Impeccably reliable sources have informed me that as recently as Sept. 30, 2009 – the last possible day of trade in the Sept. 09 gold futures – a number of well-heeled market participants “bought” substantial tonnage worth of gold futures on the London Bullion Market [LBMA] and immediately told their counterparties they wanted to take instantaneous delivery of the underlying physical bullion. Full Story
HYPERINFLATION is widely accepted as a period of out of control price rises, doubling the cost of living inside three years. It occurs when a currency loses its ability to store value, encouraging long-term savings to pour into circulation where they swamp the much narrower supply of consumer money, and cause the whole lot to lose purchasing power. Full Story
You know that house down the street that’s for sale? The gigantic castle of a house, with an uncut lawn, a few weeks away from foreclosure? That’s your fault. After all, it was you who loaned the former owners the money for the house they could never afford. Full Story
By: Daniel Aaronson and Lee Markowitz - 9 October, 2009
US stock markets continue to rise as gold is breaking out and the Dollar is breaking down. Commentators are joining the bandwagon that believes equities are a way to increase one’s wealth while the Dollar is falling. While stocks may ultimately rise due to a collapsing currency, that will only happen during hyperinflation. Full Story
You know you’ve reached the top in a bull market when the shoeshine boys and taxi drivers who heard a hot tip are clamoring to get in. Two years ago when people in cocktail parties in Florida were talking about how you can’t go wrong in Miami real estate, you knew it was time to sell. That’s why an article like the one that ran last week in the respected, mainstream Wall Street Journal helps me sleep well at night with the knowledge that precious metals still have a long way to go. Full Story
Successful Investors must become Long-Term Position Traders, with their trading choices informed by the Interventionals, as well as the Fundamentals and Technicals. Moreover engaging in the Actions suggested above can help prevent The Cartel’s obtaining Superpower status, and aid in achieving wealth protection and profits as well. Full Story
By: Adam Hamilton, Zeal Intelligence LLC - 9 October, 2009
With gold forging glorious new record highs (in nominal terms), traders’ interest in this metal’s 8-year-old secular bull is ballooning rapidly. And like most commodities, the lion’s share of gold trading happens in the futures markets. So the tactical gold-price action at any given moment is usually dominated by futures buying and selling. Full Story
The Dow to Gold ratio is something I harp on again and again. Why? Well, two reasons. The second I'll mention later. The first reason is that it is a very big step for stockbugs to step away from their addiction with all things Wall Street. The long term chart of the Dow to Gold ratio tends to induce cognitive dissonance in stockbugs and may help them get to rehab. Full Story
By: Brady Willett and Dr. Todd Alway - 9 October, 2009
For the record, ultra-safe variants of ‘cash’ have outperformed risky U.S. equities over the last decade...and yet no one seems to care. Buy equities, real estate, commodities, or art because their future fortunes are perpetually intertwined!? Full Story
By: Sol Palha, Tactical Investor - 9 October, 2009
The info below provides an interesting view of what took place in the 1929-1930 time periods. If one had to take away the dates, one would think that the writers were referring to current events. History clearly repeats itself and the stories posted below quite clearly illustrate this point. Our comments are posted in blue. Full Story
By: RussiaToday, Max Keiser, and Robert Fisk - 9 October, 2009
World's major powers including China and Russia don't want to 'finance' American military adventures anymore. That's the view of Max Keiser, finance critic and former stockbroker. He says China and Russia are interested in collapsing the US economy by rejecting the dollar. Full Story
Gold looks as though it is following its 15-year pattern, which typically calls for a spike high in the first third of the month. Given the current rally, I expect to see this spike at anytime. No, I don’t want to get short. I want to use a price break to get long. Full Story
By: The Energy Report and Fadel Gheit - 9 October, 2009
Ranked #3 on Forbes' Best Brokerage Analysts for 2009, Oppenheimer Senior Analyst Fadel Gheit sat down with The Energy Report to shed light on existing conditions in the oil and gas sector. In terms of oil prices, "financial players are more in control now than oil companies or OPEC," according to Fadel, who is currently more bullish on gas than on oil. "Despite the fact that gas stocks gained significantly this year," he says, "we think the upside potential remains great." Full Story
