncture where substantially lower prices could be realized. Let me explain. Full Story
If you are still planning to retire, you had better have a lot of money, and this money had better not be invested in markets that are going to collapse when the government's promises are finally exposed as lies. Full Story
It seems like a terrible waste of energy to haul gold down by nearly $200, as has occurred this week, only to run it back up to new all-time highs next week. Or will it be different this time? Show of hands: How many of you think the POG will never, ever reach $2000 an ounce? That’s what we thought. Still, you can’t blame bulls for grumbling when DaBoyz decide to let the bottom drop out for a couple of days. Full Story
By: Julian D. W. Phillips, Gold/Silver Forecaster - Global Watch - 24 August, 2011
In the last two weeks we have seen the strongest and most respected currencies being purposely weakened by their own central banks. It is at times like these, when the going gets tough that national monetary priorities are fully exposed. There are major dangers in these policies because of the role that currencies have played since gold was written out of the monetary system in the early seventies. Full Story
By: Peter Schiff, CEO of Euro Pacific Capital - 24 August, 2011
Picking up where they left off in 2008, the media is in the midst of a campaign to ignore and undermine the presidential candidacy of Ron Paul (they gave me even rougher treatment during my 2010 Senate run). Political pundits just do not know what to do with a candidate who fails to fit into the blue and red boxes that form the simple narrative of American politics. They are perturbed by the grass roots nature of the campaign, by the strange honesty and earnestness of the candidate and his supporters, and the odd mixture of conservative values and liberty-minded policies. And like most adolescents, they reject what they don't understand. Full Story
Something big is going on in the United States in a sentiment change, an altered state of psychology, a growing sense of panic. My opinion is that the nation has entered the early stage of comprehension among the population of systemic failure. The most immediate measures are the rash of heavy selling down days in the US Stock market, the strong purchases in Gold, as well as the reactions to constant news of sovereign debt in trouble, and the big banks teetering. Several other softer measures have been noted, made overwhelming by their sheer numbers. A perception wave has taken hold of a toxic USEconomy, a toxic US financial sector, a toxic US housing sector, a toxic economic brain trust in the US towers. Full Story
Before Ben Bernanke lets a single sound slip from his mouth this week, investors have already put their money where Bernanke’s mouth is. Investors want a minimum of $500 billion in quantitative easing, betting on rising Treasury prices when Bernanke addresses the press about what the Fed’s next move might be. Full Story
By: The Gold Report and Carlos Andres - 24 August, 2011
If gold equities are on sale, the stocks Carlos Andres follows as publisher of the Frontier Research Report are on clearance. Andres seeks out stocks that have been unfairly pummeled, offering extra upside for investors. In this exclusive interview with The Gold Report, Andres says some stocks are trading at insanely low prices that belie their quality management and mining projects. Full Story
On a day when gold has dropped over $100 or almost 5.5%, investors went looking for the reasons why the correction has been so severe. Certainly the market was due for a correction; it had come a long way in a very short time for some very good fundamental reasons. However, even the strongest bull market is not without pullbacks and this one was due. That is not, however, what caused the panic selling that has taken place. Full Story
Is the mania here? When most investors hear the word “mania” they think of a runaway market induced by greed. You know, that animal-like instinct we all occasionally feel, the one promising riches from a market on a rip-roaring tear. Gold is up 28% since July 1, a mostly one-way rocket ride that’s transpired in just 36 trading days. It’s up 35% year-to-date, and it’s still summer. But it isn’t greed driving our runaway gold price. Full Story
Nowadays one can safely say that gold has come around full circle, its shine untarnished by the passing years as it has reclaimed its respected place at the heart of the financial system. The debate over a return to the gold standard has resurfaced in the last few years in a way that has not been seen in the four decades since 1971 when President Richard Nixon decided to severe the dollar’s ties to gold. Gold is shining brightly. Full Story
The GREAT SAGE HIMSELF – seer of the financial crisis, gloom-n-doomster extraordinaire – Nouriel Roubini thinks today's gold investors are "sheep or lemmings". Either way, gold is a dumb thing to buy, says he. Because it's a bubble, plain and simple and always. "Since gold has no intrinsic value," says Dr.Doom, "there are significant risks of a downward correction." Oh sorry – that was him back in December 2009, not August 2011. Full Story
By: Bob Chapman, The International Forecaster - 24 August, 2011
