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- Austria & EU to Restrict Retail Gold Sales Soon?
- Precious Metals: Just a Squiggle
- Top 15 Dividend American Depository Receipts With Tremendous Returns
- Painted a 2 on silver
- Silver Gaps into Fib Box
- WATCH – Dow, Money Printing, Gold & Silver
- Silver traders: Stop Cryin' and Start Buyin'!
- No longer "Too Big to Fail": This U.S. bank is in serious trouble
- Marc Faber: This crisis will be worse than 2008
- Is it time to start worrying?
- I'm still not gonna pay $36
- Trading Comments, 23 September 2011 (posted 14h45 CET):
- Common Date Gold Coins vs Rare Coins– What's the Difference?
- WATCH – The Hyper Report 9.23.11
- Okay...lets try this again...looking for 5000 "I Hate's"
- Gold, the euro and Operation Twist
- Gold and silver prices hurt by panic selling
- 8 Reasons Why The Great Depression Is The Best Case Scenario
- Financial Cataclysm and Gold Unimaginably Higher: Nigel Farage
- European banks head towards another meltdown
- CFTC backs down on commodity trading rules
- India's Gold Market: Consumers Are Turning into Investors
- Rick Rule: What he is buying with his own money and why
- Gold’s Price Surge Skews Inflation Numbers Across Asia
- The great euro swindle
- More Euroland Mess
- Rout Continues, Gold and Silver Plunge along with Stocks amid "Full Blown Recession" Fears
- Gold & Silver Market Morning, September 23, 2011
- Gold and Silver Near Major Low
- Gold and Silver Stocks Maintain Long-Term Support
| Austria & EU to Restrict Retail Gold Sales Soon? Posted: 23 Sep 2011 01:49 PM PDT A very quick update for those interested in buying gold soon. We have received some signals that the EU may soon be restricting sales of gold to private citizens. |
| Precious Metals: Just a Squiggle Posted: 23 Sep 2011 05:16 AM PDT Now this is a correction. In the space of three days gold is off 10% and silver 25%. What's happening? Two things: First, you don't get this kind of run without this kind of correction. When something soars, the number of people with huge embedded profits eventually reaches a tipping point where, for a while, selling necessarily overwhelms buying. So regardless of what's happening in the world, gold running from $300 to $1,900 and silver from $4 to $49 would create exactly this kind of volatility. Second, all the borrowing we did to stave off the 2008 debt crisis has created a new one, with Greece on the verge of default and the US in trillion-dollar-deficit gridlock — and a realization that the people nominally in charge have no idea what they're doing. Where new plans to create jobs or lower long term interest rates used to be met with enthusiasm, they're now being met with disdain. This is huge. In the space of a few months the dominant financial fear has shifted from inflation back to deflation. In other words, it's 2008 again, but with much bigger debt numbers. Which takes us back to precious metals: Notice on the chart below that gold got whacked the last time conditions were deflationary. Between early and late 2008 it lost about 25%.
Then recall how the world's governments reacted back then and note that they're all still armed with printing presses and terrified of upcoming elections. If a Greek default produces panic rather than relief, expect QE3 in the US and something similar in Europe, where the ECB is already becoming a clone of the US Fed:
Some thoughts: Ironically, Europe's troubles actually make it easier for the US to keep easing, because credit creation depends on the willingness of the rest of the world to accept dollars. As long as dollars are in demand — as they are now, as capital flees the euro in favor of US Treasury bonds — the Fed can create more dollars and Washington can continue to issue more debt. Expect them to ramp it up big-time in the near future. And politics doesn't matter. The idea that president Mitt Romney or Rick Perry would accept a 1930s style depression in order to balance the budget is laughable. Faced with the prospect of becoming their generation's Herbert Hoover, they'll open the monetary floodgates just as certainly as would a second-term Barack Obama. In Germany, the recent bailouts may soon cost Chancellor Angela Merkel her job, but as a reader commented on a recent DollarCollapse article:
In other words, the next generation of European leaders will be hired by voters sick of austerity and will therefore be even more favorably disposed to bailing out everyone in sight. This is profoundly positive for precious metals. As stomach-churning as this correction seems, a decade from now it will look like just another squiggle in a long, steep uptrend. |
