By: The Gold Report and Warren Irwin - 8 May, 2009
Whether it's precious or base metals in the ground, Rosseau Asset Management founder Warren Irwin likes to see extensive, aggressive drill programs in promising deposits. In this exclusive interview with The Gold Report, he says that investments in such companies have paid off in the past and are likely to do so in the future. Full Story
By: Peter Schiff, Euro Pacific Capital, Inc. - 8 May, 2009
Strike up the band, boys, happy days are here again! Recently released short-term economic data, including unemployment claims, non-farm payrolls, home sales, and business spending, which had been so unambiguously horrific in February and March, are now just garden-variety awful. Full Story
IT WAS TEN YEARS ago to the day this Thursday that Gordon Brown shocked the gold market (not to mention the newspaper sub's) by pre-announcing a huge 400-tonne sale from the UK's reserves. Gold Prices fell on the news...losing 2% for the day and dropping one-eighth to fresh 20-year lows by the time the Treasury's auctions actually started that autumn. Full Story
By: Bill Bonner, The Daily Reckoning - 8 May, 2009
Don’t try QE at home, dear reader; you’ll be arrested for counterfeiting. QE so closely resembles old-fashioned printing press money that you couldn’t tell them apart in a police line up. Both are ways to increase the supply of money…which, according to theory, leads to consumer price inflation. Full Story
By: Adam Hamilton, Zeal Intelligence LLC - 8 May, 2009
Over the 6 months since the height of the stock panic in late November, commodities stocks have probably been the best-performing sector. While general stocks slumped to new lower lows in early March, commodities stocks surged. Their bullish fundamentals drove 50% to 100%+ gains over the S&P 500’s exact low-to-low span! Full Story
Investors justifiably increasingly concerned about adverse developments in the financial markets and economy, are seeking Safe Haven in Gold and Silver, as well as in traditional retirement vehicles (such as 401(k)s and similar accounts). Full Story
Rep. Alan Grayson asks the Federal Reserve Inspector General about the trillions of dollars lent or spent by the Federal Reserve and where it went, and the trillions of off balance sheet obligations. Inspector General Elizabeth Coleman responds that the IG does not know and is not tracking where this money is. Full Story
Despite the scepticism and horrendous news, (so far) the market hasn’t obliged. It is interesting to note that rather than correcting, stocks are working off the overbought conditions by simply consolidating. So what’s going on here? Full Story
Has the rush to gold started? Yes, but barely, because only recently have we seen a nation admit they are moving into gold. China and of course the gold bugs have been buying since the recent bottom in 2000, but this pales in what this writer sees ahead; now that the structure is failing, more and more nations, institutions, and individuals will be heading to the bottom for safety and liquidity (gold). Full Story
In March 2007 then-Treasury secretary Henry Paulson told Americans that the global economy was “as strong as I’ve seen it in my business career.” “Our financial institutions are strong,” he added in March 2008. “Our investment banks are strong. Our banks are strong. They’re going to be strong for many, many years.” Full Story
The guns and ammo boom is alive and well. And if we pay close attention, it’s easy to see where the real opportunity is. As usual, it’s not where most folks are looking. Full Story
By: Richard Daughty, The MOGAMBO GURU - 8 May, 2009
If you are like me, then you realize the importance of gold and understand the relative unimportance of things like family, friends, coworkers, community and career, none of which are needed when you have a lot of money because you spend all your time having a wonderful, wonderful time, and the only communication you have with any of those vampires sucking the last of your will to live from your dry, drained soul is to say to them, “Tell it to my lawyer!” Full Story
Are bears about to get a breather? It certainly looks that way, since two trading vehicles that we track and trade daily reversed sharply yesterday without reaching their respective Hidden Pivot rally targets. We were looking for Goldman Sachs to hit a minimum $144.19 to signal the end of the massive short-squeeze begun in November; the stock only reached $141.56 in the opening minutes of the session, however, and then it was downhill for the rest of the day. Full Story
