By: Adam Hamilton, Zeal Intelligence - 26 September, 2014
Since early 2013 the US stock markets have done nothing but rally, levitating thanks to the Fed’s oft-implied backstop. This incredibly unnatural behavior has left sentiment dangerously unbalanced, with hyper-complacency and euphoria running rampant. Only a major selloff can restore normal psychology. And with the Fed’s third quantitative-easing campaign ending, odds are high such a big downside event looms. Full Story
During a time in which few investors are considering the possibility of a recovery in natural resources, Rick Rule, Chairman of Sprott U.S. Holdings was kind enough to share a few comments. Speaking towards the overall market Rick noted that, “The market itself is very healthy. You are seeing a transition…a transition that doesn’t suggest, but rather screams that [junior resource issues are] under accumulation—which is a very, very bullish sign.” Full Story
Bullion dealers from all regions report that gold sales in the German bullion trade market surge since last week. Suppressed prices for gold and silver are obviously considered buying rates by German investors. The German precious metals trade reports a surge in sales. Full Story
Oil is the lifeblood of the economy. Natural Gas and Coal run a close second in that regard. You cannot run a modern economy without energy. The same is true of farming. You have to eat in order to live. Have you ever wondered why energy and farming are so heavily subsidized? Because no one in their right mind would start such a capital intensive business with pricing that looks like this without it. That is why! Full Story
Buy fish line patterns, sell rhino horn patterns, and trust that politicians and bankers will continue to borrow and spend money that must be “printed” in ever-increasing quantities. Example: Official national debt increased by $1,013,588,000,000 in the one year from Sept. 23, 2013 to Sept. 22, 2014. Full Story
In today’s TedBits we will be outlining a lot of smoke signals. They signal fires burning and about to break out. As everyone is aware, the Federal Reserve has been tightening monetary policy for almost a year now and has been joined by the Chinese central bank. The Federal Reserve has been reducing its balance sheet expansion from $85 billion a month (85,000 million) to zero in mid-November. Full Story
Today's financial markets are built on the sand of unsound currencies. Consequently brokers, banks and investors are wedded to monetary inflation and have lost both the desire and ability to understand gold and properly value it. Full Story
The current decline in precious metals will not be complete until it passes through all three phases of a bear market. This is the conclusion I have mapped out in previous essays. The PM bear market began in 2011 and declined steadily until the Goldman raid of April 2013. At that point the bear reached its point of recognition (POR) and underwent double crashes in April and June. After these two crashes the bear has been undergoing a complex consolidation pattern for the past 18 months. Full Story
The fundamentals that drive gold prices higher are in full force and improving. Central banks are buying more of the precious metal (to add to their reserves), while countries that are known to be big consumers of gold bullion post increased demand. Full Story
Given today’s theme, we thought it a good time to salute one of the true trailblazers in the quest for truth – GATA’s known co-leader, Chris Powell. GATA is where I “cut my teeth” in the blogosphere having first written free missives there – along with Bill Holter – nearly a decade ago. In my view, GATA’s impact financial market perception has been both global and permanent; and while it may not appear so today, its efforts will certainly impact tomorrow’s decisions by individuals, institutions and governments. Full Story
After the original drop in gold price from the top of $1,920 per ounce in 2011 to $1,180 per ounce in 2013, gold has started a sideways consolidation triangle pattern. Is this a correction, or is it just a pause within a move that will retrace the whole move since 2009? What does sentiment tell us? Full Story
Silver is the Rodney Dangerfield of the precious metals. It gets no respect. Maybe this chart says why. The price noted in the chart above is as of the end of August. Today it is lower around $17.80. On an inflation-adjusted basis, silver is trading around where it was in either the late 1800’s or “heavens above” back around 1780. Some improvement. Outside of a good run in the mid-1800’s and the famous Hunt Brothers spike into 1980 silver has actually been in a long-term downtrend on an inflation-adjusted basis. Full Story
What would really happen were COMEX silver to default? Actually, a better question would be what will happen if ANYTHING physical were to default For example, what will happen if a corn delivery is not made, or actual hogs or cattle, orange juice or anything else? Broadening this thought process a little bit and making it a global question, what happens if it turns out iron ore, copper, zinc or anything else turns out to not be in the warehouse? Full Story
The POSX has surged through 85 today and looks to be on its way to 87+. Just more evidence that our current theme/idea of temporary deflation is, in fact, playing out. Below is a 5-year chart of the POSX. Note that since this " post-QE deflation" trend took hold, The Pig has rallied nearly 8% and, by getting through resistance just below 85, it looks set to continue rallying toward the 2010 highs between 87 and 89. Full Story
By: Adam J. Crawford, Analyst - 25 September, 2014
The investment community has been up in arms over a lack of innovation from Apple. After all, the company hasn’t launched a new product line in quite some time… that is, until now. Meet the company’s brand-new smart device: Apple Watch. Investors hope the product will send Apple’s stock to new heights. Is that wishful thinking? Full Story
