Today is May Day, the international day of workers celebrated by most communist and deeply socialist nations. To be sure, Obama should come out of the closet with admission of not only his Muslim roots but his Marxist roots. By now, he could have easily promoted the holiday and had it moved from its longstanding September location to the May month. In honor of the holiday, the Jackass will outline the profound damage to the USEconomy, its recent destructive pressures, and the newest dynamics which assure a systemic breakdown. The outcome is being seen in widespread job loss, business shutdowns, a new war waged each year, and civil disorder prompted by a strange phenomenon hardly ever discussed. Full Story
Let’s talk briefly about China. China is thought to be the great growth story of the post-2008 era. China’s economy not only bottomed before the developed world, but by most accounts, China was thought to be the engine that pulled the world out of recession, thanks to its near-clocklike hitting of 7%+ in GDP growth per year. Full Story
As we penn this article Gold is trading below $1180/oz and set to close at its lowest level in six weeks. Gold is less than 2% from its weekly low of $1158. It is fairly close to another technical breakdown. However, the gold mining stocks appear to be bucking the trend and showing increasing relative strength. It appears likely that the stocks have bottomed relative to the metal and maybe so in nominal terms. Full Story
Recent below-expectation (except by Deepcaster and a few others) U.S. Retail Sales, Housing Starts, Business Equipment Sales, Jobs Reports and now GDP, among other indicators, show that the U.S. Economy is not recovering (as Deepcaster and a few others have been documenting for Months), despite the Happy Talk in the Main Stream Media. Full Story
Between 1997-2011, the DOW moved sideways respectively consolidated within the limiting legs of the (red) triangle. At the end of the triangle, approximately 3 / 4 before the triangle`s apex, the price typically starts a so-called breakout, whereas classically a so-called pullback to the former resistance follows in order to test and potentially confirm it as new support (in order for a new and sustainable upward trend to start thereafter). Full Story
By: Jeff Clark, Senior Precious Metals Analyst - 1 May, 2015
Our curiosity was piqued as we reviewed the year-end reports of the primary gold producers. When we tallied the results, even we were surprised. The upshot of what you’ll see is that at its current pace, new supply will be unable to keep up with demand. It may look like a story that doesn’t have much immediate impact, but this emerging new reality is staring us right in the face. Full Story
Based on the 30 year ratios to the S&P 500 index, gold, and crude oil, silver is currently inexpensive. The High-Frequency-Traders can push prices lower or higher quite easily so this analysis says little about what silver prices will do next week or next month, but it clearly says that in the long-term silver prices are low and likely to rise significantly in the next few years. Full Story
We’ll probably know before the opening bell whether Thursday’s nasty, $34 selloff was merely gratuitous. Rumor had it that some big sellers clobbered gold yesterday because they felt like it, but we’ll reserve judgment until it has been confirmed by the Times (take your pick which Times). Notice, however, that the 1253.50 rally target we’ve been using this week is still valid, albeit barely, since the low of yesterday’s hit-job left the point ‘C’ low of the rally pattern intact. My bias was mildly bearish shortly before midnight, but I’m not going to lay any odds. Full Story
By: Chris Powell, Secretary/Treasurer, GATA - 30 April, 2015
Will the LBMA and the central banks that join it even announce the new memberships? Would such announcement, confirming the surreptitious involvement in the gold market by central banks, be reported by mainstream financial news organizations? Would any gold market analyst, financial journalist, or gold mining company executive wonder, aloud or just to himself, what central banks are doing in the gold market and what objectives they are pursuing? Would any of them try actually putting a question about it to a central bank? Full Story
My plan for today was to write a very basic piece hitched to the one written yesterday "the money has to go somewhere". The plan was to point out that gold (and silver) will be the final destination for monies dislodged from crashing markets all over the world. Along came the Q1 figures for U.S. GDP, a disaster on many levels. So switching gears, let's look at the first quarter, how quickly the economy has deteriorated and what it means in the future and in relation to the past. I do plan to tie this together at the end because no matter how you look at it, gold is a magnet for what will be shaken loose. Full Story
