By: Bill Bonner & The Daily Reckoning Crew - 8 August, 2008
-A market that is surprisingly surprising…the meanest reverters in the whole financial world… -Robert Mugabe: Freddie's new CEO?…expecting the sun to come back over the housing market… -Americans and Brits caught in no-man's-land…pouring petrol on an already blazing country…and more! Full Story
By: Jeff Clark, Managing Editor – BIG GOLD, Casey Research - 8 August, 2008
It’s true for almost any commodity: there are a lot of influences pushing on the price, and it’s hard to untangle them all. But gold is exceptional. A single factor dominates the market price – and you can measure it. Full Story
By: Julian D. W. Phillips, Gold/Silver Forecaster - Global Watch - 8 August, 2008
In the week ending 25th July 2008, the decrease of €578 million in gold and gold receivables reflected the sale by two Eurosystem central banks which roughly equates to the sale of just over 30.0 tonnes of gold. In the week ending the 1st of August, there was a decrease of €26 million in gold and gold receivables reflecting the sale by one Eurosystem central bank and the purchase of gold coins by another Eurosystem central bank, which roughly equates to the sale of around 1.40 tonnes of gold [consistent with the Central Bank Gold Agreement that came into effect on 27th September 2004]. Full Story
By: Peter Schiff, Euro Pacific Capital, Inc. - 8 August, 2008
In holding overnight rates steady at 2% this week, the Fed once again put forth its belief that despite a cascade of horrific financial data, the economy was likely to continue to grow slowly and that inflation would moderate. Although wrong on both counts, this view is consistent with the relative optimism that prevails across the country. Full Story
In sum, it is clear that since a Fed-led Cartel* of Central Bankers has been regularly intervening in all of the major markets including, but not limited to, Gold, Silver, Equities and Crude Oil, failing to take account of the “Interventionals” and the Real Data can be lethal to profitable investing and trading. Full Story
By: David Morgan, Silver Investor - 8 August, 2008
Many junior and senior resource companies are at very attractive levels right now, and astute investors should be carefully selecting bargains at this time. August is historically the best month to buy in to the precious metals, and many of the better-run companies are selling at attractive valuations. Full Story
My point is this, when prices rally and especially when they rally to all times highs, sharp corrections from those highs is the norm. Downside corrections typically move faster and prices often overshoot whatever the “downside target” may be because professional type traders know how to press the short side and squeeze out those that are typically long, the public. Full Story
By: Richard Daughty, The Mogambo Guru - 8 August, 2008
TFC is what gets created with the literal push of a button at the Fed, and then deposited into the banks (or into the Fed itself!) and then turned into actual money when someone borrows this just-created-out-of-thin-air credit… Full Story
Ever skeptical of doomsday talk, my pen-pal Fred Hapgood has finally acknowledged that the current recession is fundamentally more serious than any before it. I’d warned him that this downturn contains the spores of a deflationary depression, but as always, he only wanted to know – not unreasonably – how I will be able to recognize if and when I am wrong. Full Story
So far we’ve tossed around terms like “money” and “currency” with some abandon. If this left you a little unclear about their exact meaning, not to worry, you’re in good company; the world’s business and political leaders appear to be just as confused. So before considering gold’s once and future role in the global economy, let’s examine the true nature of money. Full Story
By: Bill Bonner & The Daily Reckoning Crew - 7 August, 2008
-The two ways to play a correction…bargains, or traps for the unwary? -The Butch and Sundance of the financial markets…the clumsy, backwards-walking economy… -The whole world is slowing down…another farcical chapter in the history of the War on Terror…and more! Full Story
The path to the printing press is a long one. It is used at first to spread credit indiscriminantly in sustaining commerce and funding financial systems. For the United States, that means horribly inefficient usage of credit in commerce, where 5 units of credit produce one unit of business activity. In the twisted bizarre arena that is Wall Street, the financial maze they created has imploded as yet another chapter is written in the standard textbook of boom & bust. Full Story
As the economic crisis deepens in the US interest rates will be slashed from two to one per cent, as in the dot-com crash, and that will ensure higher inflation, and very, very much higher gold prices. Take heart and follow Xstrata. Full Story
