By: David Chapman, Union Securities - 13 February, 2009
An eye catching quote for sure and you may already have seen it. Although as far as we can determine it is a hoax. It wasn’t actually written by Marx. But it is making the rounds on the internet and tries to make him out as some sort of seer. Given in particular the events of this past week with the bailout plans for the giant banks, it does somehow seem appropriate. Full Story
By: Peter Schiff, Euro Pacific Capital, Inc. - 13 February, 2009
To restore prosperity, credit (derived from savings rather than a printing press) must flow to producers. Greater liquidity for business will lead to legitimate job creation, increased production, and rising living standards. By further encumbering the economy with burdensome regulation, and by transferring business decisions to vote-seeking politicians who will bail out the irresponsible, reward failure and punish success, the government will create a society destined for misery. Full Story
By: Adam Hamilton, Zeal Intelligence LLC - 13 February, 2009
The bottom line is US Mint sales of Gold Eagles and Silver Eagles soared in the second half of 2008 during the stock panic. Physical bullion coin demand from investors was stellar, even bringing the Mint to its knees for the first time in decades at one point. Such high demand in the face of gold and silver prices being sold down with nearly everything else during the stock panic is exceedingly bullish. Full Story
A hard time came when deciding upon a title today. “Dead Banks Walking” or “Insolvent & Motionless Yet Standing” or “Much Ado About No Credit” or “The Bank Vampires” or “The Primary Dark Syndicates” made sense. But what came to mind when a comment made by the Jackass in June 2008 on the Vancouver stage at a Cambridge House Metals & Mining Conference. My words to close a panel discussion on the banks were “Just wait, in several months you will see the entire US banking system go insolvent, its stock prices dwindle to nothing, as it will be diluted into oblivion!” It happened. Full Story
By: The editors of Without Borders, Casey Research - 13 February, 2009
After passing much of 2008 standing thankfully on the sidelines, we believe that with current valuations, opportunities have returned for putting capital back into long-term positions in emerging markets. In fact, we believe that emerging markets will recover faster and outperform developed markets over the long term… Full Story
Here is a list of 6 states (4 in the last month) and (2 states today) that have pending legislation to authorize the use of gold and silver to settle debts with its citizens and to provide them the legal means to avoid the devaluing of the dollar by having a parallel currency in light of massive bailouts and to protect them in the event of the dollars failure. Full Story
In order to identify Opportunities in today’s Markets, it is critical to first have a Realistic Overview of the Dangers. Clearly the Bailout Bill (inter alia) of the Fall 2008 neither got credit Flowing again, nor saved The Financial System, as its proponents claimed it would do. Full Story
By: Bill Bonner, The Daily Reckoning - 13 February, 2009
Everybody wants to kick the bankers when they are on the ground. Heck, we’d do it too…but the crowd around them is so thick; we can’t get a boot in edgewise. Besides, there are bigger charlatans still standing. After all, bankers were just doing their jobs - separating fools from their money. What about those who were supposed to be protecting the fools? Full Story
One of the chief mandates of the U.S. Federal Reserve is to manage the nation's monetary stock. This essay analyzes the historic growth of the American monetary stock (or aggregates) since 1960 and looks at some recent developments revealing a marked adjustment in policy. These changes are a direct response to the on-going worldwide financial crisis that escalated in September 2008 following the collapse of Lehman Brothers. Full Story
Have greatly outperformed base metals for most of the 2+ years I’ve called for this. Gold is really shaping up nicely. Bill Murphy had a great chart yesterday on gold. While we’re a little overbought and some profit-taking and consolidation is okay, I continue to believe the surprise’s should be to the upside. Full Story
This scenario plays out in hundreds of examples where there is a taxable gain but an economic loss or loss of purchasing power. Real estate, stocks, bonds and commodities are all affected by inflation and investors get taxed through inflation without representation or due process of law. Have a 3% gain on real estate? Pay tax and end up behind. An 8% return on a stock portfolio? Well, 3% was courtesy of the government and now “the people” have the audacity to force you to give a share back. Full Story
