By: Adam Hamilton, Zeal Intelligence - 8 May, 2015
Gold stocks’ reign as the most despised sector in all the stock markets remains unchallenged. They’ve even been abandoned by contrarians. But such universal antipathy and apathy is the breeding ground for major bottoms. And despite gold’s lackluster performance, gold stocks have actually been rallying on balance for 6 months now. Given their extreme undervaluations relative to gold, this strength is likely to persist. Full Story
By: John Mauldin and Niels C. Jensen - 8 May, 2015
Valuations are quite high and could spur financial instability, Janet Yellen told us yesterday. The question on the lips of the attendees at my recent Strategic Investment Conference was how to hedge their portfolios in a world of increasing volatility. For the last two years, my associate Worth Wray and I have been examining ways to design core strategic portfolios that are both robust and insulated. The challenge is that designing portfolios using backward-looking tools in a world that will not look like the past is an endeavor fraught with peril. Full Story
China has purchased and imported a massive amount of gold bars in the past 5 years. The magnitude of the gold migration from the west to Asia has been obscured intentionally. Clearly the western central banks and governments do not want the world to know how much gold they have sold to China. China does not want to announce how much gold they have purchased, which might panic the gold market and elevate prices, making additional purchases more expensive. China’s gold hoard will become a threat to the reserve currency status of the dollar, a fiat currency backed only by “faith and trust.” Full Story
As always, there are investment implications to these major trends. I suggest that advertising agencies, both traditional and Internet based, are stocks that you should consider selling if you own them. Or, if you’re a more aggressive investor, consider short selling or buying put options to profit from the industry’s falling stock prices. Full Story
By: Richard (Rick) Mills, Ahead of the herd - 8 May, 2015
Prospectors are today still scouring the bush, in remote, and not so remote places – chasing the rainbow and its pot of gold - looking for the next discovery. Prospecting, whether for precious or base metals, is of course the integral first step in the process of discovery, walking the bush and hammering rocks means boots on the ground. It's people walking through the bush that have found the worlds mines. Full Story
No matter what profession you’re in, no matter what sport or hobby is important to you, chances are good you keep track of what the top professionals are up to. More often than not, they’re the smartest ones in the room. They’re the innovators, the thought leaders, and it pays to keep up with their decisions, behavior and opinions. Full Story
Last month a lot of negative data on the global economy was brought to light. China’s trade plunged in March and the World Trade Organization cut the 2015 global trade growth outlook to 3.3 percent from the previous 4 percent. We have already suggested in the Gold News Monitor that weak worldwide trade indicates a coming global slowdown. It is time we shared more details and in this article we analyze whether the global economy is coming into recession and what it would mean for the gold market. Full Story
Elon Musk just unveiled something called the “Tesla Powerwall,” a means to store solar-created electricity in people’s homes… with the potential to put the entire utility industry out of business. As you probably know, Musk also has these electric cars that people seem to like to drive… with the potential to put all the major car manufacturers out of business. Oh, and the dealerships too. Full Story
The prices of gold and silver initially rallied this week from the lows of $1170 and $15.93 respectively last Friday to challenge the $1200 level for gold and $16.70 for silver on Wednesday, before losing about half these gains yesterday. Full Story
After a serious knee surgery in 2013 sound engineer Jan Nieuwenhuijs began a blog about gold. Two years later, the 33-year old from Amsterdam is an international gold expert, his analyzes are praised by investors on Wall Street. “China takes over US dominance,” he concludes. His blog about the gold market began as a hobby when he was homebound because of his knee injury. By his internet alias Koos Jansen he started researching the Chinese gold market. His unorthodox analyzes were quickly noticed. Especially when his discovery of the concealed but unprecedented gold buying program by China proved to be accurate. Full Story
Gold looks ready to have the “rug” pulled out from under it. In terms of cycles, the US Federal Reserve is looking for a reason to move back to a normal monetary policy. Just yesterday the markets were sent a message by Fed Chairwoman Yellen when she said that US stock price valuations were high and that bond buyers were exposing themselves to too much risk. In plain English the message is that when the Fed makes its move, the move is likely to send stock prices lower and bond yields higher. This is not bullish gold as higher yields on bond and notes is not an ingredient for higher gold prices when inflation is not an issue. Full Story
