By: Adam Hamilton, Zeal Intelligence - 13 June, 2014
The US stock markets’ Fed-driven melt-up has accelerated again in recent weeks, with a string of new nominal record highs. This has reignited truly extraordinary levels of greed, euphoria, and complacency. But for traders who have witnessed past bull toppings, there is an ominous sense of deja vu. It turns out this past year’s strong stock-market action nearly perfectly matches that leading into the last bull-market top in 2007. Full Story
Today's financial markets make a mockery out of sanity and logic. The difference between what SHOULD happen and what IS happening is perhaps the greatest it has been in our investing lifetimes. If you're perplexed, flummoxed, frustrated, stymied, enraged, bored, irritated, insulted, discouraged -- any or all of these -- by the ever-higher blind grinding of asset prices over the past several years, despite so many structural reasons for concern, you have good reason to be. Full Story
In closing, the world is morally and fiscally BANKRUPT. A man made disaster. Nothing will stop the unfolding calamity. This episode is the greatest in history and the collapse will be as well. The opportunities are as great as the pitfalls. Stay alert, use applied Austrian economics to protect, preserve and build your wealth (and I don’t mean just mining stocks). Full Story
By: Peter Schiff, CEO of Euro Pacific Capital - 13 June, 2014
Thus far 2014 has been a fertile year for really stupid economic ideas. But of all the half-baked doozies that have come down the pike (the perils of "lowflation," Thomas Piketty's claims about capitalism creating poverty, and President Obama's "pay as you earn" solution to student debt), an idea hatched last week by CNBC's reliably ridiculous Steve Liesman may in fact take the cake. In diagnosing the causes of the continued malaise in the U.S. economy he explained, "the problem is that consumers are not taking on enough debt." Full Story
Yes you read that correctly. The miners have begun another leg higher because the evidence strongly supports the view that they have formed a higher low. Only time will tell for sure but the evidence is quite strong. It seems that every analyst was calling for a July low. I felt strongly that the miners would make their next low after Gold broke below $1200. I was far more confident in the bullish case at the June 2013 and December 2013 bottoms. Full Story
Paying north of $80,000 for prostitutes has cost one AARP-eligible New Yorker a whole lot more. Per the terms of their leaked postnuptial agreement, Eliot Spitzer, the shamed but shameless former New York governor, will hand his stoic ex-wife title to their Fifth Avenue home plus $7.5 million in cash and will pay her a $240,000 allowance every year until she dies or remarries plus an annual $100,000 charity stipend. Full Story
There is uneasiness across a number of markets with moment-to-moment volatility grinding almost to a halt. It contributes to a feeling that this is the calm before a storm. It is not unusual for there to be a summer lull, or for one market to suffer disinterest relative to another, but the current situation across the whole range of capital markets should be a major concern. Full Story
Throughout history, dozens of nations have briefly held the mantle of global superpower. Until the 20th century when international travel, trade, warfare and information dissemination was less efficient; such power was typically exerted regionally and far more loosely. However it is now possible to wield influence far more broadly; and no one has done more so than the U.S., principally due to the awesome power of its “reserve currency.” Full Story
By: Chris Powell, Secretary/Treasurer, GATA - 13 June, 2014
In an interview today with King World News, Hinde Capital CEO Ben Davies cites as a likely contrarian indicator a story published this week on the front page of the Financial Times noting the collapse of market volatility. The FT story, whose first two paragraphs are appended, said the decline of market volatility is a matter of suppression of interest rates by central banks and acknowledged that this is a consequence of their "intervention." Full Story
In the previous week’s Chart of the Week, (Is there a Bear Case for Gold? – June 5, 2014) I mused as to whether there was the potential for another drop for gold in the works. The thought that gold could once again put in another scary plunge was based on the premise that there was the eerie similarity between the pattern that is currently forming and the pattern that formed from September 2011 until April 2013. On April 12, 2013, some 400-500 tonnes of gold were offered at the open in thin market conditions on the COMEX the futures exchange that trades gold. The result was a $200 meltdown for gold. The gold sale had a value of roughly $23 billion. Full Story