| Top 15 Dividend American Depository Receipts With Tremendous Returns Posted: 23 Sep 2011 04:57 AM PDT By Insider Monkey: Investing in American Depository Receipts (ADRs) is one of the best ways to get foreign markets exposure. The transaction costs of purchasing ADRs are usually much lower than those of buying through local exchanges as there are no costs of converting U.S. dollars to the stocks' local currency. We believe that by investing in ADRs, investors will achieve a more diversified portfolio, protecting themselves from dollar inflation and benefit from the higher growth rates in foreign markets. Additionally, during the recent market turmoil, we encourage investors to play defensively by purchasing stocks with high dividend yields, which can also protect investors from potential inflation. Below we compiled a list of 15 ADRs with tremendous growth rates that also pay fat dividend checks regularly. All companies in this list have market capitalization above $10 billion, a P/E ratio smaller than 20, dividend yield of at least 4% and EPS growth of Complete Story » |
| Posted: 23 Sep 2011 04:36 AM PDT so I went in buying, no sense in holding back any longer, metal was available, and premiums were acceptable, no issues, S |
| Posted: 23 Sep 2011 04:08 AM PDT HOUSTON -- The world is running for cover, mostly into U.S. dollars. Perversely the dollar is gaining in strength and commodities are under extreme pressure, silver included. The chart below, of iShares Silver Trust (NYSE:SLV) is a good proxy for silver, and as we can clearly see, it is on a second runaway gap lower. This time, however, it is into the zone of a 50% to 61.8% retrace zone of the August to April runup from the $17s to $48.35 for SLV.
In a "normal market" the Fib box would be an excellent place to expect overwhelming support to form, even if a gap is in play. This, however, is anything but a normal market. Vultures, be sure to check in for updates on all our technical charts this weekend by logging in and navigating to the Charts section. We expect to update all our charts by the usual time on Sunday. |
| WATCH – Dow, Money Printing, Gold & Silver Posted: 23 Sep 2011 01:43 AM PDT The Dow crashed this week on fears of a worldwide recession, and experts predict many more bad days are coming. What's wrong? There is too much debt and not enough money to pay it all back. More money will surely be printed, and more inflation will follow. There is another possibility of a government shutdown coming by the end of the month. Democrats and Republicans are at odds again over spending cuts and raising taxes. Meanwhile another 400,000 plus people lost their jobs this week. Greg Hunter brings you all this and much more on the USAWatchdog.com Weekly News Wrap-Up. ~TVR |
| Silver traders: Stop Cryin' and Start Buyin'! Posted: 23 Sep 2011 01:26 AM PDT Though there still exists economists, portfolio strategists and corporate CEOs out there who still don't see or admit to seeing a double-dip coming to America [did you watch CNBC yesterday?], everyone's favorite sleaze, George Soros, on Sept. 21, told—that very same 24-hour propaganda doubly-sleaze outfit—CNBC, that the US is in "a double dip already." |
| No longer "Too Big to Fail": This U.S. bank is in serious trouble Posted: 23 Sep 2011 01:24 AM PDT From Bruce Krasting: I’m listening to Cramer, Roach, and the other talking heads on TV. Bottom line from these folks is that the market's a buy. China is not going to have a hard landing says Roach, and according to Cramer THERE WILL NOT BE ANOTHER LEHMAN. It's getting impossible to figure what will happen next in this world. But to even think that there is zero chance of another TBTF failing is just cheerleading. There are at least a dozen EU banks who have had their stocks collapse. Their market cap value is less than 1% of assets. The "Short Ban" in Europe is forcing global investors to take defensive positions in bank stocks where trading is not restricted. This is just adding to the selling in the U.S. financial names. Lehman went bust in a matter of days. The end came after the stock broke $5. When a stock breaks $5, there is a pretty decent chance it is headed to zero. Institutional holders (there are a ton who own this dog) HAVE to off-load stocks when the $5 level is breached... Read full article... More on banks: The euro crisis is officially worse than 2008 The euro collapse could wipe out this big U.S. bank The radical proposal to fix U.S. banks that everyone is talking about today |
