Gold World News Flash |
- In The News Today
- Gold & Silver Daily: Farewell To All The Emperors - Feb 19, 2010
- Fed Z1: Blah
- Deflation Is Good... When to Bomb Iran?
- Energy Dow & Gold: Technicals & Tactics
- Deeper Into the “China: Boom or Bubble” Debate
- Acceleration Of QE Across Western Nations All That Has Changed
- Hourly Action In Gold From Trader Dan
- Women Prefer Men That Hold State Bonds, Japanese Ad Says
- Anatomy of a Three-Bagger: The Brett Resources Story
- Yet Another Reason Not to Trust the Big Commercial Investment Firms
- A Must-See Chart for Gold Stock Investors
- LGMR: Gold Analysts Bullish, Dollar Slips, ECB Accidentally Extends Cash-Draining
- Things
- Useless Gold, Useless Dollars
- Gold Investment Strategy
- 3 Silver Miner Stocks to Watch
- The Big Double Dip: If We're Really on the Verge, What Comes Next?
- 9 Stocks With a Vision of Higher Dividends
- The Very First CDS
- Algae-Based Biofuel Is a Game Changer: Fortune Favors the Daring
- How Should We Respond to Regulatory Failure?
- Bear Market or Bull Market Correction?
- Hungary: In Between a Rock and a Hard Place
- Hazlitt's Battle With Bretton Woods
- Otis Commences 6,000 Metre Drill Program at Kilgore
- Interview: U.S. Gold CEO Rob McEwen Looks Ahead of the Curve
- 1973 “Seagull” Proof Silver Dollar
- Crisis Investing
- “We are now near the end of the declining phase of the depression.”
- What a Difference a Day Makes
- Is BP Too Big To Fail?
- Will Anything Stop The Decline of CRE Prices?
- Guest Post: In the Summer of 2010
- Gold Seeker Closing Report: Gold and Silver End Mixed
- Gold Stock Fundamentals Now versus 2008
- Euro Woes Don't Faze Chinese Pension Fund
- Gold clearing statistics hit record volumes in May: LBMA
- SEC accuses 6 in gold mining investment Ponzi scheme
- Buy U.S. Gold (UXG) Price Moving Higher After Cup and Handle Breakout
- Adrian Douglas: Financial system creaking under rising gold offtake
- The Death Of Las Vegas
- Time to buy? Now even China is trying to talk gold down
- Gold Daily Chart and a Look at Silver.
- Silver and Gold Prices Stand on the Brink of a Spectacular Breakout
- Deflation as a Scare Tactic
- Silver Standard Resources Inc. Q1 2010 Earnings Call Transcript
- Gold: Neither a Borrower nor a Lender Be
- THURSDAY Market Excerpts
- Buying gold in June and July has been very profitable for years
| Posted: 10 Jun 2010 09:34 PM PDT View the original post at jsmineset.com... June 10, 2010 08:14 PM Jim Sinclair's Commentary Sprott does a great job documenting some of the major reasons to own gold. Click here to read the article in PDF format Jim Sinclair's Commentary Dean Harry Schultz, my dear friend for more than 40 years, says it as it is, always. This is a community read. God Bless and sustain dear Harry. Bearish Schultz says hyperinflation may happen suddenly Commentary: Crash-predicting letter says recovery might not come By Peter Brimelow, MarketWatch June 10, 2010, 12:01 a.m. EDT NEW YORK (MarketWatch) — Stocks continue to flounder. A remarkable veteran editor says get used to it. Harry Schultz’ International Harry Schultz Letter was one of 2009’s top 10 performers because it ran with the rally. And I named it Letter of the Year for 2008 because it undeniably did predict the crash, although by Hulbert Financial Digest count it didn’t benefit, for various t...
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| Gold & Silver Daily: Farewell To All The Emperors - Feb 19, 2010 Posted: 10 Jun 2010 09:34 PM PDT Farewell To All The Emperors Well, the rally that began at gold's low on Thursday morning at 4:00 p.m. in Hong Kong's afternoon trading session, had a few legs... and gold was up about $10 or so by 8:30 a.m. in New York. Shortly after that, gold really took off and added another $12 or so onto the price before running into the usual brick wall at the London p.m. gold fix at 3:00 p.m. London time... 10:00 a.m. in New York. From there, gold dipped briefly before running up to another new high, which was the close of trading in London at 4:00 p.m... 11:00 a.m. in New York. Gold sold off about $8 or so from that high... and, wonder or wonders, continued to climb to its absolute high of the day which was at precisely 4:30 p.m. Eastern time when the interest rate news hit the tape. Gold fell $15 in half an hour... and basically closed at that price... which was $1,105.20 spot. And, as I me...
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| Posted: 10 Jun 2010 09:34 PM PDT Market Ticker - Karl Denninger View original article June 10, 2010 07:06 PM Well, there's nothing here that indicates any sort of real change. Let's start with the grand-daddy chart: The arrow is approximately where the outstanding credit in the system began to decline. Note that the slope of each sub-component hasn't done much in terms of change in this last report. Has there been ANY improvement? Let's zoom in: Well, not really. Households and non-profits contracted their outstanding credit by $60 billion in non-mortgage instruments and a sizable $99 billion in mortgages. Non-financial business credit expanded very slightly (about $30 billion in the quarter) as did state and local governments ($25 billion.) Interestingly enough it appears that farm credit decreased while non-farm increased - I will do some more digging in that area, as it may be a leading indicator of distress in the farm space - particularly family far...
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| Deflation Is Good... When to Bomb Iran? Posted: 10 Jun 2010 09:34 PM PDT Deflation Is Good Thursday, June 10, 2010 – by Staff Report David Cameron's new Government in Britain announced Tuesday that it will introduce austerity measures to begin paying down the estimated one trillion (U.S. value) in debts held by the British Government. Lets let that sink in for a moment, for it is a stunning announcement. Now repeat it: Britain will introduce austerity measures in order to eliminate the deficit and begin paying down the national debt. And that being said, we have just received the signal to an end to global stimulus measures — one that puts a nail in the coffin of the debate on whether or not Britain would "print" her way out of the debt crisis. That would have virtually guaranteed an eventual hyperinflation that would have spread to all Western nations, destroying the U.S. dollar as the world's reserve currency in the process and ending several hundred years of Western economic dominance. ... This is actually a cel...
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| Energy Dow & Gold: Technicals & Tactics Posted: 10 Jun 2010 09:34 PM PDT Graceland Updates 4am-7am www.gracelandupdates.com Email: [EMAIL="s2p3t4@sympatico.ca"]s2p3t4@sympatico.ca[/EMAIL] [LIST]Submission: [/LIST] [LIST] June 10, 2010 [/LIST] [LIST] [/LIST] [*] Energy. A subscriber sent me a note a couple of days after the oil leak started. Some engineers were saying the only way to close the gulf oil leak might be with a nuclear bomb. We wondered if that was extreme or not…. [*]Now major energy analyst Matt Simmons agrees, says there's another leak, and wonders what happens in hurricane season. We're way overdue for a major hurricane. What happens to the coastline in a hurricane? Answer: "Paint it black" – Mick Jagger, Rolling Stones. [*] The long natgas/short oil trade has been a big winner over the past couple of months. Profits must be booked into strength. Short term, natgas could move lower and oil higher. Yesterday that happened. Look at your finest items in your home. Then go to t...
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| Deeper Into the “China: Boom or Bubble” Debate Posted: 10 Jun 2010 09:34 PM PDT The 5 min. Forecast June 10, 2010 12:06 PM by Addison Wiggin & Ian Mathias [LIST] [*] “Be careful what you wish for”… so what if China revalues the yuan? [*] China coal demand up, steel demand down… making sense of conflicting signals [*] Mortgage demand collapses after homebuyer tax credit expires [*] Bernanke on the economy, gold… a reader deconstructs the Fed chief’s deficit warning… others comment on our “poop sheet”… [/LIST] A common thread runs through the morning’s headlines. And since we were still under the spell of Lady Justice, we have to thank Dave Gonigam, who himself escaped unscathed from her grasp earlier in the week, for sifting through them. The thread, once again, loosely weaves its way around China: [LIST] [*] China’s exports rose 48.5% from April to May, the biggest monthly jump in six years. Since that signals continued demand ...
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| Acceleration Of QE Across Western Nations All That Has Changed Posted: 10 Jun 2010 09:34 PM PDT View the original post at jsmineset.com... June 10, 2010 07:40 AM Dear Friends, 1. The euro is stronger this morning on debt sales by weaker euro countries and the German high court permitting bailouts. As I see it this was the use of emergency funds via beards that is as effective QE as if they were bought directly by the ECB and the Fed. 2. The criminal litigation against major international investment companies in the southern district of New York must be extremely scary for them. The Manko and Edelman cases should be reviewed not only for legal precedent set, but also for legal points made by the prosecutor. 3. Nothing has changed except for the acceleration of QE across all Western nations. Respectfully, Jim...
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| Hourly Action In Gold From Trader Dan Posted: 10 Jun 2010 09:34 PM PDT View the original post at jsmineset.com... June 10, 2010 10:27 AM Dear CIGAs, News that China's exports rose 48.5% in May and their imports increased 48.3% gave investors cause for lessening concerns over the fallout from Europe's woes (a tip of the hat here to our own Monty Guild who has been consistently correct about China) and that sent money back into stocks during the session as "risk concerns" abated. That same minor shift in investor psychology for the day took the pressure off of the Euro and encouraged selling in the US Dollar. It also took some of the safe haven shine off of gold which saw some follow through selling from yesterday's technically induced move lower. As mentioned in previous chart comments, momentum traders seeing gold unable to close above its recent all time high booked profits on longs while some opportunistic short term oriented shorts decided to get a bit more aggressive seeing the same thing. Gold should remain well supported however on dips in ...
