When does a precious metal known for feeding off investors’ fears need the opposite of fear to move higher? Answer: Right now! Austin Kiddle, an analyst with bullion broker Sharps Pixley, asked the following question in a recent commentary: “Can fear refuel the investment demand for gold?” It’s a question many investors are now asking and well worth addressing. Full Story
By: Adam Hamilton, Zeal Intelligence - 10 August, 2012
With the US stock markets challenging a major multi-year high, investors are feeling pretty complacent these days. But unseen below the placid surface, a serious risk is arising from the depths. With each passing day, the odds grow that a new stock bear is imminent. As these merciless beasts typically maul the markets until stock prices are cut in half, they are dangerous threats that cannot be taken lightly. Full Story
Shocking but not surprising, is that attitude of Italy’s unelected Prime Minister Mario Monti that “Governments” should not be bound by the decisions of their democratically elected parliaments and should be free to act without regard to the decisions of their citizens. Full Story
Ah, the long, lazy, hazy days of summer: Here in Colorado, it's been a particularly hot and dry one, leading to one of the worst wildfire seasons in recent memory. As for 'lazy', that's a pretty apt description of the gold market, which has been confined to a range of just $66.36 since the summer solstice. Full Story
Summing up, there are virtually no positive signs for the white metal in this week’s chart except for the move above the 50-day moving average. This move was not accompanied by analogous breakouts in gold nor mining stocks, so we don’t view it as overly important. The silver-to-gold ratio indicates further weakness ahead. Full Story
By: Rick Ackerman and Doug Behnfield - 10 August, 2012
We’ve featured the sage thoughts of our friend Doug Behnfield here many times. In the report to his clients below, the Boulder-based financial advisor reaffirms his strong conviction that Treasury bonds are still the place to be – not for yield, which stinks, but for potentially significant capital gains if interest rates should trend lower as Doug expects. Full Story
There has been an explosion of interest and commentary these past few days as a result of a front page story in Monday’s edition of the influential Financial Times (of London). The story stated that the CFTC was set to drop its four year investigation into alleged silver price manipulation due to insufficient evidence to bring charges, according to three unnamed sources. I went to sleep Sunday evening when the story first appeared prepared to wake up to similar and confirming stories in other publications. Instead, there were no other stories confirming the case was set to be dropped; only strong statements that the FT was story was “premature” and “inaccurate in many respects” by a named source, Commissioner Bart Chilton of the agency. Full Story
It has been a year since gold began its downward biased consolidation out of the acute phase of the Euro meltdown and resulting hysteria. In that time, the deflation case was released from the jail that had been a heightened public fear of inflation (the pinnacle of which was in spring of 2011, a time when bond king Bill Gross was very famously short long-term US Treasury bonds). Full Story
The consolidating "Symmetrical Triangle" has now morphed into a more bullish triangle. An "Ascending Triangle" is the most bullish triangle pattern and we are somwhat in between. There is a sign of increasing demand in the charts. Full Story
Recently, the leftist London Guardian posted an article against the nineteenth-century gold coin standard. The author, who seems recently to have begun shaving, has provided a highly useful summary of the Keynesian case against the gold coin standard. His article is a fine mixture of familiar old canards and creative new errors. His name is Duncan Weldon. Full Story
The central banks of the world all still sit on huge hoards of gold in their vaults, some have silver occupying a lot of space relative to its worth. It represents a value that cannot be destroyed whatever sort of mess a government makes of the economy. Full Story
By: Chris Powell, Secretary/Treasurer, GATA - 9 August, 2012
Powerful as central banks are, the basis of their power is only this refusal to question, to undertake the most ordinary journalism. The only thing that sustains them is the failure of journalism -- the failure of The Wall Street Journal, the Financial Times, The New York Times, the London Telegraph, the Associated Press, Reuters, Bloomberg News, and so forth -- to demand of them: Exactly what are you doing in the markets, and why? Full Story
Jim Puplava has robust convictions… The CEO of Financial Sense News Hour, Jim is a man you should listen to carefully if gold factors in your portfolio or if you are thinking about adding gold anytime soon. In this interview, Jim talks about how the dollar affects gold prices. Full Story
By: The Gold Report and John Hathaway - 8 August, 2012
John Hathaway, senior managing director of Tocqueville Asset Management, does not particularly trust banks to keep stores of physical gold safe and segregated. Indeed, he considers his black lab Jake a better watchdog than the SEC. That is why he favors the SmartMetals program from Hard Assets Alliance, a new service launched in July. Full Story
By: The Gold Report and Marshall Auerback - 8 August, 2012
While timing exactly when the rebound will happen is impossible, Marshall Auerback, director of Pinetree Capital, believes now is the time to pay the gold market renewed attention. In this exclusive Gold Report interview, he explains why the gold market is more interesting than in the recent past and shares what he would do if he were chairman of the Federal Reserve. Full Story
