saveyourassetsfirst3 |
- The Senate's Currency Manipulation Bill Is Not Only Bad Policy, But Unnecessary
- 9 Buy And 1 Sell Ideas By Cramer, Part 2
- Gold vs. Gold Mining: The Wrong Question, Part I
- Is It Time to Load Up on Gold Stocks?
- About JPM's $2500 Gold Call : “Gold Is Only A Rock”
- Global Money Supply and Currency Debasement Driving Gold Higher
- How to prepare your home for emergencies, disasters, and civil unrest
- Rally in Gold - Over or Yet to Be Seen?
- Extorre Announces Key Appointments for Cerro Moro Project
- US manipulating the gold price up
- Gold price with 666
- WATCH: The Hyper Report 10.13.11
- Money Supply & Currency Debasement Drive Gold Higher
- China-US currency tension growing
- Dubai Gold Buyers Switching From Jewelry To Bullion
- With more collapses, only avoiding counterparty risk can protect investors, Turk says
- The Volcker Rule: Toothless Then, Even More Toothless Now
- Economic Analysis
- Euroland & The Gold Rebound – Jim Willie
- As Gold & Silver Bottom, Time To Restructure?
- The Shovel and Hole Maneuver For Hiding Gold, Guns and Other Assets
- Gold, Silver and Stock Prices at their Tipping Points
- The Unadulterated Gold Standard
- Troubled Ass Relief Program (Tarp)
- These Aren’t the Bullish Signs You’re Looking For
- Vive La Revolution!
- Slovakia passes new version of EFSF/gold and silver hold steady
- Big Bottom Majors could Buy These Resource Companies
- Will the S&P 500 & Gold Make Up Their Minds?
- Money Supply & Currency Debasement Drive Gold
| The Senate's Currency Manipulation Bill Is Not Only Bad Policy, But Unnecessary Posted: 13 Oct 2011 04:51 AM PDT By Ed Dolan: China's currency manipulation is bad policy. So is the Senate's latest crackdown on it. The bill passed yesterday is not only bad policy, but unnecessary. Here's why. First of all, before we get hysterical about Chinese policy, we should recognize that currency manipulation is the global norm, not the exception. By a recent count, only 14 percent of the IMF's member nations allow their exchange rates to float freely. Some 58 percent manipulate their exchange rates by holding them above or below the level to which the market would move them. The remaining 28 percent pursue an even more rigid policy: They give up their own currencies altogether and put some other country's money directly into circulation. How would we like it if China put the U.S. dollar into circulation as legal tender, the way Ecuador, Panama, and several others do? The same flag-waving Americans who don't like a fixed Complete Story » | |||||||||||||||||||||||||||||||||||
| 9 Buy And 1 Sell Ideas By Cramer, Part 2 Posted: 13 Oct 2011 04:33 AM PDT By Osman Gulseven: <
(Data obtained from Finviz/Morningstar, and is current as of October 11 close. You can download the O-Metrix calculator here .) The Mad Money host does not like silver stocks. Instead of Stillwater Mining, Jim Cramer suggests Randgold Resources or Goldcorp:
Here is a brief comparison Complete Story » | |||||||||||||||||||||||||||||||||||
| Gold vs. Gold Mining: The Wrong Question, Part I Posted: 13 Oct 2011 04:20 AM PDT Over the last 5 years, gold has turned every 1% gain in Gold Mining stocks into a 2% rise... | |||||||||||||||||||||||||||||||||||
| Is It Time to Load Up on Gold Stocks? Posted: 13 Oct 2011 02:27 AM PDT | |||||||||||||||||||||||||||||||||||
| About JPM's $2500 Gold Call : “Gold Is Only A Rock” Posted: 13 Oct 2011 01:38 AM PDT QUOTE: "Gold is only a rock and it's very easy to store." JPMorgan has been calling for gold to ump to 2500 an ounce by the year's end, but in the past month the metal has fallen ten percent. Insight on where prices are headed, with Colin Fenton, JPMorgan chief commodities strategist. ~TVR | |||||||||||||||||||||||||||||||||||
| Global Money Supply and Currency Debasement Driving Gold Higher Posted: 13 Oct 2011 01:34 AM PDT | |||||||||||||||||||||||||||||||||||
| How to prepare your home for emergencies, disasters, and civil unrest Posted: 13 Oct 2011 01:31 AM PDT From LewRockwell.com: Shortly after Hurricane Katrina struck the Louisiana coast, reports out of New Orleans on September 1st stated that victims of the disaster were being raped and beaten and that fights and fires were out of control, leaving corpses laying in the open as the city descended into anarchy. Emergency responders in the New Orleans area were overwhelmed. And as a result, their response time was lapsed. A "bug in" scenario may be our only choice after a disaster strikes. And we must prepare not only for our basic needs, but also for our safety. Since the grid may go down during a disaster, each household should prepare for crime. Looting and home invasions will more than likely be at the forefront of these crime waves and a defensible home will help your family stay safe. Many of us easily relate to the idea that our home security needs to be beefed up. In fact, some of the homes we live in are... Read full article... More Cruxallaneous: The "End of America" is beginning in California What to do if you're the victim of a home invasion Three ways the government will try to confiscate your gold | |||||||||||||||||||||||||||||||||||
| Rally in Gold - Over or Yet to Be Seen? Posted: 13 Oct 2011 01:00 AM PDT SunshineProfits | |||||||||||||||||||||||||||||||||||