By: David Morgan, Silver Investor - 13 February, 2009
The amount of silver that is available for investment is so small, probably 50 million to 100 million ounces at best. That is a pitifully small market, relative to all the paper that’s flying around. And there will be a day like no other day, when someone is not going to be able to deliver silver to someone who can make some noise, and when that event takes place it will probably be pushed aside, looked at askew, and not recognized as the fact that it is. But eventually the truth will leak out, and once that happens I think more and more people will start to get much more interested in the silver market. Full Story
By: David Coffin and Eric Coffin - 13 February, 2009
The gold market is spreading both joy and fear lately. Those who have followed it for some time are more than pleased to see it working its way convincingly above the September Dollar price highs and out of a down trending channel that it has been bouncing around in since making all time highs last March. Full Story
The gathering of the world’s economic elites in Davos, Switzerland is a reflection of the reigning power dynamic of the modern world. Officially titled, the World Economic Forum, Davos is sponsored by the world’s most powerful and wealthy corporations and presents itself as a “not-for-profit” entity. Full Story
We are on the threshold of a major move in gold equities, which would probably lead the Gold index on the JSE (Johannesburg Stock Exchange) to all time highs of 7000 plus within the next 2 to three years. With GOLD on 2732 on 12 Feb 2009, this is where I want to invest my savings when I am not putting it in real money (by now most readers should know what is real money). Full Story
Perhaps the number one issue among gold advocates and proponents today is trying to ascertain the future for gold in 2009 and indeed into 2010. This issue of the Goldsmiths will address that concern and offer some possibilities/probabilities. Full Story
By: The Energy Report and Brian Tang - 13 February, 2009
Founder Brian Tang and the Fundamental Research crew are back this week, offering a value-based perspective on natural resource investment. In this exclusive interview with The Energy Report, FRC provides its macro view on mining, oil and gas and recommends an up-and-comer in the uranium space. Full Story
By: Richard Daughty, The MOGAMBO GURU - 13 February, 2009
Voluminous police reports through the years chronicle my wailing and screaming in fear, often far into the night, as neighbors and family complain until the police come by the house in their squad cars to investigate, like I am so stupid that I don’t know enough to shut up when I see them coming! Morons! Full Story
As the financial crisis continues to deepen, many people are deeply concerned that collapsing credit availability will lead to powerful monetary deflation, much like it did during the US Great Depression of the 1930s. As compelling as these arguments seem to be – are they backed up by the actual historical evidence? Full Story
By: Bill Bonner, The Daily Reckoning - 12 February, 2009
Poor Barack. His whole presidency rests on getting this bailout thing right. If he does, he’ll be a hero. If he doesn’t, the economy will go into a Japan-like slump and he’ll spend his entire time in office dealing with people looking for handouts – zombie banks, comatose corporations, and desperate households. Full Story
In this article I shall argue that there is no trade-off between growth and debt under the regime of the irredeemable dollar lacking, as it does, an ultimate extinguisher of debt. Once new debt is piled on the top of the old, total debt is increased that will never be reduced, and will become perpetual debt. As protagonists of the stimulus package well know, retirement of the debt of the federal government is tantamount to deliberate deflation, that is, contraction in the money supply, by reducing the pool of bonds available for monetization. Full Story
By: Andrew Mickey, Q1 Publishing - 12 February, 2009
For decades, the big money refused to view gold as anything other than something horded by conspiracy theorists. The lack of big money interest was a huge hurdle for gold. Now, with the billions of dollars headed into gold from leading U.S. institutions, it appears the hurdle may have finally been passed. Full Story
There can be no denying the long history of greatness for America. Whether it be the election to its highest office of a leader who not only flung a long-shut door wide open, but ripped it off its hinges, or an American jetliner crew who safely crash lands a plane onto a frigid New York river, we are reminded of America’s greatness every day. Full Story
