The first Gold Chart is one I created for the original Golden Parabola editorial that showed my expectations at the time for Gold to bottom at the 34 week EMA with a potential target for Gold into mid-year per the 1970’s Gold Bull up to around the $1860 level. On the chart, below, I have now added a blue line off of the tops since the 2008 Deflation Scare low showing a potential for Gold into mid-year to around the $1860 price level, which appears to confirm the earlier chart. The chart also shows that Gold has busted out to new historic highs with no horizontal resistance above and with no real angled resistance on the chart until much higher price levels are reached. Full Story
As I said, that money has to go somewhere. The banks have been borrowing from the Fed at something like 0.5% and investing it in government securities at 2%, 3% or 4%, depending on the maturity. So, much of that money has been a direct gift to the banks; and they're basically making an arbitrage spread of 2%–4%. So, yes, that's happening with some of the money. Still, it doesn't all just sit in these Treasury securities. A great deal of it, inevitably, goes into the stock market. Full Story
The theories are not mutually exclusive and may be true. Indeed, Chinese, Russian and other private interests may be cornering the physical market in an effort to end manipulation of the silver market by Wall Street banks in order to ensure the silver price rises very sharply and creates significant profits on their silver bullion holdings.
Indeed, if the People’s Bank of China is involved – profit may not be the end game, rather the positioning of the Chinese yuan as the new reserve currency through use of gold and silver bullion reserves. Full Story
By: John Browne, Euro Pacific Capital - 29 April, 2011
Despite loud huzzahs from a variety of boosters who proclaimed that Chairman Bernanke spoke with gravitas and wisdom at the first ever Federal Reserve press conference, the wider investing public clearly saw the performance as unconvincing. During and immediately after the proceedings the prices of gold and silver rose strongly to new highs as the U.S. dollar plummeted. The affair seemed to solidify the understanding that Bernanke and his cohorts have no intention whatsoever to reverse the current trend of inflation and a weakening dollar. Full Story
First, if you could total the world's balance sheets you would find that it would approximate $200 Trillion. In putting together this total you would discover that 75% of all financial assets are debt assets worth $150 Trillion. To most of us, debt is the epitome of a liability. To banks, however, it is not. It is considered an asset and recorded as such a banks ledger. Your liability is their asset. Full Story
Given his penchant for a good sky-is-falling story, it seems ironic that North would have become a voice of moderation in assessing the odds of a financial collapse. For in fact, he sees no collapse at all: “I don’t think we are near an era of central bank monetary stability [sic?], recession, and depression. Central bankers can still safely inflate, and they will.” With this statement, he puts himself boldly at odds with hyperinflationists and deflationists alike – all of us ruinists, as far as I’m concerned. I feel strongly that he will be wrong, but I’m not going to pretend that we can, or should, close the door on his line of argument. Full Story
What will posterity say about this era in history, where a small cadre of over-educated men and women perpetrate simultaneous scams against the rest of us to support an undeserved sense of entitlement expressed in grossly excessive lifestyles? Full Story
In short, the Fed is making every American poor, every banker rich, and every investor a pawn in the largest scam to ever hit the financial world. Tell your neighbors, colleagues, friends, and acquaintances that there is no bigger scam than that which is permeating through the financial world and the sealed books of the Federal Reserve System. Full Story
You’ve probably heard the term “smart money” used by various pundits, a reference to those investors and institutions that are consistently better at making money than the uninformed masses. Which begs the question: are you one of them? Full Story
While it is true that Americans and Europeans are buying gold and silver, there has been a bigger push among Asians. In particular, the Chinese government has had an outright program to encourage its people to buy gold and silver for their own benefit and protection in future days (in the West, our corrupt, sorry governments under Rothschild ownership would never undertake such a stance). But I would suggest in this Goldsmiths that this situation in Asia is about ready to transition up to a new level. Full Story
During the recession we were told that unemployment was the biggest threat, but now it’s becoming clear to hard working Americans that with the Fed’s soft dollar, they won’t be able to buy a tank of gas to drive to work. The central bank itself is now becoming the biggest threat to the average American. Full Story
Could this vicious cycle ever strike the US Dollar, British Pound, or the Euro? Maybe it's already begun. Gold and silver prices have risen strongly over the last decade in all those currencies, and especially versus the Dollar so far in 2011. This tells us that many Westerners – just like the Vietnamese – are keen to swap their paper for metal.