The futures are looking robust for the first time in a long while. Yesterday’s rally generated yet another bullish impulse leg on the daily chart by surpassing an external peak at 19.525 recorded on May 23. A rally that is able to exceed at least two prior peaks with each new thrust, as Silver has been doing, is demonstrating that it is raring to go. If this is indeed so, we should see a surge today that surpasses the distinctive external peak at 19.825 (see inset) from May 22. Night owls looking to climb aboard should look to do so on a resumption of the rally following a shallow pullback of perhaps 15 cents from Thursday’s 19.565 high. Full Story
Silver has a reputation for being gold’s less desirable sister, but make no mistake, silver may still be a golden opportunity to invest in. You might be surprised to know that silver plays a part in many everyday things you use, especially electronics. Silver has the highest electrical and thermal conductivity of all metals. The use of silver is very prevalent in the photography, consumer electronics, medical, and high tech industries. Full Story
When you hear about strategies that claim to legally allow US citizens to avoid having to pay income tax, the first thing that probably comes to mind is that it’s some sort of cockamamie scheme. The US government is no slouch when it comes to shaking down its citizens for every penny. It would be foolish in the extreme to think you could slip one past them. Full Story
GoldSeek TV presents an exclusive interview with Rick Rule, Chairman, Sprott US Holdings. He discusses several topics with interviewer Vanessa Collette including: Platinum, palladium, uranium, coal, and water - the entire resource sector is deeply out of favor. China is opening up, with more freedom will come more prosperity. The junior mining market - You have to do the work to find the right companies. Full Story
We have been talking about how there had been no bubble in US stocks and how the economy is doing just fine. We have also been talking about how the bubble is in policy and that the economy and stock bull market have been created – yes, like Frankenstein’s monster once again – out of this policy bubble. Full Story
For more than four years now Michael Maloney has been demonstrating to audiences around the world that every 30-40 years the world has an entirely new global monetary system, that the current monetary system (the U.S. dollar standard) is aging and becoming unstable, and, just like the previous monetary systems, will soon implode. Full Story
While the West has been mesmerized by the chaos in Ukraine, surely to become an implosion site, while attention has been directed on the Negative Interest Rate Policy coming into view, surely to become the norm for banker skimming on yields, while focus has been on Spain's royalty in abdication, surely a change of the dark nobility guard, the Jackass has yawned and turned the view toward Saudi Arabia, surely a significant event on their fund news. They have announced a new sovereign wealth fund to be established, independent of their central bank, devoted to prudent investment. Read Gold investment. Full Story
By: Gary Dorsch, Editor, Global Money Trends - 11 June, 2014
After nearly six years of unprecedented intervention by the world’s top central banks, the world’s financial markets are hopelessly broken. What used to be accepted as market gospel and guided investors’ decisions in the marketplace, before the 2008 financial crisis, - no longer seems to apply in today’s marketplace. Wall Street is no longer the bastion of free and open markets, where the prices of bonds and stocks are determined by the collective judgment of millions of investors. Instead, market prices are determined by a handful of political appointees, called central bankers, who pull the levers and intervene from behind the scenes, in an effort to influence the direction of the markets. Full Story
Wall Street and mainstream economists are abuzz that we’re seeing a recovery in the US due to the latest jobs data. These folks are not only missing the big picture, but they’re not even reading the fine print (more on this in a moment). The reality is that what’s happening in the US today is not a cyclical recession, but a one in 100 year, secular economic shift. Full Story
By: John Browne, Senior Economic Consultant at Euro Pacific Capital - 11 June, 2014