In this update I want to take a look at the pattern in the context of the Gold market. Our first chart contains two examples of the pattern. Note the three stages of the pattern, which follow the formation of the cup. The first example occurred from 1996 to 2004, while the second example occurred inside of the larger pattern, from 1999 to 2002. Notice how both patterns completed the three phases? (Initial pullback, breakout, retest and blastoff). Full Story
So, who owns the Federal Reserve? Well, it certainly is not the US government, as many would suppose. In fact, I have found that quite a few - including myself last year - who are roughly aware of how the FED works but believe that the owners of the FED is a secret. Well, it is not. Full Story
What's an even bigger Yousa! is that the Yousa! for the 800 tonne mark came just three weeks ago. The SPDR Gold Shares ETF (NYSEArca:GLD) added another 40 tonnes today and a total of more than 150 tonnes since the first of the year. Full Story
One thing is for sure: precious metal prices have soared in the past few days. Those fortunate enough to have put their money into gold and silver as little as 30 days ago saw a rise of 9.64% in their yellow and a staggering 26.84% increase in the value of their white metal. Not bad considering that major indexes are about to test new lows all the way from New York to Tokyo. Full Story
Gold and gold equities have performed well over the past two months climbing in value as the broad market drifts sideways waiting for buyers or sellers to step up to the plate. I am hearing traders in a panic saying they think gold is going to start moving $100 per day and are jumping on the band wagon, and that gold’s going to $3500 per ounce soon. Full Story
Calling currency turns is so difficult it is sometimes surprising that analysts even attempt to predict currency movements. And yet so much rides on the rise and fall of the yen, euro, sterling or US dollar. Full Story
By: Rick Ackerman, Rick's Picks - 12 February, 2009
With Comex Gold trading around $850, we projected a $100 rally to at least $952 in a commentary a while back. Having also promised at that time to don a grass skirt and dance the hula in Times Square in the middle of winter if the forecast didn’t pan out, we breathed a sigh of relief yesterday when the April contract apexed at $949 on a powerful surge of more than $50. (Just a few more points and we’ll have only one more “hula number” to worry about – a $29 target for the shares of Goldman Sachs, currently trading for around $95.) Full Story
By: Richard Daughty, The MOGAMBO GURU - 12 February, 2009
SilverForecaster.com announces that “silver has done well” recently, as far as its price is concerned, which is almost certainly explained by the old demand-versus-supply market-clearing pricing mechanism, which means that since the price went up, then demand must be up, too, and more than supply is up; or it means that supply is down more than demand is down; or it means something else entirely, maybe, since I have seemingly confused myself. Full Story
By: Bob Chapman, The International Forecaster - 11 February, 2009
Several months ago we said the relationship between the dollar and gold was over. The days of a lower dollar and a higher gold price are no longer connected in the same way. Gold is now trading on its own as the best of all currencies. The world is headed for zero interest rates and massive increases in money and credit. The rally in the dollar versus other currencies over the past eight months ended a month ago as we forecast. December was the watershed month for gold as it began its present rally, which will soon take it to new highs. Full Story
I’ve been trying to resolve what’s behind the recent inversion of the historic premium that West Texas Intermediate [WTI] Crude Oil has enjoyed versus Brent Crude? Historically, West Texas Intermediate Crude Oil trades at a premium price to Brent Crude Oil for quality as well as logistical reasons. In recent weeks and months – WTI has been trading at a deep discount to Brent Crude: Full Story
By: Bill Bonner & The Daily Reckoning Crew - 11 February, 2009
DEPRESSION II …The Horror…coming soon to theatres near you! “It’s gone deep. It’s gotten worse,” said the president. We’ve seen so many shock and horror movies over the years. We recognize the dialog. But this is no Hollywood thriller. This is real life. Full Story
By: Doug Casey & the editors of BIG GOLD - 11 February, 2009
In their annual forecast edition, the editors of BIG GOLD asked Casey Research Chairman and contrarian investor Doug Casey to provide his predictions and thoughts on issues everyone’s thinking about these days. Read what he has to say on the economy, deficits, inflation, and gold… Full Story
