By: Bill Bonner & The Daily Reckoning Crew - 27 April, 2007
-A hedge fund for everyone…super funny Superfund…Ponzi-like Baha scheme… -A spectacular loss in the Age of Money Madness…when The King goes public again… -The world is gushing dollars…thinking what you're supposed to want to think…and more! Full Story
By: Peter Schiff, Euro Pacific Capital, Inc. - 27 April, 2007
As the Dow burst through the 13,000 milestone this week, few understood the hollowness of the achievement. Measured against the rising dollar-denominated prices of just about everything else on the planet, the Dow has actually lost value over the past seven years. Measured against the truest benchmark, the price of gold, the record high for the Dow was set back in January of 2000 when its price equaled approximately 43 ounces of gold. Today it is only worth about 19 ounces. Full Story
The distribution of precious metals into retail hands seems to be happening in spite of the CRIMEX, SLV and similar pseudo-metallic schemes, but they are certainly slowing it down. Unfortunately for America, too many of those hands reside on the other side of the world. Americans have the freedom to own precious metals and thereby undo monetary centralization; they just don't yet have the understanding or the will to do so. As in so many other things, the power to break our chains lies unused in our own hands. Full Story
This morning the US GDP figures were released showing a 1.3% growth in the first quarter of 2007, contrasting estimates that had been expecting 1.8% growth. The report went on to note that growth is slowing at the same time that inflation is remaining contained, but at elevated levels. This growth report was the worst the economy has seen in 4 years. We're entering a period where stagflation is becoming more and more of a reality in the market. Full Story
While there are a number of ways to play rising gold prices, my personal favorite is the higher-quality junior precious metals exploration companies. Those are companies with a high risk profile (few will ever actually make an economic discovery), but you can apply analytical screens to them that greatly lower that risk… leaving some truly extraordinary upside. Full Story
Throughout the entire 2004 and 2005 years, the global financial markets were subjected to utter nonsense and propaganda about a new Macro Economy. Its main pillar was the recycle of vast Asian trade surplus into USTreasurys. The chief carnival barker for the concept was Alan Greenspan, even as its proponents labeled the crutch the name “Bretton Woods II” in pure heretical fashion. The Bretton Woods Accord, linking the USDollar to gold, was real and valid and enforced. It is about as far in function, meaning, and validity as gold (real & tangible) is from the USDollar (paper & counterfeit). Full Story
The key question regarding the impending move in Gold and Silver prices is not if, but when. As we have indicated before, the gold bullion and gold shares markets are so relatively small (compared to, e.g., crude oil and U.S. Treasury Securities) that they are relatively easy to manipulate. Thus The Cartel does not have to prepare (in any way obvious to investors) to make its move. On the other hand, demand for physically available Gold and Silver is increasing and aboveground supply is under increasing pressure. Thus “when” and “how much” (but not which direction) is the conundrum regarding the next Precious Metals Major Move. Full Story
There are many types of money. What the author is referring to is the existing monetary systems of paper fiat debt-money that presently circulate as the various world currencies. It is true that paper fiat debt-money is the major contributing factor to the world’s economic, financial, and monetary problems. Full Story
The Dow Industrials have risen on 18 of the last 20 trading days – not too shabby, especially if you’ve been on the right side of the move. You’d have to be an old-timer to remember the last time that happened, since it was in…1929. Of course, we’ve seen many a comparison to 1929 fall by the wayside as shares have risen, and continued to rise, in recent years. We think any comparison to the 1920s is pretty farfetched, since, economically speaking, things were in far, far better shape back then, before the country was thrown into depression. Full Story
Yesterday, as the Dow “smashed its all time high,” closing above 13,000 for the first time in history, I was strangely reminded of Blackstone’s performance that day some thirty years ago. The Dow’s current levitating act is the result of another well-known sleight of hand trick used by central bankers. It's called inflation. Even so, most everyone is mesmerized by the performance. Everyone seems transfixed, clapping in amazement at this spectacular feat. Full Story
By: Kevin Kerr & The Daily Reckoning Crew - 26 April, 2007
-Dollar vs. Dow for importance supremacy…ample room for wariness and prudence… -The FBI has bigger fish to fry…'fraud for profit' more felonious than 'fraud for housing'… -Friedman for world's funniest comedian…a nice apartment in Buenos Aires…and more! Full Story
By: CHRIS POWELL, Secretary/Treasurer Gold Anti-Trust Action Committe Inc. - 26 April, 2007