| Extorre Announces Key Appointments for Cerro Moro Project Posted: 13 Oct 2011 12:15 AM PDT Extorre Gold Mines Limited (TSX: XG.TO) (AMEX: XG.TO) (Frankfurt: E1R.F) ("Extorre" or the "Company") is pleased to announce the appointment of Trevor Mulroney to the position of Chief Operating Officer and Alberto Carlocchia to the position of Country Manager - Argentina. These appointments are effective immediately and represent a significant development for the Cerro Moro project as it moves towards the mine development phase. | |||||||||||||||||||||||||||||||||||
| US manipulating the gold price up Posted: 13 Oct 2011 12:11 AM PDT Very funny to read this from Reuters where Iran claims that its enemies were deliberately causing the price of gold and foreign exchange to rise in a bid to undermine the Islamic Republic's economy. "The enemies and ill-wishers want to make a fuss and present wrong information to provoke and deviate the market," Ahmadinejad told a crowd in a town in the western province of Hamadan, where he was on one of his frequent provincial visits. "In order to disturb the market they buy a lot of gold coins with their huge amount of money ... Seriously, this should be read in context of Vietnam's issues with its citizens buying gold as an inflation hedge/savings, which I've blogged about in the past. We are seeing how politicians respond to high inflation. In Vietnam's case, try to ban/restrict gold or in Iran's case, blame outsiders. In neither case take responsibility. Don't expect it to be any different in Western countries. I also note DGC Magazine's pick up of expansion of reporting (in USA) of export/import of physical money to prepaid access/stored value card products. Of course all about preventing the "transfer of money obtained through illicit activity". I wonder how long before the movement of money between states within a country has to be reported. They may as well get it over and done with and tell us fuck your privacy and just ban all forms of physical money/value and tell us we have to have one government issued credit/debit card we have to use for any transaction. Finally, I recommend reading Unqualified Reservations blog post on maturity transformation, on which he has written about before. His argument is that borrowing short and lending long is at the heart of our banking problems and cause of the business cycle. Quote: The genius of Professor Krugman is that he goes so near the truth that he makes it obvious even to his commenters - who typically are both idiots and fools, but several of whom spontaneously exhibit the same insight themselves: Why can't we regulate or even ban the maturity mismatch? Savers would have to make the maturity choice themselves and it would be transparent. Currently, the savers don't understand the huge run risks that the banks have by funding with demand deposits and lending long. It's hiding the risk.  | |||||||||||||||||||||||||||||||||||
| Posted: 12 Oct 2011 11:56 PM PDT Anybody else notice how often this creepy number keeps showing up in the Gold price? I meant to bring this up a while ago but I didn't and it keeps happening. ~ :eek_ma: Attachment 11756 :creep: | |||||||||||||||||||||||||||||||||||
| WATCH: The Hyper Report 10.13.11 Posted: 12 Oct 2011 11:15 PM PDT In the 10.13.11 Hyper Report:
Please prepare now for the developing economic and social unrest. | |||||||||||||||||||||||||||||||||||
| Money Supply & Currency Debasement Drive Gold Higher Posted: 12 Oct 2011 11:01 PM PDT From 10.13.11 GoldCore: Global Money Supply And Currency Debasement Driving Gold Higher CLICK IMAGE FOR A LARGE VIEW
Cross Currency Table Jewellers and bullion dealers in India and China continue to stock up prior to their various festivals – such as Diwali in India and Chinese New Year in January 2012. One of the primary drivers of higher gold prices in recent years has been money supply growth in the US and globally and consequent concerns about currency debasement. Since 1998, increases in the price of gold have been correlated with increases in global M2. If central banks in both the developed and developing world continue to adhere to highly accommodative monetary policies, global M2 should subsequently rise and support a further increase in gold prices, as it has in the past. CLICK IMAGE FOR A LARGE VIEW
Global Money Supply Growth – 1998 to Today Developing China's M2 money supply has been rising by a large 20% and Russia's by a very large 30%. Even developed countries such as Switzerland have seen money supply growth of 25%. Japan's M2 is gradually moving higher after the 'Lost Decade' and after recent events exacerbating an already fragile situation. Global money supply growth is increasing by 8%-9% per annum. Meanwhile annual gold production is less than 1.5% per annum. We looked at money supply growth and charts regarding global money supply, debt levels etc in a comprehensive article in early August ('Is Gold a Bubble? 14 Charts, the Facts and the Data Suggest Not when gold was trading at $1,670/oz or much the same price level as today. The charts and conclusions remain apposite. In order to fight economic problems brought about due to too much debt, debt based paper and electronic currency has been created at historically high levels. There is no sign of this abating any time soon given the scale of the global financial and economic crisis. Indeed, shuffling debt from one sector to another and creating more debt to deal with what was essentially a problem of too much debt is making the situation worse and leading to currency depreciation and Growth in global money supply, U.S. dollar, euro, pound and all fiat currencies depreciation or currency debasement and massive uncertainty in global financial markets and the real risk of contagion will likely continue to lead investors and savers toward using precious metals, and specifically gold and silver bullion, as stores of value and safe havens. More @ GoldCore.com | |||||||||||||||||||||||||||||||||||