In a bizarre exercise intended to defend legitimacy, the bankers are engaged in a complex game of propaganda. They pressured the USCongress to relieve Wall Street from the chains of FASB Rule #157, and the senators & representatives obeyed their paying masters. The result has been a baseless stock rally led by insolvent banks that have lied desperately about their capital and earnings. The announced audited Citigroup profit of $1.6 billion in the first quarter was actually a deep $2.5 billion loss, provided the $4.1 billion in gimmickry was removed. Full Story
By: Julian D. W. Phillips, Gold/Silver Forecaster - Global Watch - 7 May, 2009
China has risen to now be the largest gold producing nation in the world at around 270 tonnes. The amount bought in by the government initially looks like 90 tonnes per annum or just under, 2 tonnes a week. Before 2003 the announcement by the Chinese central bank that gold reserves had been doubled to 600 tonnes, accounted for similar purchases before that date. Why so small an amount you may well ask? Full Story
In my last report on April 22nd I stated that “gold was marking time. Since March 20th, gold June Gold has been stuck in a trading range of 970 down to 865, about a $100 ounce trading range”. Amazingly, the same trading range remains in place. Even with all that has been going in the world. Full Story
By: Bill Bonner, The Daily Reckoning - 7 May, 2009
The bear rally continues…it is about to enter its 9th week. And the War on Capitalism continues! The Dow rose again yesterday – up 101 points. Oil went up too – to $56. The dollar held steady. And gold was up again…to $911. Full Story
By: The Energy Report and Porter Stansberry - 7 May, 2009
As Stansberry & Associates Investment Research founder Porter Stansberry sees it, cap-and-trade legislation is sure to drive up the price of coal. Coal-bed methane wells are producing so much natural gas that the economic incentive of shutoffs to sustain prices has vanished. The upshot, he tells The Energy Report, is continued weakening in natural gas prices and thus continued strengthening for companies that use natural gas for power generation. Full Story
By: John Browne, Senior Market Strategist, Euro Pacific Capital - 7 May, 2009
This week, based on indicators of improving Chinese manufacturing activity, commodity and stock markets surged in the Pacific Rim. It appears that China's recession-fighting policies are being judged successful. The 41 percent rally in Chinese stocks in 2009 from the 2008 lows dwarfs the single digit rallies in the U.S. and Europe. With Western economies still sluggish, eyes are turning eastward for solutions to the global economic riddle. As such, recent hints at the direction of Chinese monetary policy should be closely regarded. Full Story
There are technical and fundamental similarities in all bull markets. In the case of Gold today and the Nasdaq in the mid 1990s, there are several key technical similarities. I will show these in two charts. Full Story
I wish I had a troy ounce of silver for every time I have encountered those questions on the net! Newsflash, the prestigious ISO (International Organization for Standardization) has set the standards for international currencies. Silver and gold are listed by the ISO as currencies. A fascinating quick resource for information regarding currency ISO 4217 is Wikipedia of course. Full Story
HR 1207, the Federal Reserve Transparency Act is referred to Committee as Ron Paul's Campaign for Liberty focuses its efforts in generating a groundswell of support. So... uh... what happens next? Full Story
Serious investors should watch specific key ratios; which I provide freely to any RunToGold reader. The major asset classes include gold, silver, oil and stocks. At all times and in all circumstances gold and silver remain money. Oil is the worlds primary energy source. Among other purposes, stocks should represent the wealth generating capability of the economy. Full Story
Gold and silver both sold off a week before the broad market started is rally in March. The extreme over sold condition in equities was obvious to see by professionals locking in profits and buying stocks which are now up huge in the past 2 months. I think this is what we could be seeing now but in reverse. Full Story
The stupid way to leverage silver is to go out and borrow money to invest in this highly volatile commodity. A much more sensible approach is to buy silver producers and explorers whose share prices are leveraged against the price of the precious metal. Full Story
By: Jason Hommel, Silver Stock Report - 7 May, 2009
Ted Butler and I occasionally disagree. When we disagree with people we respect and have learned so much from (as I have read him weekly for years), it's usually a very enlightening experience for both people, as well as other observers. Full Story
