We are very near a major turning point in the mid tier and junior mining sector. The chart below shows the lowest junior mining valuation ratios in the last six years. We are using the TSX S&P Venture Index which is mostly mining stocks. The current ratios are at levels that in the past have signaled a major and substantial rise in the smaller gold and silver mining stocks. Full Story
By: Bill Bonner & The Daily Reckoning Crew - 1 February, 2008
-Capitalism is a jungle, not a zoo…could the Red Giant induce economic paralysis?… -Happy to be in the camp that was left behind…Baby Boomers to vote for the stars… -Demanding tributes would have been a better idea…trying to fix a problem that can only be 'corrected'…and more! Full Story
By: Peter Schiff, Euro Pacific Capital, Inc. - 1 February, 2008
A common definition of insanity is the act of repeating the same activity while expecting a different result. Bernanke is now repeating the same mistakes made by Greenspan, yet he and almost everyone on Wall Street expect a different result. Full Story
By: Julian D. W. Phillips, Gold/Silver Forecaster - Global Watch - 1 February, 2008
All markets, in their search for a reliable formula that satisfies the scientific and mathematical belief that market relationships are precisely measurable in something else, believe that gold is responding in an opposite way to the $. The corollary to that is, therefore it must be moving in synch with the €? In fact, in the € it has been rising. It is important to look a little more closely at this formula and the realities behind it. Full Story
The unfortunate conclusion (from the aforementioned, including the referenced articles) is that while The Fed-led Cartel has gotten the international financial system “hooked” on the use of increasingly massive derivatives positions to manipulate market levels and achieve market stability or lack thereof, the markets have become increasingly dependent on such derivatives injections. Full Story
WHY DON'T we just do away with all the different currencies of the world, and settle on one single money to buy, sell, invest and light our cigars with? Because as it is, the Babel we live in – where 143 different kinds of currency either change hands or act as a way of measuring prices around the globe – keeps finding itself in no end of trouble. Full Story
By: Scott Wright, Zeal Intelligence LLC - 1 February, 2008
The financial markets are always exhilarating. And as a student of the markets, I’ve learned over the years that their dynamics leave no room for boredom. Whether bull, bear, or monotonous grind in either direction, there is always something new and exciting going on. Full Story
By: Richard Daughty, The MOGAMBO GURU - 1 February, 2008
Hershey, 'the world's largest candy maker', has to raise its prices on a third of its chocolate candy by 13% because of the soaring prices of energy, milk and cocoa. And they are going to raise prices by 3% over Hershey's entire U.S. product line! Full Story
By: Rick Ackerman, Rick's Picks - 1 February, 2008
Despite psychotically wild price swings that are becoming almost routine, the stock market continues to act docilely and more or less predictably when approaching our Hidden Pivot price-reversal points. Yesterday, for instance, in the early minutes of the session, we caught the exact low of a sensational 450-point reversal in the Dow Exchange Traded Fund. Full Story
As I see it, both gold and silver are in a win-win scenario. Growth propels demand for both. To obtain growth, the Fed has no choice but to lower interest rates, which will in time create demand for goods and services, which will lead to higher inflation. Full Story
By: Bill Bonner & The Daily Reckoning Crew - 31 January, 2008
-The catch in the Mr. Market giveaway…forecasting the Trade of the Next Decade… -More credit is a temptation - not a solution…a misguided replacement plan… -A view of more gains for gold…is capitalism working too well?…and more! Full Story
Amidst the growing hurricane, centered upon the housing crisis and mortgage debacle, gold will rise far past $1000. By summertime, the new base will be at one thousand bucks. The silver price will surpass the $20 mark before the leaves fall from trees in autumn. The price of gold at the last 1980 peak corresponds to around $3000 after adjusting for price inflation in a realistic manner, apart from corrupt USGovt statistics. Get ready for a very long ride, but not without some surprises for the USDollar in a possible upward bounce. Full Story
Using simple to follow graphs and charts, in this article we will revisit the last 35 years, and show how your true historic tax rate on your investments may have been 256% higher than what appeared on your tax returns. We will then show how the hidden inflation component of taxation will likely grow still higher compared to the nominal tax rate in the years to come, and may reach confiscatory levels where all real investor income and economic growth is taken through taxes, even while nominal tax rates don’t necessarily rise at all. We will close by introducing some ways for investors to turn this problem into an opportunity. Full Story
By: Bob Chapman, The International Forecaster - 31 January, 2008
