Explaining "financial repression" as the coercion of investors to purchase government bonds that pay negative real interest rates, Gillian Tett of the Financial Times this week provided the perfect rationale for the Western central bank gold price suppression scheme -- all without mentioning gold at all. Full Story
Mark Twain, one of America’s most famous literary icons, and known for his folksy humor, used to day, “History doesn't repeat itself, but it sure does rhyme.” On Wall Street, it’s been the “least loved Bull market” in history. Since the start of 2008, there’s been a massive exodus of more than $400-billion from mutual funds that invest in US companies, after the biggest and scariest plunge this generation of investors has ever seen. Yet at the same time, the current Bull market, that’s grown up in the shadow of the worst financial crisis since the Great Depression, is the seventh best percentage gainer in market history. Full Story
Since the housing bubble burst spectacularly in late 2007, many analysts have been actively seeking out the next likely explosion. Rest assured, it will be related to debt in some way. US Treasuries, credit cards, and potentially another disaster on Wall Street thanks to over-leveraging have all been mentioned as potential leading candidates. However, there is another bubble out there and it too is debt related. Full Story
Many have called for very high levels of inflation possibly leading to hyperinflation. Their reasoning is that over printing of the US dollar will cause the dollar to weaken and inflation to set in – more money chasing the same amount, or less, of goods causes prices to rise. A rise in gold and silver (and commodities prices), would be the result. Full Story
Gold has had a rough time lately, grinding relentlessly lower. Such technical weakness has naturally spawned increasingly bearish psychology. This has led to a fringe view growing in popularity that gold’s mighty secular bull has already given up its ghost. If these new-bear arguments are correct, gold’s secular bull had to peak last August. But was that latest topping gold-bull-climax worthy? Not even close. Full Story
Last week's media headlines focused on how the election results in France and Greece reflected a wave of rising public resistance across Europe to the austerity programs being championed by Germany, the IMF, and the EU. Less notice has been given to Germany's internal revolt against Chancellor Angela Merkel's conservative policies at home and abroad. Full Story
Major Challenges confront investors in the 2nd half 2012. So it is essential to describe the Key Forces which will influence the 2nd half, as the Markets Takedowns earlier this week show. Full Story
If this does not get your attention I do not know what will. Imagine buying a $400,000 furnished condo in 2011 with the proceeds of a $6,250 investment that was made in 2003. We know someone who has actually done this by using the power of relative value. Let us explain the concept and then we will explain how the relative value may apply to other great opportunities in our markets today. Full Story
In a rare moment of sinking-ship confidence usually reserved for U.S. policy makers during a financial calamity, that Mr. Dimon was compelled to use the term ‘staying power’ is astonishing. How does a presumeably isolated $2 billion loss for a $155 billion company that is still highly profitable translate into JPM being forced to sell any of its positions at an inopportune time? Full Story
By: Karen Roche and JT Long of The Energy Report - 11 May, 2012
The private panel that began with three key speakers at the April 27-29 Casey Research Recovery Reality Check Summit continues with a second installment in today's Energy Report. This exclusive features Casey Energy Opportunities Senior Editor Marin Katusa, Global Resource Investments Founder and Chairman Rick Rule and Casey Research Senior Editor Louis James, turning their attention to oil and natural gas prices and opportunities in equities. Full Story
Canadian uranium producers (URA) can now compete with Kazakhstan, Australia and Russia to sell uranium to China. Canada produces about 20% of the world's uranium and exports over 80% of annual production. The fast growing nuclear industry has never been open to China and will create a boom in the Athabasca Basin for uranium explorers. Full Story
By: Robert Rubin interviewed by Reuters - 11 May, 2012
Former Treasury Secretary Robert Rubin states that the country's deficit will lead to some form of major duress like high inflation, a long period of very slow economic growth and, most likely, a serious financial and economic crisis. Full Story
Are we bullish on gold, as our headlines would seem to imply? Or do we privately shrink from the risk of owning bullion? The answer is that, although we are bullish on gold and silver for the long-term and have been socking away bullion coins for years, we are not so certain that it will achieve the stratospheric heights that some gurus have predicted. However, what we are most confident in saying is that, come hell or high water, gold’s purchasing power will more than hold its own relative to all other classes of investable assets. Full Story
