The $20 Trillion-plus U.S. Debt and $100 Trillion+ downstream Unfunded Liabilities are one problem which has not been dealt with! Indeed, those debts are unpayable absent currency devaluation. And China’s unpayable Debt to GDP is 260%! So China can not be the Savior of the International Economy. How are substantial Tax Cuts Possible without substantially raising the Debt Ceiling? Full Story
The opportunity is coming, but acting with conviction now means you know the future. But you don’t.
Patience… and parameters my friends. Breakout or washout upcoming. But for now, it’s a whipsaw and it is advisable for gold bugs to have a list of quality items at the ready. Full Story
The bottom line is that political turmoil doesn’t necessarily translate into market turmoil or even a detectable market reaction. But major policy changes (or failures) can have significant short-term and sometimes long-term effects on markets. Full Story
Grant’s Almost Daily reports that despite the seemingly calm economic winds, “Banco Popular has managed to run the ship aground. In order to shore up their sickly balance sheet, the acquiring [Banco] Santander will issue a €7 billion rights offering to shareholders. Banco Popular’s equity and junior debt are wiped out, to the tune of €3.3 billion.” Full Story
Kranzler writes: "One/some/several 'entities' decided at 9:38 a.m. this morning that it was necessary to dump 14,315 contracts of paper gold. This is just the August contract. In total a lot more was unloaded. This represents 1.43 million ounces of gold. The Comex is showing only 900,000 ounces of 'gold' as 'registered,' or available for delivery in June, July, and August (assuming all of that gold is actually sitting physically in the Comex vaults as reported). If we make that generous assumption, 531,000 ounces of paper gold was naked-shorted." Full Story
One of the better indicators for gold is the ratio of the price of the U.S. 30 year Treasury bond to the U.S. Dollar Index. Gold rises and falls with this ratio because it encapsulates two important factors driving the gold price. When the dollar is falling while the bond is rising (and rates are falling), as we see currently, gold tends to rise. Full Story
To sum up, last month we stated that geopolitical tensions won 1-0 with prospects of further monetary tightening. Now, it seems that there is the Revenge of the Hawks. Geopolitical concerns eased, while the hawkish expectations of the Fed hike in June moved into the spotlight. Hence, it seems that the price of gold could remain under pressure until the U.S. central bank delivers a raise in interest rate (but it may rebound afterwards), unless Comey’s testimony will reinforce uncertainty surrounding Trump. Full Story
With the U.S. dollar taking another hit last Friday on a weaker-than-expected jobs report, gold closed up 1.12 percent for the day today. A Bloomberg gauge of 72 junior miners, however, has lost 15 percent since the end of January, and the rebalance of the VanEck Vectors Junior Gold Miner ETF (GDXJ), which I previously wrote about, is also having a depressing effect on many gold names. Full Story
Tuesday’s feisty rally exceeded the 1296.40 rally target we’d been using by a relatively modest $2.40, but because the pattern associated with the target is so clear, even as small an overshoot as occurred will have bullish implications going forward. Accordingly, I’ll suggest using the pattern shown (see inset), with a 1314.50 target that should be familiar to you. It is a logical minimum upside objective for the near term, but I wouldn’t count on it for precise stopping power. Full Story
As an addendum to yesterday's subscriber article, the topic of "time and sales" needs to be discussed. "Time and sales" is a very simple report that can be requested by literally anyone in any market. For example, when I was a young broker I had a large client who traded a minimum 10,000 shares at a clip. From time to time he would request a time and sales report to make sure his order was a good fill. Over a year's time and asking for close to a dozen orders to be checked, he did have one trade where he was ripped off for an 1/8th ($1,250) of a point (we still traded in 1/16ths and 1/8ths so you can guess how long ago this was). The order was rectified and the client was reimbursed. Full Story
Gold stocks have a strong tendency to rally after a rate hike, and the next one is probably only about nine days away. My approach is to be an aggressive GDX buyer on every ten cents per share price decline. Those purchases are made in anticipation of another rate hike. With a new Indian gold jewellery demand bull cycle now underway, that rate hike should produce a vigorous rally in GDX and most individual gold stocks. Full Story
Several U.S. states and the federal government are hopelessly insolvent. It’s something many bullion investors have known for years. The real question is when this reality will pierce the mainstream illusion that deficits, and the crushing pile of debt which accompany them, don’t matter. That moment drew closer last week when ratings agencies downgraded Illinois state bonds to one notch above “junk” status. Full Story