Even as Fed Chairman Ben Bernanke tells us we are ready to take substantive additional action as needed to support growth and to provide adequate insurance against downside risk, he tells Congress to act quickly because the Fed’s efforts will take months to affect the economy. While all this creation of additional money and credit takes place and fiscal madness takes place, inflation that our government perpetually lies about, heads ever higher. Full Story
By: Richard Daughty, The MOGAMBO GURU - 31 January, 2008
And the last guy, who may be otherwise known as the Last Fool In Line who bought at the exact top at the exact highest price, still has to find somebody to sell to at a profit, or the system goes into loss mode. Full Story
By: Bill Bonner & The Daily Reckoning Crew - 30 January, 2008
-Staring out the window, wondering what to do…years away from an ordinary housing market… -The demise of manna-like credit card purchases…The light bulbs are going on in Debt Nation… -No thanks for the good advice…increased spending of fictional wealth…and more! Full Story
Even the most rabid silver bugs admit the possibility that the Chinese are the Big Silver Shorts. This suggests that the Big Gold Shorts are also governments. Neither are naked by any stretch of the imagination. The double whammy of gold and silver accumulation by unnamed governments is the big puzzle of the present financial crisis in the world as it holds the key to the resolution. Full Story
By: Axel Merk, Merk Hard Currency Fund - 30 January, 2008
Inflation targeting is yet to be formally adopted by the Federal Reserve (Fed), but recent market and Fed actions already prove that it is a failure. At the whim of trouble in the markets, Fed Chairman Bernanke has made it clear that he is inclined to flood the markets with liquidity at any cost; he said: “We stand ready to take substantive additional action as needed to support growth and to provide adequate insurance against downside risks.” Full Story
This is the master thread to which all economic analysis must be held up due to the fiat monetary systems practiced UNIVERSALLY around the world. Just like a game of musical chairs, or rearranging the deck chairs on the titanic everyone will go down sooner or later. The central reality is that Currencies don’t float, they just sink at different rates. Full Story
By: Jason Hommel, Silver Stock Report - 30 January, 2008
My gut tells me that the gold price has a good chance to go up by more than $25 in one day on Friday, February 1st, and again, another $25 in one day on Monday, February 4th, because a certain ad will come out in a Washington paper on Thursday, this week. Full Story
Pleased to announce that votes are in. Ineptness Award for first century of Federal Reserve's existence goes to Bailout Bernanke and his Buckaroos. Last week's interest rate cut cinched it for them. Full Story
By: Richard Daughty, The MOGAMBO GURU - 30 January, 2008
And, worse, the Lagging Indicator has been outdistancing both the Leading and Coincident indicators for months and months, too, indicating that costs are going up. And they were. And they are. And they will continue to do so. Full Story
By: Rick Ackerman, Rick's Picks - 30 January, 2008
For a stock market that was supposed to be merely marking time yesterday, the hundred-point gain achieved by the Dow was pretty impressive. We expect stocks to ease moderately this morning ahead of the latest credit loosening, and possibly to fall on the “news” itself, since there is almost no possibility of a bullish surprise. Full Story
I suggest that the City Of London AND Wall Street mend their ways and fast, they are the minority and we are the majority. Major revolutions and change have always sprang from the disgruntled masses, who find themselves once again at this particular point in history lied and cheated to by the International Bankers, and their subservient lap dogs the British and American Governments. Full Story
By: Bill Bonner & The Daily Reckoning Crew - 29 January, 2008
-Fear is winning in its fight with greed…Bush and Bernanke bring more booze as the party winds down… -A fraudulent boom is gold's best friend…long term Treasury bonds that only buy a cup of coffee… -Plenty of room on the downside…the best jobs, the best schools, and the subprime mess…and more! Full Story
JEROME KERVIEL, fast-overtaking John Law as France's worst-ever financial mishap, claimed on his most recent resumé to enjoy judo and sailing, as well as running up $7.1 billion in losses for his employers in his spare time. Full Story
By: James Cook & Theodore Butler - 29 January, 2008
Theodore Butler is universally recognized as the world’s leading authority on silver. The following interview took place in late January between Mr. Butler and IRI president, James Cook. This interview reflects the bullish views of Mr. Butler on the future of silver. Full Story
By: David N. Vaughn, Gold Letter, Inc. - 29 January, 2008
Right now it seems to be sticking around the 900 range. I wonder what’s happening? Could there be “turmoil” in the financial markets? Let’s see what the press has to say about present market conditions. Just what is happening in the financial realm around us? Full Story
By: Eric Hommelberg, The Gold Drivers Report - 29 January, 2008
- Gold on its way to $1000+ in short term - FED emergency cut extremely bullish for Gold - South Africa's Gold production halted due to Power crisis Full Story
By: Gary Dorsch, Editor, Global Money Trends - 29 January, 2008