We have looked at the motives behind jewelry demand in different parts of the world and in this second part we now look at Investment demand from different parts of the world and the motives behind that demand. Full Story
There was a strong reaction on Tuesday to the elevated debt crisis in Europe, with commodities and equities being indiscriminately sold. Gold fell 3 percent this week, losing its safe haven status as the dollar grew stronger and the 10-year government note headed lower. Full Story
Gold bulls have gotten beat up, but not due to lack of news that you would have thought would have attracted investors to gold. We’ve just seen witnessed a sea of change in Europe with a change in the French Presidency to one where a socialist was voted in. The Greek elections have resulted in a change of government this is so fractured that a coalition government hasn’t been yet been able to be formed and if one is, it’s likely to be so weak that it won’t last long. Full Story
We’re getting whiplash from all the political changes in Europe, neo-Nazis in an unstable government in Greece and a changing of the guard in France-- "adieu" to Nicolas Sarkozy. We see plenty of reasons for holding on to our long-term gold positions despite the clobbering the yellow metal got on Wednesday down to a four-month low. Full Story
Both alternatives suggest that the gold price is searching for that final point before starting a rally. However, what this comparison also suggests, is that from a timing point of view, point 3 or point G could be in soon (as soon as this week). On the 2007 pattern, from point 1 to point 2 was about 8 days, whereas from point B to G was about 9 days. If we apply the same ratio to the current pattern, then point G could be in on day 50.62. Today is day 50 since point B, so we are there or almost there. Full Story
By: Karen Roche and JT Long of The Gold Report - 10 May, 2012
One special session at the April 27–29 Casey Research Recovery Reality Check Summit wasn't on the agenda—a private panel for The Gold Report readers with three of the premier summit speakers: Global Resource Investments Founder and Chairman Rick Rule, Casey Research Senior Editor Louis James and Casey Energy Opportunities Senior Editor Marin Katusa. You won't pin them down to a timeframe, but they're looking forward to a buyer's market, as equity prices fall and volatility increases. Full Story
Counter-intuitive forces are at work in the gold market. Europe is moving toward dissolution – erratically to be sure but inevitably nevertheless. Intuition tells us that gold should be moving higher under the circumstances, after all, we are talking about the beginning phases of a major currency, and perhaps economic, collapse. Full Story
Although IAU on Tuesday made its lowest close since the first trading day of 2012, the relative strength line didn’t go lower. This is a small improvement to be sure, but a positive step in the right direction in any case. This early sign of relative strength isn’t good enough to hang our hat on and issue a buy signal for gold, but it does suggest that given perhaps a few more weeks, the gold market could be strong enough to begin a new bull run. Full Story
In an interview with Louis James, Rick Rule provides an excellent summary of what contrarian speculation investment is and makes a powerful case that the current metals climate means gold stocks are the play to make. Full Story
By: The Gold Report and Frank Holmes - 10 May, 2012
Frank Holmes, CEO and chief investment officer of U.S. Global Investors and a keynote speaker at the New York Hard Assets Conference May 14–15, explains why he believes the old expression "sell in May and go away" is not the advice to follow this year. He counsels investors to look to global stock markets and ride the global wave. Full Story
Gold has been testing the limits of our endurance lately. A week ago, when we tried to buy shares of GDXJ, a proxy for junior mining stocks, it ran away from us, seemingly headed into the wild blue yonder. At nearly $24 a share, it was difficult to justify jumping aboard, since, just a couple of days earlier, we’d blown an opportunity to do so at a bargain-basement price of 21.52. We sat tight nonetheless until yesterday, when GDXJ dove into our lap, then trampolined off a 19.66 correction target that had been spotlighted in the “trading touts” section of Rick’s Picks a month ago. Full Story
We have looked at central bank gold market demand and showed just what a dynamic force it’s becoming, just below the surface of the gold market. It’s a relatively price-insensitive force that’s strong day-to-day, clearing the market of stock when available. It enters the market in a way that leaves the market relatively undisturbed. But the rest of demand is very different. Full Story
