By: Bill Bonner & The Daily Reckoning Crew - 27 June, 2008
-The high road, the hard road, and the low road…Dubbya gets dissed left and right… -The '30s ghost scares people coast to coast…stuck in a classic '70s trap… -Castration: punishment enough to monetary inflation?…giving French winemakers our full support…and more! Full Story
One question I often receive is how much money an investor should put into the precious metals. There is no simple answer, yet I want to remain consistent. When I wrote The Ten Rules of Silver Investing, it was stated that 10% was enough of a diversification. Since that book was published nearly a decade ago, I have told my readers that perhaps an allocation of up to 20% might be considered, due to the current economic environment on a worldwide basis. Full Story
By: Peter Schiff, Euro Pacific Capital, Inc. - 27 June, 2008
In fact, the United States holds just about 1% of the world’s $7.6 trillion of foreign currency reserves, and our total position amounts to just 2.5% of the total daily volume of foreign exchange trading. Talk about Bambi vs. Godzilla! In other words, if the dollar is going to fall, the Treasury is completely powerless to do anything to stop it. Full Story
Fiat money is not directly convertible into a physical commodity at a specified amount. It is a type of credit money through which a central bank issues notes in exchange for interest-paying bonds by the government. The interest on these bonds is paid by the government primarily through the process of taxation. That is to say, by you and me. Full Story
It looks like we have a happy weekend coming up as the precious metals are holding up nicely. More specifically Gold has broken out and is now confirmed by today’s continuation. We usually get handed a nasty down move before the weekend but this one is much more pleasing. The realization that money creation/inflation is becoming more recognized and a real store of value is desired is slowly becoming more apparent. Full Story
Gold represents wealth, in a word. Just remember that it won't actually grow wealth, because it's not a productive asset. Whatever else you might want from a metal, wealth preservation is the gold buyer's best hope. And that might prove all investors can ask if the news on inflation and rates, stocks, bonds and jobs, doesn't start getting better. Full Story
By: Scott Wright, Zeal Intelligence LLC - 27 June, 2008
The great commodities bull of the 21st century has elevated individual commodities and sectors of commodities in various phases over the last eight or so years. Those commodities that are finite (hard commodities) took the lead, with energy and metals breaking out to historic highs. Full Story
By: David Bond, The Wallace Street Journal - 27 June, 2008
Forgive another rant about China, but this one's kind of important, because if what we heard from a well-placed China guy (WPCG) in Vancouver the other day is to be believed – and he's not in the habit of making things up – North American mining shares are about to rock. The conversation was of a backgrounder nature, so we're not going to toss out any names. But here is the gist of what transpired: Full Story
Gold has tested $850 several times and is now solidly over $900. News of inflation is now becoming a daily event for consumers, speculators and investors. Is this not what we precious metals investors have waited for? It is only a matter of time before investors wake up to the opportunities available in the precious metals sector. Full Story
By: Richard Daughty, The MOGAMBO GURU - 27 June, 2008
We love inflation and we hate inflation! So, it's a love/hate relationship! The most confusing kind! No wonder my head is spinning all the time! Full Story
We put out some bearish targets a while back, not expecting them to be reached so quickly. Now what? Our original advice called for bottom-fishing in the E-Mini S&Ps, Citigroup and the QQQQs, but we are seldom eager to attempt this when price targets are reached in the final minutes of the day, as occurred yesterday in two of the three vehicles. Full Story
Last week I headlined this Weekly Metal Report with this headline; “The Rally This Week Is Important to the Longer Term Picture”. As it turned out, last week did in fact set the stage for what I term near term low confirmations in both gold and silver. Full Story
By: Bill Bonner & The Daily Reckoning Crew - 26 June, 2008
-The '70s without the muscle cars?…two apparitions join in a ghostly hullabaloo… -Financial advice from Crocodile Dundee…turning our backs on the problematic "world of the future"… -Hospitality industry suffers from planned 'stay-cations'…farmers who have time to blockade streets…and more! Full Story
