By: Bill Bonner & The Daily Reckoning Crew - 30 March, 2007
-Unfortunate sumo wrestlers and manga artists...the final E... -Paper money can go to Hell...relative envy... -Seeing your neighbors taken down a notch...keep the tar bubbling...and more! Full Story
AS SPOT GOLD PRICES continue to trend higher, the race is on amongst the biggest gold-mining firms to re-stock their depleted reserves. Three of the larger gold mining companies have just said they're going to spend record sums trying to find new gold-in-the-ground. Picking the winning stocks – and selecting the junior miners about to receive fresh takeover bids – could pay handsomely. Full Story
Volatility for US Treasury Bonds has risen markedly in the last several months. A rise in such bond yields creates a favorable background for gold prices. A fall in such bond yields leads to strong competition for gold as safe haven, in a manner which actually supports the USDollar. Gold takes great advantage of rising bond yields. Cross currents point to both higher yields and lower yields, thus more volatility. Uncertainty abounds. Full Story
By: Peter Schiff, Euro Pacific Capital, Inc. - 30 March, 2007
As our phony economy begins to unravel before our eyes, it is amazing how few people can actually see it. The collective wisdom of stock market pundits, economists, and Federal Reserve officials gives the impression that everything is just fine. Although some acknowledge that housing is slowing down a bit, that there are isolated problems with subprime mortgages, and that inflation is not moderating as quickly as they hoped it would (let’s ignore surging oil prices), few can see any grave threats to continued economic expansion, or the bull market in stocks, bonds or real estate. Full Story
The Hard Money Partisans’ Conundrum (to use the term which Alan Greenspan so deceptively misused) is how to invest in Gold (and Silver) without suffering the serious financial injury caused by one of The Cartel’s periodic devastating Price Takedowns. Full Story
Last week I gave you the good news, that after we make our way through the current political and economic mess that we find ourselves in, we will emerge into a new golden age. This week, the bad news: Before we get there, we will likely have to first undergo at least a depression, and certainly a revolution before we arrive. Full Story
By: David N. Vaughn, Gold Letter, Inc. - 29 March, 2007
Uranium excites me because the world is becoming uncomfortable with coal and oil based power plants. Only nuclear power will provide a cleaner environment for our children. And when you consider that the oil supply is indeed finite what else is there to replace it except nuclear energy. Yes, you must also have some quality uranium stocks in your personal portfolio. Full Story
By: Kevin Kerr & The Daily Reckoning Crew - 29 March, 2007
-Out of windows in trailer parks and ghettos...standards on a slip and slide... -No time for brevity...Happy Birthday Col. Drake!... -A 45-minute safety measure...pseudo-conservatives to get their wish...and more! Full Story
It’s not 1998 anymore. In that year, Casey Research Chairman Doug Casey first recommended a then little-known commodity: uranium. The metal was trading in the single digits, with few except nuclear engineers and ivory tower academics paying any attention to it. Fast forward to 2007. Uranium prices have exploded nearly tenfold to $85/lb, and appear poised to go even higher as growing global demand for nuclear power taxes an already tight supply of yellowcake. In 1998 there were less than 10 publicly traded companies exploring for uranium. Today—by many estimates—there are hundreds. Full Story
By: Richard Benson, www.sfgroup.org - 29 March, 2007
There was a time when I actually looked forward to the government’s reports on productivity because it made me feel that I could share in the collective genius, good luck, and hard work of my fellow man. Then I woke up and realized that those very reports were being used to rob me! Here’s how I came to that conclusion. Full Story
This week we saw gold break through the 660 level and also saw the market head sharply lower as gold has remained strong. Even as I write this, gold is up about 5-6 dollars and the S&P is down about 12 points. [Update: gold is selling off and the stock market is rallying]. While there will likely still be moments where gold will track equities, gold is now clearly trading by its own merits. Oil is up, tensions with Iran are escalating, and the recent sell-off and consolidation that occurred in the gold market is setting up for a relatively quick move above the $700 level. Full Story
I’ve assumed all along that the current Fed chairman was secretly frightened, as well he should be, of the catastrophic risk of a debt deflation. He didn’t get that nickname “Helicopter Ben” for no good reason, you know. But maybe I’ve had the guy pegged wrong all along. His speech on Wednesday yet again ignored deflation’s grave risk to the U.S. and global economies, focusing instead on the dreaded possibility that – so to speak – the price of a dozen eggs might rise by 12 cents sometime in the near future. Full Story