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| Women Prefer Men That Hold State Bonds, Japanese Ad Says Posted: 10 Jun 2010 09:34 PM PDT Gold did virtually nothing throughout all of Wednesday's trading in the Far East and London... but minutes before London closed, gold got smacked for $13... right down its low of the day of $1,221.00 spot. From that low, gold recovered most of its loses and only closed down $1.70 on the day. Gold's high of the day [around $1,241 spot] occurred in early Far East trading. Silver didn't do much either on Wednesday... and was basically trading unchanged by the time that New York opened. But, like gold, it too got smacked just before the London close. In silver's case, it 'lost' 25 cents... and continued down from there... closing on its absolute low of the day at $18.09 spot. Silver's high of the day was also occurred during New York trading at $18.40 spot. The U.S. dollar was all over the map once again yesterday... with huge swings in both directions. From 1:30 a.m. until almost precisely 11:00 a.m. Eastern time Wednesday... the dollar declined about 94 bas...
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| Anatomy of a Three-Bagger: The Brett Resources Story Posted: 10 Jun 2010 09:34 PM PDT Jeff Clark, Casey's International Speculator Shareholders were treated to a big win last month when Brett Resources (V.BBR) was bought out by Osisko Mining (T.OSK), giving investors a triple from our initial recommendation. We talked with Brett Chairman Ron Netolitzky to get the story behind how he and his team made Brett a success, along with his thoughts on the junior market and gold. We think so highly of Ron that we've inducted him into our Explorers' League program... Jeff Clark: Ron, as happy shareholders we thought this was a good time to hear the success story behind the company. Tell us about finding the property and how you and your team were able to develop it into an attractive buyout target. Ron Netolitzky: As you know, Jeff, it's just another example of instant success for a company that's tried for probably 20 years to be successful. Patience is what we need in this business. Brett Resources got cobbled together from a company that lef...
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| Yet Another Reason Not to Trust the Big Commercial Investment Firms Posted: 10 Jun 2010 09:34 PM PDT The Underground Investor In June 2007, Reuters reported the following story: Morgan Stanley will pay $4.4 million to settle a class-action lawsuit with brokerage clients who bought precious metals and paid storage fees, according to a court filing. The proposed settlement, which must be approved by the federal court in Manhattan, includes a cash component of $1.5 million and economic and remedial benefits valued at about $2.9 million, according to a court filing on Monday. The suit, filed in August 2005, alleged that Morgan Stanley told clients it was selling them precious metals that they would own in full and that the company would store. But Morgan Stanley either made no investment specifically on behalf of those clients, or it made entirely different investments of lesser value and security, according to the complaint. About 3 years later, yet more fraud committed by JP Morgan has surfaced in which they co-mingled $8.6 billion of clients’ assets with its own...
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| A Must-See Chart for Gold Stock Investors Posted: 10 Jun 2010 09:34 PM PDT By Brian Hunt, editor in chief, Stansberry & Associates Thursday, June 10, 2010 In late 2008, shares in gold stocks suffered one of the worst wipeouts in market history. Most small, speculative gold stocks lost over 80% of their value in just a few months. Even the bigger, more established gold miners lost nearly 70% of their value in seven months. Since this washout, many gold stock investors are scared to death of what could happen to their holdings if a big market correction hits. Well, such a correction has hit… Investors have fled stocks in general in the past month and a half. But they've left gold stocks alone… and they've created an extraordinary "divergence." If you're bullish on the sector, you have to be aware of what's happening now. To see what I mean by "divergence," we need to check in on how gold stocks are performing relative to the stock market as a whole. Below is a performance chart displaying the percentage gain in the big g...
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| LGMR: Gold Analysts Bullish, Dollar Slips, ECB Accidentally Extends Cash-Draining Posted: 10 Jun 2010 09:33 PM PDT London Gold Market Report from Adrian Ash BullionVault 09:05 ET, Thurs 10 June Gold Analysts "Bullish" as Dollar Slips, ECB "Accidentally" Extends Cash-Draining Program GOLD DEALT IN large wholesale bars slipped in price for the second session running in London on Thursday, dropping 2.5% from Tuesday's record highs as European stock markets held flat and the US Dollar ticked lower on the currency market. The central banks of both the Eurozone and the UK voted to keep interest rates on hold, sticking since spring 2009 at 0.5% and 1.0% respectively. Gold priced in Sterling and Euros rallied from 3-session lows Thursday lunchtime, bouncing higher from £835 per ounce and €32,500 per kilo. "Gold is undergoing a reflexive movement," says a note from Italian bullion dealers Italpreziosi. "We view this retracement as profit taking," agrees the latest technical analysis from bullion bank Scotia Mocatta, citing "major pivot support at 1201. Scotia's analys...
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| Posted: 10 Jun 2010 09:33 PM PDT The following is automatically syndicated from Grandich's blog. You can view the original post here June 10, 2010 04:14 AM [LIST] [*]Don’t be foolish to think Bernanke’s comment on gold was just some off the cuff remark. Gold was trading at or near new all-time highs and breaking out when his quote hit the wires. While I’ve always respectfully differ with my good friend Bill Murphy belief that the Gold Cartel is in the market daily, I do believe these comments by Bernanke were done with a purpose. The anti-gold crowd is in deep trouble. The recent nonsense from Jeff Christian over his squabble with GATA reeked of a controlled panic in my eye. The media continues to be filled with calls for gold to go much lower. Prechter’s latest market top forecast (He has made several others all the way up) is the latest carrot being used. before that it was the Barclay’s guy coming fall that’s now triple-digit in the red. For me, none can ever top the utter nons...
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| Posted: 10 Jun 2010 09:07 PM PDT Gold Investing is "ridiculous" says the Wall Street Journal... "In the LAND of the BLIND," as the old saying goes, "the one-eyed man is king." In the world of investing assets, therefore, which asset deserves to be supreme global ruler? asks Eric Fry in The Daily Reckoning. US Treasuries...? Picassos? Shares of Apple Computer? Vintage Corvettes? Beachfront real estate? It's a tough call, made even tougher by the volatility of the foreign exchange markets and the capriciousness of national tax authorities. Truth be told, there probably isn't one supreme asset that merits your investing trust above all others. But if there were just one, that asset would be Gold...simply because it has the longest and most impressive resum̩. Nevertheless, this trustworthy asset commands surprisingly little respect from most American investors. They remember gold as the asset that slumbered for two decades while stocks jumped 10-fold. And despite Gold Investing seeing such a strong performance during the decade just passed, most investors are still quick to point out that gold has delivered a negative inflation-adjusted return since 1980. That's 30 years and counting. "At some levels," reasons Brett Arends of the Wall Street Journal, "gold, as an investment, is absolutely ridiculous. Warren Buffett put it well: 'Gold gets dug out of the ground in Africa, or someplace. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head.'Arends offers a familiar and relatively coherent critique of gold's stature in the world. But if gold is as 'ridiculous' and 'useless' as he contends, the Dollar must be doubly ridiculous...and the Euro triply useless. What intrinsic "value" or utility do these sovereign IOUs possess? A Dollar possesses value only because enough people agree that it does. But if a large body of Dollar-holders rebelled against this notion, the Dollar's value would decline, if not disappear altogether. Faith and habit support the Dollar's value. Nothing more. Isn't that a bit ridiculous too? And yet, the world's ridiculous "faith-based" monetary system underpins the entire network of global commerce. Without Dollars and yen and Euros, global commerce would function very poorly. So the system persists, despite its obvious shortcomings. Oil producers, for example, continue to spend decades developing new projects, building pipelines and expanding refineries so that they can continue to exchange one gallon of gasoline for three pieces of green paper. The whole thing is kind of insane...when you really think about it. But this form of insanity is benign in most economic settings. Everyone knows that a piece of green paper possesses zero intrinsic value. But no one cares, as long as four pieces of green paper buys a breakfast at Denny's, five pieces of paper buys a lunch at McDonald's and six pieces of paper buys a coffee at Starbucks. Unfortunately, here in A.D. 2010, currencies are coming under suspicion. No one knows which currency is good or which is bad...or if any currency at all can be trusted. The global monetary system is creaking under the weight of excessive government debts. In such an environment, what asset is truly safe? If money itself is not trustworthy, what is? What asset evokes confidence? What national treasury, government agency, financial institution or pension system inspires complete trust? The time has come to ask ridiculous questions...and to continue asking ridiculous questions until some of the ridiculous answers begin to make perfect sense. Gold might be as "useless" as the Journal's Arends contends, but an ounce of it buys about 1,200 Dollar bills. In a few years time, this same useless ounce of metal might buy 5,000 Dollar bills. The question then would be, "What do I do with all these green pieces of paper?" Gold Investing Рnow simple, secure and cost-effective when you use BullionVault...