Upon analyzing over 30 years of data involving the gold price, we conclude that the seasonal lows usually occur in March and June. Quite often however, after the June low a secondary low is experienced in August. This secondary low is usually slightly higher than the primary low. People who have resisted the temptation to buy the June low will usually take advantage of this last opportunity before the start of the Christmas rally that seems to happen almost every year. Full Story
The precious metals usually make a nice bottom at the end of summer between August and October and this year looks like it will be no exception. There should be a strong precious metals rally into the Fall and Winter 2009. Quality mining companies are great buys at current levels and gold and silver should be near a bottom. Full Story
By: Richard Daughty, The Mogambo Guru - 7 August, 2008
I explained that, yes, I had my foot on the accelerator, but the car went fast all by itself! In fact, the more I stepped on the accelerator, the faster the car went! It's obviously one of the mysteries of the universe! Full Story
Has planet Earth’s luck changed for the better? We rarely see evidence of good fortune operating at a civilizational level, but two events in the news earlier this week promise to benefit all mankind. The first story concerned the discovery by census takers of more than twice the number of lowland gorillas thought to inhabit the Republic of Congo. Full Story
By: Bill Bonner & The Daily Reckoning Crew - 6 August, 2008
-Preferring the sin of omission over the sin of commission…the definitive answer to last week's gold question… -Reading the financial news as a weather report…treating our dollars like we treat our salads… -A humane hanging for business executives…law-enforcement approach better suited to take down al-Qaeda?…and more! Full Story
By: Gary Dorsch, Editor, Global Money Trends - 6 August, 2008
The Fed’s propaganda artists could hardly believe their good fortune, as gold and oil prices sank, even as they signaled no change in “negative” US interest rates for the remainder of the year. But as the charts above indicate, bottom fishing in US financial shares, after the US government’s bailout of Fannie and Freddie, combined with sharply lower agricultural and oil energy futures, and a stronger dollar, were the chief culprits behind gold’s latest plunge below $900 /oz. Full Story
By: John Browne, senior market advisor for Euro Pacific Capital - 6 August, 2008
Yesterday, the Fed surprised no one and left its key rates unchanged and gave no indication that the committee was preparing to raise or lower rates anytime in the foreseeable future. As always, the market reactions were much more interesting and unpredictable. In this case, bond markets barely changed, the U.S. stock market jumped, and Euro futures strengthened slightly against the U.S. dollar. Full Story
By: Bob Chapman, The International Forecaster - 6 August, 2008
The central banks are going bonkers to support the dollar, as we see wild spikes bringing the dollar back up every time it starts to go down after another dead cat bounce. This is collusion, plain and simple. And now oil is being hit, all to suppress the precious metals and to give the markets and the economy a boost before elections so scum-dog incumbents can have a shot at reelection. Lindsey Williams' scenario is good so far, but a drop to $50 a barrel for oil so quickly does not seem likely and may be disinformation, so don't let that scare you. Full Story
The HUI faced a severe sell-off last week and is trading now as if gold were trading at $700 levels. Such huge anomalies never persist for a long period of time so what gives, or we should see a sharp decline in the gold price or the HUI will catch up sharply from here. We've been through all this many times before. Full Story
The strong possibility exists that the financial markets in the coming months and years will not cooperate with the boomers plans for retirement and they will thus not have the funds, either in a retirement check or in the retirement plans, IRA's or 401K's to venture, south of the border or anywhere else. Even some of the residents here now are finding the need to increase their incomes and many have ventured into the real estate and other businesses which are not always rewarding. Full Story
I am not going to write much as the charts tell all. Below are charts of gold in all major currencies matched with the USD, with simple trend lines accentuating the strong, solid and still young bull market. There is nothing to worry about and my thoughts remain unshaken, take this gift and deploy more capital every time it is given to you. Full Story
Clearly the gold price has not moved into the strong upsurge expected for Large Wave III, as postulated in Update 20. The decline that started at a London PM fix of $986.0 on 15 July 2008 has already reached $882.0 (5 Aug 2008), a decline of $104.0 or 10.5%. Full Story
As surely as holders of pay option mortgages will default, so will the U.S. government default. But there is a huge difference. Mortgage lenders can evict mortgage holders in default and gain ownership of their houses. There is no way that "lenders" to the U.S. government can evict the government for non-payment. Full Story
By: Richard Daughty, The Mogambo Guru - 6 August, 2008