Bill Gross at Pimco, the world's largest bond fund, forecasts "an ongoing bond bull market of still undefined proportions" thanks to the subprime collapse in the US. Gross thinks lower house prices will force the Fed to cut Dollar interest rates. His models put US rates back around 4%, down from the current 5.25%, if the Fed wants to stabilize national home prices. Could it really prove that straightforward? Cutting interest rates in half at the start of the '90s did nothing to stop London house prices falling by one-third. Slashing Japanese lending rates down to zero in 2001 left Tokyo real estate in freefall for a further five years. Full Story
-The stuff of fable...better than Buffett... -Über money shufflers...money and credit, bananas and lovers... -More secretive than the Freemasons...the fire alarm works...and more! Full Story
For several years there has been an ongoing effort in New Hampshire to re-establish sound money within the state. See for example the legislation proposed a few years ago enabling citizens to require the state to use gold or silver in transactions with them: www.goldmoneybill.org
This legislation has been bogged down in the Commerce Committee, so several sound money proponents within the New Hampshire House of Representatives have mounted an effort to block the logjam. Recently, they have introduced to the House a new bill that will appoint a commission to study the effects of fiat currency. Full Story
By: Bill Murphy, Le Metropole Cafe, Inc. - 28 March, 2007
The AM Fix came in at $665.15. That was it as far as any upwards excitement was concerned. Even though the euro firmed as the NY trading day went on, gold was held in check by The Gold Cartel, and then sent lower … especially, as is so often the case, after the PM Fix of $664 concluded. Repeat, repeat, repeat. While there is much to bring your way, there is little to talk about concerning gold’s boring uneventful day. Full Story
The price of uranium is jumping again! This week, the white-hot metal went from $91 to $95 a pound, according to TradeTech’s Nuclear Market Review. Remember, this metal was trading at just $75 per pound in January … $55 in October … and $45 last July. That’s a ferocious uptrend! Full Story
By: Richard Daughty, The MOGAMBO GURU - 28 March, 2007
As a guy who is always screaming about the Federal Reserve creating all that excess money and credit, and how that monetary inflation turns into price inflation as the money permeates and diffuses throughout the goods/services market, you would think that I would be happy that Total Fed Credit was actually down by $470 million last week, as looks like it is not growing as per its usual highly-inflationary wont of the last freaking decade. Full Story
Central banks are the engines of inflation. Whether it is the Federal Reserve in the US or the Bank of England in the UK, the sole purpose of these institutions is to inflate. At the same time, they understate the ongoing inflation problem and manage the public’s fears. Therefore, in order to protect your wealth in this era of constant inflation, it is absolutely essential that you properly define and understand inflation. In other words, you need to distinguish between “cause” and “effect”. Full Story
Short-term volatility should have little bearing on the long-term silver investors, save to allow low-risk buy points. The volatility at $13 or $14, dollar-wise, is more than it was at $4 or $5. The volatility will grow as prices increase further. There’s not much one can do about that, except to mentally prepare and adjust to it. Admittedly, the volatility is easier to adjust to for silver purchased in the $4 and $5 and $6 range, but no one can turn back the clock and I am convinced we will look back from the $20 and $30 levels and consider current prices to be incredibly low. Full Story
By: Chris Mayer & The Daily Reckoning Crew - 27 March, 2007
-Back off, Internet!…three of the Five Big E's… -The land of the rising economy…Detroit versus Chennai… -The largest pile of money since Midas…no sunshine on the Florida real estate…and more! Full Story
By: Axel Merk, Merk Hard Currency Fund - 27 March, 2007
The U.S. dollar collapsed to two-year lows against the euro as the Federal Reserve (Fed) takes its focus away from fighting inflation. The Fed has a dual mandate: price stability as well as full employment. With unemployment hovering near historic lows, why does the Fed neglect its mandate to fight inflation, thereby jeopardizing the dollar? Full Story
One of my most favored charts is that of the risk premium (interest rates) paid on paper money compared to gold. Gold, "inflation's thermometer", can throw off quite a fever when paper money premiums get out of whack with the risk of holding paper compared to supply. Trees to make paper, and ink supplies are pretty well assured, yet gold is not. Gold mined increases on long term average by about 1-2% per annum. US paper has been clipping along at an 11%+ growth. Full Story
By: Steven Saville, Speculative Investor - 27 March, 2007
The way we define the terms, there's a big difference between liquidity and money. This difference revolves around the fact that once money is borrowed into existence it remains in existence until/unless the debt is repaid*, whereas liquidity can disappear in an instant with no change in money supply. Full Story
By: The Mogambo Guru & The Daily Reckoning Crew - 26 March, 2007
-Don’t forget to breathe...incompetent share selection... -The rubes in the public marketplace...chasing alpha...a sliver of China pie... -Purging after a spending binge...an expensive burden...and more! Full Story
