By: John Browne, Senior Market Strategist, Euro Pacific Capital - 28 May, 2010
Just a few weeks ago, most financial analysts continued to insist that the road to recovery stretched far into the future. Now, uncertainty has returned with a vengeance and the stock market has booked its first official 10% correction since this tenuous 'bull' market began in the spring of 2009. Full Story
By: David Galland, Managing Editor, The Casey Report - 28 May, 2010
Oh, what a tangled web we live in. On one side of the Atlantic, there is a fundamentally broke European Union. On the other, the world’s largest debtor nation, these United States. Full Story
Summing up, many tools indicate that the mining stocks are to move higher from here, perhaps just like they did in November 2009. Still, not every part of the precious metals sector is showing extraordinary strength, which suggests caution. For now, we remain cautiously bullish on the mining stocks. Full Story
By: Scott Wright, Zeal Intelligence LLC - 28 May, 2010
From boring industrial metal to commodities superstar, copper’s wild bull market has been full of excitement. Its huge 475% run from its 2003 low to 2008 high made investors fortunes. Its subsequent panic-driven 69% plunge was catastrophic. And then copper’s resilient 183% post-panic recovery to its recent April high has been breathtaking. Full Story
Let’s face it; central banks are blowing another asset bubble. As if two burst bubbles in the prior decade are not enough, the money maestros have decided to fuel another speculative orgy. Full Story
While everyone is focusing on the so called obvious factors, they have missed the most important factor; the real reason behind the crisis. The crisis started in Greece and the top EU members knew they were going to bail out Greece and potentially any other member that needed help, but they pretended that they would not. Full Story
It is the paper money created out of thin air that creates the unfair distribution of wealth that is making the middle class fall more behind and the poor more poor. Newly created money and credit in a paper money system benefits those that can access the money first and buy capital goods and real property at one price before the new money circulates and makes all prices go up. Wages also do not keep up with inflation and that creates another squeeze on the middle class. Full Story
Gold sales are soaring. More than 200,000 ounces of gold and three million ounces of silver were sold by the U.S. Mint in May. With a week left to go, gold sales are on pace to double the previous 2010 monthly high set in April. Full Story
When the Goldsmiths started publishing with www.goldseek.com, in August 2008, almost no one had a clue about how extensive the financial markets were being rigged, manipulated, massaged and maneuvered to make profits and gains for the Rothschild Cabal of bankers and their insiders and move the world closer and closer to world government. Full Story
By: Richard Daughty, The Mogambo Guru - 28 May, 2010
I was having another nightmare about how the inflation in consumer prices that is guaranteed by the Federal Reserve creating so much money (so that the loathsome Obama administration can borrow and spend it) was some kind of weird replay of The Lord of the Flies... Full Story
We may all be breathing a sigh of relief by the time you read this, but it remained uncertain at press time whether British Petroleum’s efforts to plug a massive oil leak in the Gulf of Mexico would succeed. Earlier in the day, the company began pumping a heavy fluid called “mud” into the damaged well, but the process was temporarily halted because the high-powered flow of oil and gas from the well was causing too much of the mud to escape. Full Story
By: David Galland, Managing Director, Casey Research - 27 May, 2010
Commenting on the European crisis – because this has gone well past being one that can be termed “Greek” – the New York Times cited a senior U.S. official on the significant role the U.S., including Obama himself, played in getting Europe’s leadership to agree to a bailout approaching one trillion. One particularly telling quote… Full Story
We are entering the Age of Rage. It is presently most visible in Europe as austerity programs that potentially could shred a half century of social entitlement advances are met with increasingly violent street demonstrations. It is seen in the US Tea Party rallies with their fury that the very fabric which the US capitalist system is based on is being destroyed and discarded. Unfortunately these demonstrations of rage are focusing on the effects and not the cause. The cause is a systemic plaque of unenforced financial control fraud. Full Story
The marketplace is facing and interpreting “fixes” to European Credit Markets, the Chinese saying they are not divesting their holding of Eurocurrency and questions concerning how strong world economies will be as all this goes on. Full Story
