So what spooked the Federal Reserve? Clearly the Driver$ of the global markets is the sudden and unexpected change in expectations regarding "TAPER" If we can understand the real reasons behind the Federal Reserve's abrupt face we may be better able to determine the...
Gold Editorials & Commentary
October 9, 2013
Paper currencies seem normal. They seem natural. We are told they are necessary. Paper currencies with no intrinsic value are used everywhere – we pretend they are valuable. If we don’t look closely, or remember the world of 60 years ago, they seem like a good idea...
The WHOLESALE price of gold gave back this week's 1.4% gains Wednesday morning in London, dropping below $1310 per ounce as European shares recovered earlier losses.
October 8, 2013
A question being asked more frequently than ever by informed readers is “what happens next?” This is understandable, and not a reflection of these individuals becoming either more curious or simply more obtuse.
The recent week was tough for the U.S. currency. Investors avoided the dollar as uncertainty over the U.S. government shutdown and the upcoming debate on the debt ceiling weighed on sentiment. The shutdown, with its suspension of funding for government workers and...
The PRICE of gold halved yesterday's gains in London trade Tuesday morning, slipping below $1320 per ounce as European stock markets extended their drop and the US government shutdown continued.
October 7, 2013
The financial markets have been treading water for weeks hoping the political process will bear something resembling fruit. Monday stayed on the “little in the way of progress” script.
In this Weekend Report I want to continue looking at the precious metals stock indexes and the consolidation patterns that have been building out since the June low. The reason I’m spending so much time looking at this possible consolidation area is so you can get a...
The analytic discussion and defense of viewpoints concerning the grandest asset bubble in history is covered, as well as exposure of corrupted markets. In addition, take the opportunity to discuss intriguing human psychology regarding forecasts. It might be...
One of the main events of recent days was the first U.S. government shutdown in 17 years. Light crude dropped to a new monthly low at $101.05 on concerns that this event would reduce demand for black gold in the world's largest oil consumer market. In the previous...
PRECIOUS METAL prices were unchanged in what dealers called "thin, quiet" Asian and London trade Monday morning, despite increasing fears the US government will fail to meet its obligations in only 10 days' time.
I’m sure you’ve heard, the U.S. government is shutdown and has put more than 800,000 federal employees on unpaid leave, closed National Parks and museums, and limited operations in various departments of varying degrees of importance.
Having one-on-one conversations with numerous executives from gold companies is an invaluable way to evaluate the state of the gold mining industry. We believe this is unmatched experience you can’t gain from reading financial statements.
October 6, 2013
The reason for posting a new Gold Market update at this juncture is that we appear to be at an optimum “buy spot”, for gold, silver and Precious Metals ETFs and stocks, as both gold and silver have dropped back in recent weeks to mark out the Right Shoulder low of...
While emotions rise as the government shutdown continues, with about a million furloughed government employees unemployed, and many services curtailed, the cries of doom continue as the October 17th deadline looms where the U.S. government could default on its debts...
Gold took quite a beating in September, bucking its seasonal average monthly return of 2.3 percent. The political battle between President Barack Obama and Congress, China’s Golden Week, and India’s gold import restrictions likely weighed on the metal.
Currently, the Federal government is in “shut-down” mode as House Republicans refuse (at least so far) to provide funding Obamacare. You can be sure that any part of the government that is important to the politicians is unaffected in the current shutdown. I...
October 5, 2013
Why aren’t we seeing more volatility in the metals markets? A couple of months ago, Cyprus (Russia’s anointed “Switzerland-lite”), proved that first world banking systems aren’t completely against confiscation or “one-time taxes.” It’s also been reported that Russia...
We saw markets a bit confused this past week with the Russell 2000 and Nasdaq looking good while the S&P500 chart didn’t look so great. All markets were doing very well in the face of a government shutdown and debt ceiling talk and that saw us increase exposure...
Recently I spoke with the always-insightful Nick Giambruno about the critical importance of internationalizing your retirement savings. It's an uncomfortable fact of life that governments that are desperate for cash inevitably find ways to siphon off the purchasing...
Last week, we began an article on the Central Bank Death Dance, and made it part 1, [here]. The main premise we want to address is why the broadly known demand factors for gold and silver are not being reflected in higher values.
As we speak gold is selling for far more than the quoted spot price we see on various web sites. That spot price is a dollar price which does not take into account the fact that this world is neither homogenous, informed, static nor safe.
Long term – on major sell signal since Mar 2012.
Short term – on sell signals.
Gold sector cycle – down as of 9/13.
The MOST important part of an economy is simply employment. To ignore or sideline the importance of unemployment statistics is foolish. Including when you are considering what's happening to investments, including gold.
October 4, 2013
Chart analysis On Gold, Dow Index, Gold Stocks And Silver via Videos.
Gold stocks are inarguably the most-hated stock sector on the planet these days. After they spent 2013’s first half plunging precipitously, investors have left them for dead. Even most former contrarians who earned vast profits in gold stocks over a decade have...
The partial government shutdown that began this week is not going to have a quick resolution. Both sides of the political aisle seem to be entrenched and unwilling to negotiate. It is political theater to be sure, but there are real world consequences and investment...
We’ve discussed the negative correlation between precious metals and the stock market. It has now been in place for over two years. Since September 2, 2011, the HUI Gold Bugs Index is down 64% while the S&P 500 has gained 43%. Silver has lost 48% while Gold has...
It was only recently that I looked at the Dow Jones Industrials/Gold ratio (DJI/Gold ratio). I wanted now to add another ratio that is often overlooked but is equally important. The Gold/Bonds ratio. The ratio in this case is the price of gold divided by the price...
We live in a time of great illusion in terms of money, wealth, and justice. Investment banking and finance continue to attract the greatest minds. Fraud of the greatest degree goes practically unpunished.