For the last couple weeks, my attention has been given to the amusement and desperation behind propaganda, bluffs, and the utter desperation of the USFederal Reserve in the orchestrated rumors of a new position wherein they would soon or eventually raise the official interest rate in order to combat the horrendous price inflation brought about by the falling crippled USDollar. What utter nonsense! Full Story
Reduce your standard of living now (while the situation is still under control), greatly increase your savings (in gold, which is real money) and rig for greatly changed patterns of production, consumption, employment and business for a considerable time. The hurricane that’s just starting to hit the economy will both trigger and worsen problems in other areas. Starting with politics, because nearly everyone today believes the ridiculous notion that the government should guide the economy. Full Story
By: Gary Dorsch, Editor, Global Money Trends - 26 June, 2008
Hyper-inflation in the commodities markets is rivaling the US housing collapse and the global banking crisis, as the biggest threat to the world economy. Finance ministers from the United States, Canada, Japan, France, Germany, Italy, Britain, and Russia, have expressed their alarm over the doubling of agricultural, energy, and key raw material prices from a year ago, which is pushing inflation rates around the world, to their highest in three decades. Full Story
I contend in this article that Alan Greenspan learned from Arthur Burns how the banking cartel stole the global monetary system from the people. This knowledge has been his lifelong obsession and he has finally devised a way back to the Gold Standard by orchestrating the pending destruction of the fiat money system. Full Story
Gold and commodities are set to resume their long term trends. The removal of subsidies in China will not reduce demand for oil and energy supplies. Rationing was already in place as producers withheld supplies as it was unprofitable to provide them, had energy supply’s been available they would have been consumed even at higher prices. Now that profitability has been restored, look for China to gobble up the new supplies available to them finally hit the street. Full Story
By: John Browne, Senior Market Strategist, Euro Pacific Capital - 26 June, 2008
When listening to the typical, television-based, Wall Street cheerleader work themselves up into a bull market frenzy, one is tempted to wonder if they ever bother to compare the movie that is rolling along in their heads to the one that is occurring in the outside world. Perhaps for those living in a media bubble, the only reality that matters is the one reflected in the camera lens. Full Story
By: Richard Daughty, The Mogambo Guru - 26 June, 2008
And don't get me started on how increases in Social Security payments have lagged increases in prices for years and years, because I hear plenty of that from people who depend on Social Security checks. Full Story
Small wonder that Congress' approval ratings are wallowing down around 14 percent these days. They could go even lower, too, by the time the World's Greatest Deliberative Body's latest Foreclosure Rescue Plan plays out. Have you heard about it? This legislative barf-bag is already attracting its share of flies, and it's not even law yet. Full Story
By: Bob Chapman, The International Forecaster - 25 June, 2008
The US supertanker economy has been afloat on a maelstrom of money and credit that has carried it into the rocks of hyper-stagflation, dollar destruction and fiscal profligacy as its occupants listened to the siren song of globalization, free trade, off-shoring, outsourcing and both legal and illegal immigration. The gaping holes in the hull cannot be patched. The supertanker is taking on water faster than Ben the Buck-Buster Bernanke can bail it out with his 1930's retro bailouts of banks and non-banks alike. Full Story
By: Bill Bonner & The Daily Reckoning Crew - 25 June, 2008
-Kudlow and a company of bad hallucinations…the perfect people to lead us into disgrace and bankruptcy… -Living in the ruins of a civilization that no longer works…the confidence level of suburbanites falls with their house prices… -The new and fashionable inner city…making room for optimism…and more! Full Story
The Royal Bank of Scotland has given gold a 25 per cent weighting in its latest Autopilot capital guaranteed deposit account targeted at expatriate customers. Performance is weighted equally across four sectors: emerging equities, developed equities, property and gold. Full Story