The French economist Thomas Piketty has achieved worldwide fame by promoting a thesis that capitalism is the cause of growing economic inequality. Unfortunately, he is partially right. However, the important distinction missed by Piketty and all of his supporters is that state capitalism, not free market capitalism, has reigned supreme in recent decades in the world's leading democracies. It is this misguided attempt to wed the power of the state to the private ownership of capital that has led to the mushrooming of economic inequality. If the public cannot be made aware of the distinction, we risk abandoning the only system capable of creating real improvements for the vast majority of people. Full Story
Summing up, while the medium-term trend in the precious metals market is down, we are seeing a corrective upswing and it doesn’t seem that it’s over yet. It seems quite likely that the rally will be over relatively soon, perhaps when the USD Index reaches the 80 level (however, this level might not be reached based on this week's rally in the USD, so we will look for other signs that the rally in the metals is over as well). Full Story
Dow theory guru Richard Russell has recently gone public in stating that $19.25 an ounce is the price silver must beat to start its next upward leg, and we are tantalizingly close to exceeding that figure as this article is published today. Full Story
By: Julian D. W. Phillips, Gold/Silver Forecaster - Global Watch - 10 June, 2014
After some considerable selling of gold from the SPDR gold Exchange Traded Fund in the preceding months, early in 2013, Goldman Sachs came out with a warning that the gold price was going to fall and fall heavily. It did after Goldman Sachs and JP Morgan Chase helped it down with a bear-raid. Thereafter, selling from the SPDR fund persisted throughout 2013. Full Story
One of the most salient features of the market environment of recent months is the evolution of investor psychology. From March through May, stocks experienced a classic internal correction in which the most overbought and overvalued stocks declined while fairly valued large caps remained buoyant. Full Story
Technically, all sectors of the gold market look bullish. Regardless of whether a daily chart, weekly chart, or a monthly chart is used, all technical lights are green. Note the bullish position of my stokeillator (14,7,7 Stochastics series) on this daily gold chart. On a historical basis, crossover buy signals on this key daily chart oscillator are typically followed by $50 -$150 gold price rallies. Full Story
GoldSeek TV presents an exclusive interview with Rudi Fronk, the Chairman & CEO of Seabridge Gold (NYSE: SA, TSX: SEA). He discusses several topics with interviewer Vanessa Collette including: - Gold is well into the "it sucks pattern." - Find the right story for successful mining investments. - Big money on the sidelines is patient but will act. Full Story
Leisure was last weekend’s theme, I spent it in a canoe—a cheap and energy-efficient way to see the Everglades, though not at all speedy. That was fine—I just wanted to see alligators in their natural habitat, enjoy a frosty beverage with good company, and return to the city with my limbs intact. My nature-sighting report: zero panthers, one alligator, and one black bear. Full Story
Former head of commodities at the Abu Dhabi Investment Authority and GoldMoney.com founder James Turk and John Rubino are well known figures in the gold industry. They’ve just published a new book, ‘The Money Bubble’. It argues that the price of gold is about to soar to $10-12,000 an ounce. Full Story
Gold says the last six years have been a disaster for those who stayed out of the stock market. He claims there’s a bull market in doom and gloom, referring to a column by his colleague Chuck Jaffe, who points out, “The fortune-tellers … know that the more outrageous the prediction, the more attention they get. They can highlight any forecasts they get right, knowing that their misfires are forgotten quickly. Thus, calamity and catastrophe sells. Right now, it’s a bull market for bearish forecasts.” Full Story
Just last week Jeff discussed the fallacy of GDP, comparing our lot to that of Jim Carey’s as Truman Burbank, the unaware mark in the Truman Show. In that blog, Jeff discussed one of the main problems with relying on GDP (Gross Domestic Product) as a measure of economic growth. Full Story
As called for on these pages two weeks ago, the risk adjusted S&P 500 (SPX) is now vexing sinusoidal resistance at 1900 plus, with the CBOE Volatility Index (VIX) now plumbing decade long lows. Again, the primary reasons we saw this occurring was due to the sudden increases in short interest in both the DIA (Dow ETF) and QQQ (Nasdaq 100 Index) to two-year highs, updated here every two weeks, and official financial repression, which in this case means VIX price management (suppression), enabled by the present mania in perceived risk management. Full Story
GoldSeek.com TV presents an exclusive interview with John Kaiser, The Bottom Fish Report. He discusses several topics with interviewer Vanessa Collette, including:
- Opportunities this summer for investors
- Exploration Companies Update: 40%+ with negative working capital
China and Russia have been buying massive amounts of physical gold and locking it away in their vaults – unlikely to be seen again. Western central banks have supplied much of the gold that was shipped east. Would you rather own physical gold, or paper debts, derivatives, and pieces of colored paper issued by a central bank? Apparently the Chinese and Russians decided to trust physical gold more than paper. I suspect the next few years will prove the wisdom of their decision. Full Story
On the 14-year log chart the retreat from the 2011 highs still looks like a correction within an ongoing major uptrend – which is not an unreasonable interpretation given that they have not stopped printing money. Gold looks like it has been basing over the past year above its long-term uptrend line, and at this point it looks like the support level at last year’s lows at about $1180 will hold, although there are reasons why we could see near-term weakness towards this support that we will consider shortly. Full Story
First lets look at a daily chart for gold that shows the bearish blue falling wedge that broke down about two weeks ago. Right now it’s in the process of backtesting the bottom rail around the 1265 area, I also drew in a thin black dashed horizontal line under all the previous lows at 1280, which should also act as resistance if the bottom rail of the falling wedge gets strongly backtested. The all important 150 moving average comes in today at 1279.65. As you can see from the March high gold has been making lower lows and lower highs for the most part which constitutes a downtrend. Full Story
James Turk, from GoldMoney.com, co-author of the bestseller, The Money Bubble, returns to the show with a gold market update. The ECB surprised investors this week, dropping the benchmark overnight lending rate into negative territory, down to -.1%. James Turk notes that the EU is sending a stark message, that the purchasing power of the Euro currency will be devalued, presenting an ideal opportunity to procure bargain priced precious metals. Full Story
For years, when asked whether I thought China would experience a hard landing, I would simply answer, “I don't understand China. Making a prediction would be pretending that I did, so I can’t.” The problem is that today China is the most significant macroeconomic wildcard in the global economy. To understand both the risks and the potentials for the future you have to reach some understanding of what is happening in China today. Last week we started a two-part series on what my young associate Worth Wray and I feel is the significant systemic risk that China poses to global growth. Full Story
If you remember from Part I of this series, in December, I didn’t qualify for any sort of standard loan product since my irregular income meant that the mortgage could not be securitized. Well, it’s now six months later and quantitative easing has even further deranged the lending landscape—I now qualify for a 130% LTV HELOC. Full Story
Silver will return to ’something close to its historical ratio to gold’ and pass $500 an ounce when gold makes its epic run from $1,300 to $10,000-plus predicts ‘The Money Bubble’, a new book from GoldMoney.com founder and former head of commodities for the Abu Dhabi Investment Authority, James Turk and John Rubino. Full Story
The world has never been in a position like this before, where all global currencies are fiat and dependent upon central banker power. The push for a New World Order is inexorable, and make no mistake, the monied elites are fully in control, or almost so. We maintain this is why so many in the Precious Metals community have miscalculated the timing for when gold and silver would take off to the upside, collapsing the Fed’s fiat “dollar,” or as a result thereof. Full Story
Since today’s theme is unmitigated Central bank failure, let’s start with a picture that tells a thousand words – of how the “Land of the Setting Sun” is on its last legs and where America, Europe, and the rest of the world’s fiat currency anchored economies must inevitably go. Frankly, if Japan’s government wasn’t viciously lying about “deflation,” it’s “misery index” would be dramatically uglier than depicted below; and for that matter, any Western government publishing realistic inflation and GDP measures. Full Story
We saw a strong week for markets and select stocks as bears back-peddled from their mountaintop cries calling for a major downturn. To me it still seems we’re in a major bull market, but still early, and any corrections should be relatively shallow as we just saw. Full Story
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