By: The Gold Report and John Kaiser - 29 May, 2009
Gold investors know all too well the psychological importance of $1,000 gold. The yellow metal's been hovering frustratingly near that level for weeks after briefly surpassing it in February. According to John Kaiser, editor of the Kaiser Bottom-Fishing Report, "we're getting very close." In this exclusive interview with The Gold Report, John shares his "modest" price forecast of $1,300 - $1,400 within the next six months and presents strategies for gold companies looking to create value. Full Story
By: Continental Capital Advisors, LLC - 29 May, 2009
We published a chart earlier in the year that showed Treasury Bonds were falling. Below is the chart updated thru May 28, 2009. Treasuries fell at the beginning of the year when the economy was still in freefall and have continued to decline despite the Federal Reserve’s announcement that it would buy $300 billion worth of Treasuries. When an asset class goes parabolic and then falls, no matter how favorable the news is, it is likely that the bubble is popping. The housing bubble illustrates this phenomenon. At the end of the housing bubble most commentators knew that housing prices had overshot yet many remained optimistic that prices would simply correct with slower growth or only slight declines. Treasuries are again demonstrating that bubbles do not end by correcting sideways. Full Story
By: Peter Schiff, Euro Pacific Capital - 29 May, 2009
During the height of New York City's financial crisis in the 1970's, President Gerald Ford had the good sense to turn down Mayor Abe Beame's request for a federal bailout. The refusal prompted the famous New York Post headline, "Ford to City: Drop Dead." More than 30 years later, as California Governor Arnold Schwarzenegger makes a similar plea to Washington, I hope President Obama will show similar restraint. Unfortunately, given Obama's recent string of unwise economic decisions, it's hard to imagine that his judgment will suddenly improve. Full Story
These stonewalling tactics – withholding details - are eerily similar to those employed by Messer’s Bernanke, Paulson and Geithner refusing to divulge frank details as to “who” the beneficial recipients were of TARP and TALF funds.
No credible audit of the Sovereign U.S. Gold Reserve will EVER be allowed – because the gold is simply not there.
My purpose this week is to point out what many others have addressed and it might be referred to as peak silver. Now before we get too far into this subject, please note this topic previously has been addressed by me and several other writers in this space. Full Story
The USD is in wave b down, currently in wave 5 of (C). We should see further downside before a strong rally in wave c up. Crude is in wave b up, currently in wave 5 of (C). Crude is an excellent example of a bear market correction, since we would want to see at least 3 waves (an abc) complete from the peak. Full Story
The technical outlook on the silver market does not look all that strong when looking from a distance. I like to keep eye on the longer term trend lines for possible support and resistance levels which are easily missed if you only follow the daily charts. Full Story
Market Ticker and others have projected a sharp hyper deflationary fall this year. I am convinced that the Rothschild Cabal players still want a deflationary fall, but I believe that they want it limited and controlled. This prediction then brings up the question of gold and particularly so since gold has maintained some strength on the last trade day for the near contract this past week. What will the money changers do next? Full Story
By: Richard Daughty, The Mogambo Guru - 29 May, 2009
Maybe the fact that central banks, banks and governments around the world are acting like monetary idiots explains why gold is shooting up in price; or maybe that it is going up in price explains why there is such a new interest in gold; or maybe it just explains why people are as disrespectful of the dollar, as am I. Full Story
Firming quotes for gold and silver in recent days have filled our sails, allowing us to spread off the risk in bullish options positions we hold in two issues popular with Rick’s Picks subscribers – Silver Wheaton (SLW) and the Gold Miners ETF (GDX). A while back, we bought calls in both with the intention of later shorting options of an earlier expiration against them. However, with precious metal prices relatively flat for a spell, there were no good opportunities to do so. Full Story
By: Bill Bonner, The Daily Reckoning Crew - 28 May, 2009
At the end of last year, America’s great buddy, China, changed its policy. Instead of buying long-dated US debt, China began buying the short stuff. China’s top man openly wondered whether the US would be able to protect the value of the dollar and keep its promises to foreign lenders. Full Story
It’s been a crushing blow to just about everyone. But it’s already being referred to as the crash. As if the unpleasantness were now all behind us. More likely, in the future it will be seen as, simply, the first crash. Don’t believe it? In a moment you will, when you see the scariest graph of the year. Full Story
As I write this report, gold is trading about $5 higher than it was a week ago. The Slow Stochastic Chart Study remains embedded and GM has just reached a deal with its bondholders. Full Story