Well, as far as I can tell, diving back into my dark little cubbyhole in renewed fear, the economy is already in shambles because of inflation in consumer prices, and my marriage, my life and my career are in shambles because everybody hates me and is out to get me, and that is why I seem to be broke all the damned time. Full Story
If credit is so tight for commercial borrowers, why are so many households still deluged with mail from banks offering credit-card money at 3.99%? The answer came to light yesterday in news suggesting that the source of such loans is about to dry up. Banks have typically raised cash for revolving charge loans by issuing bonds that as recently as March topped $10 billion per month. Full Story
By: Bill Bonner & The Daily Reckoning Crew - 5 August, 2008
-Watching General Bernanke fight a losing battle…when the go-go businesses go bust… -A nationalized auto industry? Hey, it's happened to housing…looking for stray coins under the seat cushions… -Pity the poor baby boomers…downsizing in a hurry…and more! Full Story
By: Julian D. W. Phillips, Gold/Silver Forecaster - Global Watch - 5 August, 2008
Each day we hear another piece of bad news on the banking front. It was called the sub-prime crisis, then it was the credit crunch; what we have in reality is a full blown banking crisis. Where in the past credit was easily given, full-blown consumer spending was encouraged and when it went too far, bankers saw asset values were dropping below loans against them and banks started to go bust. We are now seeing banks sued by the New York Attorney General. Hardly an environment in which confidence in the banking and financial systems can be retained? Full Story
Taken together, this insight suggests that “someone” or some group is in possession of a vast sum of [illicit “off balance sheet” perhaps?] money – so large, if moved, to do serious damage to the U.S. economy – according to someone [Bill Christ] highly qualified to have an opinion on such matters. Full Story
After what has seemed to many investors to be the “longest year”, stocks have been going through a volatile period which some interpret to be bearish. There are still many analysts who are quick to label the current market phase a temporary pause on the way to a bigger stock market cascade. Contrary to these expectations, the market tape is sending a different message as we’ll establish in this commentary. Full Story
Lets objectively administer a pap test in search of our own malignant evidence. If we start with the demise of the gold standard in 1972, it isn’t difficult to extrapolate a deterioration in the values of business in America coincident with the removal of fiscal discipline embodied by the gold standard. Full Story
It is Fed day and all is right with the world. Stock market up in pre, banks and financials have stopped tanking, oil is in the dumper as the commodity complex tanks - taking gold & silver with it. Meanwhile, Bernanke & Co. pretend they have a decision to make on interest rates. The game continues. Full Story
Our economy and banking system is so complex and intertwined that no one knows where the next shoe will drop. Politicians and government bureaucrats are lying to the public when they say that everything is alright. They do not know. Therefore, it is in our best interest to cut through all the crap and examine the facts with a skeptical eye. Full Story
The sum and substance: the Indian demand for the noble metal is unlikely to pick up from now on. Given the condition of the Indian economy, I would not be surprised that Indian imports soon - and it can be pretty soon - fall to about 500 tonnes from the current about 700-800 tonnes per year. This may worry some gold mining industry captains and some sworn gold bugs, but honestly they should not be gloomy. There are many other factors out there to propel GOLD: God's Own Currency. Full Story
The euro, the yuan, the yen, and the dollar are The Four Tires Of The Apocalypse, an event that recently appears to have come out of nowhere. It didn’t. Its apparently sudden appearance is new only to those who wished to see otherwise. Full Story
The phrase ‘systemic collapse’ is rarely used in financial circles, but with housing collateral values in continued decline, there is an enormous financial margin call rippling through the system. In the OTC derivative market, values are unable to be quantified as increasingly spreads are widening and illiquidity becomes more acute. An accident is at hand. Full Story
By: Richard Daughty, The Mogambo Guru - 5 August, 2008
And given that banks, when selling foreclosed houses, actually net about half the price of the mortgage, that means to me that houses are, by extension, overpriced by half, and as such will surely not be rising in price for a long, long time to come. Full Story
With recession coming on full-bore, bank failures starting to snowball, and no end in sight for falling home prices, why is it that we expect the Dow Industrials to be trading somewhat higher come November? For starters, you have to realize that Wall Street and the stock market exist in a warp totally apart from perceived reality. Full Story