Sure, the time may soon come when gold's one single use is matched and bettered again, beaten by other, more productive investments. But until then – and as gold's current price action suggests – what else will you hold as stock earnings tumble, bonds are over-supplied and threaten default, and the value of money itself is forced ever-deeper into genuine crisis? Full Story
As is true with many readers of this Goldsmith series, I have struggled trying to make some money in the futures markets and particularly in buying gold and silver. It was too bad for me but I have had a mind-set of being a long term investor when I enter the futures markets. This philosophy simply has not worked out for me. With it, it is usually true that I end up losing money instead of making money. Full Story
By: Axel Merk, Merk Hard Currency Fund - 11 February, 2009
Investors and entrepreneurs take risks in search of profit opportunities. In contrast, in times of crisis, many avoid risks and hoard cash in an effort not to lose money. Except, of course, if your bank or the currency you hold the cash in goes down the drain. When confidence even in cash erodes, gold thrives. The slogan for crisis investing so dreaded by governments is: ‘Gold is the most important thing, more important than confidence or currency’ Full Story
The Great Credit Contraction, similar to what some call a Kondratieff Winter, is intensifying. Predictably the DOW and S&P 1,500, representing about 85% of the entire US equity market, are continuing to crash. The 10 February 2009 DOW close was 7,888.88 and the S&P 1,500 ($SPSUPX) closed at 187.70. The Gold London PM fix was $909.75 and the Silver London PM fix was $1,296. Full Story
The federal government is about to pass a law that authorizes $800 billion or so of new expenditures. The Secretary of the Treasury will be introducing other new measures today. More such will be forthcoming. In addition, the Fed’s monetary policy will support this spending. Full Story
Loose in the head. As opposed to Hank Paulson, that’s what traders now think of Geithner since he angered China before even getting in the door. They think he’s loose in the head. So, delayed as the reaction was since he uttered the words Thursday, the trade bought gold, sold bonds, and who knows, maybe even reversed the dollar ($) despite the fact stocks look set to plunge. Full Story
Wall Street was unimpressed by the $500 billion toxic asset control program unveiled by new US Treasury Secretary Tim Geithner yesterday. Stocks dropped by 4.9 per cent while money flowed into treasuries and precious metals. This could be a story of days to come. Full Story
By: Richard Daughty, The MOGAMBO GURU - 11 February, 2009
Frosty Wooldridge, writing at NewsWithViews.com, has the same kind of attitude I do, and has titled a recent essay, in all-capital letters, “BAILOUTS: A COMPLETE FRAUD AGAINST THE AMERICAN WORKER” which is certainly attention-getting… But, alas, lacks the requisite proper punctuation, which in this case I judge to be two exclamation points, at least. Probably three. Full Story
By: Rick Ackerman, Rick’s Picks - 11 February, 2009
The market fell hard yesterday, supposedly because details from Treasury Secretary Geithner about the next bank rescue plan were sketchy. In a more rational world, the market would plunge because of the details rather than the lack of them. After all, what could be scarier or more depressing to investors than word that The Government is about to blow another trillion or two in yet another futile attempt to jump-start the banking system? We don’t envy them the task of convincing investors in the U.S. and abroad that the green-and-white confetti held in the vaults of U.S. banks and the Federal Reserve is actually worth something. Full Story
By: John Browne, Euro Pacific Capital - 10 February, 2009
In a sign that may reveal much about the current deal-making environment in Washington, House speaker Nancy Pelosi has outmaneuvered the Obama Administration in the design of the massive $827 billion so-called Economic Stimulus Package. With the collusion of three moderate Republican Senators - Collins, Snowe and Specter - Pelosi may succeed in steering President Obama into supporting a package with which he may secretly disagree. Full Story
The gold market behaved impressively on Tuesday morning by starting out positive and then managed to add to the gains in the face of a mid morning downside extension in the US equity markets. Full Story
By: Steve Palmer & The Gold Report - 10 February, 2009