| China-US currency tension growing Posted: 12 Oct 2011 09:15 PM PDT The gold price toyed with resistance at $1,680 per troy ounce yesterday, but was unable to break through this level. As judged by the price chart for the exchange-traded fund GLD, the volume of gold ... | |||||||||||||||||||||||||||||||||||
| Dubai Gold Buyers Switching From Jewelry To Bullion Posted: 12 Oct 2011 09:04 PM PDT ¤ Yesterday in Gold and SilverThe gold price didn't do much until shortly before 3:00 p.m. Hong Kong time, which was minutes before the 8:00 a.m. London open. Then a decent rally began. This came to an end at the London a.m. gold fix at 10:30 a.m. British Summer Time. Gold then traded sideways to down until 1:00 p.m. in London before beginning another rally. This rally got nowhere in a hurry, as moments after the Comex open in New York, the selling pressure began...and lasted for most of the rest of the New York trading day. The gold price closed at $1,674.50 spot...up $11.30 spot. Gold's high of the day...$1,693.40 spot...came minutes after the New York open. Net volume was up a bit over 10% from Tuesday, at 112,000 contracts...give or take.
Silver's price chart was very similar to gold's, with all the major price turning points occurring at the same time. The only difference was the London high occurred about forty minutes after the London a.m. gold fix. The New York high of $33.18 spot looked about the same as the London high price spike. Silver closed at $32.50 spot...up 44 cents on the day. Net volume was around 34,000 contracts.
For a change it looks like the big drop in the dollar between 3:45 a.m. and 6:00 a.m. Eastern time may have been responsible for part of gold's rally. However, the rally in both metals started an hour before the dollar rolled over hard...and gold began to rally into the Comex open despite the fact that the dollar was on the rise. So the dollar's movement doesn't really explain it all.
The stocks gapped up at the open...and bounced around quite a bit, but managed to finish in the black. The HUI finished up 0.91%.
Despite silver's nice gain, the silver stocks definitely turned in a mixed performance...especially the juniors. But Nick Laird's Silver Sentiment Index finished up 1.74%
(Click on image to enlarge) The CME's Daily Delivery Report showed that one lonely gold contract was posted for delivery tomorrow. With most deliveries done in the first week of the delivery month, it gets pretty quiet for the rest of the month. There were no reported changes in either GLD or SLV yesterday. But the U.S. Mint had something to say. They sold another 2,500 ounces of gold eagles...2,500 one-ounce 24K gold buffaloes...along with 218,000 silver eagles. Month-to-date the mint has sold 26,000 ounces of gold eagles...7,500 one-ounce 24K gold buffaloes...and 1,880,000 silver eagles. I hope that you're getting your share of silver eagles while JPMorgan has them marked down 30%. There was a lot of activity over at the Comex-approved depositories on Tuesday. They reported receiving 914,288 ounces of silver...and shipped 501,769 troy ounces out the door. The link to this action, which is worth the look, is here. Since yesterday was Wednesday, silver analyst Ted Butler had his mid-week commentary to his paying subscribers posted...and here's a free paragraph. "Just like the sharp reduction in the commercial short position in COMEX silver and gold futures is good, the sharp reduction in the short positions in SLV and GLD is also bullish going forward. But the manner in which all these reductions came about is manipulative and bad. It does need to be said again that without the buildup of shorted shares in SLV and GLD, the price of each would have been much higher this year...to at least $75 in silver, if the SLV shorts had to have deposited metal instead of being allowed to sell short. That's what makes this share shorting fraudulent and manipulative. There is no doubt in my mind that the big silver and gold shorts on the COMEX are also the big shorts in SLV and GLD. All these short positions didn't get simultaneously reduced by coincidence; this was as deliberate and manipulative as it gets. The price of gold and silver were forced lower for the primary purpose of allowing the big shorts on the COMEX and in the shares to buy back their shorts. You would think that the CFTC and the SEC would and could get together and ponder how the big manipulative sell-offs in the metals just happened to result in a dramatic windfall for all the silver and gold shorts at the same time. If the regulators ever do try to connect the dots, I'd be happy to provide the crayons and the 'paint-by-number' coloring books...and walk them through it very, very slowly. That's a promise." Here's a graph from over at zerohedge.com that Washington state reader S.A. sent me yesterday afternoon. It's a chart showing the inflows and outflows from domestic equity mutual funds in billions of dollars...plotted against the SPY...and it certainly needs no explanation from me, as the story it tells is self-evident.
