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- The SPX, Oil, Silver, & Geopolitical Risk
- Right Click here to go to Harveys Blog-confirms what I just posted
- Gold and silver Repel Raid/Balance Sheet of Fed Balloons/Libya oil stops as civil war approaches
- Dollar Ready to Collapse, Silver Squeeze to Continue
- Turk - Dollar Ready to Collapse, Silver Squeeze to Continue
- Afternoon Gold Fix -- February 25, 2011
- The SPX, Oil, Silver, and Geopolitical Risk
- Gold Forecaster - Why is the Dollar Falling in Gold and Currency Terms?
- Gold Adds 1% But Silver Unwinds Week-on-Week Jump as Oil Price Hit by Margin Hike…
- Yamashitas Gold and the Looting of Asia
- The “Five M’s” For Picking Gold Stocks
- BIG silver NEWS
- Crisis Edition
- Friday ETF Roundup: UNG (Finally) Surges Higher, VXX Tumbles
- Timber Investing: The Inflation Hedge That Pays Off in Every Type of Market
- What You Need to Know About Buying Silver
- The Well-Traveled Funds of Fed Money Creation
- COMEX Commercials Not Aggressive on Silver Sell Side
- Inflation Scorecard: More Dollar Erosion
- 4 Silver ETFs for Bullish Sentiment
- FSN Metals Update with David Morgan
- Gold Seeker Weekly Wrap-Up: Gold and Silver Gain Almost 2% on the Week
- gold and silver trade at 1:5 today...CRIKEY!!
- Rumors swirling: The U.S. gov't is planning to confiscate gold
- Fresh Video to Watch- just RIGHT click this link-open in new tab, and then come back and make sure you thank me
- Melted gold - illegal to sell?
- Scary looking gold stock chart of the day: BRD
- Rebate
- Will a Weak Dollar Do Us Any Good?
| The SPX, Oil, Silver, & Geopolitical Risk Posted: 26 Feb 2011 05:26 AM PST "You can't lose what you don't put in the middle." Mike McDermott, Rounders While this week was shortened due to the President's Day holiday, it has been quite a ride for traders and investors. The 24 hour news cycle certainly intensifies current market conditions as any news focusing on oil or the Middle East protests moves markets. Thursday the International Energy Agency came out and indicated that the expected drawdown in crude oil supplies coming from Libya was being exaggerated. Immediately upon the release of this information light sweet crude oil got hammered and stocks rallied from day lows. By now most market prognosticators and the punditry will be out declaring that oil prices are going to continue lower and equities are on sale and primed for a snapback rally. I'm not sure that it is that easy. Mr. Market makes a habit of confusing investors with mixed signals. One thing is certainly clear from the recent price action, rising oil prices are not positive for equities here in the United States. What is also clear when looking at the Massachusetts Institute of Technology's (MIT) version of inflation data (http://bpp.mit.edu) for the United States, it becomes rather obvious that inflation continues to ramp higher in the short term and also on monthly and annual time frames. If inflation continues to work higher, it would be expected that light sweet crude oil futures prices would work higher as well. The dollar index futures have been selling off while oil and precious metals have rallied until the IEA news came out on Thursday. What should be noted from the recent uncertainty in the marketplace is that the U.S. Dollar Index futures did not rally. This is the "dog that didn't bark." During recent periods of market uncertainty such as the European sovereign debt crisis, the U.S. Dollar was considered a safe haven. This most recent market uncertainty caused by political instability in the Middle East has seen the U.S. Dollar Index futures sell off while gold and silver rallied as investors looked to the shiny metals for safety.  really mean? It's simple, the U.S. economy is not on solid ground, rising oil prices will damage the economy, the world does not necessarily view the U.S. Dollar as a safe haven, and inflation is rising. With all of that being said, what if this is just the beginning of a major rally in energy and the metals? What if prices are going to pull back to key breakout levels, test them successfully, and probe to new highs? As can be seen from the chart above, the U.S. Dollar Index is poised to test recent lows. Should price test the lows and breakdown, oil and the metals could rally in lockstep in a parabolic move.The daily chart of light sweet crude oil futures illustrates the breakout level that oil prices surged from. The next few days/weeks are going to prove critical as a lower dollar could change everything. A quick look at the silver futures daily chart illustrates the key breakout level which will likely offer a solid risk / reward type of setup. As for the equity market, it remains to be seen what we will see