By: Steve St. Angelo, SRSrocco Report - 25 September, 2014
As the manipulated paper price of silver heads lower, so are the silver inventories as the Shanghai Futures Exchange. The silver stocks hit an all-time low today as the price of silver trades in the $17 range. At the peak, the Shanghai Futures Exchange held 1,143 metric tons of silver. However, today only 7% of that record amount remains. Full Story
It has been said gold goes where it is best appreciated. Rapidly rising wealth across Asia has Easterners in Turkey, Iran, Vietnam and China buying gold, saving gold, and using gold as money. But for most Americans and many Europeans, gold is no big deal. What's the explanation for the East's love of gold and the West's nonchalance? Importantly, what does this mean to you? Full Story
Gold stayed under pressure this month. And the third quarter is shaping up to be a negative one. So what’s going on? This past month, we’ve seen the U.S. economy improve, which has kept investors running to the stock market. It’s also fueling beliefs that higher U.S. interest rates are coming sooner than expected. This has been pushing up the U.S. dollar. And with Europe also needing to continue their stimulus and keep interest rates low, it’s adding even more fuel to the stronger dollar. That in turn is keeping downward pressure on gold. And it’s causing a decline in the demand for gold. Full Story
Starved of cash, nearly 150 mining companies listed on the Australian Stock Exchange went into bankruptcy during the fiscal year that ended June 30, and another 23 have gone under since then. Richard Karn, managing editor of the Emerging Trends Report, believes a fresh wave of failures is expected when the quarter ends September 30, and a major shakeout at some point appears likely. But the situation isn't grim for all the specialty metal companies down under. In this interview with The Gold Report, Karn shares insight on how companies may survive the onslaught. Full Story
The forecast called for overcast skies and instead we got sunshine. HSBC announced Tuesday that the preliminary purchasing managers’ index (PMI) for China rose to 50.5, a modest improvement from August’s 50.2. Analysts were expecting the index to decline to a neutral 50.0, based on softening factory employment, but this is a case when you’re relieved others were off the mark. Full Story
The nation-state is seeing tough times. How can those who love liberty and want the future to be better than today prosper while avoiding being collateral damage from the state’s troubles? Full Story
If the Fed holds its course this autumn then a day of reckoning is coming both for stocks and bonds. For stocks basically the money will run out, the QE lifeline is cut. For bonds higher interest rates are toxic. Full Story
How much gold is really out there? This is a good question and rather than debate whether the "official" statistics are correct or not I will assume they are. I will make this assumption because even if they are true (which they are not), the financial ship is seriously out of balance and listing badly. Full Story
The European Central Bank again cut the interest rates it controls. Notably, the deposit rate was moved deeper into negative territory. It is now -0.2% (minus 20 basis points, that is not a typo). The ECB says it’s trying to nudge prices higher, but it’s actually feeding the cancer of falling interest. Full Story
Miners are having a tough time getting funded, and although Canadian oil and gas has performed well over the last few quarters, some companies might be overvalued. No wonder investors are confused. In this interview with The Mining Report, Jason Mayer of Sprott Asset Management examines near- and long-term plays that look poised to deliver returns, and shares his criteria for selecting profitable investments in volatile resource markets. Full Story
I prefer the “KIS” motto to the more common “KISS”. I define it as, “Keep It Simple”. Simply put, gold bullion is the ultimate asset, but when the price declines, Western investors often become nervous. Some investors try to mitigate their worry, by reviewing factors that make gold the “queen of assets”. That helps, but I think a simple focus on gold demand versus supply is all that is required to own gold without worry. Full Story
I’m convinced – we can’t escape debt and taxes. Essentially all currency is created as debt, and our financial system creates more debt and more currency into circulation every day. Taxes are insufficient to pay the massive expenditures that our politicians deem essential, so our national, state and local governments fall deeper into debt every year. I think we can all agree - expect more debt and more taxes. Full Story
"Gold and Silver will never go up". I have read this phrase in the comments sections of many blogs and articles over the last few weeks. The phrase itself speaks to how poor and washed out the sentiment has become in silver and gold. Gold bashers, blog shills and trolls have been out in full force to add salt to the wounds of anyone bullish the metals. Sentiment has been absolutely destroyed and the "tone" can only be described as despair. Full Story
By: Steve St. Angelo, SRSrocco Report - 23 September, 2014
While it’s true that the entire financial system is rigged today, some markets are manipulated more than others. This is certainly true for the precious metals… particularly SILVER. This metal is the whipping boy of the Fed and Cartel Bullion Banks. Most would believe it’s impossible to manipulation a metal for decades… it isn’t. Full Story
That title wouldn’t make for much of a campaign slogan, and yet, it’s the natural outcome of one particular politician’s promise. As the editor of a retirement-focused newsletter, most of the notes I receive about the Affordable Health Care Act, or Obamacare, are first-person accounts of how a reader’s change in coverage or cost is affecting his finances. Full Story