It is apathy and don’t-care which are bringing on catastrophic results in our nation at this time. People should get off of their duffs and start caring and start doing something positive about the corruption in our government and in the financial markets—before it’s too late. Full Story
We’ve had a rollicking good time in the Rick’s Picks forum lately as inflationists sought to rise to the level of debate in explaining why deflation is unlikely. You can judge for yourself how well they succeeded, but on our scorecard, at least, they didn’t win a round. Full Story
The story hit like a thief in the night, even bearing Biblical proportions. The end of the exlusive sale of MidEast oil in USDollars, the rise of Russian and Chinese influence in the Persian Gulf, the rise in importance for the Intl Monetary Fund basket of currencies, the final clarion call for the free ride by Americans on the Dollar Credit Card, and hidden implications that the Saudis must shop for a new security lord in the region with broad military might, these are revolutionary steps with profound geopolitical implications. Full Story
By: Bill Bonner, The Daily Reckoning - 8 October, 2009
Well, what do you expect? The United States added $1 trillion to its monetary base in the last year or so. The federal government is running a deficit of $1.7 trillion this year. And along comes Barack Obama with an idea to stimulate employment – spend more money! This time, Obama’s plan is a kind of ‘Cash for Workers’ program…in which businesses get a tax credit for hiring new employees. Full Story
Is capitalism the greatest threat to the financial viability of state and local governments, major corporations and the retirement dreams of tens of millions of investors around the world? Or is capitalism the only force that can save pensions, governments and individuals? Full Story
With their money and banking system having presented them with a case of system failure by disintegrating before their eyes and taking the economy with it, America’s economic experts who support and run the FED’s central banking–inconvertible paper dollar system cannot place the blame for this where it belongs, which is on the system itself, its supporters, and those who make its policies. Full Story
The phrase "bait and switch" refers to a sales practice of advertising a desirable item at a low price to get potential buyers into a showroom. Then the salesman tells the shopper that the firm has run out of the sought-after item. The salesman then uses his sales skills to sell the shopper a more expensive item. This practice is illegal. It is a form of fraud. It steals time from the shoppers. Bait and switch is at the heart of all fractional reserve banking. It is not illegal. It is the heart of the modern economy. Full Story
Two days ago, the price of gold broke out to a new high and we are delighted with this result. As you will recall, we were expecting an upward breakout in gold and it looks as though its price will now surge over the following months. Full Story
By: John Browne, Senior Market Strategist, Euro Pacific Capital - 8 October, 2009
On October 6th, The Independent newspaper of London set off shock-waves around the world with a report that secret meetings were held between the OPEC states, China, Russia, and others, in which the participants charted a course toward a new world reserve currency. Not surprisingly, the U.S. dollar nosedived on the news. The rout was only stemmed by Saudi and Chinese officials publicly denying the story. Full Story
This morning in London the gold price hit an all-time high in non-inflation-adjusted dollars of $1047. While some who hold gold might be rejoicing, I do not view this as good news at all. The campaign still has plenty of people to reach in this district, and may run out of time since we certainly do not have the funds to launch a major ad campaign. The all-time high in the gold price is a warning of dire times to come as it merely indicates that the dollar's purchasing power is at an all-time low. The next phase of the dollar crisis may be on the doorstep. Full Story
Commodities have and continue to be a fantastic trading vehicle for those who can stomach volatility. After last year's market crash most commodities pulled back to normal if not lower than normal trading ranges. This allowed us to enter the market at 10+ year lows for natural gas. Full Story
By: David Galland with Neil Howe - 7 October, 2009
The Fourth Turning is an amazingly prescient book Neil Howe wrote with the late William Strauss in 1997. The work, which describes generational archetypes and the cyclical patterns created by these archetypes, has been an eye-opener to anyone able to entertain the notion that history may repeat itself. At the time the book was published, the Boston Globe stated, “If Howe and Strauss are right, they will take their place among the great American prophets.” Read this visionary interview published in The Casey Report, and see for yourself. Full Story
