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- ETF Rankings: Significant Downside Still Possible In Stocks
- Tiffany & Co: Still Shining With Substantial Earnings Beat And Guidance Increase
- Do Rating Agencies Cause More Trouble Than They Are Worth?
- Here Comes The Rise Of The Silver Tide
- Is Silver's Price Vs. Gold Warranted?
- Gold Is Done ... For Now
- Richard Poulden talks with James Turk
- Real Stimulus vs. Corporate Plundering
- Gold Is A Subjective Hedge, And Its Run-Up Won't Last
- Stocks at Rock Bottom, Gold at Top – Is a Bigger Correction Underway?
- 3 Global-Minded, High-Yielding U.S. Companies To Beat The Weak Dollar
- Western Speculators Sell Gold; Asia and West Buy Bullion …
- Where the gold correction could end
- The U.S. dollar could make a big move as early as today
- A disturbing gov't trend you need to know about now
- WDSD (what did shalom do)
- Carlos Andres: Discovering Bargain Basement Gold Stocks
- Economist Nouriel Roubini has officially lost it...Now attacking popular blogger
- ShortSideofLongBlog: Bonds & Gold in Euphoria
- Reader Comments — Don't Wait for the Collapse
- QE3 or not: get gold now
- Gold price reaches parity with platinum price
- What Will It Be Like After the Collapse?
- Europe is the one to watch
- Fears of market meltdown growing
- "Gold to Attack $2,000 in September" - Pierre Lassonde
- GoldMoney's Turk interviews Matterhorn's Egon von Greyerz
- Mining Shares to Outperform Gold Going Forward - Pierre Lassonde
- The Central Banks and Gold
- Since ECB won't, maybe Fed will buy European government bonds
| ETF Rankings: Significant Downside Still Possible In Stocks Posted: 26 Aug 2011 06:12 AM PDT By Chris Ciovacco: On August 3, we commented that recent breakdowns called for a defensive bias. Unfortunately, our concern about the market's intermediate-term outlook has become more acute in recent weeks, as we noted on August 22. The research presented below highlights the significant downside risks that remain in the financial markets. Until conditions improve, we will maintain a very defensive/high cash posture. Prior to Ben Bernanke's Jackson Hole remarks, we reviewed all 223 of the most liquid ETFs that we follow using the CCM Asset Allocation Model. The results of the screening and ranking process are not encouraging. Prior to the Jackson Hole speech, risk markets looked absolutely terrible. The list below, with the exception of gold (GLD), points to deflationary outcomes. Fear of deflation could eventually induce more selling in gold and silver (SLV). Notice the bearish tone of the top-rated positions in the table below – the VIX (VXZ), shorts Complete Story » |
| Tiffany & Co: Still Shining With Substantial Earnings Beat And Guidance Increase Posted: 26 Aug 2011 06:08 AM PDT By Trader Mark: Believe it or not, there is more in the world than the whispers of Ben Bernanke - indeed there is a whole global economy out there. By watching CNBC you'd forget that. While macro news has dominated the past six weeks, there are still individual companies executing business as usual. One which has thrived through the 'rebound' as the country (and indeed the globe) bifurcates further into have and have nots is Tiffany & Co (TIF). After Apple (AAPL) this is the U.S. retailer with the second best sales per square foot - for obvious reasons (high end merchandise). From what the company has indicated the past few months, it has been able to pass along price increases as silver, and especially gold, have jumped in value. Earnings this morning were once again impressive with a 17 cent beat and 30.5% year-over-year revenue growth. Guidance for the year likewise increased Complete Story » |
| Do Rating Agencies Cause More Trouble Than They Are Worth? Posted: 26 Aug 2011 05:47 AM PDT It is now common knowledge the three USA rating agencies, Moody's (MCO), Fitch and Standard & Poor's. were one of the main factors in the financial meltdown in 2008. Either they were totally incompetent and unable to evaluate the collateralized mortgage bonds that were worthless and not worth the paper they were printed on, or even worse, they did know the bonds were junk and gave them all triple A ratings anyway. Nobody has been prosecuted and no inquiry has been formed to check why these companies, which seem to deem themselves to be more powerful than God at controlling the financial markets, have got away with causing such chaos and mayhem in 2008. Are they so powerful they are beyond the law? On August 19, 2011, William J. Harrington, an analyst, and Senior Vice President at Moody's, blew the whistle with an article titled; "Ratings Agency Rotten To Core Complete Story » |
| Here Comes The Rise Of The Silver Tide Posted: 26 Aug 2011 05:25 AM PDT Silver has now been through a correction and consolidation phase and is all set for the next leg up. We'll start with a quick look at the chart. First of all, please note that the gap between the price of silver and the 200dma has closed considerably as this moving average heads north in support of silver prices. The RSI is now middle of the road at 54.39 with room to go either way, but we expect silver to move higher from here. Conventional wisdom tells us to buy the dips. The difficulty with this old adage is how to know when the dip is complete and it is safe to re-enter the market. There are a myriad of factors to be considered, and any number of one-off events that can wreak havoc on the best of plans. There are also changes to the rules that impacted on the margin Complete Story » |