next week. I am not convinced that the issues in the Middle East are over and that oil is going to come crashing back down to previous price levels. Oil has broken out and if the breakout levels hold I would expect a continuation move higher. If we see price action in oil transpire in that fashion, equities will be for sale and prices could plummet tremendously. I will be watching to see how much of the recent move lower is retraced. If we see a 50% retracement and prices rollover the S&P 500 will likely be magnetized to the 1275-1285 price range. If that price level is tested and fails, we are likely going to see a 10% correction and potentially more. The daily charts of SPX listed below illustrate the key Fibonacci retracement levels as well as the key longer term price levels that could be tested if prices rollover. While lower prices are possible, if we see a retracement of the recent move which exceeds the 50% retracement level in short order prices will likely test recent highs and begin working higher yet again. The price action on Friday and next week is going to be critical to evaluate as many traders and market participants are going to be watching the price action closely looking for any clues that might help indicate directionality. For right now, I am going to be patient and sit in cash and wait for high probability low risk setups to emerge. As I have said many times, sitting on the sidelines can be the best trade of all! Get My Trade Ideas Here: www.optionstradingsignals.com/profitable-options-solutions.php JW Jones
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| Right Click here to go to Harveys Blog-confirms what I just posted Posted: 26 Feb 2011 02:41 AM PST Harvey is still optimistic that 8000 contracts will stand...lets see what happens. I cannot break his info down today, I have to run out. Check in later. making calls to bullion dealers now to see how the Friday orders went. | ||
| Gold and silver Repel Raid/Balance Sheet of Fed Balloons/Libya oil stops as civil war approaches Posted: 26 Feb 2011 02:29 AM PST | ||
| Dollar Ready to Collapse, Silver Squeeze to Continue Posted: 25 Feb 2011 11:29 PM PST Afternoon Gold Fix -- February 25, 2011. Interviews with Marc Faber, Jim Rickards and James Turk. Speak up and be heard by the CFTC one more time...and much more. ¤ Yesterday in Gold and SilverWhen I hit the 'send' button on my Friday morning column, gold had just printed its low price tick of the day at $1,400 spot...so my warning of possible impending doom during the New York session wasn't worth a hill of beans. But at 2:50 a.m. Mountain time yesterday morning, it wasn't looking too good. From that low, which occurred minutes before London opened, gold rallied in fits and starts right up until the close of electronic trading in New York. You'll notice that the spike in the gold price that began the moment that the London p.m. gold fix was in at 10:00 a.m. Eastern, wasn't allowed to go far...and that was the high price tick of the day at $1,412.80 spot. The gold price closed just a bit under that.
Here's the New York Spot gold chart on its own. You can see the New York low at the London p.m. gold fix...10:00 a.m. Eastern, 3:00 p.m. GMT...plus the subsequent price spike that got cut off at the knees shortly before 11:00 a.m. Eastern. One can only wonder how high the price might have gone if there hadn't been a not-for-profit seller there to hammer it flat.
The silver price came roaring back with a vengeance...with a preliminary top coming at the London open at 8:00 a.m. GMT...which is 3:00 a.m. in New York. The secondary low came precisely at the silver fix at noon in London...7:00 a.m. on the eastern seaboard. From that secondary low, the silver price renewed its climb, finishing almost on its high of the day...$33.46 spot...which came moments before the close of electronic trading at 5:15 p.m. in New York.
The dollar opened around 77.10 cents bright and early yesterday morning in the Far East...and dipped briefly to around 76.95 around 7:00 a.m. in London. That was its low of the day...and by the London p.m. gold fix at 10:00 a.m. in New York [3:00 p.m. in London], the dollar had reached its zenith around 77.42. From that high, the dollar got sold off about twenty basis points to 77.22 going into the New York close at 5:15 p.m. Eastern. There wasn't too much direct correlation between the gold price and the dollar yesterday that I could see.
The gold stocks gapped up at the open, then pretty much followed the gold price from that point on, almost to the tick...with the HUI finishing up 2.31%...it's high of the day. For the most part, the silver stocks vastly outperformed the gold stocks once again. Here's the 5-day chart for the week that was.
