With yesterday's Fed decision and press conference, Chairman Ben Bernanke finally and decisively laid his cards on the table. And confirming what I have been saying for many years, all he was holding was more of the same snake oil and bluster. Going further than he has ever gone before, he made it clear that he will be permanently binding the American economy to a losing strategy. As a result, September 13, 2012 may one day be regarded as the day America finally threw in the economic towel. Full Story
The financial sector parasites, the banksters and their political puppets, that have historically fed on our society have never been so brazen. The looting of the public treasury is very much in the open - if anyone cares to look - and done with impunity. Full Story
By: The Gold Report and Aleksandra (Sasha) Bukacheva - 14 September, 2012
Valuation disconnects among producers, rising gold price and juniors facing funding crunches are among the factors fueling a spate of M&A activity. In her first exclusive Gold Report interview, Aleksandra (Sasha) Bukacheva, a mining research analyst with Fraser Mackenzie in Toronto, shares her criteria for targets in the zinc, copper and precious metals spaces. Full Story
"But Uncle Ben, you said we'd only have to cross the highway that one time. And this is the fourth. And we're still not getting any nearer. And why do we have to wear blindfolds to cross the highway anyway?" Full Story
By: Adam Hamilton, Zeal Intelligence - 14 September, 2012
Silver is mined year-round at a fairly constant rate across the globe. Thus it is somewhat counterintuitive that this metal would exhibit marked seasonal tendencies tied to the calendar. But it sure does. Unlike the agricultural commodities, silver’s seasonality is driven by fluctuations in demand rather than supply. And silver is just entering its strongest time of the year, which is very bullish for it and its miners’ stocks. Full Story
By: Louis James, Casey Research - 14 September, 2012
One of the points we've made several times over the last year is that traders stuck in an old paradigm are frequently selling gold for the wrong reasons. The most egregious (or just plain silly) example is that gold often drops when the euro drops. This happens, not because there's anything wrong with gold at such times, but because gold is priced in dollars. Instead of being thought of as a store of value in many investors' minds, gold is viewed as a hedge against weakness in the dollar. Full Story
Open Interest and Volume are both rising together on the daily chart in Gold, which historically has been healthy for a continuation in the trend. See right hand side 6 month daily chart below. I don't have any near term resistance other than the round number 1,800. Full Story
What investors got from the Fed was something much bigger than QE3. What we got was an open-ended QE. $40 billion will be pumped into the U.S. economy each month until further notice. Just as if the endless QE wasn’t enough, the Federal Reserve has maintained its funds rate at 0.0%-0.25% at least until mid-2015. Full Story
Like it or not, human will – and a hell of a lot of financial chicanery – has created this bull market. Powerful people, not duly elected but rather appointed, are continuing to degrade the peoples’ money in the interest of keeping the system moving forward. Full Story
“The Big One Cometh” we wrote last week, and indeed IT, at least two Legs of IT, Did. First, The ECB announced a program of “Unlimited Bond Buying,” “Q.E. to Infinity” as Jim Sinclair put it months ago and we concurred. And now, The Fed has announced it will buy $40 Billion of Mortgages per Month for an unlimited time period. Full Story
By: Ben Traynor, BullionVault - 14 September, 2012
AFTER months of "quanticipation", the Federal Reserve has finally done it. Ben Bernanke yesterday announced another round of asset purchases. The much-vaunted third round of quantitative easing (QE3) is now a reality. And this time it's permanent (or, at least, open-ended). Full Story
Over in the precious metals arena, both gold and silver are soaring and at the very least, this rally is likely to continue until next spring. On Thursday, silver was the big beneficiary and we believe that over the following months, silver will outperform gold by a wide margin. Interestingly, the junior gold miners are also coming back to life and today, we are allocating some capital to this sector. Full Story
The most important part of the Fed statement was the word that wasn't mentioned: "sterilization". This means that there was no promise to "contain" the newly created money, as was the case with QE1 and previous mortgage security purchases, but instead it appears that the newly created money will be going directly into the economy - and on a potentially unlimited basis. Full Story
Stock and commodity prices across the board soared on the latest announcement from the Fed, which was viewed as wildly bullish by Wall Street. The Federal Reserve launched another aggressive stimulus program on Thursday, promising it would buy $40 billion worth of mortgage debt per month and continue to purchase assets “until the outlook for jobs improves substantially.” Full Story
Interesting times, for sure – and by no means accursed for those with the wisdom to have bought silver or gold before yesterday. Both took flight on word that Helicopter Ben has promised to do whatever it takes to bring U.S. unemployment down to more reasonable levels. If Americans knew what it will ultimately cost them to have the Fed target unemployment rather than the money supply, they’d be having second thoughts about this latest phase of Bernanke’s bold experiment. Full Story
By: Ira Epstein, The Linn Group - 13 September, 2012
Basically, the Fed threw the kitchen sink at the market. Don’t underestimate what he did as this is a $500 billion Quantitative Easing Program and it can go on and on. It is QE Forever as if it proves to be not enough, the Fed will add more and more until it works. This is a very powerful move. Full Story