| Is Silver's Price Vs. Gold Warranted? Posted: 26 Aug 2011 05:23 AM PDT By Jeb Handwerger: Readers continue to express an abiding interest in silver, also known as the "poor man's gold." Prominent among the questions they raise: Quo vadis silver? Recently the noble white metal experienced a rapid run-up to the halcyon heights of $50, only to retreat precipitously to the low $30s. This on-again, off-again action was due to a technical response to silver's inherent volatility as both an industrial and a safe haven metal. In order to quell such ebullient action, the Comex lowered the boom by a series of increasing margin requirements similar to what is occurring now in gold futures. I've written that such moves were in the cards with silver in late April, and gold more recently. Too much hot, speculative money was entering this market in late April (and early August in gold). Moreover, the big banks and hedge funds grew uncomfortable with their growing short interest positions. The Complete Story » |
| Posted: 26 Aug 2011 04:34 AM PDT |
| Richard Poulden talks with James Turk Posted: 26 Aug 2011 04:23 AM PDT This interview was recorded on August 5 2011 in London. Richard Poulden talks with James Turk http://www.youtube.com/watch?v=m64SoEJa0uA info from youtube: Richard Poulden, Director of Power Capital Financial Trading (PCFT), and James Turk, Director of the GoldMoney Foundation, talk about the new Pan Asia Gold Exchange (PAGE) and its potential to change the gold market with its allocated gold contracts. They talk about PAGE's plan to start trading in standardised 10 troy ounce gold bar contracts. Poulden expects local contracts to start trading in Q4 2011 and international contracts to follow in Q1 2012. He also talks about the other gold exchanges being set up across China, as part of the government's strategy to encourage gold ownership. This interview was recorded on August 5 2011 in London. |
| Real Stimulus vs. Corporate Plundering Posted: 26 Aug 2011 04:15 AM PDT Regular readers are familiar with my harsh criticisms of the faux "stimulus" initiatives put forth by the Obama regime (and other Western governments) over the past 2 ½ years. Stuffing countless $billions into the vaults of large, multinational banks and corporations is not "stimulus". Rather, it is simply more of the same "wealth re-distribution" (i.e. stealing) which has been occurring at an accelerating rate in our economies for the past 40 years. From a theoretical standpoint, giving money to large (well-capitalized) corporations is the worst thing that any government could do with a dollar of stimulus – from several standpoints. First of all, what 2+ centuries of modern capitalism has shown us is that these corporations use such capital to reduce their number of employees by adding more labour-saving (but expensive) capital equipment. Indeed, at the Dawn of the Industrial Revolution the average "work week" was 7 days a week, 12 hours a day – or more than 80 hours/week. The reason why our current work week is only 40 hours long is because new technology always eliminates jobs faster than it creates new opportunities, and so our governments have been forced to shorten the work week every few decades. Currently there are approximately 50 million people in Western economies who are not allowed to work. This massive structural unemployment exists for only one reason, because our corrupt governments refuse to shorten the work week. It has been frozen at 40 hours/week for well over half a century, despite the fact it will never again be possible to have "full employment" with a forty-hour work week. Allowing corporations to get larger and larger simply accelerates the transition to ever more capital-intensive (and low-employment) business models. Stuffing taxpayer dollars into the pockets of these corporate Oligarchs just so they can reduce employment even further is not "stimulus". Of course I'm being unfair here. When the Obama regime showered these corporations with $100's of billions they did create jobs – in China. Similarly a tax cut for the wealthy is the second worst thing that one can do in pretending to "stimulate" an economy. Give a rich person a dollar and he/she will likely hoard it. If they do choose to spend it, it would very likely be on something like a vacation in the Bahamas, or buying a painting from some artist who has been dead for centuries. This is what is known as "trickle-down economics": give a dollar to the wealthy and (hopefully) a few pennies will slip through their greedy grasp and "trickle down" to the masses below. There has never been a successful example of the implementation of such a policy in all of history. It is nothing but a morally/intellectually bankrupt lie to justify the plundering by those on top of those on the bottom. The obvious alternative to this top-down plundering of our economies (masked as "stimulus") is real "stimulus": bottom-up investments in our economies. When a poor person or a middle-class person receives a dollar, we know two things about what they will do with that dollar. First they will spend a much larger portion of that dollar than if the same dollar was given to a wealthy person. Secondly (and even better) they will almost certainly spend that money locally – not on some exotic vacation in a foreign country or some "masterpiece" of art. The same is true when money is funneled into small businesses (versus Big Business). Give a dollar of stimulus to a small business and they are not going to build a new manufacturing facility in China, or buy an expensive piece of capital equipment so they can get rid of more of their workers. In fact, the most likely thing that a small business would do with that dollar is hire a new worker. |