My thoughts this morning are "how long will it take" to drag everything down with their default? As mentioned yesterday, the ratings services, creditors and even "official" sectors are furiously trying to figure out how to not call a default a "default". This is of utmost importance because what is left of our global "rule of law" will destroy the derivatives markets from the inside out. This needs little explanation because it is black and white, "grey" however is what the power structure is desperately hoping for. Full Story
It’s an amazingly powerful weapon that only the US government can wield—kicking anyone it doesn’t like out of the world’s US-dollar-based financial system. It’s a weapon foreign banks fear. A sound institution can be rendered insolvent at the flip of a switch that the US government controls. It would be akin to an economic kiss of death. When applied to entire countries—such as the case with Iran—it’s like a nuclear attack on the country’s financial system. Full Story
The world is getting hyped up about bond yields lately with bonds of all stripes declining, as if we are in the midst of a debt Armageddon (we are and have been in the midst of a decades-long and still intact ‘debt for growth’ Ponzi operation). Here is some perspective… Full Story
There is an unwarranted assumption that market prices are always right, and represent "fair value". In the case of commodities, particularly metals, this is not necessarily true, because regulated financial markets make it too easy for government agencies and large banks to game the system. Full Story
By: Steve Saville, The Speculative Investor - 7 May, 2015
Last week we looked at how the US$ gold price performs around FOMC meetings, with a focus on the trading week leading up to the FOMC Announcement day. This week we have done the same with regard to the monthly US employment report. Here's what we found: The table presented below shows the date of every monthly employment report from the beginning of 2013 through to the present, the gold price at the end of the day prior to the report, gold's daily closing price 6 trading days prior to the report, and the difference between these two prices. Full Story
It smells like crunch time to me, the markets have flattened or begun to even roll over on continuously decreasing volume. The economy has also turned down all over the world including in China. Europe is contracting, Britain has finally figured out their finances are FUBAR and the U.S. would not show growth if not for the biggest inventory build in history. Oil tankers are sitting idle (and full) all over the world, is this a sign of "recovery" or of stagnation. Full Story
As The POSX collapses another point today, it's easy to ask why gold isn't racing higher. The answer, of course, lies with the algos and their seemingly endless pairing of gold with the yen. This is just a perfect example of how utterly FUBAR all of these "markets" are. Once again, conventional wisdom is tossed out the window due to the total market control of the HFT algo computers. Your example today continues to be the relationship between the dollar index (POSX) and gold. Full Story
It has been reported that global debt is about $200 Trillion. Central banks supposedly hold about 30,000 tons of gold. If the total debt were backed by central bank gold at 40%, that would price gold about $80,000 per ounce. In the US, the official gold reserve, which has not been audited in about 60 years, is about 8,200 tons. Official national debt is about $18 Trillion. If the official gold backed the debt at 100%, the price of gold would be about $70,000 per ounce. Full Story
As is almost always the case, the price of gold was leaned on at the standard PLAN A time in London when The Gold Cartel traders reported for work, but their nudge was thwarted pretty quickly. Gold took off again going into the Comex trading hours and managed to reach $1200 where it was stopped dead in its tracks. James Mc early this morning… Full Story
Last weekend, I was looking for a bottom in the metals, to be followed by an imminent strong rally. Well, the market did not disappoint us in that expectation. However, it did surprise me with the depth of the pullback we experienced at the end of the week. And, it does make me a bit more cautious, but I am still going to maintain my original perspective for an impending rally to take hold. Full Story
By: Chris Powell, Secretary/Treasurer, GATA - 5 May, 2015
Dating from 1818, Brown Brothers Harriman describes itself as the oldest private bank in the United States. It is also the newest recipient of a GATA tin-foil hat, on account of its acknowledgment that central banks are surreptitiously manipulating the gold market. The acknowledgment is reported today by Ross J. Burland, editor of the FX Street Internet site, who excerpts comments made by BBH "analysts" about Venezuela's recent pawning of its gold reserves... Full Story
The price movement of gold and silver bullion continues to disappoint both the bulls and bears. “Key” upside and downside breakouts are followed by more sideways action. It’s not just gold and silver that are acting like slugs in the mud. Bill Gross has just echoed my view that the US stock market is entering a price area where it will perform much like a wet noodle. Bill suggests, as I have for more than a year, that rather than surging higher or blowing up in a fireball, the US equity market will simply fade away. Full Story