Well, the CME Delivery Report has deliveries posted for March 1st already. The report showed that 823 gold, along with 252 silver contracts, were posted for delivery on that date. In gold, the big issuer [820 contracts] was the Bank of Nova Scotia in its proprietary trading account...and the big stopper [776 contracts] was JPMorgan in its client account. In silver, the big issuer [250 contracts] was HSBC USA...and there were a lot of companies on the receiving end of these deliveries...the biggest being the Bank of Nova Scotia with 97 contracts. For first day notice in silver, I was expecting far more delivery activity than this. We'll see how things progress as the first week in the March delivery month unfolds. The link to all that action is here...and it's definitely worth a look. After a wild and woolly week, neither the GLD nor the SLV ETF had a report on Friday. While on the subject of the SLV ETF, silver analyst Ted Butler mentioned the fact [both on Thursday and Friday] that he thought the reason that silver was creamed in the thinly-traded electronic market on Thursday afternoon, was JPMorgan's attempt to get massive liquidation in SLV shares, in order to cover their short positions in that market as well. That's a theory that Ted has advanced before....and the only reason I'm brining it up here is because of a graph that reader 'Silver Steve' sent me yesterday. It's the 10-minute chart of SLV for the last week. Note the massive volume spike in SLV on the price smash-down in silver on Thursday afternoon before the equity markets closed. If Ted's theory is correct...and I see no reason to doubt it...then I'm sure JPMorgan was standing there buying every share that was falling off the table.
The U.S. Mint had another sales report yesterday...adding another 4,000 ounces of gold eagles sales...and an extremely tiny 1,500 silver eagles. Month-to-date...87,500 ounces of gold eagles and 2,665,000 ounces of silver eagles have been sold. Ted Butler feels that we'll get a final February sales figure from the mint on either Monday or Tuesday. The Comex-approved depositories reported receiving a net 598,486 troy ounces of silver on Thursday. There was a big internal transfer from Eligible into the Registered category at HSBC that makes the numbers look more impressive than they actually are...and the link to all the action is here. It was a 'good news, bad news' Commitment of Traders Report yesterday...as it showed further increases in the short positions of both metals. That was the bad news. But, as Ted Butler was quick to point out on the phone yesterday, the short sellers in silver and gold were not the bullion banks at all, but 'the raptors'...the smallest traders in the Commercial category...and not the '8 or less' bullion banks, who were totally M.I.A. during the last reporting week. That was the good news. Ted says that the Raptors hold large short positions in both metals...more than they have for a very long time. The Commercial net short position in silver increased by 2,746 contracts, which translates into 13.73 million ounces of silver. In gold, the Commercial net short position increased by 13,180 contracts, or 1.32 million ounces of the stuff. The link to the full-colour COT graph for silver is here...and for gold it's here. Both are worth looking at...as the long-term 12-month trends are easy to spot in both metals. Here's Ted Butler's "Days to Cover Short Positions" graph as updated by Nick Laird over at sharelynx.com.
¤ Critical ReadsSubscribeRussian Central Bank Unexpectedly Raises Main Rates, Reserve RequirementsI don't have a whole lot of stories today, which suits me [and probably you] just fine. The first is from reader Barnabe Geis...and is a Bloomberg story filed from London early Friday morning. With domestic inflation approaching 10%...Russians see inflation, the fastest among the so-called BRIC countries, as the country's biggest challenge facing the country. Prime Minister Vladimir Putin's administration has sold discounted grain from state stockpiles and ordered oil companies to cut prices for gasoline and diesel to stem price increases. Link here.  Bank of India becomes first to offer trade settlement in yuanHere's a story that's filed from Beijing...and posted in The Times of India late Thursday evening. Bank of India has become the first Indian bank to offer trade settlement facility between the rupee and the Chinese RMB from Hong Kong. This follows intense persuasion by the China Banking Regulatory Commission, which is trying to gain acceptance of the RMB as an international currency. Link here. I thank reader 'David in California' for sharing it with us.  Robert Fisk with the first dispatch from Tripoli - a city in the shadow of deathToday's second story is also courtesy of reader Barnabe Geis...and is one of three stories I have about the ongoing strife in Libya. This one was posted over at The Independent in London on Thursday. Up to 15,000 men, women and children besieged Tripoli's international airport last night, shouting and screaming for seats on the few airliners still prepared to fly to Muammar Gaddafi's rump state, paying Libyan police bribe after bribe to reach the ticket desks in a rain-soaked mob of hungry, desperate families. Many were trampled as Libyan security men savagely beat those who pushed their way to the front. This is an ugly read...and the link is here.  