By: Bob Chapman, The International Forecaster - 7 May, 2009
America’s government, Wall Street, banking, the whole financial sector and major corporations are rife with fraud. One of the latest scams is the Foreclosure Prevention Plan, which has been extended to second mortgages. Homeowner mortgage payments will fall as will the interest rate. As we predicted more than five years ago, the government will end up owning half of the homes in America. Full Story
By: Richard Daughty, The MOGAMBO GURU - 7 May, 2009
I was pretty surprised that Total Fed Credit fell by a gigantic $81.5 billion last week, taking the total down to $2.088 trillion – but not THAT surprised, since the Federal Reserve has acted so despicably that I am hardly surprised at anything they do anymore, including a huge drop in Fed Credit, even though the Federal Reserve itself bought up $22 billion in various crap last week! Full Story
Concerning the precious metals, they continue to impress by more than holding their own against Wall Street’s running of the bulls. As noted here yesterday, Comex June Gold, currently trading near $910, will need to touch $935.90 to inflict real pain on shorts; however, the futures look quite comfortable in the meantime building a base above $900 for the inevitable launch. Full Story
By: Bill Bonner, The Daily Reckoning - 6 May, 2009
Thank god for laser eye surgery! Now, the people who were blind to the biggest financial crisis in the history of the world can see clearly again. And what do they see? A recovery! “Bernanke strikes note of hope on economy,” says the headline in today’s International Herald Tribune. Full Story
LIFE AFTER THE BALLOT BOX is rumored to pay pretty well, no matter how hateful you become in office. George W.Bush has apparently nailed a $7 million book-deal. Tony Blair earned $275,000 for a half-hour speech (made and paid twice) in the Philippines. Richard Nixon bagged $600,000 upfront (in 1977 dollars) plus 20% of the royalties earned from not admitting anything whatsoever to David Frost. Full Story
By: Olivier Garret, CEO, Casey Research - 6 May, 2009
Reportedly, Bill O’Reilly referred to a recent story out of our nation’s capital as “bigger than Watergate.” Whether the story is bigger than Watergate or not, it is definitely a scandal of huge proportions. Full Story
One of the many "green shoots" that has popped up recently for the U.S. economy is the possible peaking of weekly jobless claims, what has been increasingly referred to as a "reliable" indicator for the end of recessions since 1967 when this data was first collected. The chart below, similar to the one published by CR in this item from a couple weeks ago shows the correlation. Full Story
Over the past few months we’ve looked at all sides of the inflation/deflation argument. We’ve discovered that all bubble-booms throughout history eventually end in deflationary busts. We’ve also watched the Federal Reserve go to unprecedented lengths to increase the money supply in an effort to battle deflationary forces. Full Story
The impressive recovery in the S&P 500 index to date has been brought to us courtesy of a massive shift in the market’s internal rate of change. This was characterized by the extreme diminution of stocks making the new 52-week lows list on the NYSE since the early March bottom. Full Story
By: Axel Merk, Merk Hard Currency Fund - 6 May, 2009
The stress test may be causing more harm than good. Why? Regulators should always have a good assessment of the health of financial institutions. If there are deficiencies in the process applied to regulate banks, then the process for the system as a whole should be reviewed. Full Story
Holders of physical Gold in the United States are a lonely bunch. What percentage of the population in this country do you think holds actual physical Gold relative to the number of people who own stocks, bonds and CDs? We collectively worship Warren Buffett and shun the asset that pays no dividend and has no growth prospects. Full Story
For perspective, let’s look at the striking view provided by the yield curve measuring long term treasuries vs. t-bills. The story of this chart is one of increasing moral hazard, of a game with ever higher stakes for winners and losers and it is a story in which the sustainability of the current system is called into question. Full Story
Gold jumped as high as $915 an ounce, and silver surged higher to $13.57 yesterday as news leaked out of Washington that 10 of the 19 largest US banks have failed the government stress test and will have to raise more capital. Full Story
By: Gary Dorsch, Editor, Global Money Trends - 6 May, 2009