| Marc Faber: This crisis will be worse than 2008 Posted: 23 Sep 2011 01:04 AM PDT From Bull Source: Marc Faber, publisher of the Gloom Boom & Doom Report, warns of a huge financial catastrophe on the way, which will make the 2008 financial crisis pale in comparison. Faber can't predict the timing of the next crisis, but believes the stock market is going down because it's discounting a very bad event. Faber says government intervention has gone so far that reducing intervention and lowering the deficit will... Read full article (with video)... More from Marc Faber: Marc Faber: Sell stocks now... buy this instead Must-see video from Marc Faber's latest "no-holds barred" interview "Dr. Doom" Marc Faber shocks CNBC anchor with rant on poor people |
| Posted: 23 Sep 2011 12:38 AM PDT About how fast and drastic the prices of PMs are falling these past 2 days? |
| Posted: 23 Sep 2011 12:15 AM PDT ...for an ASE. I don't pay $5 for a happy meal either. |
| Trading Comments, 23 September 2011 (posted 14h45 CET): Posted: 22 Sep 2011 11:45 PM PDT Traders were stopped out of their gold positions with good profits. Traders had no positions in silver. Long-time readers know that I do not like to try bottom-picking, but the big |
| Common Date Gold Coins vs Rare Coins– What's the Difference? Posted: 22 Sep 2011 11:00 PM PDT Learn how Common Date Gold Coins differ from Rare Coins. |
| WATCH – The Hyper Report 9.23.11 Posted: 22 Sep 2011 10:47 PM PDT In the 9.23.11 Hyper Report:
~TVR |
| Okay...lets try this again...looking for 5000 "I Hate's" Posted: 22 Sep 2011 10:35 PM PDT Anyone thinking this is a natural sell off can go fuck themselves. 11% in 1 trading day with another 10% move overnight is not normal. The Morgue is in worse shape than I thought. Everyday in the weeee hours of 3 am, we get smoked. Also note that the CFTC just threw in the towel too giving them immunity to manipulate. Welcome to America where only the honest, hard working truth seekers get FUCKED. My message to Blythe would be: Please hammer this mother fucker all the way to $2/oz, where I will literally become the biggest physical owner on earth at that point. You keep your paper game, I'll keep my phyzz. If anyone is looking for bullion right now go to www.silvergoldbull.com and use discount code sgb-sgs, they are in Canada so dont know how good the US shipping will be but give it a try. Welcome to the big leagues....again.  |
| Gold, the euro and Operation Twist Posted: 22 Sep 2011 10:30 PM PDT At first sight it is puzzling that systemic uncertainties are escalating rapidly in the eurozone and that the gold price is subdued. And if the press is to be believed, the euro might even ... |
| Gold and silver prices hurt by panic selling Posted: 22 Sep 2011 09:45 PM PDT Stocks, commodities and precious metals all experienced violent sell-offs yesterday on the back of the US Federal Reserve's pessimistic assessment of the US economy, and fears that central banks ... |
| 8 Reasons Why The Great Depression Is The Best Case Scenario Posted: 22 Sep 2011 09:30 PM PDT Silver Shield |
| Financial Cataclysm and Gold Unimaginably Higher: Nigel Farage Posted: 22 Sep 2011 09:10 PM PDT ¤ Yesterday in Gold and SilverAlmost from the Far East open, gold was under pressure...but the real selling began at 9:30 a.m. in London. Starting from that time, gold got sold off in many separate bouts of selling, with distinct rallies in between. The most interesting part about yesterday's sell-off was the fact that the vast majority of it occurred before the Comex open at 8:20 a.m. Eastern time. The low for the day came shortly after 11:00 a.m. in New York. The subsequent rally got sold off...and every small attempt to rally after that got sold off as well. Gold closed down $44.30...and net volume was a fairly chunky 260,000 contracts.
As bad as it was for gold, it was silver that really got it in the neck. By the time the real selling in London got under way at 9:30 a.m. BST...silver was already down around 40 cents. And by the time the absolute low of the day [$35.41 spot] was printed at 3:20 p.m. in the New York Access Market, silver was down $4.21 spot. The silver price recovered a bit into the close, but still finished down $3.78 spot on the day. Net volume was immense at 82,000 contracts.
Of all the precious metals, gold was down the least...2.49%. Platinum was down 4.49%...palladium was down 6.64%...and silver was down 9.54%. Silver was down more than 10% on the day at one point. Although the dollar was up, it certainly wasn't the driving force in yesterday's decline in the precious metals, as it hit its peak and was on its way down long before the decline in the precious metals ended.