By: Steve Saville, The Speculative Investor - 6 June, 2017
This post is a rehash of something I wrote at TSI last September in response to the article titled “The Gold Standard and Debt Jubilee“. The article is a confused jumble of Marxist, biblical and capitalist ideas/assertions, but its gist is that we need both a debt jubilee and a gold standard. My views are that a gold standard is not a worthwhile objective and that a debt jubilee would be both an economic and an ethical disaster. Full Story
Surprising no one, President Donald Trump announced his decision to withdraw the U.S. from the Paris climate agreement last week, highlighting the depth of his commitment to keep “America First.” Also surprising no one, the media is making much of the fact that the U.S. now joins only Nicaragua and Syria in refusing to participate in the accord. Full Story
By: Steve St. Angelo, SRSrocco Report - 6 June, 2017
Well, it looks like the Wild West in Crypto-currency Land just got a lot more Wild. The Crypto-currency, CloakCoin, mentioned by Clif High during his interview with Greg Hunter on USAWatchDog shot up a stunning 300% in two days. Before Clif’s interview was published, CloakCoin was trading a for a little more than a buck… $1.029. However, today, its trading over $4… LOL. Full Story
It’s time to raise our sights, since AAPL has blown out of a consolidation pattern that took more than two weeks to create. My new rally target is 162.09, a Hidden Pivot resistance that will become an odds-on bet once AAPL has surpassed the midpoint pivot at 155.90 by perhaps $1.50 or closed above it for two consecutive days. This looks like such an easy romp that it’s difficult to imagine the rest of the FAANG stocks, as well as the Nasdaq, failing to rise over the 5-7 days it will require for AAPL (and AMZN; see my tout elsewhere on this page) to reach its target. Full Story
I was shocked by Friday’s announcement by the CFTC of an order and simultaneous settlement of manipulation charges in COMEX gold and silver futures. I first saw it in a Zerohedge article and subsequent articles on Bloomberg and in the Wall Street Journal, but all those accounts were somewhat off target compared to the CFTC announcement itself. This was one of those rare cases where the source announcement was much clearer than the articles describing it. I would ask you to take the time to read and reread the actual announcement from the CFTC, including both the press release itself and the complete order. Full Story
Well, since this is actually the first time we've had you on in 2017, Chris, to get started here I'd like to have you set the stage for us because many of us continued to be confused and bewildered by the resilience of these markets. So, first off, give us your thoughts on the first 130 days or so of Trump's presidency, and then how is it that the U.S. equities market continues to soar to new heights despite what appears to be massive overvaluation? Basically, assess for us what's going on in the political and financial markets here during the first half of the year as we start off. Full Story
Since 2008 the financial media has been proclaiming that the US was in a “recovery.” This argument was used to justify the insane monetary policy of the Federal Reserve, which maintained ZIRP for seven years and spent over $3 trillion in QE. Well, it turns out there was no recovery to speak of when it comes to jobs. According to a report posted on Friday, an incredible 93% of ALL jobs created since 2008 were in fact… based on accounting gimmicks. Full Story
The best performing precious metal for the week was palladium, up 6.17 percent. Consumer demand is rising for gasoline- versus diesel-engine powered vehicles, yet automobile sales have started to relax in recent months. According to Bloomberg, gold bulls outnumber gold bears this week as Trump probes are boosting safe-haven demand for the yellow metal. In fact, gold advanced to the highest level in nearly a month as Trump’s administration “grapples with revelations of mounting scrutiny into son-in-law Jared Kushner’s outreach to Russian officials,” Bloomberg continues. Full Story
We “went walkabout” over the past several years, largely deserting the Precious Metals sector for other greener pastures, because it has been performing so poorly, apart from a dramatic flurry during the 1st half of last year. However, the latest charts suggest that a major bullmarket is incubating in the sector and that it won’t be much longer before it starts. This being so it is time for us to return to take positions ahead of its commencement. Full Story
These updates to my list of “Seven Troubles Assailing the US Economy” are far too important to remain buried at the end of that article since many readers may not return to the article to check for updates. The summer economic crisis I’ve been predicting is building even more rapidly than when I reported a week ago. Full Story