By: Jeff Berwick, The Dollar Vigilante - 13 September, 2012
One-trick pony Ben Bernanke woke up this morning, hopped in his limo, and headed off to save the world! Or at least, in his own mind he did. As many of us who are paying attention know, however, Ben Bernanke is an idiot-savante of memorizing statist and completely fallacious economic ideas born from an even more disturbed man named John Maynard Keynes. Full Story
Today, the Federal Reserve announced a third round of quantitative easing. Though I hesitate to call it a 'round' at all, as it is really a pledge to continue purchasing mortgage-backed securities for as long as it takes to satisfy the FOMC that growth has returned. It's really more of a Q-Infinity. This should put to bed any lingering sentiment that Chairman Bernanke had a master plan and secret exit strategy to extricate the US economy from permanently accommodative policy. Full Story
Why you should come to the Toronto Conference: “TSX jumps 1 percent; aided by miners, energy stocks” ~ Reuters “The Toronto Stock Market closes at a 3 1/2 month high“ ~ The Canadian Press “Dow Jones trades above it’s highest closing level since 2007“ ~ Business News Network As showed in the infographic – the opportunity is out there. Full Story
By: Doug Casey and Louis James - 13 September, 2012
Louis: Hola Doug. What's on your mind this week? Doug: The color yellow. As in "yellow journalism" – which seems almost the only kind we have these days. Of course, to be fair, inflammatory, shamelessly dishonest "man bites dog" journalism has always been the dominant kind, simply because it sells papers. Full Story
In last week’s COTW the report centered on the massive growth of the monetary base since the financial crisis broke in September 2008 with the collapse of Lehman Brothers. Since the end of August 2008 when the monetary base was reported at $877 billion it has grown 3 fold to $2,651 billion as of the report on September 5, 2012. Full Story
This past week was a major catalyst for the precious metals, as they closed the week up strongly based on strong fundamentals for the sector. We have been anticipating the next catalyst for the PM sector to start making a strong advance, and we got it with a coordinated effort from central banks around the world. They will print whatever is necessary to fight off deflation and another financial collapse. Full Story
The financial world has entered a new state of mania with the announcement by the ECB that it will engage in “unlimited” bond buying to maintain lower interest rates for trouble EU sovereigns. As you no doubt know, our firm’s forecast was that the ECB would not engage in any large-scale bond purchasing programs. We maintain this view today regardless of the ECB’s announcement. Full Story
Yes, of course, gold appears too expensive now (a bit under $1,700 as of this writing) compared to an under $300 price back in 2001. Gasoline was $0.15 per gallon back in the 1950s, and it is approaching $4 per gallon today. Does its current high price stop you from purchasing gasoline? Of course not. Full Story
May we suggest a Twitter version of today's FOMC statement: "Don't worry, be happy! " – No, the economic outlook hasn't improved. In fact, the Fed may want you to take a valium to stomach the ride ahead. Alternatively, if you don't get mollified by the Fed's "communication strategy", you may want to consider taking action to protect the purchasing power of your hard earned dollars. Full Story
Quantitative easing (QE) or issuance of fresh currency can be avoided by encouraging hiring and consumption. I am always against outsourcing of jobs to other nations whether it’s my country or any other nation. The work force of every nation should have a constitutional right to get jobs first and corporations should be penalized very heavily that outsource jobs to other nations. Full Story
By: Julian D. W. Phillips, Gold/Silver Forecaster - Global Watch - 12 September, 2012
Since 2007 and the start of the “credit-crunch” the developed world’s money system has been under stress. As a consequence, there has been an economic downturn that government and bankers have not been able to stop, convincingly, in the last five years. Full Story
By: The Gold Report and Eric Coffin - 12 September, 2012
New deposits and economic triggers will drive gold stocks, says Eric Coffin, the editor of HRA Journal. In this exclusive interview with The Gold Report, Coffin identifies the management characteristics of gold juniors that make money for investors. Full Story
By: Jeff Clark, Casey Research - 12 September, 2012
Gold's pullback a year ago no doubt shook out a lot of nervous buyers. They got in on the rise, they got nervous on the pull back. They sold, and they lost. That's just the way the market works. But it's a shame, because when we look logically at gold's historical performance – for example over the last 12 years – we see that holding their nerve, tough though it can be, will most likely turn out to be the best approach, and for good reason. Full Story
Sure, precious metals might be edging into the presidential debate. But amongst investors and savers, they remain very much a minority sport. No doubt because, quite simply, no one really foresees the crisis continuing. And amongst those who do, no one believes it. Not enough to take action. Full Story
Gold bugs were sent to the woodshed for much of the last year while the regular stock market spent much of its time bulling. This has served two purposes. First the over bullish (gold fever) sentiment profile was cleared out in the precious metals and a over bearish profile was at least partially addressed in broad stocks. Full Story
ArabianMoney editor and publisher Peter Cooper visits the only derivatives exchange in the region, the Dubai Gold and Commodities Exchange to hear from CEO Gary Anderson about record trading volumes. Full Story