The precious metals shares turned out to be just another stock on Thursday, as the gold and silver shares got crushed along with the general equity markets. They gapped down more than 5% at the open...and never got off the mat for the rest of the day. The HUI finished down 7.71%
Needless to say, the silver shares were obliterated...and Nick Laird's Silver Sentiment Index [along with the HUI] took it's biggest 1-day percentage hit that I can remember...down 11.49%.
(Click on image to enlarge) The CME's Daily Delivery Report had no action in either gold or silver worth mentioning, but if you want to look anyway, here's the link. The GLD ETF showed no change...but SLV showed a withdrawal of 1,703,997 troy ounces. The U.S. Mint had a smallish sales report yesterday. They sold another 7,000 ounces of gold eagles...500 one-ounce 24K gold buffaloes...and 46,000 silver eagles. The Comex-approved depositories reported receiving 612,497 ounces of silver on Wednesday...almost all of it went into Brink's, Inc. Here's a chart that Nick Laird over at sharelynx.com sent my way late last night. The title to the chart is self explanatory...and I suggest you use the 'click to enlarge' feature as this is a monstrous chart. My good friend Ian Gordon over at the longwavegroup.com has always said that before this bear market breaths its last, we'll see the Dow back at 1,000 points.
(Click on image to enlarge) I've always talked about the end of the economic, financial and monetary systems as we know them. Well, we're standing on the edge of that precipice right now. CFTC backs down on commodity trading rules. Gold's Price Surge Skews Inflation Numbers Across Asia. India's Gold Market: Consumers Are Turning into Investors ¤ Critical ReadsSubscribeCFTC backs down on commodity trading rulesThe U.S. futures regulator has yielded on several contentious parts of a plan to crack down on commodity speculation, marking a modest victory for banks and traders who have lobbied to limit increased market oversight. A draft of the final rule by the Commodity Futures Trading Commission, reviewed by Reuters late on Wednesday, maintains that the Dodd-Frank Wall Street overhaul law requires position limits -- caps on the number of contracts a single trader can hold -- to prevent excessive speculation in oil, grain, silver and other commodity markets. It still remains to be seen how this affects position limits in silver...as some ruling has to come out of the CFTC on this. Once I learn more, I'll post it in this column. I extracted this Reuters story from a GATA release yesterday...and the link is here.  Moody's Bank Downgrades: What, Us Worry? - Matt TaibbiThe spin that's being circulated on this is that Moody's isn't dissing the banks per se. Rather, Moody's has just suddenly decided to become concerned that in the post Dodd-Frank world, the U.S. government would not bail out all of these banks, should they need to be bailed out. The WSJ is selling this as nothing more than the ratings agency deciding finally to apply an equal touch to all the troubled members of the Too Big To Fail club. This Matt Taibbi blog was posted over at rollingstone.com...and comes with the usual 'R' rating...as Matt uses some very naughty words. This is Roy Stephens first offering of the day...and the link is here.  Mark Faber Warning Bigger Financial Crisis on the WayThis 4:10 Fox News video clip with the good doctor is posted over at youtube.com...and is definitely worth watching. I thank Nitin Agrawal for sharing it with us...and the link is here.  IMF's Christine Lagarde blames politicians for bringing world to brink of recessionPlacing responsibility for a potential global recession squarely on the shoulders of national policymakers, IMF managing director Christine Lagarde said the threat comes not from a lack of options to avert a crisis but from a shortage of political will. In a call to arms for the 187 countries attending the IMF's annual meeting in Washington this week, she said leaders must "take more action than has already been done" and sought to resurrect the "collective momentum and spirit" of the London G20 meeting in April 2009. If this isn't a case of the pot calling the kettle black, I don't know what is. This story was from The Telegraph late last night...and is another Roy Stephens offering. The link is here.  This is a political problem - and governments are all out of ammunitionRarely have economic policymakers seemed as devoid of solutions as they are in Washington this week for the annual meeting of the International Monetary Fund. After more than three years of crisis fighting, the language is again one of growing alarm and panic, but tinged with a war-weariness that doesn't bode well for the collective action needed to halt the slide back into recession. The contrast with the mood at the same event two years ago in Istanbul could hardly be starker. Then, finance ministers and central bankers were roundly congratulating themselves on having saved the world from a second Great Depression. They'd rescued the banking system, pump-primed national economies with fiscal stimulus and flooded the world with newly-printed money. The solvency issue at the heart of the Western banking system wasn't solved at all, but merely papered over. This news item, also from late last night in The Telegraph, is a must read. Once again I thank Roy Stephens for the story...and the link is here.  