By: John Browne, Senior Market Strategist at Euro Pacific Capital - 3 June, 2011
Despite the full onslaught of Keynesian economic policies, including the injection of unheard of sums of printed money into the financial system, state sanctioned accounting tricks, negative real interest rates, massive deficit spending, and debasement of the U.S. dollar, the American economy is slipping back fast towards recession. This week's release of dismal employment figures, in which the entire economy could only muster 54,000 new jobs, confirms that fact. Full Story
By: The Gold Report and Michael Ballanger - 3 June, 2011
Many resource market investors greet the approach of summer with the adage: "Sell in May and go away." Michael Ballanger, an investment advisor at Union Securities and a 30-year veteran of the junior resource market, says he is taking the opposite tack. Full Story
GOLD GOES UP when cash and bonds fail to beat inflation. True in the Seventies, and true again in the last decade. Both times, gold also beat both stocks and industrial commodities as well. Perhaps because storing value, rather than trying to grow it, takes precedence when the cost of living eats into your capital. Full Story
CPM Group recently released their 2011 Silver Yearbook, one of the industry’s most comprehensive sources of information on the silver market. Though mostly a reference book, I uncovered some interesting facts that paint a decidedly bullish picture for the metal going forward. Full Story
The combination of the escalating sovereign debt crisis in Europe, the unknown future of the Fed’s quantitative easing program, the ongoing debt ceiling debate, the early warning signs of inflation, especially in food and commodities (as illustrated in our latest newsletter), and ongoing geopolitical instability promise to make the second half of 2011 very interesting for the gold market. Full Story
By: Scott Wright, Zeal Intelligence - 3 June, 2011
Nearly a year has passed since Molycorp hit the stock markets with its IPO. And considering this stock’s popularity today, it’s astounding that this IPO had flown under the radar for most investors. Last July MCP shares debuted below the pre-IPO targeted price range, and traded on the low side of that range for weeks before it finally caught a bid. MCP didn’t quite have the fanfare as say LinkedIn or other IPOs over the last year. Full Story
Nice Game that! Borrow from the Fed for free nearly and deposit at the Fed for Interest, or Speculate to your heart’s content with near-zero-cost Money! Imagine what you could do if you could borrow money at 1/100th of 1%. Sorry! Players in this Game are limited to the too-big-to-fail Mega-Banks and their connected Allies and Insiders. (Indeed, it is remarkable to us that these loans were revealed in a Mainstream Financial Media Story, by Bloomberg, no less!) Full Story
I understand fundamental convictions when investing. Fundamental convictions have caused me to lose lots of money in the past. What is the point of being intellectually superior in your own mind and then losing money trading? Does it really make you feel better in the end to "be right" and lose money? Personally, I have decided it is better to be agnostic and make money. It has been a journey, believe me. Full Story
Several analysts are in the periodic process of reporting that they foresaw the present rise in gold back in 2000/2002 and recommended that their clients buy it. The race is on among these persons to see who was the first and earliest to see the current explosion up in gold and to promote the buying of it. Full Story
More than the torrent of fundamentally worthless money the central bank has pumped into our financial system, it is lies and delusions that have so far sustained prosperity’s dying gasp. In the guest commentary below, Wayne Razzi argues that there are worse things to fear than economic collapse itself – namely, the loss of basic rights and freedoms as hard times causes politicians to seek radical solutions. Will the sovereign individual be able to resist such an encroachment? It is probably not too early to start pondering the question, for reasons that Wayne makes clear. Full Story
On May 11, hedge fund billionaire Raj Rajaratnam was found guilty by a federal jury of engaging in a seven-year conspiracy to trade on illegal tips from corporate executives, bankers, and consultants. In a Conversations with Casey interview with Senior Analyst Louis James, here are Doug’s no-holds-barred musings on insider trading and the SEC. Full Story
SO the YIELD offered by 10-year US Treasury bonds just fell through 3.0%, a five-decade low when reached (and then breached on the way down to 2.0%) in 2009. More telling, the real 10-year yield – the rate of interest paid to new buyers after you account for inflation – just slipped back below zero, even on the official CPI measure of living costs. Full Story
The founder and namesake of Stansberry Associates, Porter Stansberry, shocked the audience at the Casey Research Spring Summit with his ‘End of America’ speech. “Our country racked up an enormous amount of debt over the last 40 years – an unprecedented amount of debt. We went from being the world’s largest creditor, to being the world’s largest debtor, to being the world’s largest debtor in history. Those debts were largely private until the fall of 2008, but what happened in 2008 is our politicians made a decision that default would not be the way these debts would be resolved. Full Story
By: Richard (Rick) Mills, Ahead of the herd - 2 June, 2011
In a decade China’s economy will be much different than today’s. Instead of being mainly an export driven one it will rely more and more on internal consumption as the countries massive urbanization growth fuels a rapidly expanding middle class. To feed this growth in consumption China is taking a leading role in the developing world. Full Story