Quantitative easing round three (QE3) by the Federal Reserve has been more or less factored in by the markets. There is also expectation that there will be a downgrade of US economic growth prospects. Gold and silver and commodities have risen on expectation of QE3. Full Story
Rattled by the failures of MF Global and Peregrine Financial and jittery about the financial system, some market observers are suggesting that investors transfer stock from their brokers to company transfer agents for direct registration. Full Story
As long as humans have had society, politics has played into economic interaction up and down the scale, from how one pays the butcher to international trade. In fact, it would be fair to say that politics plays as important a role in our economic interaction as the laws of supply and demand (the laws of nature), especially as we move further away from free market rule. Full Story
From the lows around $1526, gold has moved more than $200 higher. In the short term, both gold & silver are now technically overbought. Please click here now. You can see that many indicators are in “nosebleed” territory on this daily chart. Please note how far the gold price has moved above the upper green Keltner line. Some profits need to be booked, and the addition of some light strategic short positions is recommended now, but gold could take out the highs before correcting further. Full Story
Gold and silver stocks are not only the most volatile sector but the highest beta sector. Therefore the percentage moves can be quite exaggerated relative to the market. Currently, the shares have emerged from a W bottoming pattern. They have gained substantially (in percentage terms) in just the past month. Full Story
Today’s economists, trapped between the flawed theories of John Maynard Keynes and Milton Friedman, assiduously avoid the observations of Carl Menger and the Austrian School of Economics. But try as they might, the misguided and devoted followers of Friedman and Keynes can’t escape the results of their misguided assumptions—today, economies everywhere are drowning in debt. Full Story
A recent article by David Weiner on the MarketWatch site reminded me of just how weak the economic arguments against the gold standard are. Its title: "A Fool's Gold Standard." I examined this article here. Full Story
By: The Gold Report and David Goguen - 11 September, 2012
Senior producers needing to replenish depleted gold reserves will be looking to promising juniors to provide needed ounces, suggests Dave Goguen, director of institutional sales for PI Financial Corp. In this exclusive interview with The Gold Report, Goguen provides his views on where senior gold producers will be hunting in the risk-averse but increasingly gold-hungry world marketplace of today—and tomorrow. Full Story
Within the eurozone there are great stresses. At one extreme there are punitive costs of borrowing for Greece, Cyprus, Portugal, Ireland, Spain and Italy; at the other there is zero or negative interest rates for Germany, the Netherlands and Finland. Doubtless the first group begets the second, as captive investors in euros have to buy government bonds, and this requirement is being funnelled away from risk into safety. Full Story
Last week Mr. Draghi, the head of the European Central Bank, announced for propaganda purposes that the ECB would buy up the sovereign debt of the troubled EU member governments if, and only if, the assisted member governments agreed to the conditionality that would be imposed.
In other words, Draghi told Greece, Spain, and italy that the ECB will buy your bonds if you do what we tell you. Draghi’s conditions are a combination of austerity on the countries’ populations and the surrender of the countries’ financial sovereignty. Full Story
Show Highlights: Guest Interviews. Headline news & the Market Weatherman Report. Host answers phone calls and email questions. Guest: Chaplain Lindsey Williams Full Story
Most investors were duped by the mainstream financial media into thinking that the broad US stockmarket made an important upside breakout last week, but according to our charts it did no such thing. Sure the market did breakout to new post 2008 – 2009 crash highs, but it DID NOT break out to new highs on longer-term charts, and DID NOT break out upside from the large bearish Rising Wedge that it remains stuck in. Full Story
Last week was pivotal for equities as well as a reminder that the 3 ½ year-old recovery is still alive. Many stocks broke out to new recovery highs as the result of the European Central Bank’s (ECB) announcement that it would commence a bond-buying program to stimulate the troubled euro zone economy. The S&P 500 (SPX) made its highest close in four years as stock prices across many sectors rallied on the prospect of increased liquidity, the lifeblood of any bull market. Full Story
The unemployment numbers came out yesterday, and the drums for more quantitative easing are beating ever louder. The numbers were not all that good, but certainly not disastrous. But any reason will do, if what you want is more stimulus to boost the markets ever higher. Today we will look first at the employment numbers, because deeper within the data is a real story. Then we look at how effective any monetary stimulus is likely to be. Full Story
Gold finishes the week with a "high and tight" continuation pattern going into next week known as a "Bull Pennant", see one hour chart left hand side below. The chart work has been text book in gold for quite some time with the most recent being the breakout to the upside from a multipoint channel on the same one hour chart. What made the breakout from the channel so significant is that it took place above the prior "Major" trendline resistance of the "Descending Triangle" on the daily chart. Prior trendline resistance can act as support, see right hand side below. Full Story
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