Battle at army base broke Gadhafi hold in BenghaziThe next Libya-related item was sent to me by Swiss reader G.B. It's an AP story that's filed from Benghazi and is posted over at yahoo.com. The young men of Benghazi pounded the dreaded military barracks in the city center with everything they could find. They threw stones and crude bombs made of tin cans stuffed with gunpowder. They drove bulldozers into its walls. All under a blaze of gunfire from troops inside that literally tore people in half. More than 100 were killed in three days of fighting. But in the end, the base fell and Moammar Gadhafi's forces fled, executing comrades who refused to shoot. This is an ugly read...and the link is here.  Behind the Arab Revolt is a Word We Dare Not SpeakReader U.D. sent me this story that's posted by writer John Pilger over at antiwar.com. I believe every word in it, as I'm more than familiar with the American Empire and how it operates, from reading books such as "The Creature From Jekyll Island" by G. Edward Griffin...and "Confessions of an Economic Hit Man" by John Perkins...plus many others in a similar vein. It's not a big read...but it's a must read from one end to the other...and the link is here.  More Christchurch, New Zealand Earthquake PicturesHere's another bunch of pictures...77 in total...taken just days after the earthquake. Some of these are aerial shots that show the extensive damage...and the extensive liquefaction that occurred. One has to wonder whether or not ther | ||
| Turk - Dollar Ready to Collapse, Silver Squeeze to Continue Posted: 25 Feb 2011 11:29 PM PST Image:  Interviewed yesterday by King World News, GoldMoney founder James Turk calls attention to the precarious position of the U.S. dollar on the dollar index chart, reports that silver's backwardation is deepening, and finds the gold chart explosive. The blog is not particularly long, but is definitely worth your time...and the link is here. | ||
| Afternoon Gold Fix -- February 25, 2011 Posted: 25 Feb 2011 11:29 PM PST Image:  Reader U.D. sent this story my way very late last night that was posted over at the fmxconnect.com website. This was obviously written by one of the quants that trades commodities on a level far above our understanding...as reading it left me gasping for air...as a lot of it was so far over my head, that I really didn't have a clue what he meant. | ||
| The SPX, Oil, Silver, and Geopolitical Risk Posted: 25 Feb 2011 05:49 PM PST | ||
| Gold Forecaster - Why is the Dollar Falling in Gold and Currency Terms? Posted: 25 Feb 2011 05:46 PM PST | ||
| Gold Adds 1% But Silver Unwinds Week-on-Week Jump as Oil Price Hit by Margin Hike… Posted: 25 Feb 2011 05:25 PM PST
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| Yamashitas Gold and the Looting of Asia Posted: 25 Feb 2011 05:00 PM PST | ||
| The “Five M’s” For Picking Gold Stocks Posted: 25 Feb 2011 04:45 PM PST | ||
| Posted: 25 Feb 2011 12:22 PM PST Heard from an undisclosed source. The OI decline was NOT from cash settlements. The 30-50% cash premiums were a rumor. Break the COMEX is STILL on! No bullshit here. More to come... | ||
| Posted: 25 Feb 2011 10:42 AM PST Since a Tunisian fruit seller lit himself on fire in protest on the 17th of December 2010, the world has gone bananas (not that it wasn't before):
Yes, it's been a busy few weeks. While these events transpired, the S&P500 rose about 5% and the ASX200 rose by about 2%. And that's all that matters to Chairman Bernanke. He is willing to see the Middle East go up in flames in the name of the wealth effect. So he continues his inflationary ways, conveniently ignoring the effects this has outside the stock market. (Perhaps he will win the Nobel Peace Prize for his efforts.) But the last few days have seen a reversal of fortunes. The Arabs have replied to Bernanke's inflation of food prices with a price hike of their own - in oil. And that's where it really hurts Americans. Not just in the stock market, either. Much has been said about the American lifestyle's dependence on oil. Cheap oil. Of course, Dan Denning has been on top of how unrest in the Middle East and north Africa will impact the world. And he's found some interesting ways to profit from the energy market's instability. But back to Chairman Bernanke's unintended consequences. The irony of inflation causing a spike in oil prices, which has a deflationary shock, is obvious. Less obvious is just who will win. Inflation or deflation? Daily Reckoning editor Bill Bonner predicts both. One after the other. It's just a question of how bad the deflation will get before Chairman Bernanke comes to the rescue with fresh money - denominated in billions. That state of affairs is a pain in the neck for investors who want to make money in coming months. It means market timing will be the key to successful trades. And when we say market, we mean the announcement of QE3. At that point, the inflation trade can resume until the next external shock hits. Eventually, the game will come to a climax. History teaches us that banking crises tend to lead to exchange-rate crises, which lead to sovereign defaults. As the US dollar is the world's reserve currency, the process