| Gold Is A Subjective Hedge, And Its Run-Up Won't Last Posted: 26 Aug 2011 04:09 AM PDT By Bailey Vaucher Consulting: The only certainty these days with the markets is that there is no certainty. It presently seems that any new development could potentially trigger a mass sell-off, where even historically rock-solid equities are cast aside by fearful investors. These same investors still want to place their money reasonably safely, but with bank rates at historical lows (and wavering confidence in the banks themselves), there are not many options. One that has performed spectacularly is gold. While the markets as a whole react very bearishly to uncertainty, the price of gold has been on a stampeding bull run, as evidenced by the charts below. Click to enlarge www.gold.org The first chart could perhaps be called "lost decade of the Dow," with tremendous volatility and a level at the end of the 10 years that is not appreciably above that in 2000. Comparing that to the second chart, we see very clearly Complete Story » |
| Stocks at Rock Bottom, Gold at Top – Is a Bigger Correction Underway? Posted: 26 Aug 2011 03:55 AM PDT
Based on the August 26th, 2011 Premium Update. Visit our archives for more gold & silver analysis. To quote Charles Dickens, this week was the best of times, it was the worst of times. This week Quaddafi was finally cast out, Dominique Strauss Kahn was cleared, Japans' credit rating was cut, Washington quaked and everyone waited with bated breath for the words from Jackson Hole, WY. Oh, and we forgot to mention, gold skyrocketed to $1900 at the beginning of the week and then plunged in one of its worst days Wednesday when gold prices tumbled a whopping $95.80, or 5.1%, to settle at $1,765.50 an ounce — the lowest level in a week. To keep things in proportion– gold started the year just above $1,400 an ounce. Also this week SPDR Gold Trust's total assets surpassed that of the SPDR S&P 500 ETF, making GLD the largest exchange-traded fund in the world for the first time. But also to keep things in proportion, the assets of the Gold Trust ETF are still trivial compared to the trillions held in equities and bonds. Four times as much money is held in Apple (AAPL) stock alone. Naturally, there are many other ways to own gold, but in general, this means that not that many people own gold despite all the hoopla. The Federal Reserve is holding its annual symposium in Jackson Hole, WY, this weekend and all eyes are on Federal Reserve Chairman Ben Bernanke when he addresses the group today. It was at last year's meeting that Bernanke hinted the Fed would start another round of asset purchases to stimulate the economy and about three months later the Fed announced the $600 billion bonds purchases, later dubbed QEII. And that, folks, was one of the contributing factors for gold hitting $1900 this week. But it doesn't really matter to gold what Ben Bernanke will say. If there's QE3, gold should go up in the long term. And if there's no QE3, gold still will go up. The higher inflation and weaker dollar that QE3 would likely cause would be positive for gold, which is known as an inflation hedge. No QE3 would mean a zero-rate policy may continue for more than a while (even longer than they already pledged), which is an ideal environment for gold to grow. A new round of quantitative easing is not likely to be met with approval from the emerging world, particularly China, or other large holders of U.S. Treasuries and U.S. dollar-denominated assets. No matter what is said in Jackson Hole, there is no doubt that the US economy is in a deep hole. The uncertainty surrounding the U.S. deficit-reduction debate has fueled concern about a U.S. default, potential destruction of the U.S. dollar along with fears of a global recession or depression. Those that argue that gold is overvalued from a long-term perspective are not looking at the right numbers. They ought to be looking at Europe's banks and at the amount of short-term obligations that are sitting on the U.S. Treasury's books. Having considered the points made above, it's no wonder that the mood among stock investors is pretty grim. This is precisely why we will begin this week's technical part with the analysis of the stock market. We will start with the very long-term SPY chart (charts courtesy by http://stockcharts.com.) In the chart, we see a local top signal from analysis of both volume and Fibonacci retracement levels. In addition, there are two reliable (with proven track record – as seen above) support and resistance factors in play: the 50-week and 200-week moving averages. The SPY ETF just touched the 200-week moving average and a rally from here is likely. At this point we do not expect the 2008 plunge to repeat. However, even if that is going to be the case, then we would still likely see prices move higher – perhaps towards the 50-week moving average before the decline continues. In the S&P 500 Index chart this week, we have seen a decline to and a possible bottom at the 38.2% Fibonacci