By: Richard Daughty, The Mogambo Guru - 8 August, 2012
In fact, every time I turn around, there more corruption, more theft, and always someone else not to trust, which is, I am sorry to say, always "par for the course" at the end of long monetary booms, where a continual flood of new government money, year after year, enticed more and more greedy people to commit corruption upon corruption, deal after deal, decade after decade, until the misshapen economy evolved into a big, nasty spider's web of debt, lies, thefts, blackmail and worse. Full Story
Anyone betting that the global financial system will continue to muddle along indefinitely deserves to reap the whirlwind that’s coming. As the rest of us well know, the international banking system is being kept afloat solely by political lies, stupidity, corruption, greed and, most of all, egregiously misplaced confidence. It would seem to be only a matter of time before the rotted timbers of this belief system give way. But what will be the catalyst? Full Story
What will happen to the price of gold if Helicopter Ben does not dump more bushels of greenbacks from the sky? Well, the price of gold will still rise. A major reason is the fact that money is seeping in to the economy from a massive store held as “excess reserves” by member banks of the Federal Reserve system. These funds are released into the economy when the banks lend or create new demand accounts. Normally, adding money into circulation stimulates economic activity. But we also know that increasing the supply of money when the demand for money is low, as is the case today at 1.5% GDP growth, leads to higher prices. Full Story
In the investment markets, traders will always try to use new technology to gain an edge, counter-traders will always seek ways to negate it, and government will always invent "fixes" that are a step behind the times. For our readers, many of whom invest in a company for weeks, months, or years, HFT will make little difference. But to be on the safe side, always place limit orders, never market orders. Full Story
To view the big picture for gold, please click here now. Gold has been consolidating for almost a year. Two key symmetrical triangles have formed, and they appear to be acting as the “firing pins” that will help gold begin a major price advance. Please click here now. You can see that gold pulled back towards the middle of the green triangle, and then quickly bounced higher. Full Story
By: Peter Schiff, CEO of Euro Pacific Capital - 7 August, 2012
The past week provided clear lessons not just in how central bankers have a limited ability to positively influence the economy but also how they are limited in their capacity to deliver the shortsighted policy actions that investors currently crave. The developments should provide new reasons for investors and economy watchers to abandon their faith in central bankers as super heroes capable of saving the economy. Full Story
Has it bottomed? Is this it? Of course, I’m talking about gold. I don’t know if the bottom is in, but I think we’re getting close. How do I know? I don’t. However, I am a huge believer in sentiment. Sentiment is just absolutely awful. Full Story
By: Steve Saville, The Speculative Investor - 7 August, 2012
Things are more complicated for the ECB than for the Fed. The Fed can essentially do whatever it likes as long as what it likes isn't in conflict with the short-term goals of the US federal government, but the ECB can't support the bonds of one EZ government without blatantly imposing additional costs on the taxpayers of other EZ governments. It therefore often finds itself torn between the conflicting goals/desires of different governments. Full Story
Investors have not woken up to it, but last week may have been a game changer. European Central Bank (ECB) President Draghi took tail risks out of the Eurozone, while at the same time forcing closer fiscal integration. He did it all while keeping the ECB out of some political minefields. It's pure genius. The initial market reaction suggested he might have lost a battle, not realizing that he is winning the war. Full Story
We-buy-gold shops have become a common sight in the streets of Europe this year from Munich to Milan and it is not hard to find a second-hand shop doing tsame in the UK. This is a good business for the shop keeper. Scrap metal offers a 20-30 per cent margin to the trader and higher if they push it. The loser really is the seller who has an excellent investment for the next couple of years but gives it up now for less than it is worth. Full Story
By: The Gold Report and Edward Karr - 7 August, 2012
Edward Karr, CEO of Geneva-based RAMPartners, favors a disciplined, patient and steady approach to investing in junior gold mining companies. In this exclusive interview with The Gold Report, Karr shares his thoughts on the European crisis and its effect on gold prices. Full Story
By: Julian D. W. Phillips, Gold/Silver Forecaster - Global Watch - 6 August, 2012
It’s becoming clearer and clearer that there is a large blind spot in the minds of financial people regarding this probability. Only financial men who have been in the markets for 40+ years understand what can happen. Since then and until 2007, financial men in general have lived in a growing, constructive world that has bred a comfort zone that’s still the norm for them. But we’ve entered a decaying zone, one replete with disappointing financial news and sagging structures that repeatedly fail to meet expectations. Full Story
By: John Browne, Senior Economic Consultant at Euro Pacific Capital - 6 August, 2012