Now he says 2010 is not the time to buy gold either. So, given what happened when he rejected the idea in mid-1999 and then in late 2008, expect another $400-or-so on the price before the Laurence A.Tisch Professor of History next weighs in with his forecast. Full Story
Given the fact that we sit on the precipice of a holiday weekend, every attempt will be made to keep this short and to the point. M3 growth has collapsed. We had pointed this out several months ago and again more recently amidst a barrage of protest emails that the printing press always wins the battle with the deflationary black hole. To date, the black hole is winning hands down. Full Story
Doug, a lot of our readers have asked for you to tell some war stories – what were some of your biggest wins and losses, and what were the lessons learned? Full Story
As we’ve discussed recently, persistent deflationary forces do not augur for a repeat of Japan circa 1990s or the US in the 1930s. Instead, because of the inability of government’s to finance their current and future debt burden (there is a dearth of domestic savings and global capital), deflationary forces will ultimately lead to severe inflation or hyperinflation. In today’s missive, we explain how this will happen but in various stages. Full Story
Our long-term outlook on the euro remains more positive than that of many market participants. There are numerous reasons for our view, amongst others because it is more difficult to print and spend money in the eurozone. Fiscal coordination is rapidly improving in the eurozone, addressing the euro area's key deficiencies. Full Story
Don’t be fooled into thinking that Bernanke’s silence when it comes to the recent market storm is the result of him surmising that the Fed has reached its intervention limits. To be sure, whether it is insolvent corporations or governments inflicting damage on the U.S. economy and financial markets the story is much the same: the Fed would rather print the dollar into oblivion and sing that every financial disaster is ‘contained’ than ever confess that it has lost control. Full Story
We will kick off with a review of the charts for gold, silver and the gold bugs index, the HUI, in an attempt to see where we are now and just where we might go from here. However, to put the charts into context we need to take into consideration the surrounding political, economic and investment landscape. Full Story
USDollar swap lines have been revived, rejuvenated, and applied. They are critical in sharing the workload in monetary expansion, the inflation machinery. The US Federal Reserve issued the following press release on May 9th, heralding the facility. It enabled the printing of money for immediate usage by foreign nations, as they essentially print their own money but use the USDollar wellspring as conduit. Full Story
By: The Gold Report and Roger Wiegand - 27 May, 2010
Replacing most of Europe's colorful notes and various coins less than a decade ago, the euro is on the brink of extinction, according to Trader Tracks' Roger Wiegand, sharing news and views of Euroland's critical condition with Gold Report readers in this exclusive interview. Full Story
Exit plan? What exit plan? The Federal Reserve issued a report before Congress in an attempt to clarify its stance during one of the worst recessions since the Great Depression. The Fed, as always, said very little, but did make one thing very clear—the Fed has no idea what it is doing. Full Story
The Challenges faced by the Economy and Markets are Systemic and are not merely a function of any particular problem (e.g. Greece, PIIGS, China Bubble, U.S. Debt) however daunting each of these may be. It is the combination of these interrelated problems that creates The Systemic Risk Problem. Full Story
By: Richard Daughty, The Mogambo Guru - 27 May, 2010
Being an inveterate conspiracy theorist who is absolutely convinced that the government is full of morons, lunatics and traitors, not to mention legions of hired goons with badges, and who have, I maintain, been hovering above my house in an invisible helicopter to shoot thought-control rays into my brain all the time (zzzt!) so that now all I can hear is voices in my head urging me to “Burn! Burn everything!” Full Story
We should note that bullion yesterday reflected none of the ambiguities that have caused stocks to trace out conniptions each day on their respective charts. Comex August Gold tacked $30 onto the previous day’s lows, and the futures were holding the gains with easy aplomb as we went to press late Wednesday night, trading around 1215.00. Bears had better dive for cover if the August contract closes above that price today, since that would portend instant additional upside to at least 1261.80. Full Story