Financial markets are becoming aware that the US economy is stalling, so investors increasingly take the view that with demand likely to stagnate or even fall, prices for goods and services will soften. This is already threatening to be the situation in a number of other advanced nations, with negative interest rates to combat it becoming commonplace. For this reason, gold and silver priced in dollars are expected by many traders to drift lower. Full Story
Money velocity in its simplest terms is a measurement of how fast money is moving through the economy. Another way of looking it is that money velocity is simply a comparison between GDP and money supply. If money velocity is falling then that tells us money supply is increasing at a faster rate than GDP. M1 is notes and coins in circulation, plus traveler’s cheques, demand deposits and other chequable accounts. A rising velocity is a sign that the economy is relatively healthy whereas a falling velocity might be an indication of a slowing economy or an underperforming economy. Full Story
The dollar is always losing value. To measure the decline, people turn to the Consumer Price Index (CPI), or various alternative measures such as Shadow Stats or Billion Prices Project. They measure a basket of goods, and we can see how it changes every year. However, companies are constantly cutting costs. If we see nominal—i.e. dollar—prices rising, it’s despite this relentless increase in efficiency. Full Story
This week's trading sessions in the US equities continue to show evidence of weakness, as the majority of the US equity indices stalled at resistance levels. A couple of days ago, the S&P 500 opened at intraday record highs but closed with an outside reversal of the previous price range, which could be a cause for concern. The bearish reversal was even more pronounced in the Russell 2000 small caps index, which has been struggling to gain any traction since it broke out to new highs in late February. Full Story
The Fed no longer keeps promises of being “patient”. The March’s FOMC statement was, however, interpreted as dovish, which caused the plunge in the U.S. dollar. Nevertheless, the renewed expectations of the interest rate hike (caused by some Fed officials’ hawkish statements or stronger economic data in the second quarter due to low base in the first quarter) may cause the U.S. dollar to rally further, which could harm the emerging markets and unwind the carry trade. It is then high time we explain the consequences of the possible next bull in the greenback for the global economy. Full Story
In January 2014, I posted what has unexpectedly become one of my most widely-read articles, “What Does It Take to Be in the Top 1 Percent? Not as Much as You Think.” Seeing as it’s now over a year later and most of us have already either filed our federal income taxes or applied for an extension, I thought it would make sense to follow up on last year’s post and tackle a commonly-held misconception about how much the top 1 percent really contributes. Full Story
The rate of home ownership and the labor participation rate peaked about 10-15 years ago and it's been downhill since. Do you have any wonder after looking at this chart why if it "feels" different now? Yes the stock market is up, but could that be a function of all the funny money pumped into the system since 2008? Pumping money into the system was in response to the "peaking" of America, the money (inflation) had to go somewhere, we see the "somewhere" currently as the equity markets. Full Story
We survived other resets, such as the depression of the 1930s, WWII, 1971 separation of the dollar from gold, 1970s inflation, year 2000 stock crashes, and the 2008 financial crash. The world will survive the next reset. Excess debt, fiat currencies, and “printing currency” are the center of global economic problems. Those problems will not be resolved with more debt and “printing currency.” Full Story
Recently, France decided to crack down on those people who make cash payments and withdrawals and who hold small bank accounts. The reason given was, not surprisingly, to “fight terrorism,” the handy catchall justification for any new restriction governments wish to impose on their citizens. French Finance Minister Michel Sapin stated at the time, “[T]errorism feeds on fraud, money laundering, and petty trafficking.” Full Story
The Federal Reserve bank and its owners, the largest banks on Wall Street, want badly to be able to charge you interest for the privilege of depositing your funds. The problem is getting you to stand for it. Depositors already complain vigorously about zero percent returns on checking and savings accounts. If they must start actually paying the bank to hold funds on deposit, many will opt to simply withdraw the cash and stuff it under their mattress or into a safe deposit box. That simply won’t do. Full Story