China is aggressively jumping to hard assets again, they are seeking to unwind their position in the US dollar or at the very least hedge themselves against the upcoming hyperinflationary phase that is going to hit the entire world in the not to very distant future. Full Story
By: Roland Watson, The Silver Analyst - 28 May, 2009
Today we have a similar situation in terms of form but not magnitude. The government wants to reflate but gold is not in the way this time. Back in 1933 you increased the money supply by 50% by revaluing gold to $35 an ounce. Today, you just devalue the dollar by debt auctions and quantitative easing. Is gold confiscation coming? I doubt it and even if it did, the exemption clauses of order 6102 may set a precedence for many families to hold sizeable portions of gold. Full Story
Major dislocations are coming. Tremendous disruptions are coming. Price discontinuities are coming. Price chart patterns might be rendered useless soon. Last week, the case for a grand Paradigm Shift was made, covering many elements in order to paint a mosaic. Taken in isolation, any one point is important in its own right, but not enough to convince of a structural change. Taken in entirety, the many points create a full picture that is more easily recognized. Full Story
The government cannot “fix” the economy and has never been able to do so. All the regulations were in place to prevent the mess we are now in but the laws on the books were either ignored, not adequately policed, or revised/reversed due to bribery (i.e. “aggressive lobbying” by “special interest groups”). Full Story
Gold stocks have been performing well but I cannot help but notice that the gold sector has reached a major resistance levels on the monthly chart. As much as I would like gold stocks to continue higher we must be ready for a pullback. Full Story
Images from the Weimar Republic of housewives using currency to heat their homes are bound to surface again as commentators discuss Dr. Marc Faber’s prediction of hyperinflation for the modern United States. Full Story
The greatest economic realignment since Genghis Kahn took over Eurasia’s trade routes is continuing apace. The west remains mired in an assets contraction of its own making, and the east is refocused on channeling its growth engines into domestic consumption. The resource sector, which is our focus and which has been governed by those growth engines for a decade and half, is indicating at least the expectation of continuing gains in the east. That does not mean we ignore what is going on the developed west, plus Japan. Full Story
By: John Browne, Senior Market Strategist, Euro Pacific Capital - 28 May, 2009
"Socialism is the philosophy of failure, the creed of ignorance and the gospel of envy," said Winston Churchill. Although it inevitably lowers living standards, socialism feels good - at least at the outset - as "free money" flows in great abundance. Keep this in mind as we examine the "good news" about consumer confidence. Full Story
By: Richard Daughty, The MOGAMBO GURU - 28 May, 2009
I knew that gold was doing okay, but I did not know how well exactly, although I knew that gold bullion was up about 3.5% from this time last year, which is better, and by a long shot, than almost anything else you can name, but which is not, I admit, very much. Full Story
Has the dollar put in an important low? It looks like it, since the NYBOT Dollar Index widened the gap on Wednesday between it and a key Hidden Pivot support at 80.04 that we drum-rolled here earlier. We had been using that number as a downside target since late April, when DXY was trading just above 84; it was first touched last Friday, then exceeded by a scant 0.23 points before bouncing back. Full Story
By: Bob Chapman, The International Forecaster - 27 May, 2009
Americans may just be beginning to understand the US strategy regarding the credit crisis, but foreigners understand what they are up too. The US is creating a stealth default on its debt by continuing to issue massive amounts of money and credit and in the process devaluing the dollar. This, of course, is fraud, but other nations have defrauded the US for years by cheapening their currencies and subsidizing goods and services. Full Story
By: Gary Dorsch, Editor, Global Money Trends - 27 May, 2009
News that North Korea’s mercurial leader Kim Jong Il authorized the detonation of a nuclear bomb on May 25th, comparable to those that obliterated Hiroshima and Nagasaki, barely caused a ripple in the global financial markets. Japanese and South Korean stocks initially fell in a knee-jerk reaction, but soon recouped most of their losses, as traders shrugged off the nuclear fallout, - figuring it was just a harmless display of Kim Jong Il’s temper tantrums that erupts once every few years. Full Story
Gold means quite something to China's policy-makers, in short – new roles to pile upon the work gold already does, acting as pretty much all things to all men. Difference is, China's bureaucrats have the money, not to mention the world's strongest Gold Mine Output, to act on their view of what gold is and what it can do for its owners. Full Story
The excitement surrounding gold’s surge has only pushed silver further onto the back burner. (You don’t hear about any major hedge funds loading up on silver do you?) And that’s the point. Gold is hot and silver is – in a relative sense - not. Full Story