Perhaps more now than ever in history (save for a few depressions), technical levels on everything from stocks, bonds and even precious metals have disappeared. No longer are support and resistance lines, moving averages, or oscillators stealing the show. Instead, investors are buying and selling with their gut, and overall, it’s probably for the better. Full Story
The recent carnage on the general stock market corresponded to a visible downturn in the mining stocks, which consequently caused many PM Investors to be worried about the future performance of their PM assets. In the following essay, we'll provide you with our thoughts on that particular topic and let you know what appears to be the most likely short-term outcome. Full Story
Recent developments in the euro zone that increasingly look like they will lead to the restructuring (if not the collapse) of one of the world’s major currencies and the potential for this “contagion” to move first north to the U.K. and then west to the U.S. have many people wondering what’s gone wrong with the global monetary system. Full Story
Now each of you has to ask themselves which you think is more likely. Will the US all of a sudden come to its senses, default on its obligations to halt the exponential growth of debt, thus unleashing a deflationary holocaust upon the world…or will we just continue to kick the can down the road like we’ve been doing for the past 10 years, thus making the debt burden bigger and bigger and rendering it serviceable only by hyper inflating the money supply? Full Story
The below pictures were from a presentation given at yesterday's "Towne" Hall on May 24. I've added a few comments with documentation links. The quote above from the Declaration easily applies to the 22.5 million bureaucrats, America's second largest job sector, who make nearly twice the average wage of the private sector. Full Story
By: Jason Hommel, Silver Stock Report - 26 May, 2010
May I explain for a moment why American stocks are so overvalued compared to gold? Ok, let's start with the basic premise of stocks. A stock is a fractional ownership of a business, the goal of which is to make money. If the business can make money, then the stock might be worth something, in theory, if everything goes right. Full Story
By: Richard Daughty, The Mogambo Guru - 26 May, 2010
Greece seems to be on everyone’s mind, probably because Greece is just the first to suffer from the governmental stupidity of bankrupting themselves trying to borrow themselves into prosperity, which is just a microcosm of the whole stinking EU area... Full Story
Now wasn’t that refreshing! The Dow did a nearly 300-point dipsy-doodle yesterday, providing comic relief for millions of investors who might otherwise have spent the day fretting over the oil spill and North Korea’s quasi-declaration of war. Earlier in the day, before NYSE stocks staged an epic recovery from abysmal lows, both of these developing news stories were cited by pundits as reasons why the broad averages had plummeted on the opening bell. Full Story
By: Richard Daughty, The Mogambo Guru - 25 May, 2010
The point is not that that whole Asian region is a hotbed of potential economic activity, perfect for Mogambo Brand Lucky Tasty Eggrolls (MBLTE), which it is, but that a lot of that growth is going to be electronic and electrical, and that means silver. Lots of it! Oodles of it! Full Story
During my trip to France to visit with associates this past weekend I heard many opinions on investments. They centered on select investments in the emerging world, deep value investments in the first world, very long term investments in the first world and the preservation of wealth for later. Full Story
By: Marin Katusa, Chief Investment Strategist, Casey Research Energy Division - 25 May, 2010
What do search engines and wind energy have in common? That’s the question a lot of investors were asking earlier this month, when Google made an almost US$40 million investment into NextEra Energy Resources, a North Dakota wind energy firm. The simple answer: more than you think. Full Story
News just to hand informs me that Spain is just about to do a “Greece” as their banking system is without funding. In the end this is not about maintaining global growth or the European Union it is about the survival of the financial system as we know it during this major historic transition. Gold is about to go through the roof and not just in Euro terms. Full Story
Nick Leeson is a former derivatives broker and investment officer of Barings Bank. His unsupervised, unauthorised trading caused the collapse of the 233 year old Barings Bank, the United Kingdom's oldest investment bank, in 1995.The losses of $1.3 billion were considered massive at the time. Full Story
By: Steven Saville, Speculative Investor - 25 May, 2010
