By: Bill Bonner & The Daily Reckoning Crew - 31 October, 2008
-Consumers are guarding their wallets…look for unemployment to keep going up… -Globalization doing the moonwalk…what conditions await the next president… -The Bank of Bernanke will do what it promised to do…questions from dear readers…and more! Full Story
By: The Gold Report and Eric Lemieux - 31 October, 2008
In an exclusive interview with The Gold Report, Eric Lemieux, metals and mining analyst with Laurentian Bank Securities, describes gold’s inexplicable descent as a violation of market fundamentals. Eventually the worsening supply deficit will energize the precious metals sector and when it does, he believes the junior explorers will be well positioned to benefit. Full Story
By: Peter Schiff, Euro Pacific Capital, Inc. - 31 October, 2008
When inexplicable events perplexed our early forbears, village wise men concocted elaborate and colorful explanations to soothe the populace. Earthquakes, hailstorms, and solar eclipses were all ascribed to root causes that made sense to the villagers and increased the esteem of the story tellers. The recent, unexpected surge of the U.S. dollar has led many Wall Street witch doctors to conjure a series of logic-defying tales to give reason to what is surely the random scramble of a confused herd. Full Story
Gold has defied all logic and has dropped during the worst financial crisis the world has ever seen. Here’s why this happened and what gold bugs need to do now to profit in 2009. Full Story
By: Scott Wright, Zeal Intelligence LLC - 31 October, 2008
The face of today’s mainstream financial media has gone from meaningful analysis and commentary to constant tub-thumping between undisciplined Main Streeters, overambitious Wall Streeters, and ignorant bureaucrats. It has turned into a showcase of the blame game, everyone looking for a scapegoat to shoulder the iniquities of the masses. Full Story
Get the Real Data. As many Investors suspect, Crucial, Official Government and Agency Economic and Financial Data are of questionable validity. Consider, for example, Official Figures for Consumer Price Inflation (CPI) generated by the U.S. Bureau of Labor Statistics (BLS). The most recent data from the BLS indicates that the CPI is growing at an annual rate of just over 5%. Full Story
By: Julian D. W. Phillips, Gold/Silver Forecaster - Global Watch - 31 October, 2008
The events of the last two weeks have presented enormous ‘moral’ hazards for governments and the banking industry. When we call them moral hazards we are not talking about biblical morality, but the principles behind government [Democracy] and banking [Profit and Prudence]. Full Story
Valuable stocks and investments are on sale! Note that we did not say all stocks are on sale but “valuable” stocks and investments are on sale. In fact they are available for potentially ‘fire sale,’ ‘everything must go,’ rare ‘clearance’ kind of sale prices. Who’s getting out of the stock business by clearing out their inventory of stocks? Full Story
By: David Morgan, Silver Investor - 31 October, 2008
This headline should grab anyone’s attention, especially those interested in the silver market. Before going forward, let me explain that fully 70% of silver is produced as a result of mining other metals, mostly base metals. Copper mining, for example, is responsible for 28% of the silver mined in 2007. Lead/Zinc mining yielded 32% of the silver mined in 2007. Finally, gold mining brought about 10% of the silver mined, again in 2007. All data is from GFMS World Silver Survey 2008, page 31. Full Story
Look what's happened to the premium for 90 percent silver coins at one coin dealer - from about a dollar under spot to three dollars over spot in just the last few months. And these are their buy prices - their sell prices are a dollar or two an ounce higher. Full Story
By: Richard Daughty, The MOGAMBO GURU - 31 October, 2008
But now these investors get (probably at best!) their money back; and probably only then after years of legal wrangling where the lawyers end up with most of the money anyway! Hahahaha! Welcome to the full faith and credit of American markets! Full Story
By: Rick Ackerman, Rick's Picks - 31 October, 2008
With the Dow up another 190 points yesterday, investors are not exactly in capitulation mode. Far from it. So let us take a moment, amidst a veritable August ‘29 of complacency, to spell it out for Wall Street and the punditry: Get REAL, you blithering imbeciles! The bloody tide is about to be unleashed – so stop with the bullish hubris already, okay!? Full Story
By: Bill Bonner & The Daily Reckoning Crew - 30 October, 2008
-The Fed cut rates - but how low will they go?…the dollar isn't looking so good… -The cutbacks are just beginning…everyone is in line for handouts… -Cash may be safe now - but not for long…an interview with a former Treasury Secretary…and more! Full Story