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| Posted: 10 Jun 2010 09:05 PM PDT Diversification is key to making the right size of Gold Investment... LAST YEAR was great for gold and gold investors, but it will shine more brightly still in 2010 according to the World Gold Council. The non-profit, mining-backed research and marketing body believes Gold Investment demand in particular has much further to go. Here Jason Toussaint, the WGC's New York managing director of Exchange Traded Gold – which manages and promotes the World Gold Council-backed exchange-traded gold products worldwide, including the world's second-largest ETF product, the GLD Gold Shares Trust – speaks to Hard Assets Investor about why. Hard Asset Investor: In your most recent report on Gold Demand Trends, the World Gold Council identifies two key drivers of the gold market in 2010: higher Gold Investment demand out of the US and Europe, and higher jewelry demand out of India and China. Which of these two factors is the stronger influence on today's market? Jason Toussaint: If we look at historical figures, we see that jewelry consumption leads all sectors, in terms of tonnage of demand. That will continue going forward, and jewelry would have the higher impact. That said, it might be worth noting that when we speak about the jewelry market in the non-US or the non-Western markets, the differentiation between a jewelry purchase for adornment and for investment is very great. It's very difficult to say that someone in the Indian gold market who's purchased gold jewelry is doing so exclusively for the jewelry aspect and not for investment, because there's a very liquid two-way market in that around the world. The bottom line is, and the common thread here is, gold is seen as a long-term store of wealth, which is keenly important in today's markets. HAI: We've heard a lot about China and India's appetite for gold jewelry. But are we also seeing any recovery in jewelry demand in the US and Europe? Jason Toussaint: Absolutely. I think the larger impact on jewelry demand is generally volatility and the pace of change in the Gold Price, and not necessarily the notional figure at that point in time. In other words, we typically see when there's a steep run-up in the Gold Price, that tends to suppress jewelry demand. And when we have a leveling out, or a less rapid increase in the Gold Price – as we enjoyed in the first quarter – jewelry demand tends to come back. And that's absolutely what we saw this past quarter. HAI: We've seen much weaker Gold ETF buying this quarter on a year-over-year basis. Granted, 2009 was an exceptional year, where investors rushed to ETFs in record numbers. So is that the only reason we're seeing a decline in Q1 2010? Or are there more factors at play here? Jason Toussaint: Well, it's very difficult to point to one factor and say that that is the exclusive factor behind gold ETF demand. But I think we did see somewhat of a slowing of interest. And what could have happened is rebalancing activity. A lot of investors rebalance on a tax-efficient basis by selling gains and offsetting them with positions that have losses, and gold was a very strong performer in 2009. Maybe people and investors said, "We're done. We want to see what happens." But particularly toward the end of the first quarter, and certainly very recently, there was another dramatic uptick in demand for Gold ETFs. So I think we're seeing a large paradigm shift in the view of gold by investors from what used to be a strictly safe-haven view, and using it as a short-term tactical portfolio tool, to a much more longer-term focus on portfolio diversification and wealth diversification. Investors are generally holding their gold for very long periods of time. We hear from the investment advisory community that most advisers who have recommended gold for their clients are recommending a 5% allocation. Now as an organization, we don't recommend gold in any percentages; this is simply what we're hearing from the marketplace. HAI: But what happens when the global economic picture starts to improve substantially? Do you think people will still view gold as that long-term portfolio asset, or will investors switch back to a tactical view once the markets appear to improve? Jason Toussaint: I think that it will be continuously viewed as a strategic asset. It's not as if it's a binary question. Gold is generally viewed now as a buy-and-hold type of investment asset. And I think what lends the biggest backdrop to that is the events of 2008. Investors were caught so off guard, and there was such a huge cyclical decline across all markets – but gold was one of two asset classes among all of them that had positive returns that year. The key message is, if you get it wrong, and risk hits you on the downside, then gold is there to preserve at least a portion of your portfolio's wealth. I like to tell investors that when gold is your No.1 portfolio asset, that's the time when you need it to be. When was the last time you assembled a portfolio and said, "Every one of these positions is my No.1 performing asset"? It doesn't work that way. The concept of diversification is still key. So I think if we look at the peak in mid-2007, there was a general laissez-faire approach to market risk, because we had it good for so long. In the seven-year equity bull market from 2000, there was a tendency to take portfolio risk for granted, and to not understand that returns are generally normally distributed. HAI: Do you think investors, as a whole, have reset their expectations of risk and return as a result of the crisis? Jason Toussaint: Absolutely, and particularly on the institutional side. What is the fundamental purpose for defined benefits plans? It's to ensure that they have assets to fund future liabilities. And gold, in particular, has a great way of protecting wealth in periods of negative surprise. Gold is the type of portfolio asset where you set it and forget it. I like to say, the time to buy insurance is not when your kitchen is on fire. That's the important point. If we went long when assets are rising, and then went back to cash or some short-term holdings while they fell – unfortunately, most investors don't have the luxury of day-trading their portfolios. Certainly pension funds don't. So from a strategic, long-term asset allocation perspective, think of it as a policy benchmark for a pension fund or an institutional investor. Gold Investment does have a place in there. Start your Gold Investment with a free gram of solid gold – stored securely in Zurich, Switzerland right now – at BullionVault...
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| 3 Silver Miner Stocks to Watch Posted: 10 Jun 2010 08:14 PM PDT Wealth Daily submits: By Luke Burgess You probably already know that every commodity fortune ever made was created by an imbalance of supply and demand. When the demand for a certain commodity is high and supplies are low, prices skyrocket. And investors holding the commodity in question get rich. Complete Story »
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| The Big Double Dip: If We're Really on the Verge, What Comes Next? Posted: 10 Jun 2010 07:48 PM PDT Mark E. Bachmann submits: Concern about a possible double-dip recession has lurked beneath the current economic recovery ever since it got underway sometime last year. So palpable was the general relief that a recovery seemed to be happening at all after the bone-chilling 2008 crisis, that wishful thinking probably made the uptick feel on the surface more bullish for a while than it really was. From the start there were perverse undercurrents. For one thing, the recovering economy didn't seem to be creating many jobs. For another, banks weren't lending robustly, or to put it another way, creditworthy borrowers weren't available who seemed willing to borrow in much volume. Rather than focusing on inflation risk, as might have been expected in the midst of a normal recovery, the Fed appeared to be too worried about deflation to begin pushing short-term rates much above zero. It was all very odd. But that's old news now. What's more current are systemic problems in Europe, and the fact that the stock market - which had offered one of the more hopeful signs - has reversed course and dropped more than ten percent of its value in a month. As a leading indicator, the Dow has a fickle record, but one has to wonder if it might be telling us something this time, since it appears to be confirming discordant signals there from the beginning. Complete Story »
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| 9 Stocks With a Vision of Higher Dividends Posted: 10 Jun 2010 07:45 PM PDT Dividends4Life submits: A vision is taking the time to contemplate and anticipate, in detail, what the future will bring. A financial vision needs to consider future earnings, savings and economic issues such as inflation. Then based on your vision, you formulate an action plan to ensure the best possible outcome given your unique circumstances. You can’t have a retirement plan until you have a retirement vision. It would seem to me that there are a lot or retirement plans out there but very few retirement visions. Complete Story »
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| Posted: 10 Jun 2010 07:15 PM PDT This is the Green Room submits: Yes, conspiracy theorists, there is a link between environmental disasters and financial meltdowns. In the wake of the Exxon Valdez disaster, Exxon (XOM) was faced with $5B in fines. The company turned to its banking partner, J.P. Morgan (JPM), and asked for a line of credit in that amount. J.P. Morgan was reluctant to grant the loan for two reasons: Basel regulations would require them to keep 8% of the capital on their balance sheet, and there was a chance that Exxon would go bankrupt before the money was repaid. Complete Story »
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| Algae-Based Biofuel Is a Game Changer: Fortune Favors the Daring Posted: 10 Jun 2010 07:00 PM PDT Green Chip Review submits: by Jeff Siegel It's been a hot topic for a few years now. And certainly the potential for incorporating algae as a key feedstock for future biofuel production is massive. Complete Story »
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| How Should We Respond to Regulatory Failure? Posted: 10 Jun 2010 06:39 PM PDT Mark Thoma submits: I keep reading arguments that start with the fact that regulators have been imperfect in the past and use it to argue that we should eliminate (or substantially reduce) the amount of regulation that is imposed. However, just because regulators missed things in the past like Bernie Madoff, the financial meltdown, and the risks that BP was taking does not imply that regulation ought to be reduced or eliminated. If there is a lot of crime that should have been prevented but wasn't, do we disband the police department or try to figure out how to make it better? It would be silly to suggest that the answer to the failure to prevent crimes is to get rid of the police, and it's equally silly to assert that the solution to poor regulation is to quit trying to regulate. Yes, it's possible that in some cases the regulation can do more harm than good (the equivalent of a law that imposes more restraints, i.e. costs, on the law-abiding than it produces in terms of the value of the problems it prevents). But for the most part, we are trying to prevent behavior that has significant costs, e.g. oil spills, financial meltdowns, fraud, etc., and throwing our hands up and saying there's nothing we can do about it is not the answer. Complete Story »
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| Bear Market or Bull Market Correction? Posted: 10 Jun 2010 06:29 PM PDT Chris Ciovacco submits: While it may feel like we have entered a new bear market and that nothing like this has happened before, history paints a different picture. Markets move primarily based on greed and fear. The human emotions of greed and fear are the same today as they were in the 1980s (and as they were in the 1950s or any other period you choose to examine). This tells us if it happened before, it can happen again. For numerous reasons, the odds continue to favor the continuation of the bull market rather than the onset of a new bear market: (a) current stage of economic cycle, (b) economic indicators, (c) health of stock market prior to recent declines, (d) current health of stock market relative to past corrections, (e) monetary policy, (f) need to inflate asset prices, (g) recent earnings growth, etc. The present day looks more like a correction than the beginning of the 2000 and 2007 bear markets. We absolutely and positively may be entering a new bear market in 2010, but the odds, based on the information in hand, say the bearish outcome is a lower probability when compared to the higher probability outcome of this being a correction within a bull market. Complete Story »
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| Hungary: In Between a Rock and a Hard Place Posted: 10 Jun 2010 06:18 PM PDT Mark Boucher submits: The problems in periphery European PIGS are similar to the problems of new entrants lined up to join the Euro. Hungary is their new poster-child. In each case competitiveness has deteriorated rapidly and currency devaluation would help solve the problem, but massive foreign currency denominated loans make devaluing a problem for huge private-sector debts. These countries do not yet have the huge government debt/GDP problems of Greece, but they face dilemmas that Hungary is an example of that could easily lead to government debt/GDP surging. This is therefore a potential next flare-up zone for contagion that investors must watch and could play if breakouts are clearly triggered. Hungarian government debt/GDP is around 75% now, certainly above the Rogoff/Reinhart threshold of 60%, where problems start for emerging markets historically. Interest costs are a high 4.5% of GDP and represent 10% of government expenditure however because Hungary has kept its interest rates artificially high in order to try and preserve the exchange rate versus the Euro. The problem is that keeping the interest rate artificially high kills the economy, and a further contraction in the economy could send government debt/GDP through the roof quite quickly. The artificially high interest rate also hurts the current account, leading to bigger debt buildup. 10-year government bond yields hover around the 8% level, strangling an economy that is still contracting. Private sector foreign debt denominated in other currencies is 100% of GDP. Complete Story »
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| Hazlitt's Battle With Bretton Woods Posted: 10 Jun 2010 06:13 PM PDT "The Austrians were right" is a phrase we hear often now, and for good reason. The housing bubble and bust were called by the Austrians and, essentially, no one else. The Austrians were right about the dot-com bubble and bust. The Austrians were right about the 1970s stagflation and explosion in the price of gold after the gold window was closed.