The irony about the current gold market is that gold is actually slightly higher than it was two years ago in June 2013 when it made a crash low. But many gold market pundits and the financial media have maintained their bearishness on gold for two years predicting another crash in gold. It simply hasn't come to pass. The reason they've maintained this popular bearish view is the gold market has been devoid of hope for years now in the depression phase. This is where people give up hope at the bottom of a market. Full Story
A $20 rally here, a $10 rally there, and pretty soon we’re talking about the dawning of a bull market! It’s too early to tell, of course, but we should guard against the tendency to be dismissive of every positive event in the bullion asset world. In this case, it’s a two-day rally with so-far shallow corrections and a shot at a third straight day of upwardliness. My minimum objective for the very near-term is p2=1219.50 (see inset), but anything above it would imply more strength to at least 1226.40. Full Story
I would like to start this weekend update by pointing out something that probably eluded many market participants. With the metals pulling back this past week as we expected, I am sure many would have expected that the dollar to have rallied. Yet, if you look at the dollar chart, it has also dropped below its lows of last week. Yes, folks, both the dollar and the metals dropped this past week. Full Story
Given its ancient history as money and jewelry, its religious connotations, the fact that it is both beautiful and laborious to dig out of the ground, process and store, gold is an asset that promotes strong and often emotional views and so it is the perfect central figure for this thought exercise. Full Story
By: John Mauldin and Woody Brock, Ph.D. - 28 April, 2015
The law of unintended consequences is becoming ever more prominent in the economic sphere, as the world becomes exponentially more complex with every passing year. Just as a network grows in complexity and value as the number of connections in that network grows, the global economy becomes more complex, interesting, and hard to manage as the number of individuals, businesses, governmental bodies, and other institutions swells, all of them interconnected by contracts and security instruments, as well as by financial and information flows. Full Story
Several people have asked me “why doesn’t a cartel form to take on the suppression schemes on the COMEX and LBMA?”. This is a very good question. One I believe can be answered with some common sense, a little bit of thought and a very broad view. For a little foundation work let’s look at COMEX silver inventories. They claim to have 63 million ounces available for delivery, adding in the eligible category we see a total of 175 million ounces. At current prices, it would only require $1 billion to claim the entire registered category and only $2.8 billion to wipe out all inventory. Full Story
The next Fed meeting begins today. I don’t expect anything dramatic from Janet herself, but Fed governors and presidents like to voice their opinions in the mainstream media as the meeting takes place. That can rattle the gold market a bit, and it may be one of those statements that creates the right shoulder on the Barrick chart. Aggressive investors may wish to consider purchasing Barrick call options on any price weakness that occurs this week. Full Story
ZIRP is (also) crushing savers! It is savings which forms investment for the future. 62% of employment comes from small businesses where formation must be incented. That needs capital from savings. This along with increasing regulation is not only killing the consumer but the incentive to start a small business which is the key to the creation of jobs, which is key to the creation of income which is then key to savings and growth in the economy. It has all been killed by these policies. Full Story
Every once in a while it is good to go back to basics. We have looked at the topic of whether gold even matters several times in the past. Charles Hugh Smith undertook the exercise of "re hypothecation" process last week and can be read here. He ends this article with a common sense question that asks "if gold is such a useless relic then why don't they just charge the public for tours to see the gold in Ft. Knox? What's the danger?". Full Story
The old game is Rock-Paper-Scissors in which rock breaks (wins against) scissors, scissors cuts (wins against) paper, paper covers (wins against) rock. The game is balanced with wins, losses, and draws. Full Story
Gold jewelers are betting the Indian Akshaya Tritiya festival will buoy demand for bullion. Jewelers expect the festival could drive up sales by as much as 30 percent over last year’s level. Already, gold imports are estimated to have hit 125 tons in March, compared with just 55 tons in February and twice the amount imported a year earlier, suggesting jewelers have stocked up well. The holy day of Akshaya Tritiya, which fell on April 21, is considered by Hindus as an auspicious day to purchase gold. It is the nation’s second biggest bullion-buying festival. Full Story