retracement level. This has been confirmed by the RSI indicator. Although we could still see a sideways trading pattern, the size and rapidness of the recent decline leads us to believe a bigger rally from here is more likely than not in the coming weeks. You would probably also want to notice that the current situation is very much in line with our previous remarks on gold and the stock market, made on August 19th in our Free Commentary: As far as the general stock market is concerned, (…) the decline in stocks was quite volatile but did not necessarily change the overall outlook. It still seems that the weeks ahead could very well be bullish for stocks although this upturn may not be seen immediately. At this point it seems extremely important to keep track of the general stock market as it's significantly correlated with precious metals. Any rally in stocks (…) would most likely result in lower prices for gold, silver and mining stocks. To check whether the correlation between precious metals and the stock market actually remains stable, let's have a glance at this week's Correlation Matrix. We see that a move higher for the general stock market would likely have a negative effect upon the precious metals sector and especially upon gold. Lower gold prices would likely be followed by lower silver prices, not because of the general stock market rally, but because of gold's price decline. This would likely impact gold and silver mining stocks as well. Overall, the precious metals – stocks link has changed very little recently from a correlation perspective. Summing up, although stocks could move either way from here, it is more likely that higher prices will be seen in the short term. The direction of the market beyond this timeframe is uncertain. Based on the persistent negative correlation between the stock market and precious metals the expected short-term rally in stocks would likely have a negative impact on gold and silver. To make sure that you are notified once the new features are implemented, and get immediate access to my free thoughts on the market, including information not available publicly, we urge you to sign up for our free e-mail list. Gold & Silver Investors should definitely join us today and additionally get free, 7-day access to the Premium Sections on our website, including valuable tools and unique charts. It's free and you may unsubscribe at any time. Thank you for reading. Have a great and profitable week! P. Radomski * * * * * Interested in increasing your profits in the PM sector? Want to know which stocks to buy? Would you like to improve your risk/reward ratio? Sunshine Profits provides professional support for Gold & Silver Investors and Traders. Apart from weekly Premium Updates and quick Market Alerts, members of the Sunshine Profits' Premium Service gain access to Gold Charts, Gold Investment Tools and Analysis of Gold & Silver Prices Naturally, you may browse the sample version and easily sign-up for a free weekly trial to see if the Premium Service meets your expectations. All essays, research and information found above represent analyses and opinions of Mr. Radomski and Sunshine Profits' associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Mr. Radomski and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above belong to Mr. Radomski or respective associates and are neither an offer nor a recommendation to purchase or sell securities. Mr. Radomski is not a Registered Securities Advisor. Mr. Radomski does not recommend services, products, business or investment in any company mentioned in any of his essays or reports. Materials published above have been prepared for your private use and their sole purpose is to educate readers about various investments. By reading Mr. Radomski's essays or reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these essays or reports. Investing, trading and speculation in any financial markets may involve high risk of loss. 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| 3 Global-Minded, High-Yielding U.S. Companies To Beat The Weak Dollar Posted: 26 Aug 2011 03:41 AM PDT By The Wild Hog: Since June 2010, the dollar has been on a strong downward trend that really accelerated in the first half of 2011. As the Fed continued to purchase longer-term securities, interest rates pushed lower, causing an outflow of capital to other currencies and weakening the dollar. More recently, the dollar has bounced around amid economic uncertainty across the globe. Currencies like the Swiss franc and Japanese yen have performed marvellously against the dollar. The euro has also showed strength recently despite the ongoing debt circus. Given that the dollar has depreciated against essentially all other major currencies, investors have started to wonder how to make proper investment decisions off a weak currency. There are a few major exporters within the US that generate large amounts of revenue from overseas sales. The weak dollar has allowed their products to become more competitive, and appear cheaper, thus boosting sales and bottom lines. In Complete Story » |
| Western Speculators Sell Gold; Asia and West Buy Bullion … Posted: 26 Aug 2011 01:44 AM PDT |