As we have often said, the problem and debt has only been extended. All the debt is unpayable. Interest rates and bond yields of troubled nations are such that debt cannot be repaid. How can anyone have confidence in a broken system? Unsustainable is the operative word. There is no political courage to end all this because all of the key figures and many others are controlled by the Illuminists, who want world government. They will hold out until the system has collapsed, and hope they can save themselves. That is why people worldwide have to prepare for what is coming. Europe’s financial collapse will be the catalyst that will cause all other nations to fall. That is why it is so very important that all of your investable assets be invested in gold and silver, coins, bullion and shares. Full Story
A key reason for recent market turmoil may be the long overdue untangling of important debt-driven interdependencies between the U.S. and Europe. In our analysis, not only has the Federal Reserve’s (Fed’s) ultra-low monetary policy taken away any incentive to engage in meaningful reform in the U.S., but the easy money also spilled far beyond U.S. shores, providing European banks with hundreds of billions of reasons not to shore up their capital bases. With volatility riding high, investors appear to be chasing emotions rather than facts; let’s take a step back, and in an effort to understand where the Fed, the U.S. dollar and the euro might be heading next, let’s focus on facts rather than emotion. Full Story
“Interest rates to remain at zero for the next two years.” Those were the words of Fed Chair - Sir Benjamin of Bernanke last week. With inflation beginning to pick-up – the notion that rates would remain at zero for a prolonged period of time seems “paradoxical” to conventional economic thought. There have been other misunderstood ‘paradoxes’ in economics in modern times. Full Story
At the same time, Gold and Silver were getting pummeled, as so often occurs when the stock market pretends for a few delusional hours that all is right with the world. December Gold came off its overnight high by $93, hitting a low of $1819 in the late afternoon, while September Silver was off a whopping $2.78, or a little more than six percent. We look forward to a resumption of the buying in bullion shortly, and to the resumption of the stock market’s right-as-rain decline, as the Great Recession tightens its grip. Full Story
By: Gary Dorsch, Editor, Global Money Trends newsletter - 23 August, 2011
Even the most avid gold bugs, who’ve been stockpiling vast quantities of the barbaric metal for decades, and endured their fair share of panic shakeouts, were probably in a surreal state of “shock and awe,” while watching the price of the yellow metal soar to within 1% of the psychological $2,000 /oz level this week. It’s as if somebody launched a rocket on the Fourth of July. Since then, the price of gold has soared $400 /oz, zooming higher in a parabolic pattern. After all the bullish chatter on the blogosphere over the past decade, Gold, - the so-called barbaric metal, has triumphed over the stock peddlers on Wall Street. Full Story
Last night, in one of the stranger moments in recent international news, Seif al-Islam, son of apparently toppled Libyan leader Moammar Gadhafi, called a hasty press conference in Tripoli, hours after spokespeople of both the rebel coalition and the International Criminal Court had announced that he had been captured by opposing forces. Full Story
By: The Gold Report and Charles Oliver - 23 August, 2011
It's a good time to stock up on gold stocks, according to Charles Oliver, senior portfolio manager with Sprott Asset Management, who sees a number of the equities trading at their lowest prices of the decade. As he tells readers in this exclusive Gold Report interview, "Gold has gone up 20%. The stocks have gone down. They are very cheap. These companies are increasing their earnings, they're increasing their cash flow, they're increasing their dividends—what a great opportunity." Full Story
So, Doug: London has suffered more damage from recent rioting than from anything else since the Blitzkrieg; the stock market had its most volatile week in years; gold shot well north of $1,800; and the U.S. government almost crashed into its debt ceiling. Smells like blood in the streets. What does a street fighting man like you make of all this? Full Story
I’m overly obsessed with silver and gold stock details right now. I’m obsessed with the mountain of buy orders I have in the market for silver bullion, and for gold stock. For example, as of this morning, for silver, my buy orders are now every 10 cents down. Full Story
Americans in general and Wall Street in particular will surely deny this as they have in the past but this lesson comes straight from the annals of history. The week that was saw gold and silver hold up well into the financial stress. Could gold pullback soon? It seems a likelihood as rumors of a 2nd gold margin increase in less than a month swirled through the markets. Let’s all hope we get that selloff in gold to buy into, but don’t expect it to be long or deep – There are simply too few ounces in the world to protect investors who are beginning to awake to history. Full Story