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| Otis Commences 6,000 Metre Drill Program at Kilgore Posted: 10 Jun 2010 06:06 PM PDT Otis Gold Corp. ("Otis" or the "Company") (TSX VENTURE:OOO - OGLDF.PK) is pleased to announce start-up of a 6,000-metre, 30-core hole drilling program at its flagship Kilgore Gold Project, Clark County, Idaho. Drilling will be on-going throughout the entire 2010 field season, with program completion slated for early December.
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| Interview: U.S. Gold CEO Rob McEwen Looks Ahead of the Curve Posted: 10 Jun 2010 06:06 PM PDT
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| 1973 “Seagull” Proof Silver Dollar Posted: 10 Jun 2010 06:03 PM PDT 1973 "Seagull" Proof Silver Dollar ~ Virgin Islands ~ This is a dollar or crown sized coin measuring 39mm diameter. It is made from .925 silver and weighs 25.1 grams. Mintage was 181,000 max. Continue reading Seagull Dollar
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| Posted: 10 Jun 2010 05:24 PM PDT Not long ago, several Outstanding Investments subscribers invited me for a sit-down chat. I told them that I love to talk with readers, but I can only chat general themes. I CANNOT offer personal investment advice in the context of a small group. That is, when it comes to specific recommendations, I only do that in the pages of my newsletters. Everyone was OK with the ground rules. So after juggling our schedules, we wound up in the beautiful oak-paneled lobby of the old Summit Inn, south of Pittsburgh near Uniontown. It's right alongside historic US Highway 40 - the road carved by British colonists from the East Coast into the Western frontier. It was great to listen to the reader questions, comments and concerns. As you can imagine, the ongoing deep-water disaster in the Gulf of Mexico was high on everyone's list of issues. "Can't the military do a better job of dealing with this mess than BP (NYSE:BP)," asked one reader? It's a fair question. The US spends hundreds of billions of dollars every year on the Department of Defense. Where's the return on that investment? Can't any military people or equipment help? The short answer is that the military is designed to fight wars, not oil well blowouts. And as we all know, much of the military is busy fighting wars right now. Wars or no, Secretary of Defense Robert Gates recently said that private industry has better deep-water technology than the US military does. Mr. Gates was referring, in part, to the remotely operated vehicles (ROVs) built by the likes of Oceaneering (NYSE:OII) and FMC Technologies (NYSE:FTI). The share prices for these companies are down just now, what with the so-called "six-month moratorium" on deep-water drilling in the Gulf. But over time, the ROV makers will come back strong. As for the military, it's good at organizing people and things and then focusing them on a mission. But by definition, it's a military mission. Sure, there's military capability to deal with, say, an oil spill during a military fueling operation. But overall, the DOD is not geared to fight a widespread environmental battle, such as what we have in the Gulf. That said, however, the military is supplying personnel, ships, aircraft, command and control support and much else to the oil-fighting effort. And let's distinguish the DOD from the US Coast Guard, which IS playing a critical role in all of this. Indeed, Coast Guard Adm. Thad Allen is the National Incident Coordinator for the oil disaster. Adm. Allen has become a well- recognized presence in the media coverage. Plus, Adm. Allen is a key decision maker in the process of deploying all manner of public and private resources. He signs off on permits for many efforts to deal with the blowout and combat the oil spill. So the Coast Guard is right there, in the thick of things, delivering value. From this point, the Summit discussion with Outstanding Investments subscribers moved to a different, but related, issue. "Are there things that the government just can't do?" asked one participant. It's an important philosophical question. There's no denying that "the government" can accomplish great things over time. Given enough time and resources, the federal government can build great edifices like the Grand Coulee Dam or accomplish monumental tasks like landing men on the moon. But keep in mind that big dams, and even men on the moon, are "deliverables." They're technological things you can wrap your brain around. They're also things that you can design, plan out and throw money at over a period of time. But what happens when bad things occur abruptly? Natural disasters like earthquakes, hurricanes and volcanoes come to mind. Or in the current case, we have a man-made disaster - a deep-water oil well blowout. People aren't prepared for really bad things - mentally or physically, if not technologically - and nobody can deal with the consequences. We quickly find the edge of the envelope of government power. That is, sometimes government just plain lacks ability to control events. The Gulf of Mexico oil well blowout is one of those times. Look at the aura of helplessness exhibited by many of the highest-ranking politicians in the country. The big shots can rant and rave and threaten lawsuits from here to the end of time. But can they plug the oil well? No, they can just sit there and bellyache. The subscribers at the Summit Inn had their own views of how, exactly, the federal government - as well as BP and the rest of the energy industry - was simply not ready to deal with the oil well blowout. "The federal government owns the offshore," said one subscriber. "The government has allowed deep-water drilling for 20 years. Now the politicians and bureaucrats act like it's a total surprise that there's a deep blowout. It's so hypocritical. At Department of Homeland Security, they have people whose job is to think about a nuclear bomb going off in Washington, where THEY live. Isn't there somebody at Department of Interior whose job is to think up terrible scenarios like a deep-water blowout where they DON'T live and then plan for it?" Great point. Along these lines, a recent headline speaks volumes: "Gulf Oil Spill Surpasses Scope of Disaster Training." This headline comes from a well-regarded nationally distributed newspaper. What newspaper? Navy Times. Wow! Consider the source. Navy Times is privately published by Military Times Co. But over the years, Navy Times has carved its niche as the newspaper of record for the US Navy, with a large readership within the Coast Guard. That is, Navy Times is a newspaper for sea service insiders. What are people on the inside actually saying? The insiders are admitting candidly that the disaster planning and training was inadequate to meet the ongoing crisis in the Gulf of Mexico. Yes, there was some thinking, planning and training. But not for anything this big. According to Navy Times, "A month before the BP oil rig explosion in the Gulf of Mexico, more than 50 federal, state, local and private organizations swarmed a simulated oil spill in the Gulf of Maine... The Coast Guard dubbed the event the 'Super Bowl of exercises.' But this effort appears dwarfed by the size and complexity of the environmental disaster unfolding off the Louisiana coast." Yes, it sure "appears dwarfed." No Super Bowl rings for this one. Of course, there's no denying that there's a gigantic, all-government level of response to the deep-water blowout. And there's a learning curve evident. So there's progress out there. But before the explosion on April 20, there sure was a failure of imagination when it came to the dangers of deep water. The deep-water disaster is - or ought to be - a humbling moment for people who place their faith in the power of government. Especially government people, and particularly politicians. That is, the deep-water blowout shows that there are things that government can't control, let alone fix. As environmental damage lingers into the future, it'll drive home that point about the limits of government capabilities again and again. One participant at the Summit conference made a terrific point. She said, "Washington was unprepared for the fall of the Soviet Union back in 1991. Washington was surprised by Islamic terrorism, and blindsided by Sept. 11. Washington was caught flat-footed with the housing crash, and the Wall Street meltdown in 2008 and 2009. The government is unprepared for a deep-water well blowout. What's next? What ELSE doesn't the government plan for, what other big things? What if the euro fails? What if the dollar crashes?" That's quite a way to look at it. Over the past 20 years, the US government has dropped the ball in a lot of areas. Thus, it behooves you, as an investor, to connect these dots. When it comes to big stuff that can change the national direction, and screw up your life in the process, the government may very well fail to anticipate things. Even if the government does see the asteroids coming, what will your government do for you? Will your favorite politician give up his room in the survival bunker? For you? Are you kidding? The bottom line is that every investor needs to prepare his or her own lifeboat. Along those lines, the subscribers with whom I met have a stash of physical gold and silver. That's just the beginning. They "get" Peak Oil and the decline of the dollar. I won't get into personal details, but there's a reason that these particular subscribers live in a semirural area south of Pittsburgh, in the mountains, with spring water, fertile soil and plenty of time to practice their target shooting. Sure, these Outstanding Investments subscribers may play the stock markets. They may even invest in gold miners and energy firms. But at the end of the day, each one of these subscribers is building his (and her) own measure of personal security in a world where the financial future of America is looking more and more precarious. Byron King
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| “We are now near the end of the declining phase of the depression.” Posted: 10 Jun 2010 05:20 PM PDT
Who believes in the 'recovery' now? Robert Reich (former Labor Secretary under Bill Clinton): "The only reason the economy isn't in a double-dip recession already is because of three temporary boosts: the federal stimulus (of which 75 percent has been spent), near-zero interest rates (which can't continue much longer without igniting speculative bubbles), and replacements (consumers have had to replace worn-out cars and appliances, and businesses had to replace worn-down inventories). Oh, and, yes, all those Census workers (who will be out on their ears in a month or so)." Yes, it's the end of the road for the "quick recovery" crowd. Now, the whole world has the Memphis blues. "The hastily assembled stimulus packages were a throwback to naïve Keynesianism," adds Jeffrey Sachs. "The relevant fact was that the US, UK, Ireland, Spain, Greece and others had over-borrowed for a decade, so a decline in consumption after 2007 was not an anomaly to be fought but an adjustment to be welcomed." But nobody welcomed the Great Correction. Except us. The others all pretended that it was a recession...even a Great Recession. They treated it like an invasion of cockroaches or a stopped up toilet. They thought they could get rid of it. But it wasn't that easy. Nope. Now, we're looking at a "double-dip recession," says the mainstream press. Once again, they've got it wrong. You can tell by reading their advice. If they knew what was really going on, they wouldn't have any advice. As Mr. Sachs himself put it, this is an "adjustment to be welcomed," not fought. But even Mr. Sachs cannot resist a fight. Especially one that others will pay for. Like everyone else, he has a can of Raid in his hands. The government should do this... The government should do that... He thinks the government should do all sorts of mischief, including "insist that the rich pay more in income and wealth taxes - indeed a lot more." We don't have any doubt that the feds are going to hit the rich hard; but what kind of economist would advocate it? Mr. Reich has his own foolish prescriptions too - similar to those of Mr. Sachs: "We need a new New Deal that will