When necessities are in short supply people behave in the opposite way to normal. Instead of reducing demand they tend to panic and stockpile food for safety, perversely increasing demand on those higher prices... Full Story
By: Bob Chapman, The International Forecaster - 7 October, 2009
This all comes back to 8/15/71, the day the US left the gold standard. The only way the dollar can be saved is by a return to the gold standard. Unfortunately that won’t and can’t happen because we do not believe the US has any gold left and even if they did they still wouldn’t have a gold backed currency. Full Story
If monetary theory is accurate, it is a subset of general economic theory, which must also be accurate. Monetary theory is not an independent theory of human action that is divorced analytically from a general theory of human action. Full Story
Ron Paul has a bestseller. That sounds so nice I’ll say it twice. Ron Paul has a bestseller. His new book, End the Fed, is number 30 on Amazon as this is written -- with 167 mostly glowing reviews -- and his reception last week on Jon Stewart’s Daily Show was hugely positive. Stewart, more-or-less a left/libertarian, clearly sees Paul as one of the good guys, and his audience seems to agree. Full Story
The US economy has been in crisis since 2008 and despite optimistic statements by officials and commentators there are no fundamental signs that the crisis will end in the foreseeable future. Current economic data suggests a number of diverging and unsustainable trends. The US economy has suffered a real estate collapse, a stock market crash, a banking crisis, a near systemic collapse on a global scale, a credit crisis, the worst economic downturn in the US since the Great Depression, and an unprecedented global recession. Full Story
Outside of minimum wage jobs and Wal-Mart poverty line work, today’s US economy appears unable to create good jobs. If the US economy cannot create new jobs, Americans will be in no position to save and invest for their futures, nor will they have any purchasing power that would boost the economy. Full Story
This is a sort of tit-for-tat rebuttal of a classic hatchet piece on Gold as an investment class that recently appeared in the Wall Street Journal (see the article here). All plagiarism is intentional to show the ridiculousness of such articles and if you haven't read the original article, this rant may not make a whole lot of sense. Full Story
By: The Gold Report and Steve Parsons - 7 October, 2009
Consumption, speculation and growing demand by emerging economies add up to a rather rosy outlook for copper, says Steve Parsons, Senior Research Analyst for Wellington West Capital Markets. In this exclusive Gold Report interview, Steve explains how investors might capitalize on a theme that's picking up momentum on the copper concentrate side of the industry. Full Story
On the Rick’s Picks web site yesterday, we featured a link to Mish Shedlock’s latest, lovely essay concerning deflation. We thought we could avoid getting drawn into the debate ourselves, but it was not to be: the topic touched off quite a firestorm in the forum that began with this introductory note on the home page... Full Story
GORO should be in gold production by the end of the year. If they can show cash costs of $100/oz, the stock will push into the teens. At $1,000 Gold, Year 1 cash flow expected to be $60 million and growing to $170m by Year 3. GORO currently has a $338m market cap. Full Story
The breaking of the old record high price for gold today is no surprise to long-time critics of American and thus global financial policy. Regardless of how much spin you can generate from a compromised media, the laws of supply and demand re-assert themselves inevitably. Full Story
The impending gold breakout has been so long in the making that it has engendered a "we'll believe it when we see it" mentality amongst most market participants. What this means of course is that most will miss out on the big easy gains that will accrue during the dynamic phase of the next major uptrend and will turn up late at the party, as usual. We ourselves have had lingering doubts engendered in large part by the perceived risk of a dollar rally, but these doubts are now dissipating for reasons that will be set below. Full Story
In analyzing the sentiment towards gold stocks, I am going to start with a tactic from Bernie Schaeffer of Schaeffer’s Research. I believe he espouses the idea of looking at the consensus view of analysts. If most analysts are bullish on a stock or sector, then where is the money going to come from to push shares higher? Conversely, if a sector is rising but the analysts are not bullish, they can change their mind and that provides further buying power. Full Story