Dishoarding gold and backstopping the gold derivatives sold by the investment houses, the central banks are buying time -- but they are buying it dearly, with their most precious asset, selling it at bargain prices. Selling their gold, the central banks are purchasing confidence in the illusions of their own currencies, this confidence being more vital to them than their gold, since, for the moment, their currencies are valued much more than their gold. But the balance is shifting, and this is visible to anyone who wants to see it. Full Story
By: Axel Merk, Merk Hard Currency Fund - 26 April, 2007
There are many more myths about the dollar, but the selection above may provide some food for thought. Investors interested in taking some chips off the table to prepare for potential turbulence in the financial markets may want to evaluate whether gold or a basket of hard currencies are suitable ways to add diversification to their portfolios. Full Story
By: Bill Murphy, Le Metropole Cafe, Inc. - 26 April, 2007
This morning our Comex floor source says the boys on the floor have been impressed how the market has absorbed enormous central bank selling. However, he felt they would attack again before the price slide would be halted. The gold open interest rose AGAIN, up 6609 contracts to 403,338, more anecdotal evidence of significant shorting by The Gold Cartel on a day the dollar went lower. Full Story
By: Richard Daughty, The MOGAMBO GURU - 26 April, 2007
"A quarter of workers…spend everything! If we have any economic downturn at all, even a mere blip in the economy, a quarter of Americans will not have enough money to sustain them through the first weekend!" Full Story
A bullish stampede made short work of our years-old Dow target at 13045 yesterday, telegraphing even higher prices in the days and perhaps weeks ahead. The target was intended not as kamikaze number for permabears, but rather as a logical place to short aggressively using a tight stop-loss. This we did, laying out shorts not only in the mini-Dow futures, but in the Cubes as well. Full Story
By: Tom Au & The Daily Reckoning Crew - 25 April, 2007
-Spanish subprime woes…how much is too much?…leaving Las Vegas out of the equation… -An eye-opening return to reality…the imperfect lexicon of Nevada… -Tangible assets that sweat…goodbye American Century…and more! Full Story
By: Bob Chapman, The International Forecaster - 25 April, 2007
Since 1997, gold has increased in value from $300 to $700 for a compound return of 8.7%, which covers inflation. Furthermore TIPS has returned an average annual return of 5.4%. Gold has returned an average annual compounded rate of return of 8.65% since 1971. That is since the gold window was closed on 8/15/71. Gold since that date went from $35.00 to $693.00 an ounce or 18.8 times and has been as high as $850.00 in 1980. If you go back over 20 years of Treasury yields, the average yield has been 6.21% as M3 increased 7.8%, which is very close to the rate of inflation. Full Story
Bottom line: For natural resource investors, the current market disconnect is something to be aware of, but not something to worry about. If the U.S. economy keeps trucking along, and the U.S. dollar recovers, Americans have more money to buy things and commodities go up. And if America falters and Asia stays in the lead, commodities will still go up. Talk about a win-win situation! Full Story
Investors the world over are constantly evaluating the leverage, risk and potential rewards of their investment decisions. Whether you are an individual investor or an analyst for a large mutual fund, leverage, risk and the pot of gold at the end of the rainbow are always factors to be considered. Full Story
Have you noticed how when gold is at a low people say it is finished and when it is rising they say it is ready to crash. The important consideration is to look at the overall average. And the overall average the gold price is sustaining is doing quite well. And ole’ uranium continues to climb higher still. Full Story
Has the stock market been scaling the proverbial wall of worry -- or has it simply gone “mental” in a so-far bloodlessly postal kind of way? Investors’ apparent obliviousness yesterday to dreadful numbers from the housing industry should have left no doubt about the answer: This time, it would seem, Wall Street really has gone off its rocker. Full Story
With nickel climbing so ferociously over the last year, the momentum has begun spilling into molybdenum, another metal (like nickel) that can enhance the corrosion resistance in stainless steel (about 10% of the world stainless steel production utilizes molybdenum). Molybdenum is used with chromium to augment corrosion resistance. Full Story
By: Mark Skousen & The Daily Reckoning Crew - 24 April, 2007
-More cranes than China…more banks than Zurich…more liquidity than ever before… -No deals on wheels for old fogies…smart money can sometimes sound really stupid… -Selling bonds for a 'presto-like' result…gas to hit $4 a gallon…and more! Full Story
As happens periodically, the silver inventory levels at the COMEX-approved warehouses have increased recently. As of this writing, the total silver inventory has climbed to 131 million ounces, up about 11 million ounces over the past few weeks. Invariably, this causes confusion among silver investors, who have trouble reconciling how there can be increasing inventories at a time of perceived tightness or deficits. Full Story