The COMEX gold & silver markets are each hurtling down a dangerous path toward default. The artificial paper price has created enormous physical demand, and hampered supply production, if not delivery. The gap between the JPMorgan-led corrupted phony paper price and the legitimate physical price in actual trading markets has grown sharply, enough to force a breakdown like in any distorted market. Full Story
By: John Browne, Senior Market Strategist, Euro Pacific Capital - 30 October, 2008
For a moment at least, attention is focused increasingly on economic recession and diverted from the risk of financial panic. Temporarily, this is reducing the upward pressure on the price of gold. At the same time, recessionary influences are pressing the gold price down, like other more conventional commodities. Therefore, gold continues to trend downwards, possibly even towards $600 a fine once. Full Story
“Financing expenditure” is a myth. All actions in the Present have effects in the Present. If a nation decides to live beyond its means, the result is not delayed into the future by “financing”. That nation becomes poorer in the here and now, as it spends and spends and spends. “Financing” is supposed to obligate future generations to repair the damage, to restore the vanished wealth. It is highly doubtful that they will be willing or able to do so. Full Story
At almost any time of day during the normal business week, gold bullion is being actively traded somewhere on the globe. Many observers of the international bullion trade have commented that when heavy selling pressure appears, more often than not it seems to happen during the hours when the New York markets are open for business. Full Story
In this article, I will make a case that gold’s value is significantly less than its current market price of $735. Not being omniscient, I will not consider every factor that now or in the future may impact upon gold’s price. But I will examine a few factors that, by themselves, suggest that gold is overvalued. Full Story
By: Julian D. W. Phillips, Gold/Silver Forecaster - Global Watch - 30 October, 2008
The short response to such a question is that they aren’t. They are buying gold in Rupees, whose price has been stable as the gold price fell in the U.S. $. Because the Rupee is falling, gold has appeared to hold steady in the Rupee. Because Indians see the Rupee as a problem there is even more incentive to buy gold for the security of their daughters as they enter marriage. But in this essay we also look at other currencies where gold has done its job of holding up when local equities have fallen. Full Story
By: Bob Chapman, The International Forecaster - 30 October, 2008
Down go consumer confidence and real estate values to all-time lows, but, nevertheless, up goes the Dow undaunted, claiming its second largest point gain ever as the counterintuitive insider trading beat goes on and on and on, ad nauseam. Insiders get wealthy, and the non-insiders chasing them get annihilated. This has been the story on Wall Street for over a century. Full Story
By: David N. Vaughn, Gold Letter, Inc. - 30 October, 2008
Wow! Are you excited? The entire world is going through a generational and even a once in a hundred year cyclical change right before our eyes and we are witness to these historical events. All of these gold and financial sites for over 10 years have been predicting that this financial meltdown was coming. Full Story
By: John Pugsley and The Gold Report - 30 October, 2008
Ongoing education, excellent connections and a wealth of experience combine to give John Pugsley insights that are both compelling and provocative. Using analogies as diverse as dribbling basketballs and stocking up on tuna when it’s a bargain in the supermarket, he talks about the importance of patience, a focus on fundamentals and the criteria he’s using to identify the next wave of winners. Full Story
By: Richard Daughty, The Mogambo Guru - 30 October, 2008
More than one-seventh of all the silver bullion 'thought to exist' in the whole world was suddenly bought up in less than a year, and yet the price of silver has been pounded down to less than 10 bucks an ounce? No wonder I am so bullish on silver! Full Story
By: Rick Ackerman, Rick's Picks - 30 October, 2008
Lunatic Power goosed the Dow Industrials a third of the way to a 9955 target we’d projected in Wednesday’s forecasts before reality bludgeoned the revelers comatose. The blitzkrieg-style, 470-point selloff that followed yesterday’s rate cut by the Fed left the Indoos bloodied but still standing, down just 70 points. Full Story
By: Bill Bonner & The Daily Reckoning Crew - 29 October, 2008
-A big jump in the Dow - but don't get too excited…is it the end of the road for U.S. automakers? -Your second chance to escape the bear market…no one ever said Mr. Market played fair… -An exclusive chance to own I.O.U.S.A….the silver tsunami…and more! Full Story
By: Julian D. W. Phillips, Gold/Silver Forecaster - Global Watch - 29 October, 2008
Gold stocks have under-performed on the way up for the gold price and have been slaughtered on the way down. Is the day of the gold equity over or is there a way to select a gold stock and profit in such a market? Full Story
