This chart courtesy Federal Reserve Bank of St. Louis shows the increase in M2 money supply is speeding up again after a somewhat slower rise during the past year. This represents monetary inflation, which precedes price inflation, which in turn provides energy for gold, silver and many other commodities. Full Story
By: Peter Schiff, CEO of Euro Pacific Capital - 28 January, 2011
Back in October of 2009, when Congress first announced the formation of a commission to investigate the cause of the 2008 financial crisis, I knew immediately that their ultimate conclusions would support the agendas of their respective political parties. (Watch the video blog I recorded that day) Particularly, I knew that the commission's Democrat majority would use the crisis to justify more government involvement in the financial markets. These concerns have now been fully validated. Full Story
Irony is a wonderful thing sometimes. It has a habit of framing things exactly the way they need to be framed. Unfortunately, this is a knife that cuts both ways and irony sometimes points out awful realities. I am not a political animal per se, but I find it incredibly ironic how the avalanche of bad news on the deficit, Social Security, and essentially most of the things wrong with our economy was saved until after Tuesday’s SOTU speech. Full Story
By: Marin Katusa, Casey’s Energy Report - 28 January, 2011
The most important metallurgical coal basin in the world is underwater. Open pits have become lakes, stockpiles are soaked, and rail lines are submerged and in places destroyed. Damage is estimated at $5 to $6 billion. Full Story
Summing up, gold appears bullish in the short-term, however the sentiment for the medium-term is mixed. Much depends on how the resistance levels hold the next short-term rally. If they hold and stop the uptrend, then it may very well be prudent to exit a portion of one's long-term positions. That is not the case today. Full Story
Here at the start of 2011, gold has recorded 10 years running of real annual gains. T-bonds have been rising pretty much for three decades. Are the two buyers really the same person? In that little circle of London hedge fund johnnies I'm privy to, yes; long bonds and long gold has been a winning trade for one friend since 2002. Full Story
By: Adam Hamilton, Zeal Intelligence - 28 January, 2011
After rocketing 76% higher in just 5 months, silver continues to enthrall investors and speculators. In the decade I’ve been gaming its bull through actively trading silver stocks, I’ve never seen this metal so popular. As more traders discover silver and start following and trading it, I’ve heard a lot of questions on a recent development in the silver-futures market. Its open interest recently declined sharply. Full Story
By: Chris Powell, Secretary/Treasurer, GATA - 28 January, 2011
Remarks by Chris Powell, Secretary/Treasurer Gold Anti-Trust Action Committee Inc. The Cheviot Asset Management Sound Money Conference The Guildhall, London Full Story
The ongoing Takedown of Gold and Silver, The Food Riots in Various Countries around the World; the recent Blue Chips Equities Markets flirtation with Dow 12,000, and the recent Pullback in Crude Oil Prices are all signaling one thing for Investors and Traders: Great Opportunity! Full Story
In a move that provides a glimpse of the future of US dollar and gold, China has allowed its currency to be traded for the first time in the United States. This is a bullish sign for gold investors. It is an important step in the country’s plan to make the renminbi an international currency. The explicit move is an endorsement by Beijing since the state-controlled Bank of China Ltd is at the forefront of this development. Full Story
By: John Browne, Senior Market Strategist at Euro Pacific Capital - 28 January, 2011
Following the huge gains made by Republicans in the midterm elections, it was widely expected that President Obama would use the State of the Union address to signal a major policy shift toward the center of the political spectrum. On the surface, at least, he appeared to do just that, hinting that he took budget management very seriously and that Americans should be prepared for shared sacrifice. However, as the final applause still echoed in the House chamber, many astute pundits were left trying to make sense of the many contradictory policy prescriptions the President proffered. Full Story
The latest round of economic numbers continues to impress Wall Street and is keeping hopes of a continued economic recovery alive. Many observers question, however, if perhaps the Fed is taking the recovery too far, too fast. Full Story
The day of reckoning is approaching and the world does not have a contingency plan. The truth is that the world’s output of conventional crude oil peaked in 2005 and global oil exports are also past their prime. Furthermore, the unconventional sources (tar sands, heavy sour crude, ethanol, natural gas liquids, bio-fuels and shale) are struggling to keep up with the ongoing depletion in the world’s largest oil fields. Therefore, it is probable that the world’s current production of total liquids is at or near maximum capacity. Full Story
Gold has corrected in price by more than 20 per cent no less than 46 times since the present bull market started back in 2001, according to analysts at MidasLetter. Silver has always been even more volatile. Full Story
Few casual observers of the world of international finance would see Alan Greenspan as an advocate for sound money. After all, he led the charge behind one of the largest financial bubbles in world history as chairman of the Federal Reserve. Full Story