bolster America's floundering middle class. "We have to get to the core problem: a middle class that doesn't have the dough to buy the goods and services the economy is capable of producing. Where to start? Expand the Earned Income Tax Credit and extend it up through the middle class. Finance that extension through higher marginal income taxes on the wealthy, who have never had it so good." Let's see. Both men must imagine themselves as Robin Hood, stealing from the rich in order to subsidize the middle classes. They don't seem to understand that the story of Robin Hood may make a good movie. It makes goofy economic policy. If taking money away from the rich could make a society more prosperous, how come Venezuela is broke? And Cuba? Here in Baltimore, after you add in state and local taxes to the federal toll, your editor surrenders almost half of every dollar earned. How much more can they take? Even socialist France has a rule that a person cannot pay more than half his earnings in taxes. But in the new America, things that were taken for absurd a few years ago are now taken for granted. Driving around the Capitol beltway, for example, we see a sign that says "Report Suspicious Activity." This is not in an airport. This is on a major highway. You want to see suspicious activity? Just follow Pennsylvania Avenue to the Capitol Building! A few years ago, urging people to rat out their fellow citizens would have been suspiciously un-American...more in keeping with life in East Germany or North Korea. But the world turns. And now, the snitchers are right here in the USA! But returning to the economy... Even if you add a dip, this is still not a recession. It's not caused by Europe. And it's not go away if we tax the rich or spend more money we don't have on 'stimulus.' We've now reached the end of the recovery fantasy. We need to realize that we are in a correction...one with an attitude and an agenda. Trouble is, we don't yet, what's on the agenda. And more news... The stock market continued its work yesterday. It took another 40 points off the Dow. Gold sold off $15 after hitting a new all-time high. Markets work. They try to discover what things are worth. That's what they're for. And corrections have their uses too. When too many people make too many mistakes, the whole market needs to correct. Most likely, there is still a large gap between current securities prices and the cash-flow needed to support them. A mortgage that the homeowner can't pay, for example, is not worth face value. It's worth less than that. And a company whose sales and profits are stalling is probably not worth 15 times earnings. Maybe it is worth 7 times earnings. And what about government bonds? How likely is it that the world's biggest debtor - the US government - will be able to pay back off its 30-year bonds with money equal in value to today's dollar? That's what the markets are supposed to figure out. And here is Henry Blodget...worrying that the news won't be good:
"While the crash only took place six months ago, I am convinced we have now passed through the worst - and with continued unity of effort we shall rapidly recover. There has been no significant bank or industrial failure. That danger, too, is safely behind us." - Herbert Hoover, President of the United States, May 1, 1930 "...by May or June the spring recovery forecast in our letters of last December and November should clearly be apparent..." - Harvard Economic Society (HES) May 17, 1930 "Gentleman, you have come sixty days too late. The depression is over." - Herbert Hoover, responding to a delegation requesting a public works program to help speed the recovery, June 1930 "...irregular and conflicting movements of business should soon give way to a sustained recovery..." - HES June 28, 1930 "...the present depression has about spent its force..." - HES, Aug 30, 1930 "We are now near the end of the declining phase of the depression." - HES Nov 15, 1930 "Stabilization at [present] levels is clearly possible." - HES Oct 31, 1931 "All safe deposit boxes in banks or financial institutions have been sealed...and may only be opened in the presence of an agent of the IRS." - President F.D. Roosevelt, 1933 Regards, Bill Bonner
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| Posted: 10 Jun 2010 05:13 PM PDT What a difference a day makes. Australian stocks have bolted out of the blocks today after the US markets managed to hold above the key 1040 level in the S+P as discussed yesterday. I would expect to see the markets rally for the immediate future now that this level has held, but the 1040 level is the one to watch in the S+P going forward. If the market can't sustain a rally and tips over to close under this level then I would be lowering my risk exposure to the market. The intermediate trend remains down with the 10 day moving average below the 35 day moving average. But there is no reason why we won't see a rally that goes far enough to entice the bulls back into the market. My expectation is that we'll see a move back to the 35-day moving average around 1110 in the S+P and from there possibly to the .618 Fibonacci of the sell off from the highs. That gives a "Sell zone" range in the S+P of 1110-1150. I will be looking to take profit on recently acquired positions and also have my eye on a few stocks that I would like to go short. S+P 500 daily In relation to the Aussie market the 4700 level in the ASX 200 is the important resistance going forward. 4700 is the midpoint of the range the market has been in for the past 7 months and I would expect to see us struggle at that level. If the market managed to break through 4700 convincingly then you would have to say that the uptrend of the past year and a half had reasserted itself and we may be off to the races again. I don't think that outcome is very likely because there are still some very bearish signs in the credit markets that won't be disappearing anytime soon. Italian government bond insurance has hit a record; Belgium's debt is currently 99 per cent of its GDP and is being seen as the Greece of the North. Throw in Spain with 10 year yields above where they were when the bailout for Greece was announced and Portugal and things aren't looking so rosy after all. Another interesting point is that European banks have funded Asia to the tune of more than half a trillion dollars. All of a sudden there is a link between Asian growth and the health of the European banking system. The unknown in all of this of course is the US Government and the US Feds actions. If they go down the path of throwing more stimulus money at the market or printing madly to avoid deflation we could see the markets held afloat by the flood of easy money. This is a real possibility when looking at their past performance during the crash. I think we would need to see some real volatility in the markets that forces their hand before we see any moves to support the markets in this way. Therefore my expectation is that we will see economic figures over the next few months showing the economy slowing down again and further problems in the credit markets leading to large falls in the equity markets before Ben and his cohorts step in to print money like there's no tomorrow. When looking at the market from a bird's eye view it is hard not to see that there are some tough times ahead. The gold price is breaking out to new all time highs, the bond markets are rallying to multi year lows in yield and the spreads on high yield debt are increasing. This is the sort of scenario we were faced with before the markets started crashing last time. I would say to any trader at the moment that there may be some money to be made in the current rally - but you should have your eyes clearly on the exits and take profit and look to be 'free carried' in your positions as soon as you can. If you are interested in learning more about the way we trade stocks here in St Kilda keep your eyes peeled for an email this afternoon that will explain in detail the way I approach the markets. Rather than being stressed out by the huge volatility in the markets, this is a great chance for disciplined traders to make money! Check your inbox later today... Murray Dawes
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| Posted: 10 Jun 2010 04:49 PM PDT
Dylan Ratigan draws some rather obvious parallels between AIG and the recent TBTF banking episode, and the possible fate of BP, whose failure would doom, among others, the retirement funds of Scottish widows, as we noted previously in disclosing the key holders of BP stock. Will the US president be willing to push BP to the point where a bankruptcy of BP results in international diplomatic outcry over what could be the next TBTF precedent? Surely BP is aware of this catch 22, and is thus willing to apply the modern version of American capitalism: "the risk taker uses the leverage of their size and importance to so many people to transfer the risk they've created to the government and future generations, while keeping the rewards of all the risks that they've taken, negligent repair, you pick the thing - they keep the money, you keep the problem. This seems to have become the new version of American capitalism: extortion and bribery." In this clip, in which Ratigan tears apart BP's Darryl Willis (worth watching in itself to see how TV anchors don't always have to bow down to their guests, David Faber feel free to take notice), BP seems to have painted itself in a diplomatic corner: "We will pay claims until we are done paying claims... We are going to pay the damages caused by this spill to every person who has been hurt, harmed and damaged." Alas, this does not leave much maneuvering room for the former oil giant. As for the question of how BP can afford to pay a $10 billion dividend in light of what seems to be a tide of approaching claims payments, Willis does not provide an answer. BP's CDS spread, however, does. Visit msnbc.com for breaking news, world news, and news about the economy
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| Will Anything Stop The Decline of CRE Prices? Posted: 10 Jun 2010 04:47 PM PDT
From The Daily Capitalist Fitch reported today the commercial real estate (CRE) values continue to decline giving rise to greater loan losses on CRE. On the average throughout 2009, lenders recovered 43 cents on the dollar on distressed loans. They see the loss rate only going up.
Losses by property type were: * Hotel: 81.9%. I am reprinting this refi timeline chart to give you a better idea of the problem:
As you can see, there is a huge problem through 2013. Which translates into fall CRE prices. This price index from Moody's in March:
There are factors that are positive and negative at work in the economy with regard to CRE. First, lenders are in trouble. CRE is held mainly by local and regional banks. However the very large loans are held by many insurers. S&P and Moody's recently downgraded some insurers as a result of this, despite the fact the insurers had raised $32 billion in capital. Downgraded were:
Second, this is why regional and local banks are in trouble. See my article, "How Bad Economic Theory Caused Santa Barbara Bank & Trust To Fail The other side of the coin is that the vultures are gathering. For example, insurers who have licked their wounds clean are ready to jump back in:
Read this as cherry-picking. Add to that the pools of capital that local investors are putting together on the sidelines, waiting to jump in as they see values making sense. Based on my knowledge of these markets, this phenomenon is nationwide, and represents a huge pool of capital in the aggregate. What these buyers will do is act as a backstop to the CRE market. I can't guess what that level will be, but I believe the vultures are getting impatient. I believe there is still a lot of risk in this market, but then I am very adverse to risk. Most of what I hear is anecdotal but investors are chasing yields, and in the right market with the right property that makes sense. I just don't think we are at bottom yet. And this will continue to harm the small banks. Without the small banks recovering I believe we will continue to have problems with a lack of liquidity, a credit freeze, deflation, and a slow recovery.