If today's landscape was a war setting, it would feature collapsed buildings, rubble on the streets, empty warehouses, smoke spewing upward from numerous city heaps, and fire hoses sending water in every conceivable direction throughout the entire city. And sadly, also dead bodies littered everywhere. They serve as the economic damage. The city ruins are marred by additional water damage, rubber boots a necessity. The buildings can be seen as the crumbled sovereign bonds. The street rubble is the home equity destroyed, some still underwater. The shattered warehouses are businesses either wrecked or in fast retreat. The smoke is the painful emotions based in despair, loss, and absent opportunity. In stark display, the fire houses are the central banks printing and dispensing money from tainted sources, not from factory income but rather the vacuous Weimar press. Full Story
Especially at times of price pressure like now, it can be reassuring to know how the game is being played. I’m not speaking of the day to day price movements, but of the dominant forces that generally cause both short term and long term price movements. The price of world silver and gold is mostly set on the COMEX. Over the longer term, of course, other things will influence the price, such as production and consumption and investment demand. But these longer term influences don’t change radically from day to day and it is usually unproductive to link those influences to short term prices. And sometimes, like now, world events would strongly favor a rush towards precious metals were it not for price-setting on the COMEX. Full Story
In light of the strongly growing world population especially in emerging countries – coupled with the natural and thus inexorable drive of humans to improve their standards of living – the question when staring at the vanishing commodity supply must not be when the commodity boom will end, but rather if at all the boom can come to an end. Full Story
Charlie Munger thinks that gentlemen should buy profitable companies, not gold. But he fails to realize that the economy is being managed at the top by people who are not reliable. It is being run by Congress, the executive bureaucracy, and the Federal Reserve System. It is being run by men who share the views of Keynes, namely, that the gold standard is a barbarous relic and that politicians and bureaucrats and central bankers are the people who should set policies under which companies become profitable. Full Story
The greatest blessing in my life, my daughter Tara, is 20 years old today. While witnessing her birth through today has brought joy only the Creator of All That Is Good in the Universe can give, during this period I’ve also watched my country spiral downward economically, socially and spiritually. Both sides of the political aisle are responsible and nowhere is that more true than in the grave financial condition we find ourselves in as a nation. Full Story
Consumer credit in the US rose in March by the most in over ten years by $21.4 billion from 2001’s $2.54 trillion total. The rate on student loans is set to double on January 1st, if Congress refuses to act – that would cause each loan to increase in payout by $1,000 per year. First quarter GM sales rose 2.7% aided by easy credit terms. Full Story
Rick’s Picks occasionally offers option trades suited to novices and experienced traders alike. Typically, these gambits go against major trends, since our proprietary Hidden Pivot System is especially useful for nailing turning points very precisely. Yesterday, for instance, we recommended buying QQQ June 65 calls if this proxy for the Nasdaq-100 index fell to within a dime of a 63.53 price target. Full Story
Investors may still be holding their breath, but larger mining companies aren't waiting around for the price of uranium to go up. No, indeed, they are buying smaller companies on the cheap. In this exclusive interview with The Energy Report, Equity Research Analyst Rob Chang of Versant Partners makes his case for deep value plays. With or without Germany and Japan, life goes on for uranium producers. Full Story
HIGHLIGHTS OF THE DISCUSSION INCLUDE: Why the presently accepted GDP measurement is ineffective in properly measuring wealth creation, national economic health and prosperity, How the elements of Government Spending, Taxation, Stock Market changes, Export & Import trade balances and other statistical indicators are all being used to manage the perceptions of economic growth... Full Story
It’s May Day again in Paris. Over the weekend, French voters elected Socialist Party leader François Hollande who promises to repeal all austerity measures in favor of a robust Keynesian spending program. This development is a setback for EU fiscal stability, and will likely undermine Franco-German cooperation and may spell the end of the Eurozone. Full Story