Before, during, or immediately after China announces their holdings or revalues their yuan to gold, the "paper" in the West will burn. We will see the "everything is worth nothing" moment and those who stored their labor in paper balances will be ruined. I will leave you with this thought, would you do business with or deposit your hard earned savings with a bank, broker or insurance company that refused to allow an audit? What if this institution has refused to an allow an audit for each of the last 60 years? How much confidence would this "bank" have left? It is for THIS very reason the Chinese have been "running" the gold bank, "trust" is about the only thing left in Fort Knox! Full Story
Giurgea synthesized piracetam, the first nootropic, in 1964, and he subsequently established a set of criteria these drugs should meet. For him, nootropics must enhance learning, increase the coupling of the brain’s hemispheres, and improve executive processing (which involves tasks such as planning, paying attention, and spatial awareness). It was also important to him that the drugs be nontoxic and nonaddictive. As he put it in his book Fundamentals to a Pharmacology of the Mind: “Man is not going to wait passively for millions of years before evolution offers him a better brain.” Full Story
By: Steve St. Angelo, SRSrocco Report - 5 May, 2015
Americans would be quite surprised to know that even with all the U.S. Government sanctions and threats of war with Russia, we still import a significant amount of petroleum from the former communist country. How much petroleum does the United States import from Russia? Actually, a lot more when we focus on net imports. Full Story
Did Nero really fiddle carelessly while Rome burned, as some would suggest? Perhaps surprisingly to most, the answer to this question is no, as violins did not even exit at the time. But it was easy for his enemies to make such an aspersion due to his otherwise decadent and unpopular demeanor, so he was painted with this brush in some mainstream history books, which has been used widely as colloquialism to disparage those who show such behavior. Full Story
Confidence in retirement investing is once again soaring among the general public. According to a recent survey, those who own retirement accounts are feeling almost twice as confident about their ability to retire and what their standard of living will be in retirement than they were two years ago. At the same time, a well known and highly sophisticated investment executive has recently semi-retired at age 56. And now that this Oxford economics PhD is managing his own retirement portfolio instead of being CEO of one of the largest investment companies in the world, he isn't buying stocks, he isn't buying bonds – and indeed he is running away from conventional retirement investments as fast as he can. Full Story
The next time you find yourself contemplating, worrying, or wondering with anxiety whether it’s too simple to be true; it is not simple - it’s exceedingly complicated. Not because the fundamentals are all that hard to understand. And not because in principle it is sound personal action in any time period. Full Story
We live in a truly messed up and Orwellian world if you will. In many parts of Europe, interest rates are negative. Savers "pay" for the privilege of banks to hold their money, lenders pay sovereign treasuries to lend, new homeowners who borrow to buy property are paid to borrow. This situation where borrowers get paid and lenders pay also exists between banks which is really strange because you would think bankers understand money and interest ...just a little? Full Story
Conclusion: the long mid-bullmarket correction in force from the 2011 highs is approaching or at its conclusion, although gold could drop to $1000 before it’s done. However further losses are looking less likely as the dollar has broken down from its parabolic uptrend and is vulnerable to a severe decline, after a short-term rally to relieve the current oversold condition. The long-term outlook for gold and silver is a massive parabolic ramp similar to, but much greater in magnitude to that which occurred in the 1970’s, taking gold eventually to $5000 or higher. Full Story
Gold is going through a series of push and pull, with the metal’s 30-day volatility near the highest in seven weeks. Prices on Monday surged 2.4 percent, the biggest gain since January 15. The move came a session after futures tumbled by the most since early March. Then on Tuesday gold held the biggest gain in almost three months before Federal Reserve policymakers began their meeting. On Thursday gold headed for the biggest two-day slump since October after a government report showed that application for U.S. jobless benefits declined to the lowest in 15 years. Full Story
Courtesy of the High-Frequency-Traders and a wave of digital “money printing” the NASDAQ closed at a new high on Friday the 24th – a 15 year high. Silver, on the other hand, has been crushed – the near all-time high was 4 years ago. In this tale of two markets, we examine the silver to NASDAQ ratio over the long and medium term for clues about their next major moves. Full Story
The account balance on your bank account is known as a demand deposit. Under our Fractional Reserve Banking (FRB) system, your deposits are used by the banks to leverage lending. What most people think of as their account balance is actually something very different. Many people mistakenly believe that their account balance shows how much they own. This is not so. Instead, it shows what the bank owes you. You merely hold a claim on cash. Knowing this will help you understand that bank deposits are actually loans. Full Story