Whether irrational exuberance or the faltering dot-com industry triggered it, the economic downturn of 2001 hit junior resource companies hard. They bounced back in a big way. “Downturn” understates the current scenario, but AlphaNorth Asset Management President and CEO Steve Palmer sees similarities. He looks forward to taking advantage of opportunities “to get in on some of what has now become the new ground floor” and make some “tremendous gains.” While he anticipates more bad news on the employment front, he also tells followers that he believes “we’ve avoided the abyss” and confidence is returning. Full Story
Good day… And a Terrific Tuesday to you! The President talked to us last night regarding the “new and improved” stimulus package. He sounded a bit defensive, don’t you think? But, I will say this; he did try to stay on the high road when defending the package. He really ripped people like me – who oppose the package, and see it as spending only. But I think he forgot to mention that people like me, oppose it because we can’t afford it! But the President firmly believes our economy could completely collapse without this, so I can see where he feels the urgency to get this bill signed. Full Story
Feeding money into failing banks will only make the situation worse, says international investor James Rogers, who sees more currency turmoil worldwide in the future. Full Story
There is a dawning realization that we are in the early stages of a severe global recession and possibly even a global Depression. In this uncertain climate for the global financial system and the global economy itself, risk aversion is set to remain elevated and thus demand for physical gold bullion will also remain elevated. As it will for silver but less so for the purely industrial precious metals of platinum and palladium. Full Story
By: Steve Saville, Speculative Investor - 10 February, 2009
In our 3rd December 2008 commentary we explained that the probability of an imminent great depression was uncomfortably high. Our reasoning, in a nutshell, was that the recent credit bubble was much bigger than any previous credit bubble of the past century and that the policymakers of today were blundering much more rapidly and on a much grander scale than their counterparts of the 1930s. Full Story
Only when fees are priced to reflect consumer demand and ambitions...and only when financial advertising reverts to promoting value and safety (which is all we offer or promise here at Bullion Vault, by the way)...will the big-bonus culture of excessive rewards to financial middlemen truly reach its end, replaced at last by the hope of decent returns to investors. Full Story
New data from the CFTC, provides the clearest proof to date of a manipulation in gold, thus vindicating the long-held position of GATA (the Gold Anti-Trust Action Committee). It is my hope and expectation that GATA, run by Bill Murphy and Chris Powell (Ed Steer, a director, is a close friend), will take the evidence and do everything in their power to ram it down the manipulators’ throats and end the gold and silver manipulation. Full Story
Well, here we are not quite 5 months since the New York Times declared financial Armageddon and the entire media of the country went into a fit of hysteria truly wondrous to behold. What is the situation? Full Story
By: Larry LaBorde, Silver Trading Company - 9 February, 2009
I find myself in the unusual position of agreeing with Vlad Putin and disagreeing with our current president. There is just something wrong when my economic views are aligned with a former communist and against the head of the free world. Full Story
Both gold and silver currently have too high of a risk to jump in at these levels. I do hate to watch investments run away but I hate chasing only to have it roll over on me a few days later. Waiting for some type of pullback in price, is what I am waiting for. Full Story
1st Hour: Headline news & Market Weatherman Forecast. Spotlight Stock Picks with big dividends. The International Forecaster and Host Chris Waltzek answer listeners' questions. 2nd Hour: Dylan Ratigan, CNBC's Fast Money Full Story
By: Julian D. W. Phillips, Gold/Silver Forecaster - Global Watch - 8 February, 2009
Just read leading U.S. newspapers and one see that Banker has become an unpleasant word as banks take in taxpayers money and give nothing out. Then you have the endless blame game [“we didn’t force people to borrow money – yes, you did through enticing, pushy adverts and a rising property market incited greed, which you peddled!]. Everybody loves to blame someone else as the global banking system continues to teeter on collapse as central bankers raise the amounts needed to save them and keep them going. So why do and did the banks need saving? Full Story