An eight-week-long upturn in European, Japanese, US and emerging stock markets since March 10th has sparked a wave of optimistic commentaries in the financial media, that the worst bear-market since the 1930’s has finally come to a merciful end, and the rocky road to recovery lies ahead. Since hitting a 12-year low on March 6th, the key global benchmark – the S&P-500 Index has rebounded by +34%%, while the KBW Index measuring 24-US-banks doubled off its lows. Full Story
Ron Paul questions fed chairman Bernanke before the Joint Economic Committee on May 5, 2009. Keep writing and calling your congressman if he has not already cosponsored HR 1207 (click here to find out). Circulate more petitions and Audit the Fed literature to your friends and neighbors to recruit them to this winning effort. Full Story
By: Richard Daughty, The MOGAMBO GURU - 6 May, 2009
Economist Robert P. Murphy at the blog Free Advice must have heard me screeching with Total Mogambo Disrespect (TMD) about Congress and Obama deficit-spending almost $2 trillion this year, and he says, “If fiscal policy is a disaster, monetary policy is even worse.” Full Story
Is the dollar about to collapse? We’ll know soon enough, since the U.S. Dollar Index fell yesterday to within a hair of an important correction target that we flagged for subscribers a couple of weeks ago. The actual target was 83.45, a Hidden Pivot support that lay just 0.05 points beneath yesterday’s actual low. Full Story
The following interview was conducted in a similar manner as was conducted in the best selling book series “Conversations With God” by Neale Donald Walsch. Although I do not possess the same intimate knowledge of spirituality as Mr. Walsch, my 10 year journey following precious metal markets has connected me to some very powerful spiritual monetary beings…and they have something to say. So let’s begin. Full Story
By: The Gold Report and Peter Zihlmann - 5 May, 2009
What to buy—gold or gold shares? While many argue that bullion is the better investment, Peter Zihlmann of P. Zihlmann Investment Management makes a compelling case for gold shares with a focus on junior miners. In this exclusive interview with The Gold Report, Peter explains how gold shares have actually outperformed the yellow metal at a ratio of 5-to-1 since the start of the bull market. Full Story
By: Bill Bonner, The Daily Reckoning - 5 May, 2009
Happy days are here again! Enjoy them while they last… “Optimism builds,” says a headline in the Financial Times. As predicted, the world markets are enjoying a bounce. People who had no idea there was anything wrong with the world financial system two years ago, now say the problem has been fixed. Full Story
Those that live on the East Coast of the US have undoubtedly heard the advertising slogan of Syms, the 50-year old discounter of name brand apparel. Their tag line, "An educated consumer is our best customer," has to be one of the best marketing slogans ever. Lately, I have been thinking the same thing about investors in silver. Full Story
As I related in "China Nearly Doubles its Official Gold Reserves", China revised its official gold holding from 600 tons in 2003 to 1,054 tons last month. However, the very fact that China reported no increase for 6 years and then suddenly doubled should prove one thing - the Chinese are abiding by the IMF Articles of Agreement only as it pleases them. Full Story
At a Cambridge House Investment Conference I received a question about Bear Stearns. In my answer I alluded to the possible financial benefit of some from its implosion. When pressed I had to explain how credit default swaps worked and then we were out of time. Because the owners of the majority of the financial press have too much money to make from bankruptcies this topic is sparingly covered. But the Financial Times editor let an article wiggle through. Full Story
Gulf leaders meet tomorrow in Riyadh to choose the location of a new GCC central bank that will pilot the creation of a single currency for the oil states of the Middle East, but it is not clear whether a role for gold is being seriously considered by the six nations. Full Story
By: Steven Saville, Speculative Investor - 5 May, 2009
At the root of central planning ideology is the belief that a group of well-meaning government officials and/or experts is more capable than the unrestrained free market of allocating resources for the betterment of society. However, whenever and wherever central planning of the economy has been attempted it has always been a failure, with the magnitude of the failure generally being proportional to the breadth of the central planning experiment. Full Story