Last Week’s Goldsmiths 177 addressed the work of a secret Hidden Hand to manipulate the financial markets for profit and gain and to bring on a New World Order whereby the Hidden Hand will rule the world. Suffice to say, there have been a number of persons, organizations or activities around which various people accused of being that Hidden Hand. Full Story
By: Richard Daughty, The Mogambo Guru - 28 January, 2011
I almost didn’t read the essay by Gary Gibson, the managing editor of the Whiskey & Gunpowder newsletter, because he was talking about Paul Krugman, whom Mr. Gibson refers to as “cheerleader of the state,” and for whom I have a much, much lower opinion, probably because of my envy of his career success despite being, as far as I can tell, a complete failure in predicting the bursting messes we are in, or ever warning against them as they were building, when it was obvious to the Austrian economists all along. Full Story
By: Rick Ackerman, Rick's Picks - 28 January, 2011
Gold and Silver got whomped again yesterday, adding yet more carnage to a correction that will soon enter its fifth week. For long-term investors who have chosen to ride out the storm, the selloff must have seemed brutal. And yet, from early December’s high at $1432 to yesterday’s $1310 low, the loss so far has amounted to just 8.5 percent. Granted, it’s been worse for some owners of mining shares, which have declined by a little more than 17 percent, basis the ARCA Gold Bugs Index. But even that falls shy of the 20 percent standard that is often applied to separate relatively mild corrections from truly ugly ones. Full Story
By: David Galland, Managing Director, Casey Research - 27 January, 2011
While I have read certain works on the life and ponderings of Buddha, I claim no deep knowledge of his philosophy. Note I didn’t use the word “religion,” because Buddha himself claimed no supernatural powers and even begged his followers not to deify him after his death. Hardly had he drawn his last breath, however, when the deification began – though most Buddhists won’t claim it as such. Full Story
In this article we will take a holistic approach to how individual short term, medium and long term pressures all come together to leave the government with effectively no choice but to create a high rate of inflation. If you have savings, if you rely on a pension, if you are a retiree or Boomer with retirement accounts - any one of these four fundamental motivations is individually a grave peril to your future standard of living. However, it is only when we put all four together and see how the motivations reinforce each other, that we can understand what the government has been and will be doing, and then begin the search for personal solutions. Full Story
By: Frank Holmes, U.S. Global Investors - 27 January, 2011
Gold is a volatile asset class. This is why we tell investors to put no more than 5-10 percent of their portfolio in gold, and split that among the bullion itself and those companies tasked with exploring for and producing gold. However, when compared to other commodities last year, gold looks relatively calm. This chart from the World Gold Council (WGC) shows the annualized daily volatility for selected commodities such as copper, silver, tin and others. Full Story
Silver and gold are being PUNISHED – in a macro sense – in early Jan - from a commodity index re-weighting point of view – PRECISELY because they outperformed so much last year. This explains why silver is getting creamed so much more than gold – it way outperformed gold on a relative basis last year. It’s my understanding that this rebalancing window effectively closes with the expiration of Jan. Options [Wed]. If I’m correct in my thinking / analysis – this sell off is likely done and we are going to SCREAM HIGHER in both gold and silver. Full Story
By: Marin Katusa, Chief Energy Strategist, Casey Research - 27 January, 2011
Tunisia’s uprising has democracy watchers wondering if the instability will spill over into neighboring North African countries, but really that instability is already there. In the first week of the year, Algeria experienced violent protests after the government hiked prices for staple foods like milk, sugar, oil, and flour. Some 800 people were injured in several days of rioting, prompting President Abdelaziz Bouteflika to cut costs on some foods and lower import duties on others. The rioters went home, but odds are they will return to the streets when prices rise again. Full Story
By: The Gold Report and Marshall Auerback - 27 January, 2011
Marshall Auerback, corporate spokesperson for Toronto-based Pinetree Capital, is a so-called "hedge fund" strategist. He believes that deficit spending is not bound by anything other than inflation, which, he says, is of limited consequence right now. Marshall believes the U.S. government's main goal should be to reduce unemployment, and he predicts the gold price is likely to remain rangebound from $1,100–$1,400/oz. in 2011. However, his long-term outlook for precious metals remains rosy given that "casino capitalism" is setting the stage for a new bubble. In this Gold Report exclusive, Marshall explains why he fears for the global economy. Full Story
By: Richard Daughty, The Mogambo Guru - 27 January, 2011
James Turk of GoldMoney.com says that silver is in backwardation, meaning that, as I understand it, the spot price is higher than the price of the commodity future contract, when the reverse is usually the case, or the reverse is the usual case, I am not sure which. Full Story
