first majestic silver

Bear's Lair

Bear Markets always follow Bull markets and a severe stock market correction is long overdue. Bears Lair will spot, monitor and analyze the stock market correction as it develops.

 

Recently, many bullish gold analysts have started questioning their own theory that money printing causes inflation.

I've been pointing out for several months now that the recent rally in the dollar was a mirage, an illusion generated by the yen, euro, pound, and Canadian dollar all dropping into yearly, or intermediate cycle lows together.

We’ve seen lots of talk of massive and historic volatility in the gold market after its recent take down.  This is not true.  Here is a chart showing every day since 1969 where gold moved (+/-) 5%.  Since the early 1980s, the price

Gold's post-plunge rally of the past 9 trading days has been quite impressive, given what preceded it, but it has not vitiated the implications of the support failure and plunge, and it won’t until either a substantial base pattern

All in all we didn’t do much this past week.  Things were pretty quiet after two amazing weeks in a row.  We’re setting up for another move here shortly and markets are looking toppy here.




Dow “Sell In May” Chart

Many years ago when I was a teenager, my late father had a friend who was in his sixties. His name was Johnny and he was overweight.

One of investors’ biggest fears over the Fed’s monetary stimulus (QE3) is that it will cause runaway inflation.  While there are reasons for believing this fear could come to pass in the years following the upcoming 120-year cycle

I was honored to be in St. Paul’s Cathedral attending Margaret Thatcher’s funeral last week.

The last three major bull markets of the Dow were followed by some type of economic crisis and a major bull market in gold.

Many economists believe the price of gold has fallen because institutional investors have become more interested in owning the general stock market.

 

Gold prices have managed to recover more than $ 80 an ounce from its recent low as demand for the physical metal explodes.

There's a lot of confusion about money and about what does and does not form part of the money supply. Our goal in this short discussion is to reduce the confusion.


So we saw gold fall a hundred plus dollars in a day and I say, it’s fine.

UNCOMMON COMMON SENSE

For People Who Think

The cyclical recovery that began in March 2009 has been impressive but is getting long in the tooth.  Investors wonder when it will end, and while this can’t be known with precision there are signs that its terminus isn’t far away.



US Dollar Lost Soul Chart

Here are the historical bull and bear markets for Gold since 1972 (post Bretton Woods) through 2007.

In the years following the global financial crisis, economists and investors have gotten very comfortable with very high, and seemingly persistent, government debt.

Here are the historical bull and bear markets for Gold since 1972 (post Bretton Woods) through 2007.

Have a good look at the following two charts.


There are likely, at minimum, half a dozen reasons for the swift correction in precious metals over the past week. The real reason might be one, two, or even all of what I’m going to lay out below.

The recent drop in gold and silver is not critical to buyers of physical metals. Instead, it is an opportunity – to buy more at lower prices; at worst, it is an irritation, since it means a longer wait.

Explanations for this gold selloff abound everywhere and nearly all of them are inane and incorrect.

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Pure gold is so soft that a strong man can squeeze it and shape it.

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