The recent months have been tough for the U.S. currency. Since July the greenback has lost 6% and dropped to a new eight-month low on Friday. Investors avoided the dollar, firstly after the Fed opted against cutting its stimulus in September and then as the budget...
Gold Editorials & Commentary
October 22, 2013
In the previous update we have seen how Federal Reserve’s balance sheet grew in the last few years. Now let us look how this growth coincided with increases on the stock market:
WHOLESALE gold held in a tight $5 range Tuesday morning in London, drifting around $1315 per ounce ahead of delayed data on US unemployment.
This article is a further extension of the concept I introduced over 2 years ago, titled “Markets Trapped in a Contracting Fibonacci Spiral” and the April 2013 issue of Stocks and Commodities Magazine titled “The Contracting Fibonacci Spiral”. Many might view this...
October 21, 2013
It is rare that investors are given a road map. It is rarer still that the vast majority of those who get it are unable to understand the clear signs and directions it contains. When this happens the few who can actually read the map find themselves in an enviable...
Washington, DC, Wall Street, and central bankers around the world rejoiced this week as Congress came to an agreement to end the government shutdown and lift the debt ceiling. The latest spending-and-debt deal was negotiated by Congressional leaders behind closed...
Well, it’s official. President Obama has picked Janet Yellen as his nominee to be the next Federal Reserve Chairman. In the months leading up to this announcement, the press unanimously dubbed Yellen the Queen of the Doves, pointing to her reluctance to roll back...
The gradual erosion of the U.S. dollar’s status as the world’s reserve currency has been greatly hastened of late. This is due not only to the perpetual gridlock in D.C., but also our government’s inability to articulate a strategy to deal with the $126 trillion of...
The PRICE of gold was unmoved Monday morning in London, trading barely 25c higher at $1317.50 per ounce as European stock markets also halted their rise, holding global equities near 5-year highs.
In this Weekend Report I would like to show you some charts as to why I have made an abrupt short term move out of our short positions in the precious metals complex. I know some of you think I have lost my mind but I can assure you that isn’t the case. Regardless...
Gold finished Friday down -3.70 to 1316.10 on light volume, while silver was up +0.05 to 21.92 also on light volume. After the big move Thursday, gold and silver seemed content to track mostly sideways within a narrow range. Miners were off slightly; GDX down -0....
October 20, 2013
The U.S. Constitution empowers the Legislative Branch of the Federal Government – the U.S. Congress – with control of the public purse. Congress established the statutory debt limit in 1917 as a mechanism to restrain government borrowing via public bond issuance of...
We finally got the debt ceiling extension at the 11th hours as usual this week. The government is opened again as well and markets and stocks are loving it. We’re off to the races here with many fast moving stocks breaking out while many more are looking to go now...
The latest “debt limit crisis” was resolved this week; for another few months anyway. Come January 2014, we can expect all congressional Democrats and the dopes in the Republican leadership to once again kick the can down the road to ruin yet again. The Dow Jones...
Gold and precious metal equities are still giving sell signals in all periods.
October 19, 2013
Despite its intent to boost asset prices and restore the economy, the Federal Reserve has run into a major obstacle in achieving that goal. This obstacle is serving as a reminder that ultimately the long-term natural cycles of inflation and deflation govern the...
Almost everybody wants a back story, some information to explain what is going on with gold and silver, mostly looking for some kind of psychological calm as prices decline, or a ray of hope to reinforce why price may reach the sun and the moon. Is there anything...
The United Kingdom’s gold exports to Switzerland jumped from 85 tonnes to 1,016 tonnes in the first eight months of 2013 — a twelve times increase. Some bullion market watchers attribute the huge increase to withdrawals or sales from ETFs — an explanation that...
October 18, 2013
Vulgar competition needs to come to Italy's delicate jewelry business... "ITALY accused of protectionism!" is hardly news. Wanting free competition in the airline market, IAG – the group formed from the UK's privatized British Airways and Spain's privatized Iberia...
We put the finishing touches on our October newsletter earlier this week and within it forwarded the following prediction regarding the debt ceiling. “We can expect a last minute agreement to be struck to avert disaster…”
Well, there you have it, proof our crystal...
Chart analysis On Gold, GDX, Silver and the US$ via Videos.
Gold miners’ stocks have been brutalized this year, leaving them bleeding in the gutter as the most hated sector in all the markets. Plunging prices always lead to fear and excessive bearishness, unsustainable anomalous extremes that investors desperately try to...
China is now overtly pushing for the US dollar to be replaced as the world’s reserve currency. Xinhua, China’s official press agency on Sunday ran an op-ed article which kicked off as follows:
On Thursday, the S&P500 closed at a new high and its intraday record of 1733.45 broke the all-time high set Sept. 19. Over 80 percent of stocks traded on the New York Stock Exchange rose. According to FactSet, companies in the S&P500 index are on track for...
After expanding debt by more than $8 trillion and printing at least $85 billion per month, monitoring the “price” of practically anything is a risky option. Among other distortions created by price controls, sentiment is particularly vexing for the precious metals...
WHOLESALE prices for physical gold held near $1320 per ounce this morning in London, gaining 3.5% from last Friday after the mid-week US debt-limit deal saw what one dealer called "heavy short covering and some fresh buying."
Mark Twain said history doesn’t repeat itself but it rhymes. We often see that in the capital markets. The big decline in Gold this year is reminiscent of that of 1975-1976. Yet, aside from that there are several other similarities between today and 1976. Gold, gold...
The current correction in gold started in August 2011 and has now gone on for 112 weeks – (it most likely bottomed on June 28th). This has been the longest correction since the current bull market started in 2002. The correction of 2006 lasted 71 weeks before a new...
October 17, 2013
Global trade has an enormous impact on both the financial markets and worldwide economy. Therefore, when the currency that serves as the guidepost for valuing assets drops 1%, it impacts investor decisions across all asset classes. Thursday’s tone was set in the...
The WHOLESALE price of gold in London leapt at the start of Thursday's trade, rising $45 per ounce to hit 1-week highs above $1320 after the US Congress reached a short-term deal on the government's debt limit.