If units of length were mired in definitional chaos then the buildings and other contraptions humanity builds would be unsound, unstable and prone to chronic failure. But when it comes to units of monetary calculation the current worldwide state of definitional chaos, a floating illusion currency system, is taken for granted. Therefore, is it any surprise then that the current worldwide monetary system is unsound and unstable resulting in a chronically failing system? Full Story
By: Richard Daughty, The MOGAMBO GURU - 27 May, 2009
This preposterous P/E ratio is caused by the earnings of the companies in the S&P 500 index dropping to a miniscule $7.21 per share (down from the 2007 high of over $84 per share!) at the same time as there are so many complete morons willing to pay $882 a share! Hahaha! Morons! Full Story
The stock market further distanced itself from reality yesterday as the Dow tacked on another 200 points to the nearly 2000-point gain since early March. It’s hard to say what caused this latest outburst of irrational exuberance. Full Story
By: Frank Holmes, U.S. Global Investors Inc. - 26 May, 2009
I spent last week in Asia at the Corporate Access Forum in Singapore sponsored by CLSA Asia-Pacific Markets, which produces some of the most detailed and insightful investment research available. This was a great opportunity to meet with senior management of many of the leading corporations in Asia. This kind of high-level access is always valuable for investors, but especially so this year as China, India, South Korea and other countries in the region position themselves for recovery and the next growth burst. Full Story
There are several flawed assumptions buried in this poor guy's story. But for now let’s focus on the big one: the idea that stocks and bonds offer predictable long-term risks and returns. Financial planners base this comforting theory on the experience of the six decades since the end of World War II. To them, this constitutes the “normal” market. Full Story
We are now at COT levels in silver and gold more negative than anytime since last summer. (Including the amount thought added in gold since the cut-off Tuesday). Please don’t interpret this as a suggestion to sell long-term positions. That is not my intent, nor the purpose of this article. There are many positive factors, just not the COTs any longer. Silver is going much higher in the long run, for sure, regardless of what happens in the short term. Full Story
• Gold & Historical average - Gold should be trading above $2500 these days in order to clock new ‘real’ highs • DOW/GOLD ratio points to $5.000+ gold before 2015 • Gold & US public debt - Gold prices required to counter balance all US public debt held in foreign hands exceed the $10.000 mark Full Story
Despite humanity surviving and thriving for thousands of years using commodity currencies the fiat currency proponents have effectively marshaled the press and academia to equate those in favor of a commodity currency with those counting down to Armageddon. When looking back through the corridors of history one lesson is clear from humanity’s experience: at all times and in all circumstances gold and silver remained money. Full Story
After a 10 week rally traders and investors are starting to think twice about dumping money into stocks. Since March, we have seen the equities market rally 30% and now everyone is starting to think prices are a little top heavy. Full Story
History does not always repeat itself. Last autumn gold and silver stocks fell with the general stock market and the money went into the US dollar and treasuries. But it could be different this time. Full Story
By: Steven Saville, Speculative Investor - 26 May, 2009
The most commonly cited reason against returning to a gold standard is that there isn't enough gold in the world, but no one with a good understanding of money's role within an economy would argue against a gold standard on the basis of insufficient gold supply (for the uninitiated, Frank Shostak explains why in: How Much Money Should There Be?). There is, however, a good reason to argue against a gold standard. Full Story
Fundamentally the rally in the broad stockmarket from early in March is viewed as being the result of a combination of media hype, wishful thinking and short covering, but there may be more to it than that - it would appear that a sizeable proportion of the TARP (Troubled Asset Relief Program) funds not thus far deployed have been used to drive up the stockmarkets in order to create a positive environment for the banks to issue secondary shares and thus raise equity. Full Story
The dollar ($) is breaking down, and everybody is watching (including the Chinese), so it must be time to throw a deleveraging scare back into the market to affect a rally and support Treasuries. This is what the good conspiracy theorists are thinking right now. And you know what, not coincidentally this is actually the way things just might play out, looking like the markets are being managed right when it’s needed. Full Story