European banks head towards another meltdownFears over the state of the eurozone economy weighed heavily on the region's banking sector on Thursday as fears grew that the industry is headed for another meltdown. Shares in some of Europe's largest banks fell by 10pc as the cost of insuring European lenders' senior bonds rose to record levels, according to credit default swap prices. The Markit iTraxx Financial Index of contracts on the senior debt of 25 banks and insurers climbed to an all-time high 315.5 basis points. This story from The Telegraph was posted just before midnight last night and, as usual, I thank Roy Stephens for providing another must read story for us...and the link is here.  The great euro swindleVery rarely in political history has any faction or movement enjoyed such a complete and crushing victory as the Conservative Eurosceptics. The field is theirs. They were not merely right about the single currency, the greatest economic issue of our age – they were right for the right reasons. They foresaw with lucid, prophetic accuracy exactly how and why the euro would bring with it financial devastation and social collapse. Meanwhile, the pro-Europeans find themselves in the same situation as appeasers in 1940, or communists after the fall of the Berlin Wall. They are utterly busted. Wow! No shades of grey here! This op-ed piece was in The Telegraph yesterday...and is Roy Stephens last offering for the day. This is definitely worth the read...and the link is here.  Gold's Price Surge Skews Inflation Numbers Across AsiaThe surging price of gold is fueling inflation from India to Indonesia and forcing statisticians to decide whether jewelry made of the metal still belongs in consumer-price indexes. In South Korea, gold rings will be dropped from the inflation basket for the f |
| European banks head towards another meltdown Posted: 22 Sep 2011 09:10 PM PDT  Fears over the state of the eurozone economy weighed heavily on the region's banking sector on Thursday as fears grew that the industry is headed for another meltdown. Shares in some of Europe's largest banks fell by 10pc as the cost of insuring European lenders' senior bonds rose to record levels, according to credit default swap prices. The Markit iTraxx Financial Index of contracts on the senior debt of 25 banks and insurers climbed to an all-time high 315.5 basis points. |
| CFTC backs down on commodity trading rules Posted: 22 Sep 2011 09:10 PM PDT  The U.S. futures regulator has yielded on several contentious parts of a plan to crack down on commodity speculation, marking a modest victory for banks and traders who have lobbied to limit increased market oversight. A draft of the final rule by the Commodity Futures Trading Commission, reviewed by Reuters late on Wednesday, maintains that the Dodd-Frank Wall Street overhaul law requires position limits -- caps on the number of contracts a single trader can hold -- to prevent excessive speculation in oil, grain, silver and other commodity markets. It still remains to be seen how this affects position limits in silver...as some ruling has to come out of the CFTC on this. Once I learn more, I'll post it in this column. |
| India's Gold Market: Consumers Are Turning into Investors Posted: 22 Sep 2011 09:10 PM PDT  Here's a short piece about Indian gold demand. It was written by Alena Mikhan and Andrey Dashkov...and is posted in yesterday's edition of Casey's Daily Dispatch. You have to scroll down a bit to get to it, but it's definitely worth your time...and the link is here. |
| Rick Rule: What he is buying with his own money and why Posted: 22 Sep 2011 09:10 PM PDT  With gold and silver prices under attack, King World News interviewed one of the most street smart pros in the resource sector, Rick Rule, Founder of Global Resource Investments, which is now part of the $10 billion strong Sprott Asset Management. When asked how investors should be handling these price swings, Rule responded, "Eric, money is made by buying low and selling high and the opportunity to buy low shouldn't be regarded as a bad thing. The truth is opportunity comes gift wrapped, you just have to understand when it's gift wrapped. We talked in prior interviews about volatility, that's what this is." |