By: Julian D. W. Phillips, Gold/Silver Forecaster - Global Watch - 26 January, 2011
China currently produces 340 tonnes of gold annually. This may increase by up to 100 tonnes a year or more. It imported 210 tonnes in 2010. The demand for gold is increasing in China and this is likely to continue in line with the growth of the Chinese Middle classes. We do not know for sure how much the People’s Bank of China took into its reserves and are only likely to know in two years time. Russia produces around 250 tonnes of gold per annum. It increases its reserves by 152.4 tonnes by January 1st 2011. These two nations present different requirements from the local and international gold markets, but does it make a difference where the gold is bought? Full Story
Whether Americans and Westerners in general like it or not, the Chinese have become and will remain the key drivers to many economic and financial market developments, progress, and averted wreckage. The intrepid lapdog US press, loyal to the syndicate, is a critical element to maintain distractions. Of course, China must adapt and react to their own stumbles and accidents, assured since for years they have maintained a tight link in monetary policy. Doing so has linked their asset bubble expansion and bust cycle to the deadly one in the United States, and filled their coffers with US$-denominated toxic debt securities. Full Story
By: Bob Chapman, The International Forecaster - 26 January, 2011
There is nothing dumb about the financial media. They know exactly what they are doing. All they want to do is keep their jobs and in that process they sell out themselves, their families and friends, other people and their country. They know government statistics are bogus, but they won‘t report that, because if they did they will be discharged. There are two sets of alternative figures. One shows inflation at 6.75% and the other 8%. As we have reported before the PPI reflects 13-1/2% to 14%, so how can official inflation be 1.2%? If this is truly the case how can inflation be tame with food and energy prices going through the roof? Full Story
By: Steve Saville, The Speculative Investor - 26 January, 2011
Stock market risk is high, but if the stock market avoids a large decline then uranium- and agriculture-related stocks will probably do very well in both absolute and relative terms. If the stock market goes into a lengthy retreat then gold will probably be the best-performing sector. Full Story
With gold prices showing no signs of a breakout in 2011 so far, many investors have started unwinding long positions in anticipation of no further upside. The situation warrants a close scrutiny of the state of affairs. In the following part of this essay we analyze indications from the correlation matrix and technical indicators from silver and mining stocks to gauge the extent of this concern. Full Story
By: David Coffin & Eric Coffin, HRA Advisories - 26 January, 2011
We said at the start of 2010 that it would not be a literal repeat of 2009. We expected gains, but ones that were less dramatic than 2009. That largely came to pass in the markets, though there has been a recent shift in leadership. Metals performed far better than most thought they would. We were among the most optimistic but still found the scale of some of the gains a surprise. There are a lot of different areas we want to make New Year comments on so we’ll get right to it. Full Story
By: Richard Daughty, The Mogambo Guru - 26 January, 2011
You can tell by my bleary, bloodshot eyes, my rumpled appearance, my musky aromas and my overtly hostile attitude that I have been holed up in the Mogambo Armageddon Bunker (MAB), scared out of my mind about the inflation in prices that is surely going to consume us, thanks to the unholy Federal Reserve creating so incredibly much, so stupendously much, so astoundingly much, So Freaking Much Money (SFMM). Full Story
By: Rick Ackerman and Rich Cash - 26 January, 2011
So deep and pervasive are the economic lies in which we have all become immersed that few even question how the U.S. economy could be recovering when its foundations are rotted beyond remedy or repair. A solution is at hand nonetheless, says Rick’s Picks contributor and forum regular Rich Cash, but it’s not going to come from the politicians or the Fed; rather, it will be punitively imposed on us by the collapse of a debt pyramid that as of this moment has placed a very real liability of $178,311 on every man, woman and child in America. Full Story
By: David Galland, Managing Director, Casey Research - 25 January, 2011
Does the price action of gold of late make you scratch your head, falling as it has from its recent high of $1,420 to $1,359 as I write? Hard not to make one wonder, considering the nature of so much recent breaking news… Full Story
By: The Energy Report and David Talbot - 25 January, 2011
Mining Analyst David Talbot of Toronto, Ontario-based Dundee Securities, sees demand for uranium rising far into the future. He points to the extraordinary buildout of infrastructure in India, Russia and especially China, where the number of reactors currently under construction could triple the number already in use, and where growth could increase 14- to 15-fold a decade from now. Dave shares his extensive knowledge and field experience with The Energy Report and leaves readers with a few interesting ideas on the sector's growth. Full Story