It seems as if Romer, Bernanke, et al. are proposing something new and revolutionary – inflate the money supply and devalue the currency. Genius! But there is a big problem. This solution is neither new nor revolutionary. Although it has never before had as fancy a euphemism as "quantitative easing," the practice of monetary devaluation is ancient and is standard government operating procedure. Unfortunately, it has also proven a disaster everywhere it has been implemented. Full Story
That the U.S. dollar has serious problems should, by now, be obvious to even economists working for the Obama Regime. We probably cannot say the same for those at the Federal Reserve, for they do not seem to consider such matters important. To those economists such matters are exogenous factors, and not worthy of inclusion in the discussion. Full Story
By: Richard Daughty, The Mogambo Guru - 26 May, 2009
I always get a real kick out of hearing that “the consumer is 70 percent of the economy,” mostly because it gives me a chance to heap ridicule and scorn on whoever said it, and I say that the consumer is 100 percent of the economy! Full Story
1st Hour: Headline news & Market Weatherman Forecast. Spotlight Stock Picks with big dividends. The International Forecaster and Host Chris Waltzek answer listeners' questions. 2nd Hour: -Dr. Marc Faber Full Story
By: Bill Bonner, The Daily Reckoning Crew - 25 May, 2009
“China stuck in dollar trap,” says the headline on the front page of the Financial Times. The FT says China is buying more U.S. bonds than ever. It must…according to the news report…because it has too many. Unless it supports the dollar, it risks a big collapse in the value of its foreign exchange holdings (mostly in dollars). Full Story
Ludwig von Mises was the greatest economist of the 20th century. The idiots walking around today calling themselves economists do not come up to his bootstraps. However, there are a few fine points connected with Austrian economics which have to be ironed out. Full Story
Here we go again. The forces of legitimate money versus the incumbent purveyors of the candy floss economy squared off at the $1,000 an ounce line over which yet another battle will be fought. Arrayed against either side are formidable new elements and tried and true old ones. As usual, the first volley has been catapulted over the walls of the hucksters by the defenders of the essential timeless truth of gold’s naturally stored value against the counterfeit paper currencies. Full Story
After the recent joy in the financial markets, it seems as though an intermediate trend reversal is upon us. Over the following weeks, the US Dollar, Japanese Yen and US Treasuries should rally and everything else is likely to decline. Full Story
By: Bob Chapman, The International Forecaster - 25 May, 2009
US Treasuries and gold have waged a silent fight for dominance in investors’ flight to safety over the past 22 months. Gold has been suppressed over that period by manipulation by the President’s “Working Group on Financial Markets,” via the US Treasury and the privately owned Federal Reserve. In spite of this ongoing intervention into what are supposed to be free markets gold has held its own. Full Story
U.S. and World equity markets are in multi-year downtrends. For now, the recent rally pushed up to precisely the lower end of our expected 930-945 resistance range for the S&P 500 index. Many individual stocks and indices also reached significant resistance, and we closed most of our long positions with large profits a bit early rather than risk holding on too long. Full Story
With gold closing at $957 and silver $14.70 an ounce last week there was cause for celebration among precious metal investors. Traders are pointing to overbought signals and cautioning that the market could pull back. But a peak price on Friday of $961 left gold just a tantalizing $39 below the $1,000 barrier. Full Story
Picture this… Saudi Arabia just announced it was shutting down half of its oil production. It also said it would keep the capacity shut down for at least a year – maybe longer. The move would wipe out about five percent of the world’s oil supply overnight. What do you expect to happen? Full Story
The week started out on a sour note but ended up okay. Gold seems now to be more comfortable on the up side. The sharp drop in the U.S. dollar isn’t hurting any. Full Story
The Dow was basically unchanged on the week gaining 0.1%. Same with the S&P which rose 0.47% and the Nasdaq was lifted 0.71%. The more important thing I noticed while looking at these indices weekly charts was that they all showed what’s called a Doji candle. While nothing is ever certain they foreshadow a change in direction. Full Story
Do the Rothschild Cabal players think that we are all idiots--to include Americans, Europeans, Chinese, Japanese, Russians and others? The Cabal’s work for the last couple of years suggests that indeed they do believe that we all are too stupid to oppose their plans to steal the rest of the wealth of the world and establish world government under their control. In their view, they will successfully continue to steal from us and rip us off as they have been doing for the last 250 years. Full Story
By: Richard Daughty, The Mogambo Guru - 25 May, 2009
I am proud to announce that I am the winner of the Mogambo Guru newsletter’s famous and much-anticipated “Name The Era Contest” – a task made easier by the fact that I just invented the contest and mine was the only entry. Full Story
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