By: Steve Saville, The Speculative Investor - 23 August, 2011
The world of policy-making is dominated by Mercantilism and Keynesianism. Under the Mercantilist way of thinking, the greater the level of goods exports relative to goods imports, the better. Or, looking at it from another angle, from the perspective of a Mercantilist a good policy is one that maximises the amount of money flowing into the country by maximising the amount of goods flowing out of the country. Full Story
The report relies heavily on the conceptual framework of a U.S economy in a balance sheet recession. Our main thesis rests on the belief that until U.S households repair their balance sheets and generate real income growth, they are in no position to drive a self-sustaining economic recovery. Monetary policy (including quantitative easing (QE)) produces limited results in generating real economic growth--- since the demand for credit and the lack of qualified borrowers remain the issue not the supply of funds. Instead, expansive fiscal policy, through increased government budget deficits, exists as the primary lever to raise economic activity, transfer real financial assets to the private sector, and ease the pain of the deleveraging cycle. Full Story
As I have been warning investors for many months, stocks have now entered stage III of the secular bear market. Gold on the other hand is now in the final parabolic phase of a 2 1/2 year C wave advance. My best guess was that we would see a Dow:gold ratio of between 5-6 before this C wave ended. The ratio was at 5.71 as of today. For reasons explained in the nightly reports I think we may still have a little further to go on the downside for stocks and a little further upside in gold. So it's entirely possible that we could see a Dow gold ratio of 1:5 before the trends reverse. Full Story
A few weeks ago the suggestion that gold is in imminent sight of $2,000 an ounce and that silver would pass its April-high of $50 would have seemed pie-in-the-sky. But not this week, it is a simple extrapolation of a very sharply rising trend line and would require nothing more than a repeat of the price advance of the previous week. Incredible but true! Full Story
Gold is the premiere hedge against inflation, so we are seeing the price of gold move steadily higher. We can expect gold to reach $2000/oz and beyond in the next few months. The gold/silver ratio is telling us that silver could outperform gold this year on a percentage basis. Full Story
Gold continued to make headlines last week, reaching nearly $1,900 an ounce on Friday before resting around the $1,850 level. Gold’s 15 percent rise to new nominal highs over the past month has rekindled “gold bubble” talk from many pundits. Long-term gold bulls have been forced to listen to these naysayers since gold reached $500 an ounce. If you would have joined their groupthink then, you would’ve missed gold’s roughly 270 percent rise since. Full Story
Let’s face it; many of the world’s ‘developed’ nations are insolvent and the writing is on the wall. Either these indebted states will default or they will try and inflate their currencies into oblivion. As far as the US is concerned, it still has the privilege of owning the world’s reserve currency and its central bank can always create more dollar bills out of thin air. Thus, it is unlikely that the US will ever default on its debt obligations. Full Story
The Gold and Silver business is one that naturally involves consolidation. The industry product is the same and the business is such that mergers and acquisitions are commonplace. As many readers know, the secular bear market of the 1980s and 1990s had an obvious impact on the exploration side of the business. Larger mining companies cut exploration budgets because they had to. Fast forward to today and we know that has impacted supply and the ability of the large companies (who survived the bear market) to grow organically. Hence, mergers, acquisitions and takeovers will only increase. Yet we haven’t seen much of this activity despite a raging bull market in the metals. Full Story
By: Rick Ackerman and Mario Cavolo - 22 August, 2011
In the daily give-and-take of the Rick’s Picks forum, Mario Cavolo, an American expatriate living in Shanghai, is the perennial optimist, sort of. While hardly unmindful of America’s steep decline, he sees offsets in a rising global middle class, particularly in India and China, and in an upper-class America that will continue to flourish even in hard times. Skeptical though we are sometimes about his thesis, we must admit that a drive through Palm Beach, Florida, the other day reminded us that there are concentrations of wealth in this country so deep that even if 90% of it were to vanish tomorrow, the super-rich will still be driving Bentleys and shopping on Worth Avenue and Rodeo Drive. For a summation of Mario’s thoughts as U.S. stocks continue their descent into Hell, read on. Full Story
Looking out on the markets before the week begins the mood is very, very tense. The European debt crisis continues to intensify with Greece moving to save one of its smaller banks (Proton) from failure. The Greek bank system does not have FDIC-style insurance, so a bank failure there means that the possibility of losing all of one’s money is in fact very real. Full Story