| Where the gold correction could end Posted: 26 Aug 2011 01:26 AM PDT From Resource Investor: Gold is in the second phase of a Bump-and-Run Reversal Top pattern, which typically occurs when excessive speculation drives prices up steeply, and is now at a critical juncture where substantially lower prices could be realized. Let me explain. According to Thomas Bulkowski, the Bump-and-Run Reversal Top pattern consists of three main phases: 1. A lead-in phase in which a lead-in trend line connecting the lows has a slope angle of about 30 degrees. Prices move in an orderly manner and... Read full article... More on gold: Four reasons to short gold now This could be the most important gold story of the year Resource guru Eric Sprott is selling gold and buying silver |
| The U.S. dollar could make a big move as early as today Posted: 26 Aug 2011 01:26 AM PDT From Kimble Charting Solutions: The U.S. dollar has been pretty much absent from the headlines of late, due to lack of movement and other products grabbing the spotlight, such as gold's decline this week. The dollar continues to find the line (1) to be stiff resistance over the past year, and has made several failed attempts over the past few months to "close above this line, on a weekly basis." The dollar is getting trapped between... Read full article (with chart)... More trading ideas: Top technical trader Roque: More downside ahead Fantastic advice every trader should read immediately Trader alert: These are the most volatile stocks in the world right now |
| A disturbing gov't trend you need to know about now Posted: 26 Aug 2011 01:22 AM PDT From Sovereign Man: The Wall Street Journal published a disturbing article earlier this week entitled "Federal Asset Seizures Rise, Netting Innocent With Guilty." You can already imagine the crux of the article. In the United States, there are hundreds of regulations thst authorize dozens of federal agencies to confiscate private property – homes, cars, bank accounts, gold, company shares, and even personal effects. Ironically, most Americans still think that they live in a country where you're innocent until proven guilty. Nothing could be further from the truth, and it's just another clear example of how the U.S. Constitution has become a worthless piece of toilet paper for the federal government. The Fifth Amendment states, "No person shall be… deprived of life, liberty, or property, without due process of law." Tell that to James... Read full article... More frightening news out of Washington: An outrageous government cover-up is quietly happening now If you've been preparing for the "End of America," you could be on a gov't watch list New details confirm our worst fears: Lobbyists will have a huge influence over the "Super Congress" |
| Posted: 26 Aug 2011 01:17 AM PDT Nothing. So far non event....like I said, lets see where the rest of the day goes Mildly bullish for gold and silver...as the bernank may be printing in the not so distant future   |
| Carlos Andres: Discovering Bargain Basement Gold Stocks Posted: 26 Aug 2011 01:14 AM PDT |
| Economist Nouriel Roubini has officially lost it...Now attacking popular blogger Posted: 26 Aug 2011 01:11 AM PDT From Economic Policy Journal: Check out these Roubini tweets: @zerohedge knows nothing about keynes & the academic studies fiscal stimulus Read all 9 of them & then talk again about "voodoo keynesians" @zerohedge read 9 studies showing that Keynesian stimulus worked.Then write a scientific rebuttal if you got 1.Enough of your juvenile rants But Zero Hedge needs to do no such thing. A scientific rebuttal was done decades ago. Henry Hazlitt in The Failure of the New Economics blew Keynes away with a 500-page chapter by chapter critique of The General Theory. Trying to improve on Hazlitt's critique of Keynes is like... Read full article... More on Roubini: "Dr. Doom" Roubini: The U.S. dollar will beat gold now "Dr. Doom" Roubini throws in the towel: Now bullish on stocks Why popular economist Nouriel Roubini is dead wrong about the Federal Reserve |
| ShortSideofLongBlog: Bonds & Gold in Euphoria Posted: 26 Aug 2011 01:11 AM PDT |
| Reader Comments — Don't Wait for the Collapse Posted: 25 Aug 2011 11:58 PM PDT Good Comment from reader EnoughRope on What Will It Be Like After the Collapse? Monty, instead of waiting for a collapse, Governors throughout the nation, and those along the southern border such as Perry, Brewer, and Jindal, should use the power of their elected offices to nullify federal laws and regulations which are clearly intended [...] |
| Posted: 25 Aug 2011 10:45 PM PDT Quantitative Easing III ("QE 3") is the talk of the town right now. The reason why is because such a grand programme - where the Federal Reserve makes outright, large-scale purchases ... |
| Gold price reaches parity with platinum price Posted: 25 Aug 2011 10:30 PM PDT The platinum price has been subject to a roller-coaster ride in recent weeks, primarily caused by significantly deteriorating growth prospects in the United States. Another recession in the US would ... |
| What Will It Be Like After the Collapse? Posted: 25 Aug 2011 09:29 PM PDT Those who wonder what will happen when the economy/government collapses may not have to wonder for long. Things seem to be deteriorating rather rapidly both here and abroad. Karl Denninger speculated about what a collapse means and provided a partial list of what he expects: Every pension fund blows up. All of them. Many doubled [...] |