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| Guest Post: In the Summer of 2010 Posted: 10 Jun 2010 04:27 PM PDT
Submitted by Ron Holland, previously published on LewRockwell.com In the Summer of 2010 Are you ready for interesting times and an exodus from the United States? A possibly apocryphal ancient Chinese curse goes "May you live in interesting times." Those words may derive from an authentic Chinese proverb: "It is better to be a dog in a peaceful time than be a man in chaos."
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| Gold Seeker Closing Report: Gold and Silver End Mixed Posted: 10 Jun 2010 04:00 PM PDT Gold fell to as low as $1215.02 by about 10AM EST before it bounced back higher in the last few hours of trade, but it still ended with a loss of 0.7%. Silver fell to as low as $17.882 in early London trade, but it then stormed back higher for most of the rest of the day and ended with a gain of 0.77%.
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| Gold Stock Fundamentals Now versus 2008 Posted: 10 Jun 2010 03:37 PM PDT Escalating sovereign debt problems in Europe has prompted some to wonder if another "Lehman" type collapse is on the horizon. As a result, some precious metals observers have grown cautious, fearing a replay of the events of two years ago. While it is always prudent to be cautious with an extremely volatile sector like the gold stocks, the facts illustrate major differences between their fundamentals now and in 2008. Most notably, the real price of Gold is rising. The real price of gold tends to lead the HUI/Gold ratio and it also provides a positive omen for the gold stocks. We've noted in past missives how a simple analysis of Gold/Oil and Gold/Industrial Metals can provide an indication of the future direction in HUI/Gold. As you can see from the chart, the recent soft panic has spurred Gold much higher against both Oil and Industrial Metals.
What is intriguing is that deflation is the catalyst for gold stocks while inflation is actually not a positive for gold stocks. The reason is that in a time of deflationary forces, Gold will rise relative to mining costs such as labor, oil and industrial related costs. Hence, gold stocks performed well from 1931 to 1935, in the 1960s, 2000-2006 and recently in the last 18 months. When inflation hits the economy, it eventually cuts into margins of gold companies. Gold was rising in 2007 and 2008 but high oil prices, a very weak US Dollar and economic demand contributed to rising costs. Moreover, it's important to note the differences between a credit crunch in the economy and a sovereign credit crunch. A credit crunch in the economy, as we experienced in 2008 tends to significantly impact risk assets such as stocks and commodities. A credit crunch amongst governments has the most impact on bonds and currencies. Gold and Silver, as currencies, will benefit. Hence, in the last few months, even with downward pressure on most markets, Gold has risen while the leveraged Gold plays (mining stocks and Silver) have held up quite well, unlike in 2008. Going forward, the macro forces will continue to support the gold stocks for at least a few years. As we've written in the past, there is little reason to think Gold won't continue to outperform in the next few years. This means that the gold and silver stocks have an even brighter future ahead. Unfortunately too many mainstream investors are too scared of the gold stocks to take advantage of the potential massive gains in the years ahead. Hence, we created a service that provides professional support and guidance so that traders and investors can better navigate what lies ahead. Consider a free no risk 14-day trial, which entitles you to our most recent and future updates. Jordan Roy-Byrne, CMT http://www.thedailygold.com/newsletter Jordan@TheDailyGold.com
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| Euro Woes Don't Faze Chinese Pension Fund Posted: 10 Jun 2010 03:16 PM PDT
Reuters reports, Euro will survive debt crisis - China pension fund:
As far as the euro is concerned, China's exports are booming, so the last thing it wants is a stronger USD (which it's pegged to). And China is getting into the reflation trade too. More stocks, corporate bonds, private equity and hedge funds. All that liquidity will drive risk assets even higher. Get ready for the next bubble. It's not a matter of if but when. My feeling is that it's right around the corner. I leave you with a couple of videos worth seeing. Frank Gong, a China strategist for JP Morgan discusses the outlook for trade, and Andy Xie, independent analyst, discusses the property market in China. Both interviews are must watch interviews.
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| Gold clearing statistics hit record volumes in May: LBMA Posted: 10 Jun 2010 03:06 PM PDT Gold clearing statistics hit record volumes in May: LBMA London (Platts)--10Jun2010/728 am EDT/1128 GMT Clearing statistics for gold and silver showed a dramatic improvement in May with all measures rising by double digit percentages month on month and year on year, the London Bullion Market Association said Thursday. The monthly percentage increases for all three gold measures were the highest on record. The highlight of the month was that the average daily value of gold transferred reached a new record level of $29.8 billion, easily surpassing the previous record of $24.9 billion set in March, 2008, the LBMA said in a statement. Gold ounces transferred rose from a daily average of 16 million in April to 24.7 million in May, a rise of 54.9% -- the largest month on month percentage increase in this measure since these statistics were first produced in October 1996. With the increase of 5% in the average price to $1,205/oz; the value also jumped by a record amount of 62.5% to a daily average of $29.8 billion, the LBMA added. The number of transfers rose by 41.6%--another record increase--to a daily average of 2,098. This latter figure was however some 25% below the record level recorded for this measure in March 2008. Measured year on year, gold ounces transferred and the number of transfers were also substantially if less dramatically higher, with rises of 12.8% and 42.1% respectively. As prices rose by 23%, the total value of gold transferred showed an increase of 46.5%. With regards to the silver statistics, ounces transferred rose by 12.7% relative to April levels to a daily average of 104.3 million. The average price rose by 1.8%. As a result, value rose by 14.6% to a daily average of $1.92 billion. There was an increase in the number of transfers of 36.5% to a daily average of 410. Silver ounces transferred were 7.1% higher year on year. The number of transfers rose by 19.8%. The total value of silver rose dramatically by 40.6% due to the price of silver increasing by 29%. Gold's trading range in May was $72.50 based on the PM fix. After starting the month at $1,185/oz, gold traded actively throughout May. Gold hit its lowest point of $1,165/oz very early in the month, on May 5. The price started to increase steadily, before gold reached a new all-time high of $1,237.50/oz on May 11. Gold then dipped to $1,180/oz around the 21st of the month, before recovering to end the month at $1,207.50/oz. The all-time high that gold hit is attributed to investors seeking safety in gold due to fears of eurozone debt contagion, particularly among German and Swiss investors. Silver had a wide trading range in May of $2.01. Silver began the month at $18.71/oz and, like gold, reached its lowest point of $17.63/oz May 5. As with gold, silver then showed a significant recovery towards the middle of the month, reaching its high for the month of $19.64/oz on the 14th, nearly a full dollar up on the start of the month. Silver then fell back to $17.63/oz on the 25th before ending the month at $18.53/oz. As has often been the case in the past year, silver failed to show a rise over the month in contrast to the further rise put on by gold. --Ben Kilbey, ben_kilbey@platts.com http://www.platts.com/RSSFeedDetaile...ls/8801071.xml
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| SEC accuses 6 in gold mining investment Ponzi scheme Posted: 10 Jun 2010 03:05 PM PDT SEC Charges Perpetrators of $300 Million Ponzi Scheme Press Release http://www.sec.gov/news/press/2010/2010-99.htm WASHINGTON -- The Securities and Exchange Commission today charged four Canadian men and two others living in Florida with perpetrating a $300 million international Ponzi scheme on investors in a purportedly successful gold mining operation. The SEC alleges that Milowe Allen Brost and Gary Allen Sorenson of Calgary were the primary architects and beneficiaries of the scheme that persuaded more than 3,000 investors across the U.S. and Canada to invest their savings, retirement funds and even home equity. Brost and his sales team presented themselves as an independent financial education firm that had discovered profitable investment opportunities with companies involved in gold mining. They held seminars where they promised investors they could earn 18 to 36 percent annual returns by investing with these companies, and they claimed the investments were fully collateralized by gold. ADVERTISEMENT Prophecy to Become Coal Producer This Year Prophecy Resource Corp. (TSX.V: PCY) announced on May 11 that it has entered into a mine services agreement with Leighton Asia Ltd. to begin coal production this year. Production will begin with a 250,000-tonne starter pit as planned in August, with production advancing to 2 million tonnes per year in 2011. Prophecy is fully funded to production and its management team includes John Morganti, Arnold Armstrong, and Rob McEwen. For Prophecy's complete press release about its production plans, please visit: http://www.prophecyresource.com/news_2010_may11.php Unbeknownst to investors, they were actually investing in shell companies owned or controlled by Brost or Sorenson. Investor funds were often transferred multiple times through numerous bank accounts held as far away as Asia, Europe and South America, and then ultimately used to make "interest payments" to investors, fund the few unprofitable companies that actually had operations, and personally enrich Brost, Sorenson and others involved in the scheme. "Brost and Sorenson orchestrated a complex, far-reaching fraud disguised by a labyrinth of companies and foreign bank accounts they used to hide their misconduct from investors and law enforcement," said Donald M. Hoerl, director of the SEC's Denver Regional Office. According to the SEC's complaint, filed in U.S. District Court for the Western District of Washington, Brost and his sales team -- called Structurists -- sold investors shares in a series of shell companies and then put their money through a "structuring" process that culminated with the transfer of funds from Syndicated Gold Depository (SGD) to Merendon Mining Corp. Ltd. -- which was purportedly a successful gold mining and refining company that would pay investors out of its profits. Brost and Sorenson concealed their ownership and control of SGD by using personal aliases, corporate entities and trust agreements with nominee shareholders. Sorenson, who controlled Merendon, claimed to be a successful businessman receiving loans from SGD through arm's-length transactions. Sorenson hosted tours for potential investors at his Honduran refinery and demonstrated the pouring of gold bars while making false claims about the profitability of his company. The SEC alleges that investor money whirled through accounts located in the U.S. and Canada as well as the Bahamas, Belize, Bermuda, Ecuador, Honduras, Malaysia, Panama, Peru, Portugal, and Venezuela. Brost and Sorenson diverted investor funds for their personal benefit, using millions of dollars to purchase and renovate extravagant homes, ranches, and recreational vehicles. Sorenson also purchased and outfitted a luxury fishing resort in South America. The individuals charged in the SEC's complaint in addition to Brost and Sorenson: -- Larry Lee Adair of Fort Lauderdale, Fla. -- Ward K. Capstick, a Canadian citizen who lives in Snohomish, Wash. -- Bradley Dean Regier of Calgary. -- Martin M. Werner of Boca Raton, Fla. The SEC's complaint charges four companies: SGD, Merendon Mining Corp. Ltd., Merendon Mining (Nevada) Inc., and the Institute for Financial Learning Group of Companies Inc. Sorenson's wife and daughter are named as relief defendants in the case in order to recover investor assets now in their possession. Sorenson used investor funds pay off the mortgage of daughter Laura Sorenson and invest in a film production company for her benefit, and he purchased a home and other items for his wife, Thelma Sorenson. Daniel Konosky, Jonathan Warner, and Jay Scoggins of the SEC's Denver Regional Office conducted the investigation. The SEC's litigation will be led by Leslie Hendrickson-Hughes and Polly Atkinson. The SEC thanks the Long Island office of the Federal Bureau of Investigation, the Brooklyn office of the Internal Revenue Service's Criminal Division, the U.S. Attorney's Office for the Eastern District of New York, and the Alberta Securities Commission for their assistance in this matter. Support GATA by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Or a video disc of GATA's 2005 Gold Rush 21 conference in the Yukon: * * * Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: ADVERTISEMENT Coming Friday-Sunday, June 11-13, at the Dallas-Fort Worth Airport Marriot: The conference will explore the dangers and opportunities in today's bullion markets and the need for investors to diversify bullion holdings outside of bullion banking and commodities markets. Speakers will include David Morgan of Silver-Investor.com, Gold Anti-Trust Action Committee Chairman Bill Murphy, and Duncan Cameron and Philip Judge of Anglo Far-East Bullion Co. The earliest conference attendees on Saturday will be able to schedule one-on-one interviews for personal consultation with Anglo-Far East's experts on Sunday. To learn more about and register for the Anglo Far-East Bullion conference, please visit: http://www.anglofareast.com/seminar-registration/
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| Buy U.S. Gold (UXG) Price Moving Higher After Cup and Handle Breakout Posted: 10 Jun 2010 02:52 PM PDT The cup and handle breakout is a classic pattern which stock market traders search for constantly. A cup and handle pattern means that the stock has made a consolidation where many of the weaker holders sell their shares.