Although copper may seem like a sideshow it is actually very important, for it is a barometer of changes in the world economy. In retrospect it is easy to see on its long-term chart below that its refusal to break higher for several years from what turned out to be a major top area was a warning that all was not well with the world economy. Full Story
The crisis we keep hearing so much about, which formally began in 2007 and intensified in 2008, was at root a crisis in confidence. True, the credit crisis had its origins in the tight money policy of the Federal Reserve beginning in 2004 and continuing into 2007. So there was definitely a money/credit aspect to the crisis. But more than any single factor – and this has been especially true in the past few months – the crisis has been more about shattered confidence than a dearth of liquidity. Full Story
By: Andrew Mickey, Q1 Publishing - 8 February, 2009
Anyway you look at it, there’s certainly some more pain ahead. More layoffs, more bankruptcies, etc. And we’ll surely have more doom and gloom proclamations. At the risk of being one overly-optimistic though, I can’t help but see opportunity despite it all. Full Story
This article is about how J.P. Morgan's executives , instead of receiving easy to detect cash bonuses, received very large bonuses in the form of Stock Appreciation Rights (SARs) and Restricted Stock Units. These equity compensation securities are not easy to understand or value by other than experts in the field. Full Story
By: Bob Chapman, The International Forecaster - 8 February, 2009
Obama's stimulus plan, aka the Political Payoff Plan or PPP, together with the second half of the TARP, aka the Paulson Ponzi Plunder Plan or PPPP, will deliver a shot in the arm to our economy that will be both brief and shallow, sending us careening on our way to hyperinflation, which will deepen the depression we are already in by sending interest rates skyrocketing and killing off what little business activity remains. Full Story
What I am saying is this: this time it's different. This time, the fractional reserve banking system has shot its wad. It is begging for ever-larger handouts from the Treasury Department, which needs central bank fiat money to bail out the economy. The public is accepting this grudgingly, and the academic economists are cheering, but the reality is this: this time it's different. You had better adjust your portfolio, your career plans, and your retirement plans accordingly. Full Story
By: John Mauldin, Millennium Wave Advisors - 8 February, 2009
When confronted about an apparent change of his opinions, John Maynard Keynes is reported to have said, "When the facts change, I change my mind. What do you do, sir?" The earnings season for the 4th quarter is almost 80% complete, and the facts are dismal. It is worse than the current data shows, and could get uglier. Full Story
We Are Running Out of Gold. Production at existing mines is grinding down at the same time investor demand is climbing. A quick scan of last year's individual country production numbers shows declines right across the board except in China whose citizen’s snap up all they can. China, for the second year in a row is now the world’s top gold producing country, easily passing perennial top producer South Africa. Full Story
By: Richard Daughty, The Mogambo Guru - 8 February, 2009
So the Big Freaking Question (BFQ) is: How long before the hyperinflationary phase about which I have been yammering begins – bringing back up the prices of stocks, bonds and houses so that the moronic government can once again wallow in a sea of tax receipts? Hahahaha! Full Story
By: Rick Ackerman, Rick's Picks - 8 February, 2009
I'm in San Francisco for the weekend, visiting family and friends. Everywhere you go, people want to talk about the economy. The San Francisco Chronicle led yesterday with a story about how all of the city departments apparently are eager to swoop down on the city transit system to glom some cash. Full Story
The tale of the tape saw the Dow actually rise 3.50% almost three hundred points above the perilous 8,000 level. The S&P jumped a very healthy 5.17% and the Nasdaq soared 7.81%. Up in resource rich Canada the TSX ended up 3.60% for the week while the TSX Venture exchange was up 3.03%. All in all a great week for market all around North America. Full Story
Amazing how similar the charts look. Also, note that the Japanese Central Bankers were the first to employ a zero interest rate policy. Now Ben’s tagging along for the ride. A global currency game of de-valuation is going on: all currencies are continually becoming worth less and less (able to buy or exchange for less goods per unit of money); until eventually they all become worthless. Full Story
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