Puru Saxena. Warren Buffet - Part 2. (replay) Gold & Silver finish a 3 week winning streak. Fed. holds rates at 5.25% - stocks explode. 3 Spotlight Picks with 11, 13 & 15% dividends! Crude Oil soars on escalating tensions with Iran. Full Story
By: Roland Watson, The Silver Analyst - 26 March, 2007
A few weeks back I introduced readers to the Silver Leverage Indicator or SLI, a tool which enables silver (and gold) investors to time multi-year market tops in metal bull markets. The concept was based on an observed fact over forty years of back testing against 43 years of silver prices. That fact was that when silver began to outperform gold by a factor of 1.80 or more, the bull market in question was about to take a rest – sometimes for a long time. Full Story
First, here's the silver story in a nutshell. Silver is money, the only true money of the masses, the people. Gold is for kings. Silver is for change, and is the "workhorse" money. Silver has been consumed by industry. The world is running out of silver; industry consumes more than the mines produce. There's no room for any investment demand to enter the silver market without driving the price sky high. We've just begun to see a little bit of investment demand. Full Story
As usual, the market is over-thinking and over-analyzing the US Federal Reserve Open Market Committee Statement released Wednesday where the Fed conveyed its decision to keep the overnight interest rate steady at 5.25%. It appeared that the Fed’s hawkish tone towards inflation was easing and even though the Fed expects the economy to continue to expand at a moderate pace over coming quarters, one has to wonder how much of the change in the Fed’s tone is due to the current problems in the real estate sector. Full Story
This past week saw the dollar flail like the new kid in swimming class, accidentally in over his head. Remember him? Splish...splash...splosh....gurgle... He's up! He's down! Finally, the instructor takes pity and hauls him closer into the shallow end. For a time, despite significant rescue attempts, it seemed as though the dollar might actually be allowed to sail under 82.00. Then, just like a clock, on Friday the dollar straightened out and held the line....at 83.00. Precisely, too - not 82.99 and not 83.01. Precisely, exactly 83.00 was its close. What a coincidence! I must be psychotic. Or is that psychic? I keep confusing the two. Full Story
By: Bob Chapman, The International Forecaster - 25 March, 2007
We fear the other shoe is about to fall. We have had a dead cat bounce in the market and the Chinese stock market, which in part caused the recent correction and has recovered. That by the way has the Chinese government very perturbed. The players are exiting the yen carry trade and the Swiss franc carry trade. The Swiss have just raised interest rates and it looks like they will do so again soon as speculators are exiting that carry trade as well. Full Story
Robert Hopper, president of the New Bunker Hill Mining Co. since 1992 “when I was still a child,” and for more years than he would care to remember our closest friend and confidant, may finally be seeing light at the end of the tunnel that isn't the bright beam of an oncoming runaway freight. Tonight, as we type this, it is still difficult to comprehend: the mighty Bunker Hill, the industrial anchor of the Coeur d'Alene Mining District, the Silver Valley and of this tourism-obsessed burgh in which we dwell, may finally rise again to her full glory and splendour Full Story
There are three basic views of bubbles that are held by economists. The dominant view among modern mainstream economists, including the Chicago school and proponents of Supply-Side economics, is to deny the existence of bubbles and to declare that what is thought to be “bubbles” is really the result of “real” factors. The second view, which is espoused by Keynesians and by proponents of Behavioral Finance, is that bubbles exist because of psychological factors such as those captured by the phrase “irrational exuberance.” The third view is that of the Austrian school, which sees bubbles as consisting of real and psychological changes that are caused by the Fed. This view has the advantages of being able to identify the economic cause of bubbles and directs us to policy choices that would prevent future bubbles. Full Story
By: John Mauldin, Millenium Wave Advisors - 25 March, 2007
At the risk of being all subprime, all the time, this week we look at what I think are the real risks for the economy as a result of the subprime debacle. How can one side say it is a contained risk (and in one sense it is) and not a problem for the economy while another side says it will drag the US into a recession and thus be a drag on the world economy? The answers will give us a handle on the whole issue, as we look at how the problem developed. Full Story
Gold futures turned just as moribund after spiking briefly in the early going. The bulls got winded quickly, sending the April Comex contract into a sharp dive. But the kamikaze threat stalled a few dollars shy of a 652.50 threshold that would have created a bearish impulse leg on the hourly chart. Our short-term forecast for gold had been bullish, but there was nothing in Friday’s price action to reaffirm the positive signs we’d seen in the run-up since mid-March. However, technically speaking, bullion’s weakness did only minor damage to a picture that I would still rate as mildly promising. Full Story
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