| Gold’s Price Surge Skews Inflation Numbers Across Asia Posted: 22 Sep 2011 09:10 PM PDT  The surging price of gold is fueling inflation from India to Indonesia and forcing statisticians to decide whether jewelry made of the metal still belongs in consumer-price indexes. In South Korea, gold rings will be dropped from the inflation basket for the first time since 1975 as part of a scheduled reweighting in December, Bang Tae Kyoung, deputy director of the statistics agency, said in an phone interview from Daejeon. "People are now buying gold mostly for investment purposes, and so it should be classified as an asset, rather than spending," Bang said. |
| Posted: 22 Sep 2011 09:10 PM PDT  Very rarely in political history has any faction or movement enjoyed such a complete and crushing victory as the Conservative Eurosceptics. The field is theirs. They were not merely right about the single currency, the greatest economic issue of our age – they were right for the right reasons. They foresaw with lucid, prophetic accuracy exactly how and why the euro would bring with it financial devastation and social collapse. Meanwhile, the pro-Europeans find themselves in the same situation as appeasers in 1940, or communists after the fall of the Berlin Wall. They are utterly busted. |
| Posted: 22 Sep 2011 09:08 PM PDT Will Germany Kick The Can And Pay-Up Acknowledging A Robbery By International Criminal Central Bankers? Or, Will They Dump Euro-land And The Euro Currency Dodging A Fatal Economic Bullet. "Germany and Greece flirt with mutual assured destruction." "German populism has prevailed. Germany is pushing Greece towards a hard default, risking the uncontrollable chain reaction so long feared by markets." -Ambrose Evans-Pritchard, The Telegraph "First we learn from planted leaks that Germany is activating "Plan B", telling banks and insurance companies to prepare for -50% haircuts on Greek debt; then that Germany is "studying" options that include Greece's return to the Drachma (currency). German finance minister Wolfgang Schauble has chosen to do this at a moment when the global economy is already flirting with double-dip recession, bank shares are crashing, and global credit strains are testing Lehman levels. The recklessness is breath-taking. If it is a pressure tactic to force Greece to submit to EU-IMF demands of yet further austerity, it may instead bring mutual assured destruction." "Whoever thinks that Greece is an easy scapegoat, will find that this eventually turns against them, against the hard core of the Euro-zone," said Greek finance minister Evangelos Venizelos. Greece can, if provoked, pull the pin on the European banking system and inflict huge damage on Germany itself, and Greece has certainly been provoked. Germany's EU commissioner Günther Oettinger said Europe should send blue helmets to take control of Greek tax collection and liquidate state assets. They had better be well armed. The headlines in the Greek press have been "Unconditional Capitulation", and "Terrorization of Greeks", and even "Fourth Reich". "Mr. Schauble said there would be no more money for Athens under the EU-IMF rescue package until the Greeks "do what they agreed to do" and comply with every demand of `Troika' inspectors. Yet, to push Greece over the edge risks instant contagion to Portugal, which has higher levels of total debt, and an equally bad current account deficit near 9% of GDP, and is just as unable to comply with Germany's austerity dictates in the long run. From there the chain-reaction into EMU's soft-core would be fast and furious." "Let us be clear, the chief reason why Greece cannot meet its deficit targets is because the EU has imposed the most violent fiscal deflation ever inflicted on a modern developed economy -16% of GDP of net tightening in three years – without offsetting monetary stimulus, debt relief, or devaluation. This has sent the economy into a self-feeding downward spiral, crushing tax revenues. The policy is obscurantist, a replay of the Gold Standard in 1931. It has self-evidently failed. As the Greek parliament said, the debt dynamic is "out of control." "The vehemence of his protest against ECB bond purchases confirm what markets suspect: that the ECB cannot shore-up Italian and Spanish debt markets for long without losing Germany. 'The Euro should not exist,' said Stephane Deo from UBS. 'It creates more costs than benefits for the weak. Its 'dysfunctional nature' was disguised by a credit bubble. The error is now "painfully obvious." "Yet, Mr. Deo warns that EMU exit would not be as painless as departing the ERM in 1992. Monetary unions do not break up lightly. The denouement usually entails civil disorder, even war. If a debtor such as Greece left, the new Drachma would crash by -60%. Its banks would collapse. Switching sovereign debt into Drachmas would be a default, shutting the country out of capital markets. Exit would cost 50% of GDP in the first year." "If creditors such as Germany left, the new Mark would jump +40% to +50% against the rump Euro. Banks would face big haircuts on Euro debt, and would need recapitalization. Trade would shrink by a fifth. Exit would cost -20% to 25% of GDP. UBS concludes that the only course is a "fiscal confederation", a la Suisse." "Well, perhaps, but