May was the worst month for the S&P 500 since August 2010, but the percentage loss for the month only ended up being about 1.5%. The four day rally at the end of May, including the big up day on Tuesday, served to soften some of the damage done in May. But the market reversed all of that bounce in one day to start June with a massive selloff. Full Story
While the US markets were closed to observe Memorial Day, Russia’s central bank acted to raise interest rates to cool inflation. This may have ordinarily registered as a normal event for a central bank, but nothing is normal when the US central bank, the Federal Reserve, refuses to hike rates in the United States. Full Story
By: The Gold Report and Jim Mustard - 2 June, 2011
Yukon explorers are just getting started, says Jim Mustard, vice president of investment banking, mining, at Vancouver-based PI Financial, in this exclusive interview with The Gold Report. Full Story
We searched in vain for news yesterday that might have explained the nearly 300-point drop in the Dow Industrials. Granted, there were reports of dramatic weakness in home prices and a downward revision in Goldman’s GDP forecast for Q2, to 3% from an earlier 3.5%. But that stuff is old hat, at least in a newsletter world that has always viewed the recovery story as an unpersuasive hoax. And what’s the big deal anyway about a 4.2% drop in home prices when it seems entirely likely they will fall by a further 50% before the crisis ends? Full Story
By: Peter Schiff, CEO of Euro Pacific Precious Metals - 1 June, 2011
My readers are familiar with my forecast that the US dollar is in terminal decline. America is tragically bankrupt, unable to pay its lenders without printing the dollars to do so, and enmeshed in an economic depression. The clock is ticking until the dollar faces a crisis of confidence like every other bubble before it. The key difference between this collapse and, say, the bursting of the housing bubble is that the US dollar is the backbone of the global economy. Its conflagration will leave a vacuum that needs to be filled. Full Story
By: David Galland, The Casey Report - 1 June, 2011
Recently, I read a book titled The Good Soldiers that also serves as an object lesson in the disconnect between what’s going on in Washington D.C. and reality. It was written by David Finkel, a Pulitzer-winning author, and it came to me via a friend who is going through a stage where she feels drawn to books about war, mostly about World War II. Showing flexibility, her interest has expanded to the ongoing conflict in Iraq – the theater of operations that serves as backdrop for The Good Soldiers. Full Story
By: Michael Pento, Senior Economist at Euro Pacific Capital - 1 June, 2011
The artificially engineered U.S. recovery is already starting to falter as a continuous procession of disappointing data continues to confirm the sad truth. Recent numbers on GDP, durable goods, housing, regional manufacturing, initial unemployment claims and leading economic indicators all indicate a sharp slowdown in GDP growth. Just today the ADP Employment report showed that the private sector added a paltry 38,000 jobs in May, down from 177,000 jobs in April, significantly below expectations, and the weakest number since September 2010. Full Story
When one speaks of atonement, it’s generally in the context of a wrong that is made good, or at a minimum, at least the acknowledgement of a wrong. Of course in terms of any wrongs our ruling class of bankers, business elites, and politicians (plutocrats) may perpetuate today, the concept of atonement is quite foreign as long as you are high enough up, which is why the wrongs against the public both continue and grow more profound by the day. Full Story
Western Europe has invented two institutions that have taken over the world: the university and the central bank. Today, both are under fire as never before. At the same time, both are in their respective diver's seats. The greater the criticism, the better they do for themselves. Full Story
By: Bob Chapman, The International Forecaster - 1 June, 2011
As these created episodes were carried out we again heard the secretary of the Treasury engage in more fantasy by telling us a strong dollar policy was still in place. These three elements then gave the dollar a push upward, as it became obvious that the EU and IMF were not getting the results they wanted in Greece, that is looting the country of just about everything the country had left. Full Story
By: Chris Powell, Secretary/Treasurer, GATA - 1 June, 2011
Back in June 2004 the deputy chairman of the Bank of Russia, Oleg V. Mozhaiskov, addressed the London Bullion Market Association conference at the Kempinsky Hotel in Moscow and let the bullion bankers know that he and the Russian government were on to their tricks, thanks to "the group of economists who came together in the society known as the Gold Anti-Trust Action Committee": Full Story
It was the perception of getting something of value without any meaningful sacrifice that initially fostered the EU Monetary Union. Though the countries of Europe were fiercely nationalistic they were willing to surrender minor sovereign powers only if it was going to prove advantageous to them. They were certainly unwilling to relinquish sufficient sovereignty to create the requisite political union required for its success. Full Story
By: Jeff Berwick – The Dollar Vigilante - 1 June, 2011
We spend a lot of time here at The Dollar Vigilante chastising Ben Bernanke and the Federal Reserve and preparing our subscribers for a collapse of the US dollar - something which has been paying off very handsomely, with gold and silver at record highs this year - but don't take that to mean that we prefer any other fiat currency. No fiat currency in the western world is any better than the US Dollar. In fact, in every case, they are worse. Full Story