| Posted: 25 Aug 2011 09:22 PM PDT Recently, the Netherlands suggested Greece should leave the Euro-land experiment. Whether they meant to expel them or ask for a voluntary exit we do not know. Some have suggested the Euro-land nations be split into two Euro-lands. One with all the money like Germany and France with the others dumped into Euro-land II, which obviously would include the PIIGs. Germany would dearly love to escape leaving the rest of those Euro-landers to their own devices. However the central bankers know this would implode their one World Government plan and are solidly against it. If Germany exits the entire Euro-land group would breakup. This would implode the global bond markets taking down Asia and America. Euro-land and its central bankers are cornered…stuck in a horrendous Catch 22. There is no escape and the credit noose grows ever tighter. We've been watching to see when the global bond debacle implodes. When it does the next big war will begin. While a new lawsuit opens in the German High Court next month to decide the validity of German taxpayer funds going to save the PIIGS, we think the outcome would be some neutral answer basically straddling the fence…a non-decision. Over the weekend, new reports are suggesting the origination of new Euro-land bonds being printed and used to cover the toxic loans and bad credits of the PIIGS and European others. Their problem is…what is the collateral? Meanwhile, the pressure goes higher as Italy is now in the forefront on the credit hot-seat. The French Prime Minister said Italy basically has it covered, which means they do not. Europe is right now in big mess. Global Banks Are Moving US Funds Offshore For Trading Reasons. These bankers are also shedding USA jobs at a speedy clip with HSBC globally firing 30,000, and other bankers in the USA chopping whole divisions while reducing several others. Their theme is: (1) Move the business overseas to friendlier trading climates maintaining a USA presence for cover, (2) Move more cash out to keep it away from skidding markets, (3) Work the previous mortgage and TARP scams again, probably for the last time before a global crash and, (4) Prepare their nefarious plans for using a one world currency or, a new currency backed by gold or a basket of currencies. The US Dollar may not disappear but plans are set-up if this happens. We think in the intermediate term (2-5 years) the dollar is cut in half on devaluation. This happens sooner rather than later. After the president is re-elected, the next World War begins. Some even suggested he starts a war and postpones the election indefinitely to ensure he is not out of office. Other News Clues On The First Of Three Large Crashes is Near. We had 2008-Lehman for crash one. The fall of 2011might be crash number two, probably dropping the Dow to 8750. Crash number three should be in the fall of 2012 and that would be the biggest one with a Dow drop of 60-90% from all time highs. 1. Municipal bonds are tanking faster than ever. 2. States are going beyond creative to pay bills; selling public property, turnpikes, lotteries and other state-owned assets like real estate. Sell the buildings and lease them back. 3. Cities are filing for bankruptcy and laying-off all fire and police turning over this work to counties. 4. Key states breaking down first are: California, Nevada, Arizona, Illinois, Michigan, New York and eventually the big one, New York City. 5. Solvent states and cities are trying to escape federal entanglements' payments while others are even moving toward their own local currencies and barter. 6. As we approach 30% USA unemployed from the current 25%, lawless large gangs will flash- rampage in groups of 100's or, more to overwhelm police and neighborhoods. We've already seen this in Chicago, Los Angeles and other urban areas. Similar events have been reported in the U.K., Greece, and parts of the Middle East. Even Mexico with their problems seems to be pulling away from the USA's troubles, which in there view, are more extreme than domestically.         This posting includes an audio/video/photo media file: Download Now |
| Fears of market meltdown growing Posted: 25 Aug 2011 09:15 PM PDT Gold and silver prices staged a partial recovery yesterday, with buying encouraged by the huge sell-off the previous day. In addition, fears are growing about the health of the global banking system. ... |
| "Gold to Attack $2,000 in September" - Pierre Lassonde Posted: 25 Aug 2011 09:06 PM PDT ¤ Yesterday in Gold and SilverThe gold price spent most of Far East and early London trading within fifteen bucks of the $1,750 mark. Two hours after London opened, the gold price rolled over and hit its low of the day around $1,700 the ounce. After rallying about forty bucks by 8:45 a.m. in New York, the gold price revisited that low about an hour later. From there, a rally of some substance developed...and by 12:50 p.m. Eastern, gold was up almost $70 bucks from its earlier Comex low. It basically traded sideways from there until the close of the New York Access Market at 5:15 p.m. Eastern time. Volume was monstrous once again, but not quite as high as Wednesday's record.
The silver price followed basically the same pattern as the gold price. It wasn't an exact match, but it was close enough that it deserves no further comment from me. Note the low price tick of the day that occurred shortly after 10:00 a.m. in London. I commented on that last night in 'The Wrap'...but didn't know at the time that it was the absolute low. Silver closed up $1.43 from Wednesday. Net volume was pretty chunky.