may be drawn out, but the effects will be worse. And there won't be enough money for bailouts. The chips will have to fall as the free market determines. Unlike last time. Dominique Strauss-Kahn, bailout agent extraordinaire of the IMF, has reaffirmed his ideological leanings: "Strauss-Kahn reached his two goals during this visit [to France]," said Gerard Grunberg, a professor at the Political Sciences Institute in Paris. "Make sure nobody doubts any more that he will be a candidate for the French presidential race in 2012 while never saying it. And make crystal clear that he is a man of the left, a real socialist." Does having a real socialist in charge of one of the world's most important institutions sound like a good idea to you? But there are more of them. In the US you had George "affordable housing" Bush, who was free market in rhetoric and campaign donations only. Now you have universal healthcare advocate Obama, who wants to "spread the wealth around". And the Chairman himself, Ben Bernanke at the Federal Reserve. But it's not just governments that are into meddling in private affairs. The investment bankers enjoy it too. Aside from being the leading campaign donators for politicians, the investment banks often place their men into government roles. Obama's Chief of Staff is from JP Morgan (with a fresh 9 million dollar pay day behind him). Bush's Treasury Secretary was from Goldman Sachs. And the list goes on. None of these antagonists are remotely free market. And they are all going to discover the same thing: Socialism is too expensive to work. And the money is now gone. From this point on, spending will incur higher and higher interest rates, until the whole thing collapses. But the Germans are breaking the mould. Sick of bailing out their neighbours once or twice removed, the Germans voted against the ruling party in the wealthy city-state Hamburg. That drove them into the hands of the socialist party. How ironic. Although it is concerning that the socialist party is campaigning on a nationalistic platform of letting Europe deal with its financial mess. Nationalism, socialism and financial stress - sound familiar? The always intriguing Ambrose Evans-Pritchard puts it this way: Does Angela Merkel want "fusion of fission" inside the EU? "Her own Bundesbank argued years ago that EMU is unworkable without fiscal union, and it has been vindicated by the events of the past two years." But it's not just the EU sovereigns who are in trouble. The hilarious twist in all this is that, while EU member countries are no longer able to monetise debt, apparently their banks are doing it themselves! The Irish Times reports:
And sure enough, collateral popped up at the ECB in exchange for emergency funding. Repeatedly, such borrowing has been at remarkable highs. But the ECB Executive Board member Juergen Stark is diverting attention to inflation, just as it seems deflation might re-emerge: "Stark Says ECB Will Raise Interest Rates If Needed to Contain Inflation." Yes, the ECB remains hawkish, while banks raid its emergency war chest with money created from thin air. Surviving survivorship bias While the world descends into chaos, Australian investors have survival issues of their own. Go ahead and look at this chart of the All Ords going back to 1985 (courtesy of Yahoo Finance). You might be thinking "Yahoo, look at my stocks go". But remember, indices are subject to a little sleight of hand. Finance professionals call it "survivorship bias". In order to be included in an index, shares have to exhibit certain qualities. For All Ords membership, you have to be one of the top 500 shares by market capitalisation on the ASX. Now, market cap is the price of shares multiplied by the amount of shares. And that's where the fraud comes in. If a company grows and is successful, it will at some point join the All Ords and push it up. But failing companies, whose share price falls, will drop out of the index and their decline doesn't show up in the chart above. Of course, your portfolio consists of shares and not a bet on the All Ords figure, which you will hear quoted on the news tonight. Unless you're using derivatives or ETFs that is. So, if your portfolio had included one or more of the likes of Allco Finance, ABC Learning, HIH Insurance, One Tel, Ansett Airlines, Storm Financial, etc, you would have watched your portfolio plunge while the All Ords kept onwards and upwards. From 720 in 1985 to around 5000 today, the All Ords has provided a return of 594% in 26 years. $1000 dollars invested in the All Ords in 1985 would be at around $7000 now, but around $2400 adjusted for inflation. Say you had owned one or more of the collapsed companies mentioned and your portfolio took a 10% hit. Your return would fall to pieces compared to the index. Considering Australia has been comparatively calm when it comes to corporate collapses, diversification doesn't look all too bad a strategy for the ASX. Over in the US, survivorship bias is a much bigger factor. But that doesn't matter anymore. The place is beginning to fall apart like northern Africa would with record food prices. While Obama discussed investment in education, Michigan closed half its schools and the Rhode Island district (ironically name Providence) issued dismissal notices to all of its teachers. A Democrat has called for unions to begin making their protests a little bloody and a government official encouraged police to shoot at protesters. Also, flash mobs have gone from dancing to looting. We hope those Australian investors who recently bought properties in the US are up for a turbulent ride. Some reader mail on last weekend's DR:
So there you have it. Obama's budget deficit is more than the value of lives lost in America's current wars. Nick Hubble | ||
| Friday ETF Roundup: UNG (Finally) Surges Higher, VXX Tumbles Posted: 25 Feb 2011 10:27 AM PST ETF Database submits: U.S. equity markets surged higher, slashing into the severe losses from earlier in the week as good news from Intel (INTC) and Boeing (BA) helped to relieve some of the pressure and send shares soaring higher. The Dow rose by 62 points on the day while the S&P 500 and the Nasdaq boosted more robust gains of, respectively, 1.1% and 1.6%, as weakness in ExxonMobil (XOM) and Johnson & Johnson (JNJ) dragged down the performance of the DJIA. Commodity markets also rebounded across the board as soft and grain markets saw large price increases as well. Cotton, corn, soybeans and wheat all saw their prices rise by over 3.5% while more safe haven oriented commodities such as gold and silver declined to close out the week. One of the biggest ETF winners on the day was the United States Natural Gas Fund (UNG) which surged higher by 3.5% in Friday Complete Story » | ||
| Timber Investing: The Inflation Hedge That Pays Off in Every Type of Market Posted: 25 Feb 2011 10:17 AM PST Money Morning submits: By Larry D. Spears If you start a conversation about the building inflationary pressures already sapping consumer pocketbooks, that talk will almost certainly turn to such classic hedges as gold, silver and even crude oil. But one of the best inflationary hedges of the 20th century is often forgotten - even though it's likely to be just as effective this time around. We're talking about timber - and timber stocks. And the facts speak for themselves. Investing in timber is a move virtually every investor should carefully consider. Timber Trumps Inflation In case you're sitting in Oregon, Kentucky or some other state that's rich with forests - and therefore doubt the value of timber as an inflationary hedge. Here is some research to consider. If you look at this with an open mind, you'll see that timber is not only a great hedge against inflation, but it's a market-beating investment Complete Story » | ||
| What You Need to Know About Buying Silver Posted: 25 Feb 2011 09:25 AM PST It's hard to believe that less than three years ago, silver was $8.80 an ounce. Since then it has nearly quadrupled in value (up 385%) and more than doubled in the last 12 months alone. That's great for those who already own the metal – but is it too late for the rest of us to get in? To answer that question, Big Gold Editor Jeff Clark sat down with our friends of The Daily Crux. Read what he had to say about the silver rally, and why you should view any correction as good news. Crux: Jeff, silver has had an incredible run over the past year or so. Where do you think it's headed next? Jeff Clark: Well, that's probably the most common question we get these days. Silver has definitely been very exciting. The price has basically doubled in a year, and many of the stocks have Complete Story » | ||
| The Well-Traveled Funds of Fed Money Creation Posted: 25 Feb 2011 09:00 AM PST Someone named Denis wrote to Mish Shedlock of globaleconomicanalysis.blogspot.com and asked, "I read many times on your blog how bubbles created by the Fed led to the overpricing of assets such as real estate and stocks. Someone paid those overpriced valuations." The question is, "So, where is the money? At some point will that money be used to mitigate the economic doom?" Before I could interrupt, Mr. Shedlock himself answers, "Most of the money went to 'money heaven' which is to say nowhere at all." Of course, I am delighted at the clever turn of phrase, even though I am not sure I understand it unless loans have defaulted, making money disappear. So unless it is actual currency that is physically lost or destroyed, money lives eternal unless the debt, from which the money sprang, is not paid back, and some debtor is saying to some creditor, "Hey! Screw you, you crooked bastard bankers that caused all this economic mess by creating So Damned Much Money (SDMM) over the decades that it produced bubbles in the stock market, the bond market, the housing market, a gigantic financial services industry, an enormous derivatives market and a monstrous, suffocating increase in the size and oppressiveness of local, state and federal governments! "Now it's my turn to screw you in a fit of Unthinking Mogambo Revenge (UMR)! I ain't paying you back the money I borrowed! Thus, your fiat money literally disappears! This is why, if you will remember, I said 'screw you!' at the beginning of my harangue! Hahahaha!" Well, this, despite its terrific sense of catharsis and vengeance, does not answer the original question, which is, "Where does the money go?" The answer is that the money goes (and you can quote me on this) everywhere! Hahahaha! I can see by the bored look on your face that you do not