Recent data confirm a recurring pattern in the price of silver, namely, a clash between what is occurring in the paper COMEX futures market and the physical market. To keep it simple, recent speculative selling of long positions has overwhelmed physical buying, resulting in the short term sell-off. Full Story
By: Bill Bonner & The Daily Reckoning Crew - 4 August, 2008
-Financing the "golden years" with base metal…when automakers get hauled to the junkyards and sold for scrap… -Bobbing on a frothy sea of 'money'…the influential fat paws of market manipulation… -Domesticating the jungle of capitalism…a 'smoking gun' that saves the yankees' case…and more! Full Story
By: Frank Holmes, U.S. Global Investors - 4 August, 2008
Are we at the end of the commodity bull market or does this battered sector offer an attractive buying opportunity? That’s the question on the minds of everyone trying to navigate one of the most complex and volatile markets we’ve seen in years. The continuing economic slowdown (particularly at home and in other G-7 countries), combined with more than a year of bleak news from the financial sector, has left investors dazed and desperate. Full Story
Just a few quick words this morning accompanied by a smattering of charts to keep you updated at where we are with the present correction in precious metals. In a nutshell, any further weakness in precious metals shares will increase the likelihood of one more Minor Degree wave lower being necessary before the larger correction is compete. Full Story
The implications are that central banks across the globe are adopting similar money printing bailout strategies of accumulating ever larger amounts of government debt via record breaking budget deficits. The surge in government debt will undoubtedly impact on the bond markets as it is inflationary and implies stagflation which is being confirmed by recent economic statistics. Full Story
We are now in a period of great opportunity for gold and the other commodities markets. And perhaps the best way to approach this is via John Maynard Keynes’ statement that the markets are moved by fear and greed. That is, Keynes was saying that the markets were irrational and moved by emotions. Full Story
Zig, zag, but more zag than zig. Very strong support at the $850 level and that may be where gold is headed. Will it hold there? Most commentators suggest that a new bull move is eminent. That is not yet in the charts so we’ll have to just keep on watching. Full Story
Like the splinters in my finger, the junior and exploration market has been painful as of late. Almost painful enough for some many to lose faith and sell. I am told the pain is just too much and asked why it hurts so much. There are many reasons, naked short selling being the most aggravating but the coming wave can only be slowed not stopped. Full Story
1st Hour: Headline news & Market Weatherman Forecast. Spotlight Stock Picks with big dividends. The International Forecaster and Host Chris Waltzek answer listener questions. 2nd Hour: - Peter Schiff - Bruce Bragagnolo - Louis Navallier Full Story
By: Bob Chapman, The International Forecaster - 3 August, 2008
The sheople love to be led, even if they are led by a ravening pack of wolves that will systematically devour them over time. This pack of wolves, wearing poor, imitation sheep suits, love to feed the sheople their favorite food, which consists of the honey-dripping lies which are used to fatten them up for the slaughter. Full Story
By: Dr. Ron Paul, U.S. Congressman - 3 August, 2008
Statement before the Financial Services Committee, Subcommittee on Domestic & International Monetary Policy, Hearing on Examining Issues Related to Tactilely Distinguishable Currency, July 30, 2008 Full Story
This week I am in Maine on vacation with my son, and next week is my daughter Tiffani's wedding, so for the next two weeks I am going to send an updated version of a speech I have been giving the past few months on what I think is the likely potential for the rise of a brand new asset class. It is too long to be sent as one letter, so we will start with the first part today and finish with the second part next week. This first part can be read as a standalone letter. Full Story
Official data are starting to reveal what close observers have suspected for some time. Layoffs are increasing. Unemployment is on the rise. It now stands at a four-year high of 5.7 percent, which is not high by historical standards, but it stings when you consider that the rate dipped below 4 percent in the late 1990s. Full Story
By: Richard Daughty, The Mogambo Guru - 3 August, 2008
I say that the lesson to be learned here is that we have been betrayed by Congress, again and again, as it screws up everything it touches, which is what government routinely does, which is why it is obvious that the Constitution never meant for them to be doing this. Full Story
The following charts are from this week’s complete market wrap, which can be viewed in full by clicking on the link to the Honest Money Gold & Silver Report website listed at the bottom of the page. Full Story
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