The spot price of gold as quoted by NYMEX is no longer an accurate representation of the real price at which physical gold bullion is being traded. It is, in fact, a lie. This is apparent by the great disparity between the availability of gold and the virtual shutting down of all sales operations related to delivery of anything denominated in one ounce units. Buffalos, Krugerrands, Eagles….you name it, you can’t buy ‘em. Full Story
What folks need to understand is that the global OTC derivatives market – measured in tens or hundreds of Trillions - is virtually all U.S. Dollar denominated. Its SYSTEMIC failure – which is now occurring – requires U.S. Dollar balances to clear [settle] the trades [bets]. This has created the paradoxical global demand for U.S. Dollars – the currency of a country that is fundamentally bankrupt. Full Story
Day by day, the dreams of hundreds of millions of people around the world are being smashed. It is a terrible thing to see from the sidelines. It is far worse to be a participant. The dreams of easy retirement are disappearing. So are the dreams of automatic wealth. Americans, more than any other people, bought into the dream of automatic wealth. "Just buy a larger home with 5% down and wait. You will get rich." The dream of leveraged money trapped homeowners. It also trapped hedge fund investors. Full Story
By: Richard Daughty, The MOGAMBO GURU - 29 October, 2008
No wonder all our Treasury secretaries always said that 'a strong dollar is in the interests of America', and now we see that, similarly, a strong yuan is in the interests of China, as it makes oil, food and all imports cheaper! Full Story
By: Rick Ackerman, Rick's Picks - 29 October, 2008
In after-hours trading Tuesday night, December Gold was stealing up on a bullish tripwire at 761.60 that is shown in the chart. A print at that price would make further upside to at least 776.40 a good bet. However, when we identified this rally target two days ago in a trade recommendation, we said it would take a little more than that - specifically, a bullish thrust exceeding 782.20 - to rout sellers for the rest of the week. Full Story
By: Bill Bonner & The Daily Reckoning Crew - 28 October, 2008
-The masks are coming off, and what is underneath is not pretty…investors have lost $10 trillion worldwide in just this month… -People are losing faith in housing and stocks, but they still believe in progress…consumer confidence hits an all-time low in October… -Why not blame capitalism?…will Argentina go belly-up this year?…and more thoughts, advice and insights! Full Story
They filed into the docket, faces bright and smiley despite the shackles around their arms. The leader of the gang, Mr. Gold, was pushed forward into the defendant’s chair. The rest, including Ms. Silver as well as the members of the resource share clan, Biggie Goldshares, Junior Goldshares and Ms. Silvershares, were manhandled onto the hard bench just behind. Full Story
You see, like so much else, the market action just described only sets Gold in terms of the greenback (against which it has still tripled since July 1999). Versus pretty much every other world currency, in contrast, gold in fact enjoyed a banner month this October – delivering gut-wrenching volatility plus new record highs – starting right here in London, home to the world's $60 billion-a-day trade in wholesale Gold Bullion Bars (a.k.a. the "spot market"). Full Story
We are nearing the first crescendo of the unfolding Crack-up Boom. As outlined in the 2008 outlook entitled “Wolf Wave, aka Thrill ride” the markets are set to experience an emotional and financial EXPLOSION. A coming explosion outlined many times since the April 2007 Tedbits “Fingers of Instability” series first identified the WOLFE wave. Those predictions have since materialized in a grander manner then I ever could have anticipated. Full Story
By: Steven Saville, Speculative Investor - 28 October, 2008
Despite what some Federal Reserve researchers happen to believe, inflation expectations have plunged. Moreover, the plunge in inflation expectations translates into a surge in real interest rates because the real interest rate is the nominal interest rate minus the expected rate of currency depreciation. This increase in real interest rates adds to the upward pressure on the US$ and the downward pressure on asset prices. There's actually a self-reinforcing trend at work in that falling prices lead to lower inflation expectations, which lead to higher real interest rates, which add to the downward pressure on asset prices, and so on. Full Story
As the financial crisis deepens and widens, a horde of supplicants is converging on the Treasury. Each of them has a story to tell, and although the details differ from one upscale beggar to the next, each one's tale of woe shares a common theme: help me or systemic risk will bring down the whole economy, with painful losses and injuries to one and all. Full Story
By: John Mauldin, Millennium Wave Advisors - 28 October, 2008