(Click on image to enlarge) Here's a wonderful photo of a beautiful piece of rock that was sent to me by Australian reader Wesley Legrand last night. It's the latest drill core from an Australian mining company that's estimated to be better than 1,500 grams of gold per tonne. This is beyond bonanza grade.
(Click on image to enlarge) I have less stories for you today than either yesterday or Monday...so I hope that this is a 'reasonable' number for you to plough through. Right now I'm just sitting around with my belly button lint brush waiting for prices to resolve themselves, hopefully to the upside. CBs buying here, swapping dollars for gold: Richard Russell. Rick Rule Global Resource Investments Founder. Is it time to load up on gold stocks? - Jeff Clark. The $2,500 Gold Call - CNBC ¤ Critical ReadsSubscribeBernanke is lying to us: Jim RogersHere's a CNBC video clip where Larry Kudlow and Jim Rogers have at it. The clip is from Monday...and it was posted on Tuesday over at the economicpolicyjournal.com website on Tuesday. It only runs for 3 minutes, but is definitely worth your time. I thank Nitin Agrawal for sending this to me early yesterday morning...and the link is here.  The Volcker Rule: Toothless Then, Even More Toothless NowYesterday in this column I was bitching and moaning about the fact that the resurrected Volcker Rule still allowed the banks to trade commodities and rig the gold and silver markets. Well, over at zerohedge.com, they were apoplectic..."The Final Draft of the Volcker Rule was published for comment at the end of September. Even skipping our traditional rant about government bureaucracy, it is a document over 200 pages long, in which the word "exemption" occurs on no less than 100 pages (it is used 426 times in total). At a quick glance, each section starts with a fairly draconian statement. Then each subsection waters down the bold initial statement with exemption after exemption. As we began the daunting task of trying to make sense of these rules and what they might mean in practice, it became clear there was little point in rushing to do the work." I consider this Phil Barlett offering a must read...and the link to this zerohedge.com piece is here.  Pennsylvania Capital, Harrisburg, Files for BankruptcyHarrisburg, Pennsylvania, which faces a state takeover of its finances, filed for bankruptcy after failing to pay the debt on a trash-to-energy incinerator. The City Council made its 4-3 decision yesterday against the advice of a city attorney who said members did not follow proper procedure. It's this year's ninth bankruptcy filing by a municipal-bond issuer and the first by a U.S. state capital in at least three decades, said James Spiotto, a partner at Chapman & Cutler in Chicago who tracks such cases. "This was a last resort," said Mark D. Schwartz, the council's Bryn Mawr, Pennsylvania-based lawyer. "They're at their wits' end." I thank Washington state reader S.A. for sending along this story that was posted over at Bloomberg yesterday...and the link is here.  Costs may push Goldman and Morgan Stanley to cut bank statusNew compliance burdens tied to proposed regulations seeking to limit bank speculative trading could drive firms like Goldman Sachs & Co. and Morgan Stanley to consider ending their status as bank holding companies, according to Susquehanna Financial Group LLC analyst David Hilder. I thank Florida reader Donna Badach for sending me this Market Watch story...and the link is here.  Situation in China is Deteriorating Rapidly: Jim Chanos"The fact that people are even talking about the government stepping in to shore up the banks, when two months ago people thought there was nothing wrong with the Chinese banks, should tell you just how seriously this situation is deteriorating." This 7:45 interview with Jim Chanos that's posted over at the valuewalk.com website is well worth watching. This is Nitin Agrawal's second offering in today's column...and the link is here.  S&P downgrades Spain's banking sectorStandard & Poor's on Tuesday downgraded a key measure of risk for Spain's banking sector, warning that the economic crisis will continue to have a negative impact on Spanish banks in the next 15-18 months. I think that S&P is just being kind saying that it will only affect Spain for that length of time. Spain's banks, like just about every other bank on Planet Earth is already insolvent. This Reuters story from Tuesday is one I 'borrowed' from yesterday's King Report...and the link is here.  Portugal's credit binge hangoverIn Lisbon these days, they're so strapped for cash they're selling the metro stations. Not literally, of course. But Baixa-Chiado station in the heart of the city, pretty much the Portuguese capital's equivalent to Piccadilly Circus, has just been branded by Portuguese Telecom, and now rejoices in the name of PT Blue Station. It doesn't half anger the locals. "It really symbolises what's going on in this country," says Frederico Duarte, 32, a design critic and teacher. "Public transport should be a public good by definition, f | |||||||||||||||||||||||||||||||||||
| With more collapses, only avoiding counterparty risk can protect investors, Turk says Posted: 12 Oct 2011 09:04 PM PDT  GoldMoney founder and GATA consultant James Turk told King World News yesterday that the next Lehman moment hasn't arrived yet, that the nationalization of Belgium's Dexia bank and the bankruptcy of Harrisburg, Pennsylvania, are just intermediate steps to the next financial collapse when only assets without counterparty risk -- the precious metals -- will really protect investors. An excerpt from the interview with Turk is linked here...and I thank Chris Powell for writing the introduction for me. | |||||||||||||||||||||||||||||||||||
| The Volcker Rule: Toothless Then, Even More Toothless Now Posted: 12 Oct 2011 09:04 PM PDT  Yesterday in this column I was bitching and moaning about the fact that the resurrected Volcker Rule still allowed the banks to trade commodities and rig the gold and silver markets. | |||||||||||||||||||||||||||||||||||