Global stock markets were gripped by extreme fear and panic on the morning of January 21st, with Asian markets under relentless selling pressure, then ricocheting to Europe and Latin America. Japan’s Nikkei-225 melted down 18% and six trillion yuan ($830 billion) of market value on the Shanghai and Shenzhen stock exchanges was wiped out in the first three weeks of January, the worst correction in a decade. Full Story
By: Jason Hommel, Silver Stock Report - 29 January, 2008
Surplus silver, if this is an accounting term, means that it is describing the action of silver investors who are buying that silver. It does not lay around unwanted. In fact, it could rather be said to be that that sector of silver action is where the silver is most wanted of all. Full Story
How high can the gold price fly? The vast majority of investors are still being influenced by the Wall St. guru’s who have for the most part ignored the fact that gold has outperformed main stream investments since 2001. Therefore there remains a lot of money that has not yet come into play. Full Story
By: Steven Saville, Speculative Investor - 29 January, 2008
The first chart shows the most recent two occasions when the number of new lows on the NYSE exceeded 1100, including this week's event. Notice that the '1100+ new lows day' in August of last year was followed by a strong 2-month advance to a new all-time high, after which the market embarked on the downward trend that led to this week's selling climax. Full Story
By: Richard Daughty, The MOGAMBO GURU - 29 January, 2008
Fortunately, I was heavily sedated and in a straightjacket at the time, tied to a chair as the minimum precautions to watching Federal Reserve chairmen appearing in public, especially in front of one clueless Congressional bunch of yahoos or another. Full Story
By: Rick Ackerman, Rick's Picks - 29 January, 2008
The twelve years we spent on the trading floor conditioned us to view all rallies and declines as manipulated to some extent. With respect to yesterday’s dog-and-pony show, it was the nature of the manipulation itself that suggested benighted bulls are slowly wresting temporary control of the stock market from enlightened bears. Full Story
By: Bill Bonner & The Daily Reckoning Crew - 28 January, 2008
-Clinton should have gone skiing…the high price of learning an important lesson… -Money from helicopters good for gold bugs…bipartisan rebates going to Wal-Marts and gas pumps… -Looking for something else to put in your vault?…a new life…and more! Full Story
By: James Turk, Founder & Chairman of GoldMoney.com - 28 January, 2008
When you own shares in SLV, you do not own physical silver, you own an equity that gives you exposure to the silver price. That makes SLV a trading vehicle, like a futures contract. A futures contract is not an alternative to owning physical silver, and neither is SLV. Full Story
By: Nelson Hultberg, Americans for a Free Republic - 28 January, 2008
Recessions have been common throughout our history, and the country has always ridden them out because its political and economic leaders understood that such a "riding out" was necessary to purge the system of its excesses and thus be able to return to real growth again. What is different about this time that would make the Fed so desperate to avoid going through this healthy purging? Full Story
Most are having trouble putting two and two together in terms of what is happening here because the stock market is falling so fast. The fact of the matter is most traders that are still solvent are the perma-bulls who have been rewarded by the short squeeze since the 2003 lows. Full Story
I didn't create this title. This is the title of an article in FT last week by George Soros, someone needs no introduction. In the article, he provides great discussions on the root cause, reason and consequence of the current credit crisis, which has widened far beyond just the initial subprime area. Full Story
At some point Gold is going to close over a magic number like $1,000 peaking the interest of many a speculator. Once they come looking, they will find to their amazement a huge swathe of precious metal stocks trading at absurdly low valuations – better to beat the herd now! Full Story
By: Roland Watson, The Silver Analyst - 28 January, 2008
Firstly, there is no such thing as a silver surplus. In the days when the US Government used to hold billions of ounces of silver in stockpile, we could say "Yes". But now with even the US government tapped out of silver and having to purchase on the open markets, silver is no longer drip fed or dumped onto the markets by big holders as of old. Full Story
Despite record high nominal price, there’s little interest in gold outside of the metals and mining industry. And I hope it stays that way well into four digits. Yes, at times it feels frustrating to hear so-called experts and the media bash gold and continue to preach that financial assets are the way to go despite gold’s absolute smashing performance for several years now. But, that’s been the M.O. of this secular gold bull market. Full Story
By: David Coffin and Eric Coffin - 28 January, 2008
The dual themes of continued weakness in western financial centres and on-going strength for commodities due to eastern growth is now well established. Debate has shifted to how these will play out against each other over the next few quarters. Since we have suggested making cash for the last four months, the question for us is when and where to redeploy it. Full Story