The main problem with credit bubbles is that they result in a massive transfer of resources to activities that would not be economically viable in the absence of the artificially low interest rates and the monetary inflation. Consequently, although they temporarily create the feeling of prosperity, they deplete real savings and lessen the economy's long-term growth potential. Full Story
By: Jason Hommel, Silver Stock Report - 25 May, 2010
No nation on earth uses silver or gold as a circulating medium of exchange, or common currency. This trend to not use silver started over 150 years ago, and has come to an end. If monetary demand for silver changes, it can only go up. Full Story
"We're seeing gold actually rise in all currencies. That seems to be a reflection of the concern and distrust for central bank authorities, political authorities and what's going in the world that we're living in," says Doug Groh, senior research analyst with the Tocqueville Gold Fund in this exclusive interview with The Gold Report. Full Story
The very difficult task of explaining the stock market’s behavior to readers of the Journal falls most often to columnist Peter McKay, and we don’t envy him his job. Because he works for one the most important and prestigious financial publications in the world, it simply won’t do for him to say, as we might (and often do), that stocks rose or fell the previous day for no good reason at all – or at least, for no reason remotely related to reality. Full Story
By: Julian D. W. Phillips, Gold/Silver Forecaster - Global Watch - 24 May, 2010
The global gold market has always seen India as the largest individual source of demand for gold. It has reached 850 tonnes in the best years and even in the worst years has been over 300 tonnes. It has been possible to track the seasonality of this demand fairly easily during this time. This demand has been labeled as Jewelry demand, we believe wrongly. Full Story
Still deep in recession / depression, it is possible and perhaps even likely that the US economy will be dealt a sledgehammer blow over the coming months. The full price for the European crisis might be paid in American jobs, with four categories of job losses imperiling the US economy and threatening the standards of living for millions of people. If you are employed in the US, UK, Canada, or Australia (among other nations), don’t pity the continental Europeans, because it may be a European that ends up taking your job. Full Story
By: Jeff Clark, Editor, Casey’s Gold & Resource Report - 24 May, 2010
We released our 2010 Silver Buying Guide last week and the silver price promptly cratered. So does this change our view of gold’s shiny cousin? Hardly. While industrial uses comprise about half (53%, according to GFMS) of silver’s demand, making it susceptible to bigger falls than gold in a weak economy, it is equally clear silver also responds well to inflation, as well as serious financial “dislocations” (to put it nicely). Full Story
Last week was a very interesting week in the gold market. Those people who think that gold is going down from here have a big surprise coming. However, we will probably have more of these scary drops in the gold price as we continue into this volatile phase of the gold bull market. The good news for gold bugs is that we will also have some huge up days, and the general trend will be very much up. Is a $50 or $100 up day coming soon? Full Story
What would you say if it was suggested that our business and political leaders, the larger bureaucracy, and their market managers were all acting in an increasingly irrational fashion, and are exacerbating negative long-term effects with all their meddling in things they should better leave alone, those being any market they decide to manipulate for whatever reason. Full Story
By: Frank Holmes, U.S. Global Investors Inc. - 24 May, 2010
Liquidity is one of the key selling points for exchange-traded funds (ETFs), but the Dow Jones “flash crash” of May 6 shows how that supposed advantage can turn into a huge liability for investors. Full Story
The events of the last few months have been far more important than I had originally given them credit for. The bottom line was when a group of European nations, together with the International Monetary Fund, gave loans to Greece to pay off the rioters. That very day Jean-Claude Trichet was in the financial markets buying bonds. Full Story
For that's what this cycle is all about. Cleansing the system of debt is a process fought tooth and nail by the banks, which have encouraged profligacy among the masses and their governments to an extent not seen in the last few generations. Full Story
Although gold and silver dropped quite sharply last week, longer-term charts reveal that nothing broke technically and the reactions were in fact within normal parameters. Full Story
The key formula to investment success is to BUY LOW AND SELL HIGH. No amount of market regulation, gyrations or trading on the short side will change this. The routing of the AUD and our local share market has seen value again reappear post GFC. Full Story