Who's at fault is academic. The issue now is that this artificially low interest rate environment can set off a hyperinflation chain reaction, just as it did in Russia once market forces prevailed. Not much is different from previous hyperinflation episodes, save that the melting of a glacially frozen stockpile of $50 trillion in government bonds performs the role traditionally played by the printing press. Full Story
Humanity’s gold lust has been dormant for nearly a century and when it awakens it will be extremely vehement and go viral. Those who own gold know of what I speak. The yellow metal seems to call out to the inner conscience and resonate with our DNA. And that is perhaps the most bullish aspect of this bull market. Gold has been the only safe haven and how much of the general public has actually touched a gold coin let alone owns one? Full Story
Today our Reserve Bank raised interest rates here by 0.25% to 3.25% making an AUD / USD carry trade a no brainer. That puts the AUD interest rate at 3% over the US official interest rate. This will raise the AUD against the USD on massive demand in the coming months making Australian gold stock purchases into a double bonus for US investors. Full Story
Rumors citing vague banking sources in the Far East have surfaced in The Independent newspaper that the Gulf States are looking at switching from the US dollar to trading oil in a basket of currencies and gold. Full Story
The economy imploded a year ago. It was traumatic and devastating to many, but it wasn’t really surprising to serious gold investors. Those who seemed most surprised should not have been: reporters in the mass media who are supposed to be our guardians. They had ignored, and even suppressed, explicit warnings about everything that came to pass. Full Story
By: Richard Daughty, The Mogambo Guru - 6 October, 2009
One of the most interesting news items I’ve found was on the cover of The Financial Times, where I learned that a guy named Lahde “made tens of millions of dollars from betting against the financial and property sectors during [the] past two years”, and he now wanted to thank “the low hanging fruit, i.e. idiots whose parents paid for prep school, Yale, and then the Harvard MBA” who made it all possible for him to find enough suckers. Full Story
Stanford University is attempting to unload $1 billion worth of hard-to-sell assets -- a treacherous undertaking that the Wall Street Journal said was being closely watched by private equity. That's an understatement, since hundreds of the world's biggest institutional and sovereign investors have portfolios very similar to Stanford's, and many of them will be equally desperate to raise cash in these straitened times. Full Story
Could how you define inflation have a major affect on your financial security in these times of financial crisis? What if one definition of inflation could show you whether your net worth went up 20%, or down 20%, or whether it plunged 94%? How about if the other definition takes those same three circumstances, but is incapable of distinguishing whether your net worth goes up or goes down? Full Story
Gold, silver and commodities moved higher this past Wednesday on the back of confusing data about the current state of the "green shoots recovery". Gold was able to handily regain the $1,000 handle in a clear sign that this level, at least on a microscopic scale, no longer represents a psychological bulwark. Full Story
As suggested in our last meeting, and supported in continuing technical analysis by Dave (which you can review at your convenience on the site), equities have yet to top out, however we are likely within just a few days / weeks of such an event. Full Story
By: Andrew Mickey, Q1 Publishing - 5 October, 2009
The market is set to make a move…a very big move. And it could be in a direction that would surprise and prove very costly to a lot of investors. The markets have been struggling for the past week. Yesterday’s 200 point drop in the Dow was quick and widely anticipated. It’s the strongest test the bulls have had in months. So far, they’re not faring to well. Full Story
A continuation of the dollar’s decline in the face of slow growth and yawning budget deficits – nearly $11 trillion between 2009 and 2019, according to White House estimates – would provide a significant tailwind for globally-minded investors. Full Story
Gold made a quick dip to the $990 area on Friday and then whipped around to close above $1,000. We cannot completely rule out one final pull back to $960. However, the U.S. dollar is in free fall. So any dip in gold will be very brief. Full Story
The official endings of Summer and The Silver Summit came early last week, with the departures of blue sky, warm temperatures, and of our dear friend Georg Stangel, of Stein-am-Rhein, Switzerland, who comes to the Summit every year and then repairs to Wallace for a few days of merriment with his friends. Full Story