By: Benjamin M. Anderson & Antal E. Fekete - 28 January, 2008
It is interesting to watch the Fed trying to meet the present crisis in the same way as it was in 1930: by administering liberal doses of cheap money. In 1930 the Fed made the crisis worse and it prepared the ground for the Great Depression. Cheap money in 1930 certainly did not stop the decline in the stock market. Full Story
By: Bob Chapman, The International Forecaster - 28 January, 2008
The Dow, the S&P 500 and the Nasdaq have, in the first four weeks of 2008, lost all of their gains from 2007 and then some. They are all well into red ink when compared to their 12/29/06 levels. By contrast, since 12/29/06, spot gold has gained 43.16%, spot silver has gained 26.14%, the XAU has gained 30.43% and the HUI has gained 36.44%. Full Story
Unstable systems can function for years without serious problems. But over time, unstable systems will always break down. We are witness to such a systemic failure today. Global credit markets are slowing and contracting. The capitalist system responsible for economic expansion and wealth is in disarray. Full Story
Despite a 3.4% gain on the week one gets the impression that gold is ready to go lower. That’s not what most analysts are saying. Who to trust? I always prefer the charts to tell me where gold is going not where it should go. Full Story
1st Hour: Headline news & market forecast. Spotlight Picks with big dividends. The International Forecaster and Chris Waltzek answer listener questions. 2nd Hour: Dr. David Clarke - Stress Illness Full Story
“We need a plan that stimulates savings and production not more of the reckless borrowing and consumption that got us into this mess in the first place. Ron Paul’s plan is the only one that amounts to a step in the right direction. If you want meaningful change - for the better that is - Ron Paul is the only candidate capable of delivering it. The others merely promise to continue the failed policies that are at the root of our current economic problems.” Full Story
By: Bud Conrad and David Galland, Casey Research - 27 January, 2008
Simply stated, surveying the landscape of current events, many of which are a direct consequence of excessive debt and an inevitable slowdown in consumer spending, we expect stagflation ahead. Loosely defined, that term refers to a general economic slowdown – a recession – but coupled with rising prices triggered by massive infusions of liquidity into the market. Full Story
Kaletsky would serve his readership better if he advised caution at this juncture. It is still too early to dismiss the possibility that the Titanic of the world economy, having collided with the derivatives iceberg tearing a subprime hole in the hull, may go down. Golden life-savers may yet come handy. Full Story
In the last update posted on the 15th January gold was expected to consolidate rather than react, but instead it got taken down temporarily by the near crash conditions that then rapidly developed across most markets. However, gold’s great strength and resilience at this time is amply demonstrated by the fact that it has since rebounded strongly and is back at its pre-panic highs - and the dramatic developments of the past week, most notably the Fed’s big rate cut, have greatly strengthened the bullish case for gold. Full Story
On the long-term 8-year chart we can see that silver is now just breaking out from a massive 20-month consolidation pattern to embark on another major uptrend. If it follows a similar trajectory to the powerful 2005 - 2006 uptrend, which is actually a modest expectation given the fundamental background, then $28 - $30 may be attained within 6 months or so. Full Story
By: John Mauldin, Millenium Wave Advisors - 27 January, 2008
It had been my original intention to devote this week's letter to the view from Europe, as I have been here for the last week, but events have changed that goal. The Federal Reserve made a very rare inter-meeting rate cut of 75 basis points this week, after the worldwide markets were in turmoil. Full Story
This week has been filled with surprises. It began with bad news for international stock markets. It got rolling with unprecedented news from the Federal Reserve System. It got wild with nutty news from a bureaucrat in New York. Then it settled down to wild swings on the American stock market. Full Story
When all was said and done, after the dust had settled, and sanity returned to the pits, gold gained $29 for the week to close at a new all time high of $910.70 (+3.9%). Full Story
By: Richard Daughty, The Mogambo Guru - 27 January, 2008
And now some piddly $150 billion is going to make a big difference in preventing the overdue bust at the end of the biggest boom the world has ever seen? Hahahaha! Stop! I'm laughing so hard my stomach hurts! Hahahaha! Stop! Stop! Hahahaha! Full Story
By: Rick Ackerman, Rick's Picks - 27 January, 2008
The Dow head-faked its way to an undeserved hundred-point gain Friday morning, but it was all downhill after the opening bar. Our prayerful mantra, “Baby needs a new pair of shoes,” was trained on the shares of Citigroup, but the karma just wasn’t working. Full Story
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