About a year and a half ago, one would be hard pressed to find many bulls in the market, as the market was predominantly bearish. Back on February 10, 2016, bearish sentiment, according to the AAII Investor Sentiment Survey, was at one of its highest readings, hitting 48.7% (with only 24% responding as bullish), whereas it has a historical average of 30.5% bears and over 40% bulls. The February 10th measurements are considered to be relatively extreme bearish numbers. Full Story
The jobs report was disappointing. The prices of gold, and even more so silver, took off. In three hours, they gained $18 and 39 cents. Before we try to read into the connection, it is worth pausing to consider how another market responded. We don’t often discuss the stock market (and we have not been calling for an imminent stock market collapse as many others have). Full Story
Arch Crawford, head of Crawford Perspectives, outlines his take on the US equities bull market. He's concerned by the lack of breadth / confirmation in the broader indexes, such as the NY composite and Wilshire 5000. Alternative economist, John Williams of Shadowstats.com discusses the debt-asset based global economy. Our guest agrees with the conclusions drawn by a griping article, How Debt-Asset Bubbles Implode: The Supernova Model of Financial Collapse. Full Story
We admit it is difficult, but we are trying to push Donald Trump off as the lead-in. That is how “The Donald” is. He dominates the conversation. However, it is possible the focus should be on what appears to be a slowing in US job growth. The nonfarm payroll for May came in at a less than expected 138,000 jobs. The market had expected 215,000. Job growth is slowing on one hand; however, that was offset by a drop in the headline unemployment rate (U3) to 4.3%. Even when one takes into consideration the broader measure of unemployment (U6) that includes marginally attached workers and involuntary part-time workers, that measure fell to 8.4% the lowest in a decade. Full Story
Welcome to the new, improved, faster-to-read, better yet still-free Thoughts from the Frontline. My team and I have been doing a lot of research on what my readers want. The reality is that my newsletter writing has experienced a sort of “mission creep” over the years. Bluntly, the letter is just a lot longer today than it was five or ten years ago. And when I’m out talking to readers and friends, especially those who give me their honest opinions, they tell me it’s just too much. Full Story
By: Steve St. Angelo, SRSrocco Report - 4 June, 2017
Most investors who have been concerned about the massively inflated Bubble Markets and the Greatest Financial Ponzi Scheme in history, have been investing in gold and silver. However, a new kid on the block, called Bitcoin and the other crypto-currencies, have gained a lot of attention due to the huge increase in their prices over the past few months. Full Story
If looking at Gold only in a vacuum, it looks good. Its uptrend since the start of the year remains intact and it has pushed above its 50 and 200-day moving averages. It closed the week at $1280/oz and could test $1300 next week. But looks can be deceiving. Considering the US Dollar index closed at a 7-month low today, Gold is lagging a bit. Moreover, both Silver and the gold miners have not confirmed Gold’s recent rise. In fact, the miners are lagging the metals “bigly.” At the moment the miners are not so oversold but a reversal in Gold could be the catalyst that pushes miners to oversold extremes. Full Story
Ever since 2012’s failure of the ‘QE 3 rally’ in the precious metals it has not been fruitful to micro manage the gold sector, because that failure jump started a savage bear market that would need time to work out the excesses both in the sector’s investor base and in its mining businesses, which had become bloated and inefficient. That’s what bear markets do; they clean out the landscape to make it inhabitable for new investors one day. Full Story
As I was walking through the shopping district of Kingston-on-Thames yesterday, I was wondering whether the locals had gotten the memo that the country remained on "High Alert" in light of the Manchester bombings. Here I was in the middle of an historic "village," walking across the Clattern Bridge (built in 1293) along with thousands of British shoppers, laughing and joking, sitting in pubs, talking about the rugby matches and generally going about their regular daily business as if nothing had happened. Full Story
When was the last time you heard someone call for the abolition of government — government as we’ve known it? Why would anyone want to abolish government? Isn’t it necessary, at least for purposes of common defense and resolution of disputes? Since the absence of government is anarchy, wouldn’t we be at the mercy of gangs and warlords? Full Story
Quite the week for stocks as we continue to notch new highs after new highs. Get it while the getting is good. The metals also did great and gold is on the cusp of a big move. Everyday there is just so much political jargon it’s hard to ignore, but I do try my best. Full Story
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