At the start of the year we wrote about what we could expect from the gold stocks and juniors over the first half of the year. All of these markets experienced significant multi-year breakouts in late 2010. This year called for a retest of those breakouts before the next advance would begin. We believed that these markets would spend much of 2011 retesting the breakouts and that markets would later be in position for an unabated advance into 2012 and beyond. We wanted to provide an update on. Full Story
The green HSR (horizontal support and resistance) lines are areas where you will be more aggressive buyers of gold and sellers of dollars. I think you need to spend some serious time asking yourself which side of the trade is really the exiting transaction. Is it selling gold for dollars, or is it selling dollars for gold? When the possibility of hyperinflation is not just possible, but likely, suddenly the actual wealth building achieved by ringing the cash register with dollar gains becomes highly questionable. Full Story
Gold offers humanity one exceptionally useful property; it has an extraordinarily stable stock. There are 166,000 tonnes of the stuff above ground (worth about $8 trillion) of which about 88% is held as a value store of sorts, in jewelry (52%) and bullion (36%). The stock is growing by about 1.5% a year, from the combined efforts of all the world's miners. Full Story
Well, these certainly are not the best of times, but we are a long way off from judgment day. Not even close. Not even shoutin’ distance. The world did not end at 6:00 pm May 21st, 2011. And despite the slowdown in the economy, high unemployment, war, political turmoil and national economic failures abroad, there is hope for those of us who see reality with a clear eye. What we see are the natural ebbs and flows of economic systems--booms and busts in the business cycle that have characterized economies since the dawn of society. Full Story
The bull market that started in 2002 is beginning to take on a greater urgency. In percentage terms the price rise is still in its infancy (the 1980 bull market rose from 35.00 to 850.00 for a 24-fold increase). The current bull market has just passed the 5-fold increase level. However in chart form the shape of the bull market is beginning to resemble the money supply chart. Full Story
At this time. There is no confirmation that "the" top of the cyclical general equity bull market is in. This bull market is within the context of a secular equity bear market, which is far from over. When viewed in Gold terms (i.e. priced in Gold), this secular general equity bear market is deflationary. People still argue whether or not this bear market will end up being inflationary or deflationary when priced in U.S. Dollars. I hold my long-term savings in Gold, not U.S. Dollars, and I can appreciate the logic behind both the inflationist and deflationist arguments, but Gold will win either way due to the ongoing monetary chaos. Full Story
By: David Coffin & Eric Coffin, HRA Advisories - 31 May, 2011
US equity markets had continued to benefit from export driven bottom line growth, but are now sagging on hesitancy about the US domestic economy ahead of QEII buoyancy drying up in June. The Dollar decline that allowed export strength has also boosted US import costs. This could mean a modest US summer driving season unless recent declines in oil prices continue. Full Story
In the case of Richard Russell the answer is certainly not. This is because Richard Russell is right most of the time, especially over the longer-term outlook, despite, or perhaps because of being an octogenarian (in his 80's). Of course nobody is right all of the time, not even Maund, so he could be wrong and so could I. Full Story
By: Bob Chapman, The International Forecaster - 30 May, 2011
We hope all of our appearances on Greek TV, radio and in the press have helped the educational process and to allow the Greeks to identify who the real culprits are, and what to do about it. It has just been over a year since this tragedy became reality, but we reported on Greece and Italy ten years ago. They both bent the rules to enter the euro zone. We knew then that Goldman Sachs and JPMorgan Chase were assisting them by creating credit default swaps. There were a few European journalist who reported on the issue, but the elitists control the media and few noticed that Greece and Italy were beyond bogus. Full Story
We are getting ready for a Gold stock explosion higher that should begin before the summer is over. I am biased due to being rabidly bullish on Gold stocks right now, both intellectually and financially. Please take the following technical analysis smorgasbord with a grain of salt given my greedy dreams of speculative riches, which clearly bias my perspective. Full Story
By: John Mauldin, Millennium Wave Advisors - 30 May, 2011
Brinkmanship is defined as the practice of pushing dangerous events to the verge of disaster in order to achieve the most advantageous outcome. It occurs in international politics, foreign policy, labor relations, and (in contemporary settings) military strategy involving the threatened use of nuclear weapons. Full Story
Greece has a sovereign debt problem. The bonds of the Greek government have been downgraded by a major rating service. Their prices have fallen sharply in the market. This means that the risk is high that the government will default on its sovereign debt. Full Story
Doyen of the gold bugs Jim Sinclair has set readers of his popular website a challenge to come up with the price per ounce that gold will reach if the precious metal is fully monetized. He says the correct answer is $13,644. Full Story
It’s finally a long weekend in the US which means markets are closed Monday. The last thing anyone should be doing this weekend is working much and that includes myself for once. So in that spirit today let’s just cut to the chase and avoid the noise. I’m going to run through the daily and monthly charts only today and skip all the news. Full Story
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