| Posted: 12 Oct 2011 09:00 PM PDT For those interested in a reasonable and in-depth analysis of the economic situation, I recommend the Hoisington Report. Likely Related Posts Economic Mess and Gold Share/Save | |||||||||||||||||||||||||||||||||||
| Euroland & The Gold Rebound – Jim Willie Posted: 12 Oct 2011 08:54 PM PDT From Jim Willie of GoldenJackass:
Bankers across the Atlantic are actively printing money, buying bonds, and otherwise debasing their currencies. A big announcement by the Bank of England about their GBP 75 billion (=US$115 billion) infusion into the financial markets came in rapid fire after the Euro Central Bank left their benchmark rate at 1.5%. The ECB announced it will resume covered bond purchases and reintroduce important loans for banks. Massive futures contract bets had been placed that the Euro would fall versus the USDollar. Short covering has begun in earnest. But the justification from a pending expected rate cut did not happen. The reversal is in progresss, with some momentum. A shift is vividly clear in risk sentiment for the USDollar to weaken from here. It has made a run on Euro weakness, not US mainland strength. The American problems remain enormous and intractible. EURO GOLD LOST SHINE
The US$-based Gold price will benefit in opposite manner to the EuroGold price. The Gold price is prepared to rise in US$ terms, perhaps powerfully so. It will fall in Euro terms. Notice the EuroGold price fights below the 50-day moving average. Watch to see if it crosses below the 100-day MA soon. The MACD is close but has not crossed over. Look for it to dance and kiss but not cross above in bullish terms. Notice the Gold price in US$ has bounced off the 1600 impulse bottom. ENGINEERED GOLD DECLINE HALTED
The Silver price is ready to bust north too, but in a more emphatic display. Its decline was led by the Gold decline, but was also pushed by the industrial demand card from a slower economy. The extreme silver supply deficit has not gone away. Neither has the huge silver coin demand from various mints around the world shown any sign of relenting. The Silver price has a MACD reversal in progress. The 30 breakout level from the final months of 2010 has been defended. The potential for a powerful reversal to fill the obvious gap from 32 to 40 is painted loudly for all technical traders to see. No resistance is presented. A pit stop at 36 will come, enough for a cup of coffee.
By the way, Operation Twist is a massive deception to enable foreign creditors to dump USTreasury Bonds. The hallmark of Quantitative Easing has turned toward deception, lack of transparency, and devious cunning scheming defense of the USDollar by whatever means. The past QE, QE-Lite, and QE2 kicked the USDollar in the teeth, knocked it down in value, and caused an extremely disruptive rise in the cost structure for the entire world. It was hardest felt in food prices. The USFed has been given direct blame across the world, complete with harsh criticism. So the monetary easing programs instead turned more secretive, as Global QE became the policy. Check out the Japanese and Swiss central banks, even the British, as they are all involved in active monetary growth. A queer fact never received much attention late last year. The Irish increased their Euro money supply over a four month period by a staggering amount. They defied the Euro Central Bank since unapproved. Annualize by a 3x factor, then compare to the US by a 50x factor (accounting for population) and the Irish increased the money supply by a ripe $3 trillion annual equivalent. Conclude that Global QE is here in earnest, uniformly and powerfully so. If all central bank outpost nodes participate, the USDollar will not fall much, if at all. The central bankers are willing to wreck the global economy in order to contain the cost structure from demand destruction, a truly dangerous ploy since they risk toppling their own subservient collusive big banks. The October Hat Trick Letter provides details on the sneaky reality behind the Operation Twist. Foreigners bailed out, and might have purchased some US stocks. Doing so would keep the flows from re-entering their home currencies and lifting their exchange rates, a step that would lower the US DX dollar index in the process. The secondary motive behind USFed action is to avoid another strong USDollar decline, even though the United States is the biggest PIIGS nation of all on debt ratios of any measure. Much more @ GoldenJackass.com | |||||||||||||||||||||||||||||||||||
| As Gold & Silver Bottom, Time To Restructure? Posted: 12 Oct 2011 08:37 PM PDT From Julian D. W. Phillips of GoldForecaster.com: In this the first part of this series we first look at you, the investor. Understanding your own behavior in the extremely volatile times is crucial. After all, it's likely that the world's financial markets have entered a new era of risk. One fund manager put it this way, "The future is not going to be like a past we knew. There's no exit from this morass." We're looking at an anemic global economy, the systemic European sovereign debt crisis, U.S. unemployment stuck above 9%, and swooning stock markets, which have sapped the euphoria that swept Wall Street in 2009 as it rebounded to record profits after the credit crisis. The benefits of a $700 billion taxpayer bailout and $1.2 trillion in emergency funding from the Federal Reserve have faded. This fund manager believed that the whole capitalist system is being called into question. So, if you want to make money in the future, you have to adjust your entire outlook. You, the Investor Of course, like any driver, you need to know where you're going and why. What are your goals in investing? The long-term professional investors need enough wealth to retire or leave for his heirs. He's driven