Warren Buffett says buy. Jeremy Grantham says it will get worse. Both are celebrated value investors. Who is right? It all depends upon your view of the third derivative of investing. Today we look at valuations in the stock market. This is the second part of a speech I have given in the past few weeks in California and Stockholm. Full Story
THE PRICE OF GOLD BULLION continued to rally on Tuesday, rising to a four-session high above $752 per ounce as world stock markets also bounced after falling 12 times in 19 days in October. Government bonds fell fast as money moved back into equities, pushing the yield offered by 10-year US Treasuries ten basis-points higher to 3.79%. Full Story
The famous Dubai gold souk is running very low on gold during the Indian Festival of Lights, Diwali as investors shun local the local stock market to buy gold at low prices. The sudden halt to the local real estate boom has also left investors short of options. Full Story
By: Richard Daughty, The MOGAMBO GURU - 28 October, 2008
But whether they care or not, the fact is that last week the Federal Reserve boosted Total Fed Credit, namely the amount of fresh credit that appears on the books of the banks, by another staggering $245.4 billion! In One Freaking Week (OFW)! Full Story
By: Rick Ackerman, Rick's Picks - 28 October, 2008
We assume that each hysterical rally is just another doomed short squeeze, since it’s hard to imagine anyone, even Larry Kudlow, buying stocks at these levels because they represent good value. Yesterday’s wilding spree racked up 630 Dow points by mid-morning, measured from the low recorded Sunday night by the electronic futures contract. Full Story
By: Bill Bonner & The Daily Reckoning Crew - 27 October, 2008
-Another flag on The Daily Reckoning mast…Asian stocks take it on the chin… -Our prediction: Dow 5,000…the world's worst headaches will be felt by America's baby boomers… -The kind of crisis that goes downhill…why it's better to cut yourself off from the financial media (except for us, of course)…and more! Full Story
In a moment, I’d like to describe a new development in silver that should prove quite bullish to the price, but first I’d like to review some continuing facts that are significant in their own right. It would appear that the confluence of many factors point to sharply higher silver prices dead ahead. Yes, I know the price has recently collapsed. Ironically, it is that very price smash that is the basis for the coming price launch higher. Full Story
Gold outperforms during times of economic uncertainty, and as you can see in the long-term monthly plot below, it’s been a rocket against silver over the past few months, and is poised for further fractal like gains. Again, in terms of what this would signal, think in terms of further fractal like losses in stocks, where at this point the best conceptual framework to characterize events likely lies within understanding globalization, fiat currency regimes, and present day bureaucracy’s are collapsing in a Grand Super Cycle Degree event, at a minimum. Full Story
How would you bankrupt yourself? You’d want to get yourself into a position where you could not pay off your debts. You’d run up big credit card bills. You’d borrow heavily. You’d mortgage and re-mortgage your house. You’d splurge on your spending. The money would go – to clothes, restaurants, and hairdressers. Full Story
By: Bob Chapman, The International Forecaster - 27 October, 2008
Never underestimate the diabolical ingenuity of the Illuminati. They have been perfecting their techniques for a millennium. They plan decades in advance, and conduct test runs to see how people and markets will react to different types of stresses and manipulations. They see to it that any legislation necessary to achieve their evil objectives is adopted far in advance of the implementation of their criminal schemes to inflict constant and continual fraud on the sucker-dupe sheople. Full Story
By: Jeff Clark and Dr. Sergey V. Kurzin - 27 October, 2008
A Russian-born nuclear power research engineer, Dr. Kurzin has played a key role in acquiring and developing several important mining assets in the former Soviet Union. As you’ll read, he’s a man of impeccable character and hard work. And his fascinating story of how he corresponded with his wife in England is stuff from spy novels. With his beautiful Russian accent and a fierce resolve, we think you’ll appreciate why Sergey belongs with the elite of the Explorers’ League. Full Story
The severity and the speed of the crash which occurred in the precious metals stocks caught us and practically everyone by complete surprise. The meltdown surpassed everybody’s expectations and has no historical precedents. However, when looking at the past 80-year history, there are a number of bear markets that carry some similar characteristics to the crash of 2008. Full Story
There is a good chance that this is the play that people wait a lifetime for, but after the fact will bemoan their inaction due to fear. But the public and its policy leaders who all kept their heads buried deep in the sand during the cyclical bull market have now done the predictable 180, worshipping fear much as they worshipped greed just a short while ago in what now seems like a different life. Mania is mania and it works both ways. Smart people will fade mania. Full Story