understand my glib explanation, you do not see what is so funny that I would laugh about it, you think I am an idiot and you are wondering why you are wasting your life listening to a moron like me. Well, to be completely honest, I personally have no idea why you are wasting your life, although I can tell you, in case you are interested, that if you are NOT buying gold, silver and oil stocks in response to the Federal Reserve constantly creating so unbelievably much money that it will cause inflationary catastrophe for the economy, then you will soon not HAVE any life worth living when inflation in prices destroys you and everything you love, and you will be forced down, down, down to nasty subsistence living, checking the garbage cans and dumpsters behind restaurants for food during the day, and sleeping in them after closing time to keep out the rats. You can tell by my use of terms like "garbage" and "rats" that I am obviously sinking into a Big Mogambo Funk (BMF) about the whole mess caused by the Federal Reserve creating so much money. But when I say the money "goes everywhere," that is exactly what I mean. Perhaps a simplified illustration will help. Suppose I borrow a dollar to buy something from you for $1. You pay the government (at a 25% tax rate) 25 cents, leaving you with 75 cents. Now you spend your 75 cents buying something from Amy, whereupon Amy pays the governments 25%, or 19 cents, leaving her with 56 cents. Amy spends her 56 cents by buying something from Bob, who pays the government 25%, leaving him with 42 cents. Extrapolate this out, and after awhile you can see that the whole dollar eventually goes into the coffers of the government, which spends the money everywhere! Therefore, the money goes everywhere! Just like I said! And that is why creating excess money causes inflation in prices, and that is why you should be buying gold, silver and oil, running around like a hyperactive lunatic buzzing your brains out on crystal meth, because when the Federal Reserve is creating so much money, gold, silver and oil will go up in price, which is such a deceptively simple investing scheme that you marvel at it and exclaim, "Whee! This investing stuff is easy!" The Mogambo Guru The Well-Traveled Funds of Fed Money Creation originally appeared in the Daily Reckoning. The Daily Reckoning has published articles on the impact of quantitative easing, bakken oil, and hyperinflation. | ||
| COMEX Commercials Not Aggressive on Silver Sell Side Posted: 25 Feb 2011 08:19 AM PST HOUSTON – Silver almost but not quite made up for Thursday's knock-back, heading for a close near $33.38 as we write late Friday afternoon. That is about a $1.27 advance versus yesterday's $1.40 sell-down. For the week silver is a net winner, up at least $0.88 or about 2.7%. Meanwhile, the big sellers of silver futures "mailed it in" this week. They certainly didn't bring much of a "gun" to the futures gunfight – even with silver at a bull market high. ... | ||
| Inflation Scorecard: More Dollar Erosion Posted: 25 Feb 2011 08:17 AM PST Hard Assets Investor submits: By Brad Zigler Real-Time Monetary Inflation (Last 12 Months): 1.3%. This week, gold knocked the world's reserve currencies down a peg - with the sole exception of the Swiss franc. While the Swissie moved up 0.6% against bullion, sterling slid 2.0% and the euro declined 1.0%. The yen gave up 0.6% to gold. For the week ending Thursday, inflation in U.S. dollar-denominated assets accelerated:
Complete Story » | ||
| 4 Silver ETFs for Bullish Sentiment Posted: 25 Feb 2011 07:53 AM PST Tom Lydon submits: Strong investment is running into silver exchange traded funds, especially since the physically backed funds are so readily available. The world's largest silver-backed ETF iShares Silver Trust (SLV) said its holdings are soaring as investor appetite for the metal rebounds, reports Commodity Online. According to Right Side News, silver's price reached a new three-decade high of more than $34 per ounce, despite a pullback in other commodities this week. Silver has two things going for it these days:
There are several ways you can play this: Complete Story » | ||
| FSN Metals Update with David Morgan Posted: 25 Feb 2011 07:21 AM PST Lookin for a pull back... http://www.financialsense.com/financial-sense-newshour | ||
| Gold Seeker Weekly Wrap-Up: Gold and Silver Gain Almost 2% on the Week Posted: 25 Feb 2011 07:14 AM PST Gold fell as much as $22.20 to $1392.90 in after hours access trade yesterday before it climbed back to $1409.89 in Asia and then dropped back to $1399.20 in early London trade, but it then rallied back higher for most of the rest of the day and ended with a loss of just 0.42%. Silver dropped $1.455 to $31.735 before it rebounded to $33.138 and fell back to $32.518, but it then climbed back higher in New York and ended with a loss of just 0.6%. | ||
| gold and silver trade at 1:5 today...CRIKEY!! Posted: 25 Feb 2011 07:00 AM PST in other news, palladium looks poised for recovery, nearly clearing 2% on the day dollar finishes up strong day overall | ||