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| Adrian Douglas: Financial system creaking under rising gold offtake Posted: 10 Jun 2010 02:52 PM PDT By Adrian Douglas The London Bullion Market Association statistics reported today by Platts -- http://www.platts.com/RSSFeedDetailedNews.aspx?xmlpath=RSSFeed/HeadlineN... -- showed a 56 percent jump in the gold trades in May, to 24.7 million ounces per day. This is clearly causing stress in the physical market and is why the International Monetary Fund is selling gold almost secretly out its back door. I suspect that the comment by the HSBC metals trader reported by MineWeb today -- http://www.mineweb.com/mineweb/view/mineweb/en/page72068?oid=106063&sn=D... -- about the supposed confiscation danger in storing gold in the United States is propaganda. What a good reason for keeping "virtual" gold in an unallocated account with HSBC in London instead of asking for delivery of the real stuff -- which the London market doesn't have enough of. Why would fund managers suddenly worry about confiscation? I can't think of a reason. But I can think of a reason why HSBC would like to have an excuse for investors not to demand physical gold. The financial system must be creaking with such a massive increase in the gold trade. The volcano is rumbling. To confirm it there is the usual response when gold is being sold hand over fist in London -- that the bullion banks have to hedge those sales by shorting the heck out of the Comex, as explained by CPM Group's Jeff Christian in his famous Freudian slip during his testimony at the March 25 hearing of the U.S. Commodity Futures Trading Commission. Christian later said he "misspoke." The action on the Comex today was consistent with the desire of the bullion banks to discourage buying gold. ----- Adrian Douglas is publisher of the Market Force Analysis letter (www.MarketForceAnalysis.com) and a member of GATA's Board of Directors. ADVERTISEMENT Prophecy to Become Coal Producer This Year Prophecy Resource Corp. (TSX.V: PCY) announced on May 11 that it has entered into a mine services agreement with Leighton Asia Ltd. to begin coal production this year. Production will begin with a 250,000-tonne starter pit as planned in August, with production advancing to 2 million tonnes per year in 2011. Prophecy is fully funded to production and its management team includes John Morganti, Arnold Armstrong, and Rob McEwen. For Prophecy's complete press release about its production plans, please visit: http://www.prophecyresource.com/news_2010_may11.php * * * Support GATA by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Or a video disc of GATA's 2005 Gold Rush 21 conference in the Yukon: * * * Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: ADVERTISEMENT Coming Friday-Sunday, June 11-13, at the Dallas-Fort Worth Airport Marriot: The conference will explore the dangers and opportunities in today's bullion markets and the need for investors to diversify bullion holdings outside of bullion banking and commodities markets. Speakers will include David Morgan of Silver-Investor.com, Gold Anti-Trust Action Committee Chairman Bill Murphy, and Duncan Cameron and Philip Judge of Anglo Far-East Bullion Co. The earliest conference attendees on Saturday will be able to schedule one-on-one interviews for personal consultation with Anglo-Far East's experts on Sunday. To learn more about and register for the Anglo Far-East Bullion conference, please visit: http://www.anglofareast.com/seminar-registration/
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| Posted: 10 Jun 2010 02:38 PM PDT
Already, the number of unemployed in Las Vegas is reaching unprecedented levels. Unemployment rates for the state of Nevada and for the city of Las Vegas both set new records during the month of April. In Las Vegas the unemployment rate in April was 14.2%. For the entire state the unemployment rate was 13.7%. Of course those are just the "official" numbers. We all know that the "real" unemployment numbers are much higher. For example, the "official" unemployment figure is about 14 percent in the state of Michigan right now. But if you actually believe that 86 percent of able-bodied workers in the state of Michigan are employed, then perhaps you would be interested in an offer to purchase the Golden Gate Bridge as well. Elliott Parker, an economist at the University of Nevada, Reno says that the record-setting unemployment numbers in Nevada are just part of a larger trend.... "Nevada has been losing jobs since March 2008, and we are continuing to do so." But where the state of Nevada and the city of Las Vegas have really been hammered is in the housing industry. It is estimated that a whopping 65 percent of all homes in the state of Nevada are underwater. Let that sink in for a bit. 65 percent of all home owners with a mortgage in the state of Nevada owe more than their homes are worth. Talk about an implosion. Nationally, the number of homes that are "underwater" is about 24 percent. That is an all-time record for the entire nation, but it doesn't come anywhere close to the nightmare that is unfolding in Nevada and in Las Vegas. And the number of foreclosures taking place in Nevada is absolutely breathtaking. According to RealtyTrac, Nevada is still ranked number one for foreclosure filings. In fact, one out of every 79 Nevada homes received a foreclosure filing in the month of May alone. Nevada's foreclosure rate is now five times the national average. By just about any measure, the economy of Nevada is a complete and total disaster. A reader recently sent an email describing the economic horror that is unfolding in Las Vegas. No matter what you may think about the city, the truth is that it is sad to see any great U.S. city fall to pieces like this.... "Las Vegas is a goner. The homeless population is out of control. The real estate is far worse than I have seen in the media (no surprise there). The towers of condos are ninety five percent vacant with zero activity. The streets and parks are in decline. Local governments are busy making cuts and fighting unions. When I ride the streets they are deserted, a big change from 2006. The major casino companies have all but moved the casinos out of Nevada. Rooms and restaurants have been closing for years, even while they finished the new projects. The entire town is a skeleton staff providing substandard service and decaying properties. I still work for one of the majors which is in bankruptcy. When the next wave hits there is nowhere to cut. It will be a game of dominoes with the Wynn properties the only ones left standing. I see the ninety nine cent breakfast making a comeback. The bullet train a day late and a few billion dollars short." So is there any hope for Las Vegas? Well, if the U.S. economy gets back up off of the operating table and roars back to life there is little doubt that millions of Americans would once again soon be flying there to gamble away their discretionary income. But the truth is that any "revival" that is going to happen in Vegas is going to be very short-lived. The U.S. economy as a whole is caught in a death spiral, and we are about to see a repeat of the housing crash that devastated Las Vegas so badly the first time around. No, there really isn't any way that the death of Las Vegas can be avoided. Just like the U.S. economy as a whole, it is inevitably doomed. The numbers don't lie. The grand total of all government, corporate and consumer debt in the United States is now equal to 360 percent of GDP. That is a far greater level than the U.S. ever approached during the Great Depression. The entire U.S. economy is a house of cards built on a gigantic pile of debt and paper money, and it is only a matter of time until it all comes crashing down. But of course that isn't stopping the U.S. government from spending even more money and getting us all into even more debt. According to a recent Treasury Department report to Congress, the U.S. national debt will top $13.6 trillion this year and climb to an estimated $19.6 trillion by 2015. But as many of you who have experienced this on a personal level know, getting into continually increasing amounts of debt never ends well. So do any of you have a tale to tell about the city where you live? Do you find yourself caught in the middle of an economic nightmare? Feel free to leave a comment telling us what is happening in your area of the United States....
