A major determinant for U.S. GDP growth is the state of the real estate sector. The construction of new homes contains only small section of the total picture.
Gold Editorials & Commentary
July 30, 2013
PRECIOUS METALS held in a tight range in London on Tuesday morning, moving sideways as world stock markets rose and commodities slipped ahead of the US Federal Reserve meeting, which begins today.
The main reason that this year's huge decline in the gold-mining sector took us by surprise is that we didn't seriously consider the possibility that a major/primary correction began in September of 2011, and one of the main reasons we didn't seriously consider this...
July 29, 2013
One of the many tenets on Wall Street is that debt investors are often a step or two ahead of stock investors when it comes to identifying slowing economic growth. From a common sense perspective, it makes some sense.
It is as notable as a 2nd term president handing off the big problems to the next guy, as George Bush did with Barack Obama in 2008; the changing of the guard at the Fed, that is.
July 28, 2013
The US markets are mixed for the moment but do have the look to be ready to roll over further Monday. We could be ready for a month of downside to base building type of action which would be great.
The true Gold price is PP in the graph, while the phony price is P* since it is associated with supply shortage and excess demand. A picture might be worth a thousand words, but sometimes a picture requires a thousand words to explain its full meaning.
Most commentators in the precious metals sector still are not treating hyperinflation as a likely scenario -- as “competitive devaluation” continues to relentlessly drive all of this paper to zero. I can prove this. How?
It’s been a couple on months since my last missive. I’ve been waiting for some propitious moment where I can jump up and down and proclaim “the moment has come, the time is ripe, we’re on our way towards $2400” but that was not to be. Gold just kept on sinking. ...
July 27, 2013
“There is a tide in the affairs of men. Which, taken at the flood, leads on to fortune;
Omitted, all the voyage of their life Is bound in shallows and in miseries.
For the week, spot gold closed at $1,333.30, up $37.20 per ounce, or 2.87 percent. Gold stocks, as measured by the NYSE Arca Gold Miners Index, rose 6.68 percent. The U.S. Trade-Weighted Dollar Index lost 1.15 percent for the week.
Our clarion call is for the physical market to soon takeover the actual price for buying and selling. When, we do not know? Timing is now less critical than actual possession, from this point forward.
This past week have witnessed buy signals in gold and precious metal equities – as all are on buy signals.
Gold has made some good progress in the last three weeks, and not surprisingly, so has the Gold & Silver Mining Index (XAU). When we looked at the chart recently, we saw a number of features worth talking about.
Some readers may be sick of seeing this chart but I believe there is no more important chart when assessing or describing the current market (in gold stocks). From a weekly price perspective the recent bear market labeled E finished down 65%.
The basic imbalance driving our economy is the government deficit, which spun out of control as a result of the Credit Crisis of 2008/9.
July 26, 2013
What do tulips, Pet Rocks, Beanie Babies, Barbie Dolls, real estate, stock markets, and gold, have in common?
After tapering comments spooked the markets in May, Ben Bernanke spent weeks trying to jawbone the markets back into a calmer state. He was successful for the most part with the S&P 500 gaining 132 points off the June low.
It seems to be human nature to hear what one wants to hear and most advisors, so-called “analysts”, newsletter writers and commentators seem to feed people the popular line. Why?
As a general rule, the most successful man in life is the man who has the best information
Here’s four facts I want you to have on your screen before we get going:
The PRICE of gold bullion retreated from an overnight rise to $1340 per ounce in London on Friday morning, trading back down to $1322 – the low hit by the mid-April crash – as the US Dollar ticked higher.
Gold stocks are actually enjoying a great month, a stark contrast to this year’s brutal death spiral lower. But after catapulting up by more than a quarter in less than a month, investors are wondering what to do next. Is it time to cut losses before the...
In the weekly review, I referenced several news stories about JPMorgan.
Frequently I receive emails from clients who ask variations on the theme of the QE-driven stock market in light of the long-term Kress cycles. For instance, one client recently wrote: “I really like your work but lately am struggling to piece together the longer-...
July 25, 2013
The equity side of Wall Street coined the term great rotation to describe what they hoped would be a mass migration by investors from bonds to stocks. Many investors have not forgotten when the S&P 500 plunged 50%-plus (2007-2009).
This chart courtesy Federal Reserve Bank of St.
With gold headed to hopefully its first good up month in the past 10 months (setting aside a small gain in March 2013) it might be time to look at what happened at previous gold lows since the major double bottom lows seen in August 1999 and February 2001.
The Great Paper Liquidation continues. While the stampede out of the banksters’ fraudulent paper-called-gold products has eased from its frantic pace of a couple of months earlier, the bleeding continues.
Fall in the Prices of Gold & Silver: Gold and silver recently hit their lows –$1,180 for gold and $18.50 for silver—after being hit by tremendous persistent selling from the SPDR gold ETF and then a major, well-engineered bear raid from
WHOLESALE gold rallied from a drop to $1310 per ounce Thursday lunchtime in London, gaining as world stock markets also cut earlier losses.