Wikipedia tells you that gold dust refers to fine particles of gold that are produced by machining. They can also occur naturally. I agree. Please click here now. DUST-nyse is a triple-leveraged ETF that shorts GDX-nyse. I don’t think that shorting gold stocks has ever been as important to the gold community as it is now. Most investors try to use short positions to call tops in markets. Instead, I suggest you use them to manage your emotions in the lowest prices areas, as you accumulate your gold stocks. I refer to these prices areas as my “personal surprise zones”. Full Story
Now that I’m old enough to apply for retirement benefits, my expectations of actually collecting until the end are fading fast. The bargain with the government of working hard and paying in so you will be paid in the future doesn’t correlate with the current economic data I’ve seen. The chart below shows how much money is actually coming in versus how much money is going out, a wake-up call for anyone my age. Full Story
There is a growing number of people in America hoping for the best... but preparing for the worst. These people - often called "preppers" - believe in self-sustainability, in terms of health, wealth, and liberty. As a former Boy Scout, I can certainly appreciate the desire to be prepared for any eventuality. Full Story
The good news about a socialist running France is that his honeymoon shall be rather short. It took the previous socialist President François Mitterrand two years before he shelved his activist agenda and became a moderate. The market won’t be that patient; that’s why we pick answer c) above: the language of the bond market will be the only language policy makers listen to. The bond market is in charge. Full Story
Gold is grinding out a wall of worry that began construction out of a natural unwinding of the momentum that came in during the acute phase of the Euro crisis. More bricks were added weekly by various luminaries calling bearish; the most recent being Buffett’s right hand man, Charlie Munger: “Gold is a great thing to sew into your garments if you’re a Jewish family in Vienna in 1939 but civilized people don’t buy gold – they invest in productive businesses.” Full Story
Recently, the folks at Berkshire Hathaway have talked down precious metals. Warren Buffet and Charles Munger (two titans of the stock investing world) had made some unkind remarks about precious metals in general and gold in particular. Full Story
It must be "Bash Gold" week on the CNBS network. Warren Buffet has been leading the charge by talking down the precious metal in a recent newsletter to Berkshire Hathaway shareholders and followed up today on CNBS's "Squawk Box" where he warned that despite the declining value of the dollar, running to gold is a "mistake." Full Story
It was curious recently to meet with some old friends who recalled a big argument we had four years ago about the merits of buying gold and silver. They had to concede defeat. After all a portfolio equally split between those precious metals is up by around 80 per cent since then. In that time even Warren Buffett has underperformed the S&P that has basically gone nowhere despite huge volatility. Full Story
It’s been made painfully clear that Bernanke is not going to tolerate a rising dollar, at least not for very long. Cycles are still working, and still generating bounces out of daily cycle lows, but they are never allowed to get any traction before the next beat down starts. Full Story
Eric Coffin, editor and publisher of the Hard Rock Analyst newsletter, has never heard so much negativity from investors. "Everybody thinks the world is coming to an end," he tells The Gold Report. As a contrarian, all the doom and gloom tells him the market is about to pull out of its tailspin. In this exclusive interview, Coffin talks about why the Yukon is an area play he still believes in. Full Story
By: The Gold Report and John Mauldin - 8 May, 2012
Are developed nations across the globe at the precipice of oblivion? Yep, says pundit John Mauldin. Fresh after the announcement of a new joint venture with Casey Research and the conclusion of his own Strategic Investment Conference in Carlsbad, Mauldin spoke to The Gold Report. He believes that investors have a small window to save their investments from the end of the debt supercycle, but they'll have to move fast. Full Story
The mineral exploration industry will be at the Vancouver Conference Center East, June 3rd and 4th, 2012 for the World Resource Investment Conference. In this pre-event press conference, Cambridge House chairman Joe Martin tells us why this may be the buying opportunity of a lifetime. http://cambridgehouse.com Full Story
In an April speech in Berlin, Dr. Andreas Dombret, a member of the Executive Board of the Deutsche Bundesbank (the German central bank), offered a startlingly frank assessment of the current problems in Europe. Although his comments were meant to apply to the tensions and imbalances that exist between the northern and southern tier of the 17-member eurozone, they shed inadvertent light on the broader global economy. Full Story