There you sit. In Happy Land. You lean back in your armchair, with your golden friends. You sip a glass of wine and puff on a high quality cigar, toasting the good times for gold. You raise a glass for a number of recent new highs for many junior gold stocks. A director of one the hottest juniors companies is there too, and he forecasts a glowing 2011 for his company, for gold, and for you. You agree, and immediately instruct your broker, who is there too, to pick you up another $200,000 of your favourite juniors stock at market open. The back slapping continues. Full Story
What happens when prices rise? Can government control prices? How will price increases affect me? These are questions many people are asking, with good reason. As anyone who drives a car or truck, heats their home with oil or gas, purchases food at the local supermarket will tell you, “I’m paying more and getting less.” Full Story
With technical indicators today suggesting gold could dip as low as US$1,322 an ounce in the current corrective phase, bears and bugs are deploying opinions in-line with their interests. The drop by nearly $100 in ten weeks is nothing new, nor is the strident tone growing in both camps. Its all consistent with the bull market in gold and silver that has been underway for the last decade. Full Story
It all started very quietly with a little-known speech in May of 2008 by Benn Steil, a highly respected policy insider at the the Council on Foreign Relations. The CFR is generally considered the font of establisment thinking on foreign and international economic policy. Steil’s speech had to do with gold -- an unusual subject for someone so prominent in the CFR. His proposal? That gold should be restored to a central role in the international monetary system. Full Story
By: Richard Daughty, The Mogambo Guru - 25 January, 2011
TheEconomicCollapseBlog.com had an article titled “10 Things That Would Be Different If the Federal Reserve Had Never Been Created.” This is like my list of “10 Things That Would Be Different If I Was Rich” instead of being a weird little penniless paranoid recluse whose expensive family and expensive greens fees cruelly devour all my income, preventing me from buying lots and lots of gold, silver and oil as vital protection against the catastrophic inflation that will afflict us, thanks to the horrid Federal Reserve creating excessive amounts of money. Full Story
By: Rick Ackerman, Rick's Picks - 25 January, 2011
We’re still not sure whether CNBC was making a joke or simply advertising its ignorance with a recent headline, “Accounting Tweak Could Save Fed from Losses,” This was a tweak about as subtle and ingenuous as Bernie Madoff’s balance sheet. What the central bank did was revise and advantage its own rules so that if some financial catastrophe were to inflict huge losses on the Federal Reserve System, the U.S. Treasury would take the hit, not the Fed itself. Full Story
By: John Browne, Senior Market Strategist at Euro Pacific Capital - 24 January, 2011
If one were asked to describe the major global economic changes that have unfolded since the financial crisis began, a good starting place would be the massive shift of debt from the private to the public sector. Attempting to arrest a deepening crisis, governments all around the world have bailed out businesses and companies by transferring bad debts to the public books. Although these moves have provided some current stability (after all, governments are much less likely to default), the long-term consequences may be dire. Full Story
There are many ways to measure market sentiment. We use surveys, put-call ratios, fund flows data and for commodities especially, the commitment of traders reports (COT). Lately, we’ve noted the improving sentiment picture for Gold. As a market weakens sentiment will naturally become less bullish. In this case, sentiment has weakened considerably yet Gold is only 6% off its high. Full Story
It’s a funny thing – actually it’s not so funny for the poor lost and trusting souls that give their money to the crooks in New York to manage – but for some strange reason (greed) managed account returns don’t seem to even come close to those enjoyed by money managers today, not even after a good year like 2010. And this is especially true if you include the fact that if money managers have a bad year, or worse, where they may go out of business, our central planners (and central banks) step in and bail them out, and executives at these companies are still paid fat bonuses which is all gravy (for screwing up), never mind a return on investment. Full Story
After a record ten straight years of annual gains, gold has entered a critical phase in one of its longest rallies. Markets are abuzz with contradictory views on whether gold will continue to rise in 2011. Signs of a slowdown are apparent in the short to medium-term. However, we investigate two compelling factors affecting gold prices and find out why there is no reason that the prolonged rally does not continue well into this year as well. Full Story
By: Michael Pento, Senior Economist at Euro Pacific Capital - 24 January, 2011
There can be little doubt that Fed Chairman Benjamin Bernanke has been a very, very good friend to gold investors. However, some of those who have benefited from his largesse now fear that the recent selloff in gold indicates an imminent end to Bernanke's monetary high-wire act. Most assume that a cessation of the Fed's stimulative efforts, if it were to occur, would spell the end of gold's bull run. But a closer reading of Bernanke's economic philosophy and the Fed's own recent history, shows that once central banker begins a strenuous routine starts, it is very hard, if not impossible, for them to dismount. Full Story