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| Time to buy? Now even China is trying to talk gold down Posted: 10 Jun 2010 01:51 PM PDT China Says Gold Market Too Small for Asset Allocation From Reuters http://www.forexyard.com/en/news/China-says-gold-market-too-small-for-as... BEIJING -- The gold market is too small, illiquid, and volatile to be suitable for asset allocation, China's State Administration of Foreign Exchange (SAFE), said in its annual report published on Thursday. SAFE, part of the central bank, the People's Bank of China, last year revealed its gold reserves had grown to 1,054 tonnes from 600 tonnes in 2003, mainly the result of buying up local production. It has not given any update of its holdings since then. * * * Capital Flow into Gold Market May Trigger Economic Bubble From People's Daily http://english.people.com.cn/90001/90778/90862/7021049.html Since the property regulation policies were launched, more and more real estate speculators became interested in gold, resulting in the question of whether this would lead to another economic bubble when a large amount of floating capital in the real estate market is transferred to the gold market. Experts say that in order to curb the damage to the real economy, some effective measures must be taken to guide floating capital. The gold price rose to a historic high in May of $1,241 per ounce, and it has been hovering around $1,200 per ounce since June. The share prices of listed gold resource companies also increased. ... Dispatch continues below ... ADVERTISEMENT Prophecy to Become Coal Producer This Year Prophecy Resource Corp. (TSX.V: PCY) announced on May 11 that it has entered into a mine services agreement with Leighton Asia Ltd. to begin coal production this year. Production will begin with a 250,000-tonne starter pit as planned in August, with production advancing to 2 million tonnes per year in 2011. Prophecy is fully funded to production and its management team includes John Morganti, Arnold Armstrong, and Rob McEwen. For Prophecy's complete press release about its production plans, please visit: http://www.prophecyresource.com/news_2010_may11.php Cheng Zhang, deputy general manager of China National Gold Group Marketing Co., told reporters that May has historically been a low season for gold sales, but sales conditions in May this year are better than that of previous years. Inflation expectations and a cool property market have made gold the focal point of investment. Zhou Dewen, head of Wenzhou SME Development Association, said Wenzhou businesspeople have been discussing withdrawing capital from the property market in recent months. Because gold is easier to transfer into money, it has become a tool for businesspeople to pursue capital appreciation in a short time. "Although the capital transferred from the property market to the gold market is incalculable, it shows a clear trend," said Zhou. According to the latest announcement by the Shanghai Gold Exchange, the gold trading volume in May was more than 662,000 kilograms, an increase of almost 18 percent from the previous month, or about 141 percent from the previous year. The trade turnover reached 175 billion yuan, an increase of almost 24 percent from the previous month, or about 213 percent from the previous year. Experts believe there may be a bubble in the gold market after gold prices have remained at high levels for a long period of time. Zhu Zhigang, chief analyst from Guangdong Yuebao Gold Investment Co., reminded investors that gold prices are expected to enter a correction period in July because the gold price level is at a very high level following a decade-long continual rise, and the traditional soft gold trading season is about to begin. Even if idle funds from Wenzhou's businesspeople enter the market, they are unlikely to reverse the trend. The current domestic gold price would not have been so high without international speculation. As China has become the world's second largest gold-consumption market, international speculators are turning their eyes to the Chinese market. China should be cautious of international speculators who deliberately drive up the price before tempting investors to enter the market. "I suggest that investors should not particulate too much in gold speculation," Zhu said. "The current gold buy-back channels in China are not smooth, so gold speculators will be exposed to high risks." Li Youhuan, deputy director of the Industrial Economy Institute under the Guangdong Academy of Social Sciences, said capital flows to wherever returns are highest and hot money is born from high profits. Because China will possibly increase interest rates and revalue the yuan, huge amounts of hot money have entered the country through various channels. Furthermore, after 30 years of industrial development, there has also been an immense amount of surplus capital in China, which may turn into hot money at any time because of rising inflation expectations. "As can be seen from the current garlic and gold markets, and from the market of Pu'er tea years ago, it is extremely difficult to control hot money inflows. However, we can increase the cost of hot money flows to reduce its size and flow," Li said. He suggested that the government should crack down hard on illegal private banks, thereby cutting off channels of illegal hot money inflows from abroad. Li Jianjun, a professor at the School of Finance under the Central University of Finance and Economics, said the key to controlling hot money is to manage price expectations, but prices of agricultural products are closely related to natural conditions, and gold and the U.S. dollar are somewhat aligned in value. These have all made it difficult to control price rise expectations. Li said according to the recently released "Opinions of the State Council on Encouraging and Guiding the Healthy Development of Private Investment," private capital is now allowed into certain monopolized industries and will most likely flow into the financial industry and the tertiary industry. This will change China's processing and secondary industry-based economic pattern, and hot money will no longer be a "troublemaker," but rather become an effective tool to promote economic development. Support GATA by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Or a video disc of GATA's 2005 Gold Rush 21 conference in the Yukon: * * * Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: ADVERTISEMENT Coming Friday-Sunday, June 11-13, at the Dallas-Fort Worth Airport Marriot: The conference will explore the dangers and opportunities in today's bullion markets and the need for investors to diversify bullion holdings outside of bullion banking and commodities markets. Speakers will include David Morgan of Silver-Investor.com, Gold Anti-Trust Action Committee Chairman Bill Murphy, and Duncan Cameron and Philip Judge of Anglo Far-East Bullion Co. The earliest conference attendees on Saturday will be able to schedule one-on-one interviews for personal consultation with Anglo-Far East's experts on Sunday. To learn more about and register for the Anglo Far-East Bullion conference, please visit: http://www.anglofareast.com/seminar-registration/
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| Gold Daily Chart and a Look at Silver. Posted: 10 Jun 2010 01:37 PM PDT |
| Silver and Gold Prices Stand on the Brink of a Spectacular Breakout Posted: 10 Jun 2010 01:30 PM PDT Gold Price Close Today : 1220.80Change: -7.70 or -0.6%Silver Price Close Today : 18.342 Change 16.2 cents or 0.9%Platinum Price Close Today: 1533.00 Change: 3.80 or 0.2%Palladium Price Close... This is a summary only. Visit GOLDPRICE.ORG for the full article, gold price charts in ounces grams and kilos in 23 national currencies, and more!
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| Posted: 10 Jun 2010 12:00 PM PDT We've now explored the inflation versus price deflation argument in depth in two articles – and arrived at the conclusion that modern fiat-money economies are more likely to tip toward price inflation than price deflation, at least eventually. In fact, this article, excerpted above, from Reuters, would seem to confirm our further suspicions that price deflation has been launched as a dominant social theme justifying austerity measures.
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| Silver Standard Resources Inc. Q1 2010 Earnings Call Transcript Posted: 10 Jun 2010 11:51 AM PDT Silver Standard Resources Inc. (SSRI) Q1 2010 Earnings Call May 12, 2010 11:00 am ET Complete Story »
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| Gold: Neither a Borrower nor a Lender Be Posted: 10 Jun 2010 11:32 AM PDT US inflation slid to its lowest level in 44 years amongst fears that Europe's problems will spillover to North America causing a Japanese style deflation which led to a lost decade of growth. A worsening regional debt crisis ...
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| Posted: 10 Jun 2010 10:39 AM PDT Rising risk appetite, firming euro weigh on gold price The COMEX August gold futures contract closed down $7.70 Thursday at $1222.20, trading between $1216.20 and $1236.00 June 10, p.m. excerpts: see full news, 24-hr newswire… June 10th's audio MarketMinute
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| Buying gold in June and July has been very profitable for years Posted: 10 Jun 2010 10:28 AM PDT 6:25p ET Thursday, June 10, 2010 Dear Friend of GATA and Gold: Jonathan Kosares and Randall Strauss of Centennial Precious Metals in Denver have updated Centennial's annual analysis of the success of buying gold during its summer doldrums, in June and July, a practice that over the last 39 years has averaged a gain of 7.5 percent by the end of the year and over the last nine years has averaged a gain of more than 11 percent by the end of the year. The Kosares and Strauss analysis is headlined "Getting Gold: Seasonal Price Trends are Favorable for Summer Purchases" and you can find it at Centennial's Internet site, USAGold, here: http://www.usagold.com/analysis/doldrums-2010.html Remember that there is no sharper blow against the market manipulators than purchasing and taking possession of real metal. CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Prophecy to Become Coal Producer This Year Prophecy Resource Corp. (TSX.V: PCY) announced on May 11 that it has entered into a mine services agreement with Leighton Asia Ltd. to begin coal production this year. Production will begin with a 250,000-tonne starter pit as planned in August, with production advancing to 2 million tonnes per year in 2011. Prophecy is fully funded to production and its management team includes John Morganti, Arnold Armstrong, and Rob McEwen. For Prophecy's complete press release about its production plans, please visit: http://www.prophecyresource.com/news_2010_may11.php * * * Support GATA by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Or a video disc of GATA's 2005 Gold Rush 21 conference in the Yukon: * * * Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: ADVERTISEMENT Coming Friday-Sunday, June 11-13, at the Dallas-Fort Worth Airport Marriot: The conference will explore the dangers and opportunities in today's bullion markets and the need for investors to diversify bullion holdings outside of bullion banking and commodities markets. Speakers will include David Morgan of Silver-Investor.com, Gold Anti-Trust Action Committee Chairman Bill Murphy, and Duncan Cameron and Philip Judge of Anglo Far-East Bullion Co. The earliest conference attendees on Saturday will be able to schedule one-on-one interviews for personal consultation with Anglo-Far East's experts on Sunday. To learn more about and register for the Anglo Far-East Bullion conference, please visit: http://www.anglofareast.com/seminar-registration/
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Markets around the world rose after China said exports rose 48.5% in May, while imports jumped 48.3%. The increase in trade provides some relief to fears that debt problems in Europe would halt a global economic recovery. The 27-nation European Union is China's largest trading partner. Investors have pounded stocks for more than a month because of concerns that Europe's sovereign debt crisis would slow a rebound worldwide. Thursday's climb was the latest swing in a volatile market and could fizzle at the first sign of bad news. The euro has become an indicator of investor confidence in Europe's economy…| You are subscribed to email updates from Gold World News Flash To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
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