If the Dollar and its paper cousins continue to leak value, many more cash savers could look to join them. Full Story
With Ackerman gone, this leaves Mish and Robert Prechter as the last famous deflationists still standing. But there were never many of them. They were always vastly outnumbered by hard-money analysts who predicted price inflation. From John Exter and C. V. Myers in the mid-1970s until today, the leaders of the deflationist camp have been few and far between. Today, they are fewer and even farther between. Full Story
Several very important currency effects are at work. Most economists are either silent on the factors or wrong footed on the dynamic. That is not surprising since they have been incorrectly analyzing, interpreting, and forecasting the financial crisis as it built up in 2005 and 2006, and as it exploded in 2007 and 2008 to surprise almost all of them, even as it has failed to recover in 2009 and 2010 in contrary fashion to their deceptive rosy positions. The major currencies must be examined for some key paradoxes. As the monetary system crumbles into its final phase, the foundation under which the major currencies stand, trade, and change is breaking down. Refer to the sovereign debt structure, overly burdened by runaway government debt. The focus here is on some important paradoxes that go directly against both common sense and traditional economic logic. Full Story
By: Bob Chapman, The International Forecaster - 27 April, 2011
Barrick will finance the acquisition with a bridge loan and credit facility worth $5 billion from Royal Bank of Canada and Morgan Stanley. The financing will supplement an existing $1.5 billion loan facility and $4 billion in cash reserves. [The wrong buy at the wrong time for the wrong price. US elitists’ interest did not want China to get this asset and so Barrick was the political frontman for the deal. The economics are not there as the future will prove. Bob] Full Story
The gold price rose by 2.4% during Q1 to US$1,439.00/oz by 31 March 2011, on the London PM fix, a more modest rise relative to average gains of 6.2% per quarter over the past two years
By the end of Q1, ETFs held a total of 2,110.3 tonnes of gold worth US$97.6 billion, compared with the high of 2,167.4 tonnes at 31 December 2010, or US$97 billion – a modest net outflow in the quarter
Central banks continued to be net buyers of gold in Q1 2011 with emerging market countries, including Russia and Bolivia, being among the key net buyers. As a group, the official sector holds 18% of all above ground stocks of gold. Full Story
We believe that the current myopic view of the gold price in the U.S. dollar will continue for a while still, until there is a shock that will force a more global perspective. It may happen slowly or suddenly. The earlier investors arrive at this viewpoint, the greater the profits they will make out of the precious metals and the more effectively they will protect their existing wealth against a falling dollar. Full Story
Only a Keynesian academic would think lasting prosperity can be created, with no unintended consequences, by printing money. But only an imbecile would risk sending the dollar over the cliff that it's hanging on. Bernanke had better say the right things this afternoon or all hell is going to break loose in the currency markets. Full Story
The Federal Reserve System is on the defensive. This has not happened before in my lifetime.
On Wednesday, April 28, Ben Bernanke will hold a press conference. This has never happened before. Journalists will be allowed to ask questions. It will be held at 2:15 in the afternoon, Eastern Daylight Time. The Bankrate site has set up a reminder program so that you won't miss it. It will be broadcast on their site. Full Story
By: Chris Powell, Gold Anti-Trust Action Committee Inc. - 27 April, 2011
You know we've been up against all the power and money in the world for a long time, and we never expect sympathy, or even journalism, but an essay posted today at MarketWatch.com, written by its Wall Street columnist, David Weidner, and headlined "Buy Gold," does its best to trivialize what should be a serious subject. Full Story
The dialing back of the Fed’s monetary machinations increases the possibility that interest rates will need to rise in order to attract buyers in sufficient quantities to fill the gap. And if there’s one thing we know, it is that rising interest rates would be devastating to an empire of debt such as the United States circa here and now. Full Story
And so it goes. A conversation between a hardcore inflationist and an equally hardcore deflationist might meander for hours without generating much argumentative heat. That’s because both see the financial system in smoldering ruin after the smoke has cleared; it is only on the matter of how the disaster will unfold that they disagree. I’d thought until yesterday that deflation was far more likely to do us in, turning an endless Great Recession into a Second Great Depression. Full Story
By: Frank Holmes, U.S. Global Investors - 25 April, 2011
We should be clear: If a correction occurs, this would not mean the rally is over. It would just be a healthy bull market correction and reflect the normal volatility inherent with these types of investments. Investors must anticipate this volatility before participating in these markets.
This volatility also brings along opportunity. We believe we’re only halfway through a 20-year bull cycle for commodities and investors can use these pullbacks as an opportunity to “back up the truck” and load up for the long-haul. Full Story
Dramatic rises in metals prices over the past 2 years could bring 10 or more past-producing mining camps back to life. MineralFields Group's Engineer and Investment Analyst Ron Wortel shares how he finds promising gold juniors working these mines and structures tax-advantaged, flow-through investments to finance Canadian resource development. Full Story
The junior market hasn’t performed as well as should be expected over the last few months.
There are, as always, the few special situations that have done very well.