Boy, you leave for a few days and all hell breaks loose. Gold is up some $200 since I last looked. Is this a “blow-off” stage or is there still a lot more to come? Full Story
Headline news & the Market Weatherman Report. Spotlight Stock Picks. Host Chris Waltzek & Bob Chapman, The International Forecaster discussion and answer listener's questions. GUEST BIOS: Gerald Celente, Trends Research Institute Peter Grandich, Grandich Publications, LLC Full Story
In the last update, despite being extremely overbought, gold was expected to advance to even higher levels, for various reasons, principally the COT readings and the bullish volume pattern. We gave a target in the $1900 area, and that target was very nearly attained on Friday when gold hit $1881 intraday, before reacting back to close well well off its day's highs. Full Story
By: Bill Murphy, Le Metropole Cafe, Inc. - 21 August, 2011
This morning was breathtaking. As I am still having trouble getting off London/France time yet, I am still rising VERY early. This morning was worth every second of it as I watched gold blow through the 2% Rule with ease, RISING 3% at its highs of its rocket run. Speaking of rockets… Full Story
Life without appreciation for irony in global financial, economic and political affairs would be challenging. God undoubtedly enjoys the irony at work in human action. Politicians promising government sponsored heaven on earth for decades have delivered the world into a global financial meltdown nightmare, and the cusp of another depression. All around the world, the politicians are scrambling for their political lives, and many their political souls, as the global system enters a long wave extinction event. Full Story
By: John Browne, Senior Market Strategist at Euro Pacific Capital - 21 August, 2011
The basic unwillingness of politicians to face economic and financial realities has caused the United States and European Union to face currency collapse. The politicians are content literally to paper over the problem with massive amounts of newly printed currency. This means that savvy investors, facing major real losses, are turning increasingly to gold. In essence, even though currencies are no longer on a gold standard, they are increasingly being "redeemed" for gold in the marketplace. Full Story
By: Bob Chapman, The International Forecaster - 21 August, 2011
Every professional has their own method of analyzing markets, finance and economies, and some do well coming up with the direction of social and political issues as well. The other 97% miss one-half to two-thirds of the time. That is not very good and one asks why? The answer is simple they really haven’t studied history as well as they should have. Full Story
By: John Mauldin, Millennium Wave Advisors - 21 August, 2011
The data this week was just ugly. Even the uptick in the leading economic indicators, seized upon by so many talking heads, must have a large asterisk beside it. This week we look at the increasing probability that we are headed for recession, and the follow-on implications. Then I take a perilous and speculative journey into the realm of the political, commenting on Texas (and my) Governor Rick Perry’s rather interesting comments about the Fed and Ben Bernanke. There is a lot to cover, and lots of charts, so we will jump right in. But please read at the end about two events coming up in the next few months that you might be very interested in attending. Full Story
Nouriel Roubini, known as "Dr. Doom" – having replaced Henry Kaufman in this capacity – now says that Karl Marx was right, according to a recent article. Roubini teaches at New York University's Stern School of Business. Kaufman earned a Ph.D. at the Stern School of Business. They are both very stern fellows. Full Story
By: The Gold Report and Rob McEwen - 21 August, 2011
Rob McEwen has become a legend in the gold mining industry by skillfully assembling and building mining companies over the past 20 years. In this exclusive Gold Report interview, he explains his rationale for $5,000/oz. gold and $200/oz. silver and how the factors leading to those price levels will affect the industry and the companies exploring for and producing the metals. Full Story
Observers are dumbfounded by the strength of the gold price last week, with a new record high of $1,876 but many are very keen to jump in to predict it will not last. Even some senior gold bugs and famous chartists are too wound-up in their own analysis of the too recent past. Full Story
The week of August 15 was one of the most volatile stock market performances in years. Negative news about the global economy, gloomy forecasts and mixed signals on the jobs front battered stocks and sent gold repeatedly above $1,800/ounce. The Gold Report asked an analyst, two newsletter writers and an economist the following: What should be a precious metals investor's next move? Full Story
It was another absolutely madly volatile week, especially as we moved to the end of it. It’s a day-traders bliss, but I’m not a day-trader. It’s not an easy way to trade, and every tick counts. It’s just not for me, or most people. Full Story
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