A viewer was good enough to write and ask me about my claim that there either has to be currency appreciation or depreciation (deflation or inflation in today’s lingo). Can’t we have something like an inflationary depression? That indeed was what several of the people he regards as authorities are predicting. That is a good question because it leads to some very definite conclusions about whether to buy or to sell here in late October 2008. Full Story
Shocked – well, we are shocked that Mr Greenspan is shocked. The former Fed chairman who was revered as a god by Wall Street now has the chutzpah to say he is shocked by what has taken place. He went on to admit that he was “partially” wrong to resist regulation of some securities. Some securities? Which ones? Most securities except for the stock market are not regulated. Except for the Sarbanes-Oxley Act of 2002, most securities regulation in the USA dates back to the 1930s. Full Story
The action in gold on Thursday and especially on Friday was bullish, as well it might be after a near vertical drop of nearly $200 in just 2 weeks. In the article At what point does gold become a full blown bearmarket? posted on the site on 23rd it was made clear that the strong support in the $700 area needed to hold, otherwise gold would join copper and silver and many other commodities in being a bearmarket, at least as far as its paper price is concerned. Full Story
It’s been fun over the past few years watching EuroPacfic Capital’s Peter Schiff educate mainstream (i.e. clueless) economists and money managers on CNBC and elsewhere. My personal favorite is this one from 2006, in which Schiff gets everything right and a pathetic little economist named Arthur Laffer makes a complete fool of himself. Full Story
What then might precipitate a sudden move in the reverse direction? I think the most obvious candidate has to be a rally in equities. This is not as stupid as it sounds. All big sell-offs are followed by a relief rally - which is just some people who sold out of stocks deciding to buy them back at the new, lower prices. Full Story
It wasn’t the Fed’s loose money policy earlier this decade that resulted in the late financial contagion. Rather it was the Fed’s excessively tight money policy of 2004 and onward that was the catalyst for today’s trouble. Full Story
This series of articles on the Goldsmiths brings up the question which many or indeed perhaps all readers so far may be asking—how to invest in and play the gold and silver markets in view of the fact that they are so heavily manipulated and controlled by the super rich goldsmiths and bankers who run the financial markets. Full Story
By: Rick Ackerman, Rick's Picks - 27 October, 2008
The absurd spectacle of a short-squeeze driving a worthless dollar sharply higher is bound to make life difficult for gold bugs in the weeks and months ahead. If you are among those wondering what to do, you need first to understand that the dollar’s surreal strength is not a flight to quality, as nearly all observers still seem to believe; rather, it is due to the fact that those who owe dollars are unable to roll their loans and must settle up immediately in cash. Full Story
1st Hour: Headline news & Market Weatherman Forecast. Spotlight Stock Picks with big dividends. The International Forecaster and Host Chris Waltzek answer listener questions. 2nd Hour: -Harry S. Dent Jr. Full Story
By: Jon Nadler and The Gold Report - 26 October, 2008
In this second installment of The Gold Report's exclusive interview with Kitco senior investment products analyst Jon Nadler, he not only shares a few insights about the so-called “poor man’s gold” (silver) but offers specific advice about how much of the real McCoy our portfolios should hold. He also sheds some light on the differences among EFTs, gold funds and pool accounts. Full Story
An occasional reader of just a few Goldsmiths articles might be led to believe that there are contradictory positions in this Goldsmiths series on a deflationary fall/recession versus a hyperinflationary bust. To put things in perspective and prove no inconsistencies, this presentation will clarify the two positions and show that there are no contradictions in the two ideas as presented in the Goldsmiths. Full Story
By: Richard Daughty, The Mogambo Guru - 26 October, 2008
And if you are not horrified at the prospect of continually inflating the money supply, then I know that you either work for the Federal Reserve, teach economics at Princeton or are just plain brain-damaged… Full Story
The week will see a heavy slate of earnings announcements that will feature a large quantity of releases from financial firms. Monday will see announcements from American Express and Caterpillar. The following day will feature, United Healthcare, US Bancorp and M&T Bancorp. Full Story
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