The overall market, however, has lagged significantly while the fundamentals say it should be setting new highs along with gold, silver and oil. But it hasn’t. Full Story
By: Scott Silva, The Gold Speculator - 25 April, 2011
What price is the just price for gold? The market price at any given time is the just price, because that is the price agreed to by buyer and seller. In the exchange, each party enters into a just bargain; otherwise the trade is not made. For gold, the price includes a risk premium for economic uncertainty, political unrest, war, inflation and the debasement of fiat currencies. The price of gold captures precisely the future outlook without the baggage of earnings-per-share, book value or any other accounting measure of worth. Gold has proved to be an excellent investment for the investor and the speculator for the last several years, and it will continue to preserve wealth for individuals who own gold. Full Story
By: Bob Chapman, The International Forecaster - 25 April, 2011
Silver prices are on a tear and as we write they have risen to $46.30. In spite of these price levels the mining industry is not increasing production in any meaningful way. About 70% of production comes as a by-product of other types of mining, such as copper. There are no new sizeable projects in the works, and thus it is expected that production could fall 5% annually for the next ten years. The easy finds have already been exploited and new large projects are harder to find. In fact, current mines have only been able to increase production by a paltry 2.5% or so. In 2009 Argentina was the only outstanding exception and that could be a one off occurrence. Full Story
By: Adam Brochert, Gold versus Silver - 25 April, 2011
Same chart with a phase shift, no? The corrections in this ratio lasted longer for Japan because they entered their secular depression when everyone else's economy was booming. We don't have that luxury, so our corrections in the Dow to Gold ratio have been shorter. We are about to begin the biggest leg down in this ratio since the "secular bear market" in this ratio began in 1999. This is not a drill and this is not a call for the end of the world. Be careful out there if you're not in the precious metals sector. Full Story
Even the normally level-headed market technicians who write for the popular financial blogs apparently fell for the bearish rumor on silver last week. One writer for the popular Seeking Alpha web site called for a 20% correction in the silver price. He based this forecast on the fact that the silver price was dramatically over-extended from the 200-day moving average. The lesson here again is that’s extremely dangerous to short an established uptrend based on scanty technical evidence. Unless there is an extremely compelling (and hopefully non-publicized) reason for doing so, the best policy is to refrain from selling short in a bull market. Full Story
Maybe gold will be held back as the flow of money into precious metals is temporarily tilted in favor of silver. Only once silver gets to its centuries’ old ratio of 12-16 to gold will the yellow metal then be a target for investors, and after that both metals will move up in lock-step to the tune of global monetary inflation. Full Story
By: John Mauldin, Frontline Thoughts - 25 April, 2011
Albert Einstein is famously quoted as saying, “Compound interest is the eighth wonder of the world.” And compounding is indeed the topic of this week’s shorter than usual letter, but compounding not of interest but of inflation. As you might expect, I am giving a great deal of thought as to how we get out of our current financial dilemma of too much debt and deficits that are far too high. While I will use US data for our illustration, the principles are the same for any country. 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. Stephen Leeb, Leeb Capital Management - Bob Hoye, Institutional Investors Full Story
A meme is now circulating that gold is in a bubble and that it's time for the wise investor to sell. To me, that’s a ridiculous notion. Certainly a premature one. It pays to remain as objective as you can be when analyzing any investment. People have a tendency to fall in love with an asset class, usually because it’s treated them so well. We saw that happen, most recently, with Internet stocks in the late ‘90s and houses up to 2007. Investment bubbles are driven primarily by emotion, although there's always some rationale for the emotion to latch on to. Perversely, when it comes to investing, reason is recruited mainly to provide cover for passion and preconception. Full Story
By: Adam Hamilton, Zeal Intelligence - 24 April, 2011
In just a couple months, the US Federal Reserve’s second quantitative-easing campaign will wind down. This program has been highly controversial since its birth, so the Fed is under tremendous pressure not to launch a third round of QE. And if QE2 indeed ends on schedule this quarter, it has major implications for the US stock markets. Full Story
By: John Browne, Senior Market Strategist at Euro Pacific Capital - 24 April, 2011
As a result of active "demonetization" efforts by the IMF and its member central banks, gold and silver have experienced the type of volatility that has given conservative investors reasons not to perceive the metals as dependable cash alternatives. Instead gold and silver have become known as the asset class to hold as a hedge against inflation. Full Story
By: David Coffin & Eric Coffin, HRA Advisories - 24 April, 2011
Gold and silver have continued barreling higher thanks to insurance buying, inflation expectations, and the currency picture. Given the underlying chaos in global affairs there is room for gold and silver to continue their gains, in US Dollar terms at least, as long as negative real rates persist in the US. Around that upward bias will be traders moving in and out of the safety trade and other short term sentiments. Expect volatility. Full Story
Yes, indeed there are two possible economic financial futures. Either the Citizens/Investors of Fiat Currencies Countries take a Huge hit through the Degradation of the Purchasing Power of those Currencies (already happening is the U.S. Dollar – the trade weighted dollar adjusted value of the S&P has actually dropped this year) – OR The Mega Bankers (whom we citizen/Investors Bailed Out) will have to take a substantial Haircut on the money “owed” to them. Full Story
The Goldsmiths CLXXXVI (as published on Mar 24, 2011) had a write up on the huge volatile moves in the Japanese yen recently—obviously to make profits and gain for the Rothschild Cabal of masters as they manipulate the markets up and down. Now, during the past several days, it looks like the Cabal manipulators are busy pulling the same rip-off of investors again as this Goldsmiths will explain below on how the Cabal manipulates the financial markets in conjunction with its control of the media to really stick it to investors/suckers. Full Story
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