According to a Reuters report from 24 April, the central bank of El Salvador, Banco Central de Reserva de El Salvador (BCR), sold approximately 80% of its gold reserves during March 2015. This sale comprised 5.412 tons of gold and raised $206 million for the Bank. Reuters initiated its story based on updates to the International Monetary Fund’s gold reserve data, which this month was updated on 24 April. Each month, the IMF updates its International Financial Statistics dataset with economic data (on a one to two month lag) including country gold reserve data reported to it by member countries. Full Story
Today I would like to focus in on the bigger picture by looking at some long term charts for the precious metal complex. I know most enjoy the action by looking at the minute charts but they’re more likely to morph into something different as time goes on. On the other hand looking at the long term charts changes come much more slowly and they’re less likely to morph into something else. A short term bottom on a minute chart vs a long term bottom on a monthly chart have two completely different meanings. Full Story
It is truly hard to believe that I have been living in the Republic of Panama for over 4 years. It just seems like yesterday that I moved here leaving my former life behind. Panama Expat Living seems to be a perpetual vacation. Is it tough sometimes? Absolutely, but it is far better than the life that I left behind! Full Story
Relative to the low at 1142.40 recorded March 17, June Gold remains in a bullish trend that it has been correcting for the last three weeks. What validates this interpretation is that early April’s 1224.50 high slightly exceeded a prior peak at 1223.70 recorded on March 2 (see inset). That makes the entire rally picture since March 17 low bullishly impulsive, although recent weakness has created a bearish impulse leg of lesser degree. This is ‘dueling’ impulse legs, and for the moment, the bullish one still holds sway. Full Story
Bill Murphy from GATA.org and the host discuss the recent trend of higher gold imports into China and India. Gold exports from Switzerland doubled while exports from London increased six fold. Similar to Pompeii ahead of the Mt. Vesuvius eruption, many investors today are choosing to ignore the warning signs. Gerald Celente returns to the show for a discussion on the latest edition of the Trends Journal. Our guest notes that the foreclosure rate is up 20% (Dynamic foreclosure chart) in the past 12 months. Even against the backdrop of the lowest interest rates in global history, over 3,000 years of economic history, the financial life support is merely sustaining the economic patient. Full Story
Traders should be in cash this week and just waiting patiently for the correction down into the cycle low (selling short is out of the question as the Fed could abort or stretch the cycle low). Assuming the market is allowed to correct naturally over the next 2 weeks there will be a buying opportunity at that cycle bottom for another run back to, or marginally above 5100. Full Story
It seems we have come back to the place where we began. There are really only two kinds of people in the world when it comes to facing the potential for economic calamity, and I think most of us are aware of these psychological opposites. There are those who believe that the authorities are in full control of the situation and that all will end well, and then there are those, the more cautious among us, who hedge the opposite outcome. The first group will always hold the second with disdain, and the second will always see the first as lacking in common sense. Full Story
The Chinese equity bubble continued to inflate last week with 3.5 million new brokerage accounts. How long can the market sustain that sort of momentum? Another week? A month? That’s the problem with exponential market movements. They always run out of new buyers very quickly and then what has gone up will go back down again. Full Story
By: Steve St. Angelo, SRSrocco Report - 26 April, 2015
There are 105 trillion reasons to own silver. Very few investors in the world realize this, which makes it one of most undervalued assets in the world. While the paper price of silver could go a bit lower, it’s forming a bottom while the major stock indexes are developing the BIGGEST TOPS in history. Full Story
Where have all the trillions of newly created "money" gone? Into the failed and bankrupt banking scam conducted by the elites. All world-wide monetary policy undertaken by the central banks has been for the sole purpose of protecting the failed banking financial structure, propping up the fiat currencies. Full Story
A great week for markets and stocks who are breaking out well but not on super heavy volume quite yet but perhaps soon we will see volume really accelerate on this breakout which we do need for this to really give us the next month of very strong action. The metals continued to show weakness as their charts have suggested and that weakness looks set to continue so let’s check into where we can look for the next support areas. Full Story
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