Once again, for entertainment purposes only, is the U.S. dollar chart courtesy of ino.com. The dollar spiked about 35 basis points in less than an hour starting at midnight Eastern time on Thursday morning...and one would think that it would be reflected somewhere on yesterday's gold chart...but that wasn't the case.
The gold stocks spent most of the day in the black...and rallied a bit into the close. The HUI and the Dow turned in exactly opposite performances, as the Dow sold off into the close. It was a bifurcated market yesterday, with the Dow closing down 1.51%...and the HUI closing up 1.97%.
The silver stocks were pretty much all winners across the board as well...but Nick Laird's Silver Sentiment Index was up only 0.93%.
(Click on image to enlarge) The CME Daily Delivery Report showed that 223 gold and zero silver contracts were posted for delivery on Tuesday. The big short/issuer was JPMorgan [206 contracts] in their proprietary trading account...and the big long/stopper was JPMorgan [179 contracts] in its client account. This is another example of JPMorgan betting against its own clients. JPMorgan said they were going to end this practice over a year ago but, as these report shows, they're still at it. The link to the action is here. There were no reported changes in GLD yesterday...but over at SLV, they had a huge withdrawal of 4,188,596 troy ounces. There was another report from the U.S. Mint. They sold another 2,500 ounce of gold eagles...1,000 one-ounce 24K gold buffaloes...and 100,000 silver eagles. The Comex-approved depositories reported receiving no silver on Wednesday, but shipped 396,033 ounces of the stuff out the door. Here are a couple of more charts that Nick Laird sent me last night. These are the 95% confidence charts for both gold and silver. This means that 95% of the time, the price of these two precious metals will be found within these green bands. You'll to use the 'click to enlarge' feature to see it clearly. Here's gold's...
(Click on image to enlarge) The one for silver is below...and you'll notice that the 95% range is very wide. You can see that silver wants to break free from this band...and the rally that began in August last year was the beginning of that breakout, as JPMorgan began to cover their massive short position. The drive-by shooting on May 1st of this year prevented that situation from getting totally out of hand, but they can't hold back the tide forever. I would suspect that long before Christmas, silver will find a home permanently above the 95% line...and a new 95% line will have to be established.
(Click on image to enlarge) From its high on Monday, to its low tick yesterday, gold declined by about $225 bucks...but the HUI is only down 4.4% from its high...and from last Friday's close, the shares are flat. The Central Banks and Gold. Mining Shares to Outperform Gold Going Forward - Pierre Lassonde. Market crash 'could hit within weeks', warn bankers. Doug Casey interview. ¤ Critical ReadsSubscribeMarket crash 'could hit within weeks', warn bankersInsurance on the debt of several major European banks has now hit historic levels, higher even than those recorded during financial crisis caused by the US financial group's implosion nearly three years ago. Credit default swaps on the bonds of Royal Bank of Scotland, BNP Paribas, Deutsche Bank and Intesa Sanpaolo, among others, flashed warning signals on Wednesday. "The problem is a shortage of liquidity – that is what is causing the problems with the banks. It feels exactly as it felt in 2008," said one senior London-based bank executive. "I think we are heading for a market shock in September or October that will match anything we have ever seen before," said a senior credit banker at a major European bank. This story was filed in The Telegraph in London very late last night...and I stole it from today's King Report. This is a must read...and the link is here.  Professor Mundell, euro, and 'pessimal currency areas'Here's a rather heavy duty interview with Robert Mundell, the godfather of the euro. Ambrose Evans Pritchard over at The Telegraph does the honours. I get the impression that Mundell is trying to 'whistle past the graveyard' with some aspects of his 'legacy'...such as it is...but Ambrose is quick to poke holes in it. It's a bit long...and rather heavy going...but it's not the parts that you don't understand that will bother you, so please persevere. I thank Roy Stephens for this story...and the link is here.  Since ECB won't, maybe Fed will buy European government bonds"Ben Bernanke knows his pistol is close to blanks. He is trying to weaken the dollar but it is only so long before Japan, Switzerland and others figure out how to retaliate, and if there is QE3 they will start arming themselves," he told The Telegraph. "The question is how unconventional will Bernanke be. Will he buy equities, or real estate, until the Fed owns everything? The more illiquid assets they buy, the more difficult it will be to unwind. "I wonder whether Bernanke might not say that 'the Europeans are our friends, and we know that the European Central Bank can't print money to buy bonds because the Germans won't let them. And since the ECB will soon run out of money, we will step in and start buying European government bonds for them.' It is something to think about," he [Myron Scholes] said. I stole this second Ambrose Evans Pritchard offering from a GATA release yesterday...and the real title to this article from The Telegraph is "Nobel gurus warn Britain on fiscal overkill and Fed on monetary overkill". This is well worth the read...and the link is here.  