By: John Mauldin, Millennium Wave Advisors - 24 May, 2010
Everywhere there are arguments that we are in a "V"-shaped recovery. And there are signs that in fact that is the case. Today we will look at some of those, and then take up the topic of when the Fed will raise rates. We open the case and look at the evidence. Is there enough to come to a real conviction? I think there is. (And at the end of the letter I mention two conferences I am speaking at in the next few months, in Vancouver and San Francisco.) Full Story
Much has been written about the so-called “flash crash” that occurred on Thursday, May 6, which saw the Dow Jones Industrial Average lose nearly 1,000 points intraday. But did this sell-off fall under the category of a crash or a panic? The difference between the two events is significant and will usually determine whether the stock market bounces back or continues to free fall. Full Story
We just wonder now whether we are about to enter the eye of the storm or the eye wall itself. Meaning, we cannot yet see enough confirmation in the data to give us comfort to set up on the short-term trading long side of our beloved precious metals – just yet. No matter how much we are itching to do just that. Full Story
Drastic times call for drastic measures. I have made major changes this past week to my portfolio. I am scared, and have taken appropriate actions. Safety first is now the motto I embody. Full Story
Colorado ski properties are enjoying a dead-cat bounce, although readers of a recent article in the Denver Post might infer there is something more to it than that. The article noted that in Eagle County, which includes tony Vail, residential transactions were up 190% year-over-year for the first quarter. Full Story
1st Hour: Headline news & the Market Weatherman Report. Spotlight Stock Picks. Host Chris Waltzek & The International Forecaster discussion and listener's questions. 2nd Hour: Dr. Ron Paul, ronpaul.org Louis Navellier, Portfolio Grader Full Story
By: Julian D. W. Phillips, Gold/Silver Forecaster - Global Watch - 23 May, 2010
Since the inception of the fourth Central Bank Gold Agreement last year on September 27th, sales by European central banks have been nearly non-existent. But that was before the € began to implode and fractures appeared in the Eurozone itself. Now governments have to fiercely cut back expenditures. They must do this to the extent that the reaction is certain to be social unrest. Full Story
By: Bob Chapman, The International Forecaster - 23 May, 2010
Keeping up with today’s dysfunctional markets is very difficult because they change hour by hour. The problems of Europe have stolen center stage from US problems. The focus is on Europe, but we all should remember trillions of dollars have been injected into the US financial system since mid-2007. All are attempting to maintain the façade that all is well, when in fact all is not well. Full Story
There is an old phrase regarding stock market investing: "Sell in May and go away." Recent markets have reinforced that saying. Stock markets all over the world are falling. The first market to begin falling was China's. It peaked in early August of 2009. It struggled back, though not to its August peak, but is now falling. The decline is accelerating. It is down by about 25% in 2010. Full Story
By: The Gold Report and Matt Badiali - 23 May, 2010
As he watches the price of gold march inexorably toward $2,000 (and beyond), and keeps an eye on developments in the Western world, S&A Resource Report Editor Matt Badiali tells Gold Report readers in this exclusive interview that it's time to make space in the safe for gold. That's gold to hold, preferably to pass on to one's heirs, but if need be to pay for one's meat and potatoes. Full Story
Countries bailed out the banks. Now who is left to bail out the countries? While the decline in the euro appears to be very close to being over (as explained in the following part of the update), the fundamental situation of the Eurozone still appears to be one of the most popular topics these days, so the first part of this week's update will be dedicated to this particular part of the world. Full Story
By: Richard Daughty, The Mogambo Guru - 23 May, 2010
I waited until I had sobered up to re-read Agora Financial’s 5-Minute Forecast, where it reported that “Bill Clinton shocked us the other day when he came out and suggested the financial crisis would never have happened if the dollar was still tethered to gold.” Full Story
Bottom line: COT report shows COMEX commercials not aggressive on the sell side for gold, but the largest hedgers and short sellers hammer silver futures ahead of silver plunge. Gold -0.6% and the gold LCNS -1%. Silver -1.5% and the silver LCNS zooms higher 12.8%. Details just below. Full Story
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