by the concept of Total Returns. These are the sum total of income, returns, on reinvested income and capital appreciation. Translated, Total Returns is the wealth you've accumulated at the end of your journey. This involves far more than just the investment itself. The Trader Many people believe that a person who dives in an out of the market on a daily or weekly basis is an investor, but nothing could be farther from the truth. We feel he's a gambler, investing in his own skills and emotions. The best traders have a success rate of around 52%. The professional weathered trader hopes this will allow him to make more money than he loses and to end up pretty rich. What's not often realized is that The Trader is not investing in a manufacturer, miner, investment house, or any other sector for that matter. The Trader is investing in himself and his ability to buy low and sell high, or short. The Trader is guided almost completely by the charts. Often time, it's heavily stressful and Traders frequently burn out emotionally. He only consults the Technical picture [the charts]. He has an absolute belief that the charts are the only thing that matters and that all investments follow the ways the charts point. Indeed, he has such confidence that he goes in and out in a day, sometimes. He is a 'day-trader'. He often heightens his risk by leveraging himself in the belief that this will lead to greater profits, but it often increases the losses. The Investor Each one of us falls into one (or both) of these categories. More @ GoldSeek.com | |||||||||||||||||||||||||||||||||||
| The Shovel and Hole Maneuver For Hiding Gold, Guns and Other Assets Posted: 12 Oct 2011 05:39 PM PDT | |||||||||||||||||||||||||||||||||||
| Gold, Silver and Stock Prices at their Tipping Points Posted: 12 Oct 2011 05:18 PM PDT Over the past year we have been learning more about the financial situations across the pond in Europe. With international issues on the rise, investors are panicking trying to find a safest haven for their capital. This money has been bouncing from one investment to another trying to avoid the next major crash in stocks, bonds, currencies and commodities. It seems every 6 months there is a new headline news issue at hand forcing the smart money to withdraw from one investment class too another hoping to avoid the next meltdown. To make a long story short, I feel the market (stocks, bonds, currencies and commodities) are about to see another major shift that will either make you a boat load of money or you lose a lot of money if you are not positioned properly. So the big question is "Which direction will these investments move?" Let's take a look at the charts… Gold Weekly Chart – Long Term Outlook Gold has just finished seeing a strong wave of selling this summer so it's early to give any real forecast for what is next. That being said this long term chart may be telling us that gold's rally could be nearing an end or a 12+ month pause could take place. If you have followed the market long enough then you realize that when everyone is in the same trade/position the market has a way of re-distributing the wealth to those who are savvy investors. Over the next 4-6 weeks there should be more price action which will allow me to get a better read for what is going to happen next.  Silver Weekly Chart – Long Term Outlook SP500 Weekly Chart – Long Term Outlook Mid-Week Trend Trading Conclusion:
| |||||||||||||||||||||||||||||||||||
| The Unadulterated Gold Standard Posted: 12 Oct 2011 04:00 PM PDT | |||||||||||||||||||||||||||||||||||
| Troubled Ass Relief Program (Tarp) Posted: 12 Oct 2011 04:00 PM PDT Gold University | |||||||||||||||||||||||||||||||||||
| These Aren’t the Bullish Signs You’re Looking For Posted: 12 Oct 2011 02:03 PM PDT -- The bottom is in. Stocks rallying in the face of bad news is bullish. France and Germany have a plan to save Europe. China is headed for a soft landing... -- It reminds us of this line from the original Star Wars film: 'These aren't the droids you're looking for.' -- It's a quote from Ben Kenobi, the Jedi Knight. He was using his mental power to stop the imperial storm troopers taking vital information from his droids. The storm troopers, being lazy, unthinking types, wander off, leaving the droids they were looking for behind. -- What's our point? Don't be a storm trooper! -- It's easy to look at share price movements and draw conclusions. With the strong rally you've seen over the past week, it's easy to think the worst is behind us. But the stock market isn't easy. It's designed to deplete the unthinking of their wealth and reward those who question the consensus. -- Making matters harder today, finding a consensus view is difficult. If you take the finance industry - the brokers, strategists and advisors - the consensus is bullish. This shouldn't really come as a surprise. When is it ever different? -- Career risk plays havoc with a person's judgment. To be wrong at 'the turn' can literally be career ending. Our guess is there are many who remember not being bullish enough in March 2009 who don't want to make the same mistake twice. -- But the reason they weren't bullish enough in March 2009 was because they were too complacent about the events that preceded that point. The 2008/09 market action was a true bear market in that it demoralised just about everyone involved. Eventually, there was no one left to sell. Along with trillions of dollars of stimulus spending, demand for shares soon overwhelmed supply. The market took off. -- Let's have a look at the rollercoaster ride that the market was back then. -- Maybe not. Over the next three days the All Ords fell by 8.5 per cent to test the 10 October low. It passed the test and by 21 October it rallied another 7.8 per cent. The bulls were felling confident. -- But the bear was just getting started. By Tuesday 28 October the market dropped another 11.7 per cent, taking out the October