| Rumors swirling: The U.S. gov't is planning to confiscate gold Posted: 25 Feb 2011 06:54 AM PST From SHTFPlan: ... We've learned from well-known metals analyst and commentator Roger Wiegand, in an e-mail to silver analyst David Morgan which was subsequently published in Morgan's latest Silver Investor newsletter available only to subscribers, that several of Wiegand's high level inside sources have reported that the puppeteers behind the U.S. government, in order to facilitate a move into a new world currency are considering, or may have already begun moving forward with, a plan to confiscate gold and silver from the American public. The following "Red Alert" was sent by Wiegand to other precious metals experts and analysts and is republished verbatim: ... There is a plan to use the IMF (AKA U.S. Treasury and Wall Street) to be the front man for the new world order and one currency.We also got disturbing news yesterday from an impeccable source that when gold touches $2,000 it's confiscated in the USA for about $200. Then it's to be reissued by the Treasury for $10,000 per ounce to back the new IMF world currency using SDRS in 2011. Large physical gold is being moved to Canada. We've previously commented on the possibility of gold confiscation and other steps that may be taken by our financier controlled government in the event that gold does reach certain thresholds. Reaching these new thresholds, for example $2,000 or $5,000 per ounce, would suggest that the US dollar has likely crashed or begun a final collapse into oblivion, at which point, all credibility for this unit of exchange will have been lost in the eyes of the rest of the world. Will this lead to confiscation? Even David Morgan himself, in a recent YouTube interview, suggested that confiscation in the traditional sense was "ridiculous" and an argument that he doesn't buy. Confiscation, however, may happen in other forms... Read full article... More on gold: Gold guru Turk: $8,000 gold may still be too cheap WARNING: Traveling with gold just became much more dangerous Real money SHOCKER: What the world would look like priced in gold | ||
| Posted: 25 Feb 2011 06:24 AM PST Watch how she tries to downplay this shit...fuck me, every attempt from BNN, CNBC to make silver and gold sound like leprosy...its about a minute in, he talks oil first | ||
| Melted gold - illegal to sell? Posted: 25 Feb 2011 06:03 AM PST Was at the local gold place today and a couple came in with what appeared to be almost an ounce lump of gold. The story was the husband went to town on his class ring with a blowtorch. Now I understand that it might be hard to value, being as most class rings are 12k to 18k, but I was truly surprised when I heard the gold store employee spout off that it was illegal to sell melted gold. Any chance this has any relation to reality? I can see law enforcement wanting a way to track all purchases, and a lump of gold that was formerly a ring would be hard to track. I've heard this same clerk pass off nonsense as fact in the past, so everything I hear him say is suspect to me. | ||
| Scary looking gold stock chart of the day: BRD Posted: 25 Feb 2011 05:33 AM PST http://www.biiwii.blogspot.com I have had Brigus Gold on watch for quite a while after it was recommended by a subscriber who is a fund manager. I traded it once successfully, but as I recall there is an asteRISK (in my mind at least) about management's past ventures, which I cannot quite recall at the moment. Anyway, here is BRD sporting a simply brutal chart and a $1 measured target. 
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| Posted: 25 Feb 2011 01:42 AM PST I've known this has been a problem for quite some time but have just chosen to mostly ignore it. I think it's now time to address the problem of subscribers forwarding the nightly reports. Realistically there's no way to police this kind of theft, and if you just want to forward one or two reports to a friend so they can sample the SMT I have no problem with that. I do have a problem when someone copies the report and forwards it to 20 of his investing buddies though. I think we can all agree that the price of the newsletter is chump change, especially compared to the profits we made last year or even so far this year for that matter. I've kept the cost of a subscription down to a reasonable level to where virtually anyone can easily afford a yearly subscription. So price really shouldn't be an issue. So here's what I'm going to do. I'm going to give everyone an incentive not to pass on the reports freely. I'm going to rebate $50 for every friend or associate you send to the SMT that signs up for a yearly membership. If you sign up 4 people your membership for the year is free. If you sign up 8 people not only is your membership free but you will make $200 (go buy some silver Eagles). They have to sign up for a year. They will need to tell me at the time who referred them and give me your email address so I can deposit the funds in your Paypal account. There will be no limit to how many people you can refer but I'm not going to try and keep track of this on a yearly basis, and I'm not going to do retro rebates. The program will begin today. It's just going to be a one time rebate of $50 whenever you refer a new subscriber for a yearly membership. Hopefully this will be enough incentive to cure this problem.        | ||
| Will a Weak Dollar Do Us Any Good? Posted: 24 Feb 2011 05:12 PM PST |
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