It does appear that we have a pattern that has formed in the bond with hedgies willing the play the long bond from the short side. If that is the case, and it appears that it is, rallies in the bonds are going to be sold. I am especially anxious to see this coming Friday’s payrolls report because if it is a strong number ( and I do not know what we are going to get), we could see more long side liquidation from the Asset manager class as they are the only group of traders that are currently net longs in this market. All four of the remaining classes of traders, including the Dealers, are net short this market. Full Story
Although lately I’ve been treating a longstanding bear-market target in the low $800s as practically a done deal, my trading partner, John Boutiette reminded me last week that, from a purely technical standpoint, such an outcome would not even become probable, let alone certain, until sellers trash the 1120.50 midpoint support shown. So far, the low of the 43-month-old bear market is 1134.10, leaving about $13 of room before we have reason for deep concern. And just to be sure, I’ll stipulate that the June contract close beneath 1120.50 for two consecutive months before we assume the 808.50 target is in play. Full Story
Summary: Peter Schiff, Chairman of SchiffGold.com and the host discuss the latest economic numbers. Contrary to the official figures the Great Recession never ended - by deflating true inflation figures, economic output only seems strong. G. Edward Griffin serves ups up cuisine for cogitation with a review his magnum opus, The Creature from Jekyll Island, a classic that continues to resonate with readers 22 years later. He spent 7 years on the project and fortunately decided against discarding the manuscript, now a financial classic approaching it's 40th publishing. Full Story
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
Confidentiality in business is often a given, and in relation to precious metals, if the "additional sensitivity" in precious metals transaction was related to physical security and security of transport and vaulting, this would fall under normal "additional security." But the context of Spall's comment suggests that this "additional sensitivity" means market sensitivity. This is supported by the Spall's next observation, which clarifies that, yes, indeed, there is a need for "additional sensitivity" particularly "when it involves the official sector, such as governments, central banks, and sovereign wealth funds." Full Story
Lets start by looking at the daily chart for WTIC I posted earlier this week that showed a potential inverse H&S bottom with a double bottom head. The brown shaded areas shows the left and right shoulders. WTIC has closed two days in a row above the neckline. So far so good. Full Story
The manipulation of the gold price by global central banks was particularly blatant on Friday when the Bank of International Settlements orchestrated a $590 million sell order to put prices into reverse again, as brilliantly captured by the ZeroHedge website. It’s no secret that global central banks are keeping the lid on interest rates to try to stimulate an economic recovery, though they are proving far more effective at the former rather than the latter. But not so many people appreciate that in order to achieve this they also have to artificially manipulate gold prices down. Full Story
By: Steve St. Angelo, SRSrocco Report - 3 May, 2015
The Fed and Central Banks are in serious trouble and certain countries realize it. This can be seen by the change in the gold price and its impact on U.S. gold exports. If the Fiat Monetary Authorities believe a low gold price will discourage investors from purchasing the yellow metal… think again. Ironically, the United States continues to export a great deal of gold because the majority of its citizens have no use for it. Unfortunately, Americans view gold as something to wear on special occasions, rather than a retirement asset or insurance for the upcoming financial calamity. Chalk one up for the clowns at the Federal Reserve. Full Story
A reassessment of economic prospects – and revised financial-market expectations of Fed policy – sometime in the next few months could support a spring-summer recovery in the price of gold, lifting the yellow metal up and out of its recent trading range. Until that happens, gold prices will likely remain “range-bound” in the short term, perhaps through midyear or longer, trading mostly between a floor price of $1,175 and a ceiling around $1,225. Full Story
The blogosphere is rife with talk of the “death of the US Dollar.” The US Dollar will eventually die, as all fiat currencies do. But the fact remains that it is the reserve currency of the world. And everyone on the planet has been borrowing in US Dollars for decades, or leveraging up using Dollars. Full Story
Who are the bankers? There are those known, doing a lot of dirty work, and there are those unknown, operating totally behind the scenes controlling everything, doing even dirtier work. What does that mean, controlling everything? How about the world's money supply, creating it, deciding who gets what and how it is to be spent. Full Story
Markets continued to be very choppy over the past week but they are holding key support levels still. Until we break above or below key levels a high cash position should be best. I’ve been mostly cash except for a few small trades the past 2 weeks. I have no problem waiting for high probability setups to form and there aren’t many out there right now. Full Story
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