low. A rally into early November saw the index claw back 530 points, or over 14 per cent. The rallies were vicious and deceptive, which is what bear market rallies are. From the 5-20 November the market plunged another 22.2 per cent. -- Things were getting ugly and the ever-optimistic bulls were running out of steam. The capitulation was near. Santa Claus came to town and from the November low to 7 January, the market rallied nearly 12 per cent. Combined with the optimism that a new year brings, this gave the bulls hope. -- It was soon shattered. Throughout January, February and early March, the market tanked another 16.3 per cent - to it's ultimate low. By then, very few had the conviction, energy, or any dignity left to call a bottom. -- So are there parallels with today's markets? We think there are. Although instead of the sub-prime crisis being the catalyst for the financial dislocation, today you have two candidates - Europe and China. -- Whatever the politicians dream up, Europe's problems come with no easy solutions. You can recapitalise the banks all you want but unless you write down the bad debt too, it's a pointless exercise. -- And even this 'solution' is coming up against some barriers. Apparently the bankers are none too keen to raise equity at this point. They reckon they wouldn't be able to anyway. Private investors know write downs are coming so why would they want to stand with their capital in front of that oncoming truck? -- Their strategy is to sell assets and shrink their balance sheets instead. It sounds like a bluff. Why would they sell their good assets and keep their junk? The audacity of these blokes is mind blowing. They're just trying to make the politicians think they'll reduce lending and threaten economic growth if they don't get their way. -- Anyway, the European solution will either be a debacle or a slow-motion train wreck - take your pick. -- And in China you're beginning to see the beginning of the end of the credit bubble. Despite the fallout from the US credit bubble bust, there is an incredible lack of understanding or comprehension about just how damaging credit booms can be. -- The end of China's credit boom is manifesting in slower economic growth. Like the US in 2007, the consensus view is that this is a run-of-the-mill slowdown and, well, 'These aren't the droids you're looking for'. We think time will show that to be another example of flawed credit market analysis. -- Ambrose Evans-Pritchard of the London Telegraph weighs in with his latest:
It is proving harder than expected for the central bank to manage a calibrated "soft-landing" after letting rip with credit to counter the Great Recession. The loan spree raised credit from 100pc to almost 200pc of GDP (on IMF estimates), including off-books trusts, letters of credit and sub-radar loans from Hong Kong. We've never seen a government or central bank who could manage the other side of a credit boom. We don't think China's about to be the first. Greg Canavan
| |||||||||||||||||||||||||||||||||||
| Posted: 12 Oct 2011 01:50 PM PDT The Occupy Wall Street movement is getting a fair amount of press. The movement, as you know, dear reader, is a loose assembly of the jobless, the homeless and the shiftless. Troublemakers, every one of them, with no coherent or sensible view of what is wrong or how to fix it. But what's wrong with that? The Occupy Wall Street protests started on Sept. 17 with a few dozen demonstrators who tried to pitch tents in front of the New York Stock Exchange. Since then, hundreds have set up camp in a park nearby and have become increasingly organized, lining up medical aid and legal help and printing their own newspaper, the Occupied Wall Street Journal. About 100 demonstrators were arrested on Sept. 24 and some were pepper-sprayed. On Saturday police arrested 700 on charges of disorderly conduct and blocking a public street as they tried to march over the Brooklyn Bridge. Police said they took five more protesters into custody on Monday, though it was unclear whether they had been charged with any crime. On Monday, the zombies stayed on the sidewalks as they wound through Manhattan's financial district chanting, "How to fix the deficit: End the war, tax the rich!" They lurched along with their arms in front of them. Some yelled, "I smell money!" The US is probably getting ready for a revolution. Back in the Cold War days, the CIA was asked to do a portrait of a country that might have a revolution. It decided that such a country would have three characteristics: A big gap between rich and poor. A middle class that was disappearing...or one that never existed in the first place. A lot of people with a grudge. The US fits each of these criteria. And then some others the spooks hadn't thought about. The U6 broad measure of unemployment is going up...with 16.5% of the population without work. There are 6.2 million people who have been looking for a job for more than 6 months. Americans are $7 trillion poorer, according to David Rosenberg, than they were 4 years ago — and property prices are still going down. Yes, there's also a Great Correction in progress. It, along with the policies of the US government, grind the faces of the poor. Millions of marginally successful people think the system has failed them. Youth joblessness is at Great Depression levels. More than 45 million are on food stamps. People come to think what they must think when they must think it. So, a person who feels he has failed must come to terms with it. He must find a reason that gets himself off the hook. It must be someone else's fault. It was not his fault he failed his chemistry exam. The 'system' should provide him with a good job anyway. It was not his fault his house got taken away; the system caused prices to fall...and his job got exported to Mumbai. It was not his fault he didn't save any money; the banks took advantage of him mercilessly. He may even get a "deficiency notice" — telling him he has to pay the bank for its loss on his foreclosed house. Add insult to injury, why don't you! The guy has a legitimate beef! It wasn't his fault that the Nixon administration cut the link to gold in 1971. It wasn't his fault the Chinese produced things better and cheaper. It wasn't his fault that the feds kept stimulating the economy...and encouraging him to go deeper and deeper into debt at artificially low interest rates. And it certainly wasn't he who caused the housing bubble to blow up...or who caused it in the first place. But one thing you can depend on. Not many people will do the hard work of connecting the kneebone of this disaster to the legbone that caused it. And he won't want to make the sacrifices necessary to protect himself from it either. (Our advice: cut expenses to almost zero...save money...buy gold...become a bankruptcy lawyer.) Instead, he'll join the revolution. Of course, people do not join revolutions for good reasons. They join them for bad ones. They expect miracles. One wants free money. The other wants power. One wants to see his brother-in-law, who earns big money as a currency trader at JPMorgan, brought low. Another just wants to get high. One expects his mortgage to disappear. Another wants the whole neighborhood to disappear. One hopes to see his dead wife rise from the grave...the other hopes his live wife will fall into it. One believes the bankers are rich and evil. Another believes the oil companies are rich and evil. A third thinks all rich people are evil. And a fourth believes that all people are evil, even those in the Occupy Wall Street movement. Some want to save porpoises. Some want people to use only natural deodorant. And a third thinks the world uses too much oil...and that only people who drive Priuses should be allowed on the road on Sunday. He owns a Prius dealership. It is fun to mock the protestors. That's why we do it. They are such easy targets. But here at The Daily Reckoning we always stand with the powerless, the aimless and the witless. We are champions of the underdog...the lost cause and the diehard. So, we lock arms with the protestors and pledge our solidarity. Vive la revolution! But the poor protestors are just victims of history. When the US embraced its empire it condemned its middle classes. Why? Because that's how empires work. They bring in cheap goods — and sometimes money itself — from outside. Whether they are taken as booty or traded for the imperial currency, the effect is about the same; they undermine local industries and local wages. Ancient Rome imported wheat from Egypt, by the boatload, and gave it to citizens (an early form of food stamps). Result: the price of wheat collapsed. Small farmers couldn't compete with free wheat. They couldn't earn a living. The Romans also brought in slaves. Rich, politically-connected Romans took over the small farms, consolidated them into big plantations, and ran them with slave labor. Again, the local labor was out of luck. Things got so bad for the small farmers that they sold their children into slavery...and then, themselves. Then, in alarm, an edict prohibited Roman farmers from selling themselves into slavery. They were required to remain on their farms...and at work. Spain ran a very different, short-lived empire in the 16th century. It conquered New World civilizations and imported gold and silver on a colossal scale. It was as if they were printing money! This easy money made the Spaniards rich. They used it like America uses her dollars — to buy things from overseas. Pretty soon, the Spanish neglected their own manufactures and their own farming. Prices rose. Spain's nascent middle class was smothered in the crib. Are things so different now? The rich get rich. The middle classes get poorer; they have to compete with imperial plunder...riches coming from Asia, bought with dollars that were never earned...and never will be redeemed. America's middle classes were happy to sell their own children into perpetual debt servitude. The kids face obligations 5 to 15 times as great as annual output. Unless they revolt, they will have to work their entire lives to pay for their parents' excesses. But what will they do when future generations can take no more? They cannot sell themselves into slavery. They've already done so. Most face a lifetime of student debt, mortgage debt, and medical debt (aka Medicaid and Medicare), already. What can they do? Join the revolution! Regards, Bill Bonner,
| |||||||||||||||||||||||||||||||||||
| Slovakia passes new version of EFSF/gold and silver hold steady Posted: 12 Oct 2011 12:03 PM PDT This posting includes an audio/video/photo media file: Download Now | |||||||||||||||||||||||||||||||||||
| Big Bottom Majors could Buy These Resource Companies Posted: 12 Oct 2011 11:00 AM PDT Large producers of metals (gold, copper, silver, iron ore) are combing Colombia, parts of Africa, Nicaragua, Nevada, Mexico and Canada for purchase candidates. Before year's end such transactions will reach a torrid pace. | |||||||||||||||||||||||||||||||||||
| Will the S&P 500 & Gold Make Up Their Minds? Posted: 12 Oct 2011 11:00 AM PDT The recent price action in gold has been equally as tough to trade as the S&P 500 Index. After rallying sharply into early September, gold prices plummeted and price action has been consolidating ever since. | |||||||||||||||||||||||||||||||||||
| Money Supply & Currency Debasement Drive Gold Posted: 12 Oct 2011 11:00 AM PDT Gold is marginally lower in all currencies today and appears to be steadying near four-week highs on further evidence of strong consumer demand in Asia. Market concerns about contagion in the euro zone should prevent significant price falls . |
| You are subscribed to email updates from Gold World News Flash 2 To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
| Google Inc., 20 West Kinzie, Chicago IL USA 60610 | |
No comments:
Post a Comment