Last month, many banks reported strong earnings. Market sentiment has changed substantially. Only a few months ago, the collapse of the whole US banking industry threatened to bring the whole global economy down. Now, suddenly, the picture looks rosier than ever and this financial crisis seems to be over. Or is it? Full Story
By: Richard Daughty, The MOGAMBO GURU - 5 May, 2009
All of our economic problems are caused by the Federal Reserve creating the excess of money and credit that produced the bubbles in stocks, bonds, houses and size of government, but doesn’t have to be electronic money made from electronic credit. Full Story
The sharp rally in gold and silver was over in less than ten minutes yesterday, giving way to a “flag” correction that was lazily continuing to unfurl almost half a day later. This is a modestly encouraging sign, since we’d gotten used to seeing bullion’s rallies evaporate like gushers of steam from a geyser. The Comex June Gold contract exceeded every minor benchmark we’d set for it, so our bias will be bullish for a change as Monday’s night session evolves. Full Story
By: Peter Schiff, Euro Pacific Capital, Inc. - 4 May, 2009
THE Obama administration singled out hedge funds as the bad guys this week in its attempt to reorganize Chrysler. The accusation falls comfortably into the administration's view that unfettered capitalists on Wall Street and poor planning by short-sighted CEO's are responsible for our financial problems. Full Story
By: Bill Bonner, The Daily Reckoning - 4 May, 2009
In the newspapers there is much discussion of what General Motors should do. This discussion has gone on for many years. Until now, it was a conversation carried on by serious analysts and auto industry experts. They all said the same thing: GM needed to clear out its management, dump much of its expensive, “legacy” overhead, and produce better cars. Why didn’t it do so? Full Story
There are only two outcomes as I see it. Either the gold cartel will fail in the end, or the US government will have destroyed what remains of the free market in America. I hope it is the former, but the continuing flow of events from Washington, D.C. and the actions of policymakers suggest it could be the latter. Full Story
The big picture hasn’t changed much this past month. The most surprising news, at least for the ones in the dark, was that China is hoarding Gold. Their reserves have risen a lot and they intend to expand their stockpile even further. Although this is very good news for Gold in the long run it didn’t really have a big impact on the Gold price last month, which is kind of surprising. Full Story
That’s what the stock market faces this coming week with technicals now sufficiently overbought to allow for a true test of the trend. Those who do not study history or cycles are interested to find out the nature of the beast. They are asking themselves, ‘is this a new bull market?’ Full Story
Two major government economists, Christina D. Romer and Ben Bernanke, have done influential research on the Great Depression. Both implicate the State-run gold standard of that era, which differed from the pre-1914 gold standard, as a major culprit in the Great Depression. (See here and here.) Their work parallels that of other economists such as Barry Eichengreen and Peter Temin on the negative role of the interwar gold exchange standard. There is an emerging or existing consensus among economists about the negative effects of the gold-exchange standard. Still, research continues. Full Story
We saw last week that the writers for the Times had, over the past 30 years, produced a succession of predictions on various aspects of the economy which were completely and totally wrong. Indeed, if one considers the major turning points of the financial markets, the Times was on the wrong side of every single one. Full Story
When the gold price lifts off then the silver price should take off by at least a factor of two, and the gold:silver ratio drop. This is also the historic pattern, with silver the better performing metal in a boom, albeit with higher volatility than gold. So if you are looking for a magic bullet to boost your portfolio, silver should be your asset class of choice. Full Story
By: Bob Chapman, The International Forecaster - 4 May, 2009
In the first three weeks of April this year, insiders for NYSE listed companies sold 8.32 times more stock, by dollar value, than they purchased. What does that tell you? We won't insult your intelligence by answering. If ever there was an indicator to identify a sucker's rally, this would be it. Full Story
Gold and silver have been making a nice controlled pullback since their high in February. With precious metal prices drifting lower making clean looking waves like these it’s generally a sign of profit taking before another move higher. Full Story