Consider a fresh, hot pie. Let’s call it an apple pie, though it could be blueberry or cherry pie if you prefer. That pie smells delicious, you are hungry, and you want a big, fat slice of that pie. The problem is, so do a lot of other people. How big of piece can you eat? That depends on three things: how big the pie is, how many people want a piece, and whether some people are allowed bigger pieces than others. Full Story
By: Steven Saville, Speculative Investor - 24 April, 2007
We've been long-term bearish on bonds since their June-2003 peak. Actually, we turned long-term bearish well before June of 2003 and have always considered the final run-up to the 2003 peak to be an irrational response to the threat of deflation. We say "irrational" because such a threat never existed. Full Story
By: The Mogambo Guru & The Daily Reckoning Crew - 23 April, 2007
-How rich is the rich man these days?…a lack of bargains… a delightful, degenerate economy… -White bread only…afraid to take a bath in a fine hotel…liquidity like the smelly Harare sewage… -The most European city in the world…keeping an eye on the cab drivers…a sincere threat to prosperity and to peace…and more! Full Story
When you contemplate the gold price nearing $700, the first question that comes to mind is whether or not the price is for real. In other words, what is behind the recent strength in the gold market? The second question is whether or not the price is sustainable. After all, we've been here before, my fellow goldmeisters, and from here we took quite a tumble just a little over a year ago -- back to the $570 level. The short answer is "that was then and this is now." The facts of economic life on the planet line up much differently in May, 2007 than they did in May, 2006. Full Story
Jim Rogers Dollar Collapse Documentary A special discussion with: Jack Chan Zapata George Blake Gold moves higher for 7th straight week. Home builders swoon. Carry trade ETF. 3 Spotlight Picks with big dividends! Full Story
A few months ago, I got into a verbal shoving match with one Mr. Douglas Gnazzo regarding the audit of the U.S. Government-Owned Gold and Silver Bullion Reserves, or simply gold reserves, most of which are in the custody of the U.S. Mint (custodial gold and silver). After the debate spilled and spread all over the Internet, I decided to let Mr. Gnazzo have the last word because I could find no easy way to untangle the mess that he and I had made in the course of our disagreement. Well, I am happy to report today that I have found the solution and it turns out to be rather simple. A private third party audit firm has in fact conducted an independent audit of the gold reserves since 2005. Full Story
Our message that the world was moving to decouple the resource market from the US economy has had one overhanging concern. It was not that growth in Asia would eventually accomplish this. The concern was that a major downturn would happen in the US before the shift in psychology needed for eastern leadership in metals had taken place. Now that a mantra of Asian self determination is rising in the aftermath of the first major debt related swoon in the US market we are comfortable that concern is behind us. Full Story
Zurich – Martin Murenbeeld, who hangs his hat in Victoria, B.C. and pens prognostications for Dundee, is a bit like a Swiss train. If by one's watch the Swiss train is a bit late, then you had better take your Patek Philippe into the jeweler for a tune-up, because Swiss trains are never late and they are never early. Neither is Dr. Murenbeeld. Full Story
By: Bob Chapman, The International Forecaster - 22 April, 2007
Now hear this! What we are about to tell you comes from deep within the bowels of the Illuminati. This information runs parallel with what we have been forecasting in our issues of the IF. In February, via an internal memo, the Carlyle Group said they see another 12 to 24-months or more of “excess liquidity,” which will drive further profits and growth and that the current liquidity environment cannot go on forever; and, that the longer it lasts the more money our investors will make; but also that the longer it lasts, the worse it will be when it ends” Full Story
People continually ask me about all kinds of physical silver investments. I have avoided writing this article for years because people are always telling me to not say anything bad about anyone, or your competition. But I don't need to name names, and liars are not my competitors. So, here's how to avoid getting ripped off. Full Story
By: John Mauldin, Millenium Wave Advisors - 22 April, 2007
It will come as no surprise to this audience that there are a few things that worry me. I often write about problems in the markets. Subprime mortgage contagion, earnings shortfalls, a slowdown in consumer spending are all on my worry list. But I am not just your average amateur worrier. I am a professional worrier. I get paid to worry. For a professional, worrying is an art form. The amateur worrier spends way too much time worrying about events that are likely to happen. A true professional worries about the unlikely events that create the most problems. It is the things we are not worried about which can cause us the most harm. Full Story
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