In conclusion, gold bugs need to see a rally beyond the 1035-1070 area in gold and then we need to keep an eye out for the eight things I have listed above to ensure that the rally will have staying power. Full Story
With what has happened in the world of late and what will be unfolding in the next 5 years or so those few investors who fully understand the impact the current economic situation is going to have on future inflation, the USD, interest rates, the stock market, physical gold and silver and gold and silver stocks and warrants in particular are going to be in the unique position of being the benefactors of currently unimaginable returns and wealth. All they need do, as I like to say, is “Just prepare and prosper!” Full Story
Gold is behaving well technically and is, thus far, on course to break out to new highs soon. On its 3-year chart we can see how the upside breakout from the Triangle led to a run at the highs, where it stalled out and reversed as it arrived near the highs in an overbought condition and with its COT figures at an extreme level. Full Story
The precious metals have been correcting the previous rapid rally that took gold over $1,000, but the question here is if the bottom is already in. Based on the above analysis, it seems that PMs are likely to move a little lower before resuming their main direction – up. Full Story
By: Chris Powell, Secretary/Treasurer, GATA - 5 October, 2009
Your purchases will help finance both GATA's ordinary operations and our forthcoming freedom-of-information lawsuit against the Federal Reserve, about which we hope to have an announcement shortly. Full Story
“Gold Is Still a Lousy Investment,” proclaimed a Wall Street Journal headline over the weekend. Does this sound like sour grapes, or what? It ran atop a feature by Dave Kansas in weekend editions. Kansas, who used to work for Jim Cramer, is currently European markets editor for the Journal. We wonder what could have possessed him at this moment to do a hit-job on gold, since it is one of the only investment assets to survive the global asset crash of the last several years. Full Story
1st Hour: Headline news & The Market Weatherman Forecast. Spotlight Stock Picks. Host, Chris Waltzek & Bob Chapman discuss the Superstar Investors & answer listener's questions. 2nd Hour: -Robert Prechter, Elliott Wave International Full Story
By: Bob Chapman, The International Forecaster - 4 October, 2009
The bear market rally will soon be over. It rallied 1,300 Dow points that it should have. All the back up data as to why this is in process was included in the last issue. The rally induced many investors to stay long and they did recoup as much as 80% of their losses in some instances. Now it is time to exit and move into gold and silver shares. Probably the biggest key is that gold recently spent two weeks above $1,000 and we believe gold is prepared for a breakout that will take its price anywhere from $1,200 to $1,700 an ounce. Gold’s long-term reverse head and shoulders pattern, one of the most powerful patterns in charting is in a breakout mode. Full Story
By: John Mauldin, Millennium Wave Advisors - 4 October, 2009
This weekend I turn 60 and have been a little more introspective than usual. I am often told that the letter I wrote well over three years ago on ubiquity and complexity theory and the future of the economy was the best letter I have ever done. I went back to read it, and it has aged well. I basically outlined how a financial crisis would unfold, and now it has. Full Story
By: The Gold Report and Mickey Fulp - 4 October, 2009
Well-known and highly regarded throughout the mining and exploration community, Mercenary Geologist Mickey Fulp knows stocks as well as rocks. When he's not poring over financial reports, drill results and commodity trends, he's out in the field checking properties of some of the companies he follows—whether the treks take him just below the U.S.-Mexican border, over to Haiti or all the way to Armenia. In this exclusive Gold Report interview, Mickey reminds investors, "Do your own due diligence, dude." Full Story
The summer of 2008 and into the autumn was a bad time for investors in gold and silver with prices falling, and heavily so in the case of silver. This summer has been much better with gold emerging to break the $1,000 an ounce barrier and silver to poke above $17. Full Story
The incredible resilience the metals are showing caused the oft cited commercials to begin to run for cover. For gold they increased long futures contract by 4,585 and reduced short contracts by 7,791 as gold retraced below $1,000 late in the week of September 22 to 25. Will they have continued to cover shorts this past week is a question we will not know the answer to until next Friday. Full Story
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