Greece forced to tap emergency fundGreece has been forced to activate an obscure emergency fund for its banks because they are running short of collateral that is acceptable to the European Central Bank. In a move described as the "last stand for Greek banks", the embattled country's central bank activated Emergency Liquidity Assistance (ELA) for the first time on Wednesday night. Raoul Ruparel of Open Europe told The Telegraph: "The activation of the so-called ELA looks to be the last stand for Greek banks and suggests they are running alarmingly short of quality collateral usually used to obtain funding." He added: "This kicks off another huge round of nearly worthless assets being shifted from the books of private banks onto books backed by taxpayers. Combined with the purchases of Spanish and Italian bonds, the already questionable balance sheet of the euro system is looking increasingly risky." This is another story from The Telegraph that was filed late last night. This one is courtesy of Roy Stephens once again...and is a must read as well. The link is here.  Chancellor George Osborne launches £5bn tax raid on Swiss bank accountsGeorge Osborne announced an agreement with the Swiss authorities to attempt to recover tax on an estimated £125bn kept in the famously discreet banking system. Announcing the deal, Mr. Osborne launched a strong attack on wealthy tax evaders, likening them to benefits cheats. Under the agreement, UK accounts held in Switzerland in May 2013 will be subject to a one-off levy that could be worth as much as 34pc of the account's contents. Switzerland's not the 'safe haven' it used to be. This story, also from The Telegraph, is Roy Stephens last offering of the day...and the link is here.  Interview with Doug Casey on the 'Financial Survival Network'Here's an audio interview with Doug, by Kerry Lutz over at 1490 WGCH in Greenwich, Connecticut. I haven't listened to all of it, but I can assure that it's a must listen. It's posted over at the podbean.com website...and the link is here.  The Central Banks and GoldIn yesterday's edition of Casey's Daily Dispatch, there's a very interesting piece written by Casey Research's own Doug Horning that is well worth your time. Here's a snippet... "While the Central Bank Gold Agreement central banks were selling, others were buying. Now, virtually everyone has climbed aboard the train. So far for 2011, official government purchases have totaled over 200 tonnes. And the actual number is probably a good bit higher." "Historically, the reasons for why and when central banks bought or sold gold could be complex. But the current situation is pretty clear-cut. The desire to hold the metal is strong, and even the most auriphobic central banks have gone from trailing the trend to leading the charge." It's a short "must read"...and the link is here. You have to scroll down a bit to get to it. GoldMoney's Turk interviews Matterhorn's Egon von Greyerz Posted: 25 Aug 2011 09:06 PM PDT  I stole this video clip...and the introduction...from a GATA release late last night. Egon von Greyerz of Matterhorn Asset Management in Zurich was interviewed at GATA's Gold Rush 2011 conference in London by GoldMoney founder James Turk. They discussed the weakening of Switzerland's banking and monetary systems, the country's diminishing understanding of gold, and the need for investors to own gold outside the banking system. The interview is 16 minutes long...and the link is here. |
| Mining Shares to Outperform Gold Going Forward - Pierre Lassonde Posted: 25 Aug 2011 09:06 PM PDT  Eric sent me the previous blog around noon yesterday, but questions kept coming in to the King World News website about mining shares, so he released a second text from Pierre Lassonde to address that particular topic. This blog is definitely a must read...and the link is here. |
| Posted: 25 Aug 2011 09:06 PM PDT  In yesterday's edition of Casey's Daily Dispatch, there's a very interesting piece written by Casey Research's own Doug Horning that is well worth your time. Here's a snippet... "While the Central Bank Gold Agreement central banks were selling, others were buying. Now, virtually everyone has climbed aboard the train. So far for 2011, official government purchases have totaled over 200 tonnes. And the actual number is probably a good bit higher." "Historically, the reasons for why and when central banks bought or sold gold could be complex. But the current situation is pretty clear-cut. The desire to hold the metal is strong, and even the most auriphobic central banks have gone from trailing the trend to leading the charge." |
| Since ECB won't, maybe Fed will buy European government bonds Posted: 25 Aug 2011 09:06 PM PDT  "Ben Bernanke knows his pistol is close to blanks. He is trying to weaken the dollar but it is only so long before Japan, Switzerland and others figure out how to retaliate, and if there is QE3 they will start arming themselves," he told The Telegraph. "The question is how unconventional will Bernanke be. Will he buy equities, or real estate, until the Fed owns everything? The more illiquid assets they buy, the more difficult it will be to unwind. |
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