What will the Fed say? What will Trichet respond with? How long will TreasSec Paulson be taken seriously? All unknowns that can affect the short term. Good thing in secular bull markets I do not think short term. I am positioned with cash and awaiting the 800 level but my bag is filled with core-plus holdings as well. Full Story
By: Richard Daughty, The MOGAMBO GURU - 25 June, 2008
Now, total government taxation consumes half of all incomes, all of which goes around and around until my head is spinning and I wonder how it is possible that any country with as many schools, colleges and universities as we have can be so freakishly, perversely, brain-dead as to believe that such idiocy was even freaking possible? Full Story
Yesterday we offered yet another installment of our running dialogue with iTulip founder Eric Janszen concerning whether hyperinflation or deflation is more likely to destroy the U.S economy. We hesitate to call it a debate because we’ve never thought those in the inflationist camp have a leg to stand on. Full Story
By: Bill Bonner & The Daily Reckoning Crew - 24 June, 2008
-Kicking Wall Street while it's down…one sector gets pumped up - and then it gets whacked… -The incredibly familiar oil bubble…Vietnam has done something extraordinary… -Armed guards on rice detail… addicted to imported Sony Playstations, iPods and cheap sneakers…and more! Full Story
By: Julian D. W. Phillips, Gold/Silver Forecaster - Global Watch - 24 June, 2008
In a long week in which attempts to lower the oil price and talks about the $ were disappointed[ G-8 meeting and the oil producer’s meeting in Saudi Arabia], the threat of much higher oil prices, a weaker $ and perhaps a vicious fall in the equity market in the next few months, Joseph Lieberman the head of the Senate Banking Committeee is proposing what in effect are Exchange Control measures on commodity markets and foreign exchanges that host commodity dealing. This week we saw a glimpse of what is to be proposed and is proposing as we send this out. Full Story
My message today concerns what I believe is the most important price factor in silver. That factor is the concentrated short position, that is incredibly large and is held in so few hands. Now there is reason to believe that the manipulation by the concentrated shorts has infected the SLV, both in the naked shorting of its shares and the use of its metal holdings to plug gaps in wherever physical silver may be needed, much like the boy plugging holes in a dike. Full Story
The value of money directly relates to its price. Sub-zero returns, Paul McCulley forgets, will only force investors to Buy Gold as businesses fold and wage-earners lose out. Full Story
The hottest area for mergers and acquisitions has moved from financial firms to acquiring metals mines. Using the illustration of a $100 billion mega-acquisition, we will show how this strategy can dovetail with the destruction of the dollar to create a new class of mega-wealthy investors, with a $5 billion equity investment reaping a $1.5 TRILLION profit in the example shown. Full Story
By: David N. Vaughn, Gold Letter, Inc. - 24 June, 2008
Do you believe in high prices? Do you believe that the cost of every day living is climbing substantially higher? I just don’t know. Our government has not warned us yet of a real inflationary problem. So the 5 dollars a gallon I now pay for milk is just an illusion. 4 dollar gas may also be an illusion. Full Story
For many years, silver commentators have warned us that someday supplies of silver would dry up, inasmuch as net industrial use plus investor demand have long exceeded new mine production. At this point we could expect to see some combination of shortages and price increases, and probably chaotic market conditions. Full Story
Over the weekend, I posted a link to a Chicago Tribune article with a deflationary subtext about how Americans have been cutting back on lattes and sundry other small pleasures. I copied a few pen-pals on this, including Mish Shedlock, Jas Jain, Bob Bronson and iTulip founder Eric Janszen, the only inflationist in the group. Full Story
By: Bill Bonner & The Daily Reckoning Crew - 23 June, 2008
-The Fed is losing control of inflation…a 'catastrophic event' just around the corner… -Our Crash Alert flag has been up for so long that it's in tatters…unsold homes flood the market… -Consumers are wounded by excessive debt… Zimbabwe's opposition party decided that voting wasn't worth dying for…and more! Full Story
By: Julian D. W. Phillips, Gold/Silver Forecaster - Global Watch - 23 June, 2008