I recently had a revelation of sorts, distilled from my merely noticing what happens when passing by my neighbors, out on their stupid lawns, playing with their stupid kids, or washing their stupid cars, or just doing something stupid. Full Story
As the gold stocks continue to fall to new lows and struggle to find a bottom, it is important to keep things in perspective. Before we get to the visual comparison with the 1960s and 1970s, we want to touch on the reasons why the gold stocks have underperformed in recent months and years. Full Story
Europe’s doomed experiment with the politics of austerity went down in flames over the weekend as voters across the region veered sharply to the left in savaging incumbents. Elections in six European nations on Sunday promised to end any pretense of fiscal sanity. However, it remains to be seen how quickly and drastically the new leaders will act to further unbalance their nations’ books, ostensibly in the name of economic growth. Full Story
Show Highlights : Headline news & the Market Weatherman Report. Spotlight Stock Picks. Host Chris Waltzek & Bob Chapman, The International Forecaster discussion and answer listener's questions. GUESTS: Executive Chairman, Yale Simpson, Exeter Resources James Turk, GoldMoney.com Full Story
A few hours after the employment numbers are released, I always get a rather thorough analysis from Philippa Dunne & Doug Henwood of The Liscio Report ( www.theliscioreport.com). Philippa gave me permission to share this with you just this once. While it may be more detail than you are used to, it will help give you a perspective on how much data is actually tracked. Full Story
SPAIN'S financial crisis might be hardening the politics of capitalists vs. workers and the unemployed, but it's hardly benign for the first group. The IBEX 35 stock market index has fallen very nearly to the 6-year low hit in March 2009, and closed Friday at levels first seen in 1997. Worse still, according to the Bank of Spain's latest Financial Stability Report... Full Story
A combination of mass retirements and increasing natural resource demand from emerging economies has created a crisis in the resource extraction sector - one which is definitely not on investor’s radar screens. Currently there is a “massive talent gap” that is going to get worse because the global mining industry is experiencing the biggest wave of workforce retirements in 70 years - the oldest baby boomers turned 65 years old in 2011. Full Story
Legendary Billionaire Investor Jim Rogers is right. The inevitable result of The Feds (and ECB and other Central Banks’), Printing Money in excess of any Real increase in the value of Goods and services, is Highly Inflationary. Full Story
Charlie and Warren are REALLY good... the BEST... at value investing in a highly inflationary fiat bull market environment. They hit the jackpot when just a few years after Buffett took control of Berkshire Hathaway the world was sent spiraling into a completely unbacked, global fiat currency system which almost guaranteed success for those with the right mindset. The rest, as they say was history. Full Story
It’s no April Fool’s joke — last month CNN delivered its lowest-rated month in total day in over a decade, since August 2001, the month before the September 11 attacks. The once-dominant cable news network posted decade-lows among both total viewers (357,000) and Adults 25-54 (108,000). Versus April last year, CNN was down 21% in total viewers and 29% in 25-54. In comparison, leader Fox News Channel was up 2% in total viewers (1.1 million) and 1% in 25-54 (273,000) and No.2 MSNBC was flat in total viewers (425,000) and down 5% in 25-54 (139,000). Full Story
By: The Gold Report and David Stockman - 6 May, 2012
A "paralyzed" Federal Reserve Bank, in its "final days," held hostage by Wall Street "robots" trading in markets that are "artificially medicated" are just a few of the bleak observations shared by David Stockman, former Republican U.S. Congressman and director of the Office of Management and Budget. Full Story
In my opinion gold has now put behind it the bearish downward sloping "channel". Is this bullish because it is no longer bearish? No. What gold has developed is a solid "Symmetrical Triangle" which is neutral. Symmetrical triangles can be continuation patterns or a reversal patterns. Full Story
It was an interesting week with US markets looking strong briefly, only to show us failed breakouts and then reverse hard along with many leading stocks. Oil was hit hard and the related equities followed. Many oil stocks had super looking charts and broke out only to reverse, leaving traders either quick, or dead. The gold shares unbelievably dropped en mass as well. It’s just hard to imagine how they can get any cheaper, yet they are. Full Story
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