Germany's top court chilled such hopes when it ruled that the Bundestag's budgetary powers may not be alienated to "supra-national bodies." Nor do I believe that German society is willing to undertake such a burden for Greco-Latins in regions equal to six times East Germany." "The new fact of recent months is that German society has begun to discern a clash between its own democracy and the fiscal drift of EMU. The two are seen to be in conflict for the first time. Germans may be forced to choose. The outcome to that is far from clear." Editor: While an exit would make a huge mess its better then being pumped dry for years by the economic laggards and failures of southern Europe. "Nor do I accept the headline figures of UBS. Every Treasury official and every voice of orthodoxy warned in 1931 that British exit from the Gold Standard would unleash the seven plagues. It proved a liberation. The UK, the Empire, and allied states broke free from a system that had become an engine of deflationary Hell. It cleared the way for monetary stimulus and recovery. There is a close parallel between 1930s Gold and EMU, both in destructive effect and totemic sanctity. The Gold Standard was more than a currency system. It was the anchor of an international order and way of life." "My solution – like that of Hans-Olaf Henkel, the ex-head of Germany's industry federation (BDI) – is to split EMU into two blocs, with France leading a Latin Union that keeps the Euro. This bloc would devalue but not by -60%, yet, uphold its Euro debts intact. The risk of default and banking crises would decrease, not increase." -Editor: France would never buy this one as they would get stuck with all the economic losers. "The status quo, however, is not acceptable. EMU's debt-deflation strategy has trapped half of Europe in depression, with youth unemployment reaching 46% in Spain and no way out for years.' Ambrose Evans-Pritchard, International Business Editor, 9-11-11 The Telegraph         This posting includes an audio/video/photo media file: Download Now |
| Rout Continues, Gold and Silver Plunge along with Stocks amid "Full Blown Recession" Fears Posted: 22 Sep 2011 09:01 PM PDT |
| Gold & Silver Market Morning, September 23, 2011 Posted: 22 Sep 2011 09:00 PM PDT |
| Gold and Silver Near Major Low Posted: 22 Sep 2011 08:55 PM PDT |
| Gold and Silver Stocks Maintain Long-Term Support Posted: 22 Sep 2011 08:18 PM PDT Now that we are past the Fed circus we can get back to reality. But what is reality? Is it inflation? Deflation? A repeat of 2008? What matters is the message of the markets and the correct interpretation of the message. With regards to the mining stocks we are seeing a stark contrast relative to the rest of the stock market. This positive divergence has been strengthening and remains well intact despite Thursday's sudden Fed-induced selloff. In the chart below we graph GDX (gold stocks) and SIL (silver stocks) at the top followed by the S&P 500, EEM (emerging markets), CRX (commodity stocks) and XLE (energy stocks). In each graph (but SIL) we show the 400-day moving average. The 50 and 200 day moving averages are important but in my opinion the 400-day moving average is the most important when dealing with the primary trend. The 400-day moving average has been significant for each market as it easily distinguishes between bull and bear markets. Each market, with the exception of the precious metals stocks has broken its 400-day moving average. Equities, emerging market equities and commodity stocks are now in a cyclical bear market. This doesn't mean these markets will fall another 20%. I think they've seen most of their downside. The key point is that these markets won't make a new high anytime soon and will likely remain in a trading range over the next 12 months. Meanwhile, despite Thursday's drubbing, the gold and silver equities remain healthy from a long-term technical perspective. GDX would have to fall another 10% to test its 400-day moving average. SIL doesn't have 400 days of history but its holding 6% above its 350-day moving average. Back in the summer of 2008, the mining stocks plunged through support alongside commodity stocks and emerging market stocks. Today we continue to see an entirely different picture. The gold and silver stocks are right where they need to be, holding up well amid a summer swoon that likely ends next month. There may be some more downside for these shares but don't expect a penetration of long-term support. These stocks have held up well for fundamental reasons. Metals prices are up significantly on all time frames while cost pressures are abating. That is a recipe for higher profits and higher share prices. As we near 2012, a peak in bonds and bottom in equities will send money flowing into the gold and silver stocks. Go here to learn more about how you can take advantage of our professional service. Good Luck! Jordan Roy-Byrne, CMT
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