In recent years, the vast majority of Western denizens have been so worn down by economic failure and so dumbed down by socialism the will to reason has been irreparably damaged. Sadly, even the impetus to try has been disabled; subsequently, fostering a “bread and circuses” culture where intellectual thought – let alone, common sense – has on a widespread basis been all but eradicated. True, most aren’t even paying attention to propaganda of “recovery”; as frankly, their decaying lives are not impacted in the slightest. Full Story
Interest rates can’t stay zero forever, but for now it’s more of the same. The Federal Reserve’s bond-buying program, enacted to spur growth, will indeed be winding down next month, as expected. But record-low interest rates will stay as they are for a “considerable time,” Fed Reserve Chairwoman Janet Yellen insisted during her Wednesday press conference last week. Full Story
Last week we noted that Uncle Buck would be front and center in the analysis, not because the strength in the (anti-market) currency was not expected (it was), but because our big picture theme of an ongoing economic contraction had remained intact (ref: gold vs. commodities ratio) over the long-term. Full Story
A recent article on the Wall Street Journal’s blog draws attention to the high cost of producing a single penny – 1.6 cents each, to be exact. They blame this unsustainable price on the high cost of zinc, which makes up 97.5% of every American penny. The online publication Quartz ran with this story, giving it a new headline: “It costs 1.6 cents to make one penny because of the rising price of zinc”. Time for a short economics lesson. Full Story
Recently, The U.S. Treasury ramped up war games via financial sanctions aimed at Russia. The EU is part and parcel to the operation. These interventions are a continuation of the age old warfare referred to as the “currency wars”. Jim Rickards’ recent book on the topic chronicles the use of this tactic. Full Story
Among the aspects discussed are the U.S. government's having authorized itself to rig all markets secretly, the U.S. government documents recently disclosed showing that central banks are trading secretly in all major U.S. futures markets, the other documents GATA has compiled proving the gold price suppression scheme, why the gold mining industry refuses to do anything about it, why the scheme will keep succeeding until gold investors shun "paper gold," and the treason of the central bankers in developing countries. Full Story
I had planned to write a piece entitled "Gold and silver can never go up" but will defer that until tomorrow. Don't worry, it's not what you are thinking I assure you. Instead, I will expand on my "Kill Switch" theory a bit and for a lack of better term call it "checkmate!". Full Story
In 1633 Galileo Galilei, then an old man, was tried and convicted by the Catholic Church of the heresy of believing that the earth revolved around the sun. He recanted and was forced into house arrest for the rest of his life, until 1642. Yet “The moment he [Galileo] was set at liberty, he looked up to the sky and down to the ground, and, stamping with his foot, in a contemplative mood, said, Eppur si muove, that is, still it moves, meaning the earth” (Giuseppe Baretti in his book the The Italian Library, written in 1757). Full Story
By: Rick Ackerman, Rick's Picks - 22 September, 2014
When will the bull market end? With money velocity collapsing and ominous divergences developing in both the NYSE Advance/Decline line and the New Highs/New Lows summation, U.S. stocks closed at an all-time high last week. If this were not disconcerting enough, the Hindenburg Omen, which signals an increased probability of a stock market crash, flashed red on Friday. Full Story
Richard Daughty, who describes himself as "the angriest guy in economics,” is writer/publisher of The Mogambo Guru economic newsletter and a general partner and COO for Smith Consultant Group, serving the financial and medical communities. John Embry joined SAM as Chief Investment Strategist in March 2003, with a focus on the Sprott Gold and Precious Minerals Fund. He plays an instrumental role in the corporate and investment policy of the firm. Full Story
By: Chris Powell, Secretary/Treasurer, GATA - 21 September, 2014
"The growth of the Shanghai Gold Exchange to become the world's largest physical gold exchange provides compelling evidence that the future for gold is physical," Shishmanian said. "As the market shifts from west to east, the expansion of strong gold trading hubs in Asia will improve price discovery, liquidity, transparency, and efficiency, all of which will transform the landscape of the global gold market." Full Story
Within the current global economic environment, central bankers – of the world’s developed economies and those of emerging markets alike – remain obsessed with the struggle to incorporate monetary policies which will engender renewed gross domestic product (GDP) growth in their respective economies. Full Story
Forget all the news, all the fundamentals, all the [mostly errant] price projections. There is a reason why a picture is worth more than 1,000 words, and this is one of those times where it is best to focus on pictures of the market, over various time frames, to get a better handle on what to expect moving forward. Put to rest every so-called PMs pundit or blogger that has persistently been calling for higher prices or saying the low is in. Full Story
A solid week for markets who just don’t want to rest, but it was interesting to me just how many stocks seemed to chop around and make no real progress and their charts are in no mans land as well, without proper bases. Full Story
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