The “Gold is a Bubble” crowd has been reawakened. CNN warned earlier this week: Gold is a bubble, resist its charms. Gold’s six percent fall in the last six weeks and the Amex Gold Bugs Index (HUI) nearly 20% decline have signaled the gold correction is here. The correction has emboldened the anti-gold crowd more than they have been since the 2008 credit crunch. The correction is has been a tough one so far. But it hasn’t shown itself to be anything more than just a correction. And if history is any example, it will last about two more months and gold will be returning to new highs by the end of 2011. Full Story
We are now seeing a convergence of indications that a reversal in the Precious Metals sector is at hand that will lead to a major uptrend soon. The last Gold and Silver updates posted on 11th January were bearish over a short to medium-term time horizon and have been proven correct as gold and silver have since fallen substantially, and stocks have taken a real beating. However, in view of the current strongly bullish constellation of indications, it now looks like the downside targets for gold and silver were set too low, although our downside target for stocks has just been hit. Full Story
1st Hour: Headline news & the Market Weatherman Report. Spotlight Stock Picks. Host Chris Waltzek & Bob Chapman, The International Forecaster discussion and answer listener's questions. 2nd Hour: Dr. Burton Malkiel Kevin Kerr Full Story
By: Bob Chapman, The International Forecaster - 24 January, 2011
Today’s energy prices will reflect a loss in buying power of more than $60 billion in the US alone. Higher grain and meat prices will add $40 billion to total, a loss in buying power of $100 billion. By the looks of it costs and inflation will rise further causing further cuts in GDP consumption. These costs will affect 70% of the stimulus and QE2. That means very little consumption gains and stagnant unemployment. Full Story
By: John Mauldin, Millennium Wave Advisors - 24 January, 2011
This week’s letter is a result of two lengthy conversations I had today, which have me in a reflective mode. Plus, I finished the last, final edits of my book, all of which is causing me to mull over the unsustainability of the US fiscal situation. There is a true Endgame here, and it may happen before we are ready. Full Story
By: Frank Holmes, Evan Smith and Brian Hicks - 24 January, 2011
A larger, wealthier class of people in the emerging world are demanding more goods as they raise their standard of living and the supply of these goods is impacted by geopolitics, diminishing mature sources and even weather. The story begins in emerging markets where economies are growing at stable, healthy rates. Current growth rates for countries such as China, India, Malaysia and others are in the 6-10 percent range, manageable levels that are not characteristic of overheating economies. Many forecasters are expecting a slight slowdown in growth for emerging countries but a few (South Africa, Indonesia and Russia) should see GDP growth rates surpass last year’s levels. Full Story
By: Richard Daughty, The Mogambo Guru - 24 January, 2011
I laughed when I read a Bloomberg story that reported, “China said it would ‘welcome’ a positive statement from the US on the stability of Chinese-held dollar assets during next week’s summit in Washington between President Hu Jintao and President Barack Obama.” Apparently, that Bloomberg quote is probably taken from the actual remarks of Chinese Vice Foreign Minister Cui Tiankai, who is quoted to have said, “If the US makes a positive statement on this issue we surely will welcome that.” Full Story
It was an interesting week to say the least. One I can say I don’t ever recall seeing the likes of, and one which is quite likely a warning shot across the bow. US markets didn’t do much for the week, but leading stocks were absolutely obliterated in most cases. When we see rotation out of those stocks it’s never good. While this is the third year of the presidential cycle and almost always positive, this time of year is often weak for stocks and indices. We’ve cut our swing trading portfolio to nearly all cash, and are looking for bargains and buying some in our mining portfolio at the moment. Full Story
The content on this site is protected
by U.S. and international copyright laws and is the property of GoldSeek.com
and/or the providers of the content under license. By "content" we mean any
information, mode of expression, or other materials and services found on GoldSeek.com.
This includes editorials, news, our writings, graphics, and any and all other
features found on the site. Please contact
us for any further information.
Live GoldSeek Visitor Map | Disclaimer
The views contained here may not represent the views of GoldSeek.com, Gold Seek LLC, its affiliates or advertisers. GoldSeek.com, Gold Seek LLC makes no representation, warranty or guarantee as to the accuracy
or completeness of the information (including news, editorials, prices, statistics,
analyses and the like) provided through its service. Any copying, reproduction
and/or redistribution of any of the documents, data, content or materials contained
on or within this website, without the express written consent of GoldSeek.com, Gold Seek LLC,
is strictly prohibited. In no event shall GoldSeek.com, Gold Seek LLC or its affiliates be
liable to any person for any decision made or action taken in reliance upon
the information provided herein.