In the last week of July, ECB President Mario Draghi attracted investor interest worldwide by saying that he would do "whatever it takes" to solve the Eurozone crisis and, in the process, save the euro. Markets rallied as investors concluded that Mr. Draghi could only be referring to the financial heroine of quantitative easing (QE) and the transfer of toxic Eurozone sovereign debt assets from troubled private banks to EU taxpayers. This mini rally built on momentum that had previously been fueled by belief that Fed Chairman Bernanke would imminently announce a further round of QE in the United States. Full Story
One need not be a proverbial 'rocket scientist' in order to calculate the sustainability of our bloated economies anymore. The information required is readily available on the Internet. You only need the willingness to see things in their proper light and look in the right places. There's the rub however. With so many now dependent on the bubbles and balloons that are created by fiat currency economics it appears far too many have a vested interested in viewing circumstances through a bureaucrat's prism, which is now becoming so perverse that only the true reprobates are cable still maintaining status quo storyline. Full Story
“The issuer’s promise” is a phrase I have used recently to describe the backing for fiat currencies. The purpose of this article is to define it further, given that it is increasingly likely to be challenged in the foreign exchange markets with respect to the euro. Full Story
3 weeks, that's how long the bulls have left before stocks roll over and begin the next intermediate degree decline. That being said, the next 2-3 weeks should yield see some very healthy gains in virtually all asset classes. Why is that you wonder? Well, it’s because the dollar has begun moving down into an intermediate degree correction which will, in the next few weeks, fuel the ‘risk-on’ trade. Full Story
Global rally potential is all about arresting the deflation case for a counter trend expression of bullishness. Some of my inflationist friends will disagree, but I believe that the deflationary condition is the dominant backdrop (periodically fought by inflationary policy making) and that the admittedly valueless USD can see future upside. Full Story
Featured Guests: Nick Barisheff: Author of $10,000 Gold: Why Gold's Inevitable Rise Is the Investor's Safe Haven. Harry S. Dent Jr.: Author of the The Great Depression Ahead. Full Story
By: Chris Powell, Secretary/Treasurer, GATA - 5 August, 2012
Few financial newsletter writers work harder than Jay Taylor, editor of J. Taylor's Gold, Energy, and Tech Stocks newsletter (http://www.miningstocks.com/). Taylor not only provides weekly analysis from a hard-money point of view but also produces an Internet radio interview program on which GATA Chairman Bill Murphy and your secretary/treasurer have appeared and speaks on financial television and raido programs and at financial conferences around the world. Last week Taylor was appearing on Business News Network in Canada and his latest letter describes how he was urged not to mention GATA on the air. Full Story
Back in April we were a bit presumptuous, believing the gold stocks would soon bottom. The ongoing correction was a water torture decline that avoided capitulation. Finally, in the middle of May we were confident that a major bottom was at hand. We argued that the market would make a higher low in July or August. Well, the market bottomed that week and the shares are now on the cusp of a potential double bottom. Full Story
By: John Mauldin, Millennium Wave Advisors - 5 August, 2012
A few weeks ago, Ed Easterling and I updated the work we published almost ten years ago about secular bear and bull markets in chapters 5 and 6 of Bull's Eye Investing. This week I am in Maine at the annual Shadow Fed fishing trip (for those of us whose invitation to Jackson Hole keeps getting lost in the mail). Ed has graciously agreed to do another piece with me on the earnings, or business, cycle, which is different in timing than the secular stock market cycle but is part of the total warp and woof of the markets. When you combine them, you get a much clearer picture of the markets. Full Story
I'm not ashamed to admit it; I took a net loss "day-trading" gold since the breakout of the triangle pattern on the daily chart. My trade setups were right, and there is ZERO regret. Looking back I did nothing wrong. While there is no way to control how much we make on a trade, we certainly can control our losses. Any trader who thinks they can be right all the time is going to have a tough time with the ego, which leads to a host of psychological issues and down a path toward ruin. Full Story
The ECB is an extension of his power, a generation after his death. So is the European Union. So is the eurozone. Will they collapse? No. Will they slowly disintegrate? Yes. Why? Because the dream of political centralization in our day is the dream of central planning in every area of economic life. Central economic planning always produces disintegration. Full Story
From sun-drenched Spain, here’s a dispatch from ‘Buster,’ an occasional contributor to the Rick’s Picks forum. Much as Buster loves the warm climate of Spain, the economic and political climate have grown so frigid that he’s thinking about moving to…Iceland. The country is becoming a very appealing place to live, says Buster, because it has taken to heart lessons learned from the banking collapse of 2008. Full Story
Gold fell 0.85% this past week after hitting a resistance level just under the $1,640 level. We took a trade in GLD on the breakout above $1,600 and sold around the top. Now we are looking to enter another GLD trading position for a few months as the seasonal time for gold to move up begins now and the stars seem to be aligned for gold. Full Story
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