If European Central Bank selling does dwindle to a halt well before the end of the five year agreement then the role of gold in the monetary system would be well confirmed and gold’s value as a retainer of value would have been re-established, which it should be. However, the Central Bank Gold Agreement would stand in tatters and would have confirmed that Central Banks wanted to keep the gold they have. This would most certainly encourage other private or institutional investors to acquire gold. Full Story
That’s what master planners will be doing in continuing efforts to offset a collapsing credit cycle. And we are just a few short weeks away from when this should begin in earnest. Why not right now? Why will this likely take until July to begin in earnest? Well, for one thing master planners (heavy on the sarcasm) have it their minds they need to talk the dollar ($) up right now, at least until things start falling apart again. Full Story
Fiat money is an oxymoron. Traditionally, money has been both a storehouse of value and a medium of exchange. Fiat money exists by mimicking both; but when its ability to do so ends, fiat money exposed for what it is, reverts to what it is—government issued coupons with expiration dates printed in invisible ink. Full Story
What do we call this when powerful political interests try to make something happen, and the market does not let it happen? We have to say that the market is reflecting a much more powerful supply/demand situation then had been recognized. Full Story
Short sellers on the New York Stock Exchange set a new record in the first half of June, amassing a total position of 17.6 billion shares. If that sounds impressive or even especially bearish, don’t be fooled. In theory, at least, every one of those shares could have been shorted by traders and investors who are quite bullish on stocks. Full Story
Precious metal fundamentals continue to strengthen while the US economy reels in news which persistently worsens. More every day people are looking to the metals as a viable place to invest and expect a real rate of return after accounting for inflation losses which are accelerating. I sing the same old song, the time for accumulating is nigh. Full Story
1st Hour: Headline news & Market Weatherman Forecast. Spotlight Stock Picks with big dividends. The International Forecaster and Host Chris Waltzek answer listener questions. 2nd Hour: Peter Schiff Full Story
By: Bob Chapman, The International Forecaster - 22 June, 2008
The dollar has once again collapsed. Get ready for the next dollar debacle and the coming rally in gold and silver which have just broken out. The elitists have lost all credibility. The would-be lords of the universe have told so many pathological lies that no one "in the know" believes anything emanating from the forked tongues of Buck-Busting, Bear-Bashing, Big-Ben Bernanke and Hanky Panky Paulson. Full Story
Although gold has remained in the doldrums since the last update, there is plenty of evidence that another strong uptrend is solely a question of when, not if. On the 1-year chart we can see that the reactive phase in force from mid-March is taking the form of 3-arc Fan Correction that is now believed to be quite close to completion. Full Story
Like gold, silver has been marking out a 3-arc Fan Correction following its March peak, and the chief difference between the two is that silver looks even stronger. On the 1-year chart we can see that silver has marked out a more solid looking base line of support between about $16.20 and $16.50 above its rising 200-day moving average and we can also see that it is closer to breaking out above the 3rd fanline of the fan pattern. Full Story
By: John Mauldin, Millennium Wave Advisors - 22 June, 2008
The Sage of Omaha made a bet that was written up in a recent Fortune magazine article. Basically, Warren Buffett bet that the S&P 500 would outperform a group of funds of hedge funds over the next ten years. A million dollars to someone's favorite charity is on the line. This week we will analyze the bet, using it as a springboard to learn about valuation and value investing. Full Story
By: Richard Daughty, The MOGAMBO GURU - 22 June, 2008
Trying to preserve buying power with advanced purchases of oil! Sort of like buying gold and silver, but messier. Stick with silver and gold. You'll be glad you did, as your motives are the same as everybody else's… Full Story
Gold had a good week closing up about 3.5% and over $900.00. This move still has room to run to the upside; however, it does not look like this is the start of the next intermediate term rally. As of now it is a short term move. Full Story
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