This article is a follow-up to my recent piece on “America’s Financial Oligarchy” which was a synopsis of Simon Johnson’s “The Quiet Coup” on how the financial industry has effectively captured our government. This follow-up article is an edit and review of a lengthy 231-page report prepared in March 2009 by the Consumer Education Foundation (see wallstreetwatch.org/reports/sold_out.pdf for the full report) on how, over the years, the ‘Money Industry’ as they refer to the financial oligarchy, sold out America to gain such control. Full Story
Precious metals are the obvious safe harbor for the ongoing financial storm. However, precious metals, passed around in coin form, are not the long term future of money unless we are going back hundreds of years. What I do expect is a super spike in precious metal prices relative to everything else as panic sets in following the "official" end of the US dollar's world reserve currency status. Full Story
With swine flu panic receding somewhat, mail from readers over the weekend gravitated toward other, less urgent matters, including the seeming now-and-again cynicism of Rick’s Picks. “I follow your commentary regularly,” wrote one reader, “and it sometimes seems like you actually want the economy to collapse. Do you?” Guilty as charged! Full Story
1st Hour: Headline news & Market Weatherman Forecast. Spotlight Stock Picks with big dividends. The International Forecaster and Host Chris Waltzek answer listeners' questions. 2nd Hour: -Gerald Celente, Trends Research Institute Full Story
By: Jason Hommel, Silver Stock Report - 3 May, 2009
Today we had two customers who wanted to buy a lot of silver. One wanted $500,000, and another wanted $3,000,000. This article is for them, and anyone else who may want such amounts. In the future, if paper money collapses, and economies are threatened, and when people might begin starving, such amounts will be able to sustain the economy, and the lives of the people, of a small city of perhaps up to 10,000 to 50,000 people. Full Story
John Exter's liquidity pyramid that is. Exter was a central banker who worked at the federal reserve in the 1940s and 1950s and somehow emerged with his intellect intact. He was on the inside, knew how the system worked and yet didn't like Keynesian or Friedmanite economics. His concern about a global fiat money system, once it emerged, was that it would eventually blow out in a deflationary implosion rather than an inflationary one. This is the opposite of what most Gold bugs believe and yet results in a similar conclusion: Gold Gone Wild (i.e. strong bull market in Gold). Full Story
By: John Mauldin, Millennium Wave Advisors - 3 May, 2009
The old adage that one should "sell in May and walk away" has been around for years. I mentioned that bromide about this time last year, urging readers to head for the sidelines if they had not already done so. I was also suggesting a strategic retreat in August of 2006 (after which the markets went up 20% before plummeting). In this week's letter we look at the actual data and offer up a fresh viewpoint. Full Story
The physical metals held up much better than the equities on balance with Gold dropping 2.91%, silver fell 2.95%, platinum plunged 7.39% and palladium lost the most falling 9.21%. Some weeks can be a bit aggravating and this was one of them. Full Story
No, we have not entirely lost our minds. Long-term U.S. treasury bonds have presently declined back to near the very significant level they broke through in late 2008. Don't get us wrong: we believe U.S. t-bonds will enter a long-term, very severe bear market eventually; we're simply not convinced that time has arrived just yet. Full Story
The Independent Living newsletter had a late April 2009 promotional letter from its editor, Lee Bellinger, which warned of serious trouble for America that could be on us very soon (at www.americanlanternpress.com, phone 877-371-1807). He started his prediction with recognition that the planned use of 20,000 returning US troops for domestic emergencies has now been increased to 80,000. He correctly perceives that the US government is preparing for a military response to coming social chaos in this nation. Full Story
By: Richard Daughty, The MOGAMBO GURU - 3 May, 2009
As I look at the pile of bills on my desk – each of them for amounts always marginally higher than they have ever been (since prices are higher than they have ever been and getting higher Every Freaking Day (EFD)) – I can’t help but reflect that our whole Sorry Economic Mess (SEM) is caused by people not paying their debts by borrowing more money with which to pay their debts... Full Story
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