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- Update for Week Ending November11
- Gold Producers Lead while Developers and Explorers Lag
- 5 Financial Stocks Investors Are Buying Like Crazy
- Barrick Gold: Solid Results Underlie Stock Value
- U.S. likely holds German gold hostage, Rickards tells King World News
- Former German chancellor silent on Fed memo linking him to gold suppression
- Slovenian Economists "Our Banking System is on Brink of Collapse"
- Gold Daily and Silver Weekly Charts - Rickards and Grant Discuss Money and Gold - Jack Kennedy
- $500K worth of 'Pirate treasure' found in a storage locker.
- Eddie Hobbs: “You need to seriously consider getting out”
- Ronald-Peter Stöferle talks Gold with James Turk
- Silver Valley Mining Update – Part III
- Keiser: “Gold & Silver Stake For Zombie Bankers”
- Gold Call Options at $2,000/oz – Goldman and Credit Suisse Bullish Due to US Interest Rates
- Physical Gold Will Outsell ETFs by 500% This Year
- Goldman: “Stay Long Gold”
- SilverCrest Identifies Large Bulk Tonnage Target at La Joya; Hole 17 intercepts 205.2m Grading 92.7 gpt Silver Equivalent
- The U.S. dollar is approaching another super-important level
- Gold traders are incredibly bullish
- JSinclair - What is so special about Tuesday?
- View From the Turret: Mixed Signals
- Gold Call Options at $2,000 Oz
- Bank Bazookas Will Impact Gold & Economy
- WATCH: Hyper Report 11.14.11
- LISTEN: Why Aren't Gold & Silver Flying?
- LISTEN: Interview with Jeff Nielson
- Links 11/14/11
- Gold & Silver Market Morning, November 14, 2011
- BrotherJohnF: “MF Global”
- British Pound Falls Versus US Dollar
| Update for Week Ending November11 Posted: 14 Nov 2011 07:13 AM PST Includes delayed COT data. HOUSTON -- Just below is this week's closing table for the week ending November 11, 2011, updated to include the CFTC commitments of traders (COT) data for November 8, which was released at 15:30 ET today, Monday.
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| Gold Producers Lead while Developers and Explorers Lag Posted: 14 Nov 2011 05:08 AM PST Back in August we wrote a piece titled: The Catalyst for Consolidation in the Gold Sector. We noticed that the large cap producers had begun to outperform the rest of the sector which consists of small producers, developers and explorers. Risk aversion, the Euro debt crisis and a struggling stock market has contributed to the continued underperformance of the riskier plays in a risky sector. The chart below shows GDX (large producers), GDXJ (developers, explorers) and the ratio between the two. As you can see, GDX was able to maintain its support while GDXJ broke support and made a new 52-week low. As a result, the ratio surged in favor of GDX. Traders and investors need to remember that gold stocks are a risky bunch and that the non-producers are extremely risky. Yes, the sector is in a bull market but that by itself is not enough to drive the speculative plays higher. Until we reach the bubble phase, the non producers will rise on their own merits and not because "it's a bull market." Though we are likely at least two to three years from the birth of a bubble, does it mean the non-producers will continue to underperform in the meantime? Hardly. Remember, the large caps (GDX) have been in a consolidation for a year and that has a negative effect on the speculative plays. The longer a consolidation lasts, the more weak hands jump ship. At the start of the consolidation, the non-producers held up better. Ultimately they are going to underperform in a weak market and outperform in a strong market. The good news is the large caps are close to a major breakout which is not only a catalyst for the large stocks but a catalyst for everything else in the sector. A breakout in GDX, as we presume in the above chart, would certainly have a positive impact on junior developers and junior exploration plays which have underperformed badly in the last few months. After all, this is happened before. GDXJ performed better in Q3 and Q4 of 2010 when GDX broke out of an eight month consolidation. GDX also made a huge breakout in the second half of 2005 and junior stocks surged over the next 18 months. This time, GDX is close to a very significant breakout as it could pull away from a one-year base as well as the 2008 highs and on some charts, the 1980 highs. Although the non-producers have lagged, they would ultimately find a huge bid in the immediate aftermath of a breakout in GDX. Traders and investors need to know when to play it safe and when to take risks. Heading into this potential breakout, it is wise to stick with producers who are finding a bid. However, when the breakout appears imminent, it would be wise to set your sights a bit lower on the food chain and find the developers and explorers ready for a major rise. If you'd like professional guidance in navigating this bull market and finding the best performing stocks, then we invite you to learn more about our service. Good Luck! Jordan Roy-Byrne, CMT
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| 5 Financial Stocks Investors Are Buying Like Crazy Posted: 14 Nov 2011 05:06 AM PST By Investment Underground: With the advent of the Global Financial Crisis and the near collapse of many key players in the banking and Finance Industry due to toxic balance sheets composed of high risk assets such as Collateralized Debt Obligations (CDOs) and sub-standard loans many investors lost faith in the sector. This saw an avalanche of stock sales as investors sought safer investment opportunities. This has led to many companies in the sector being heavily undervalued by the market and in light of recent improvements in the economic outlook for the US combined with many Banking and Finance stocks trading at historical lows has led to an investor buying spree. This article will review five banking and finance stocks that have recently crossed the simple 200 day simple moving average to determine whether the high degree of investor interest is justified and if the stocks will continue to climb in value. Affiliated Managers Complete Story » |
| Barrick Gold: Solid Results Underlie Stock Value Posted: 14 Nov 2011 05:01 AM PST By Trefis: Barrick Gold Corporation (NYSE:ABX) declared robust third quarter earnings a few days back, marked by healthy cash margins of nearly $1,300 per ounce as gold touched new highs during the period. The company is moving aggressively toward developing its planned projects and new discoveries to take advantage of the still-buoyant gold price. Headquartered in Toronto, Barrick is the world's largest gold mining company and competes with other mining companies such as Newmont Mining (NYSE:NEM), AngloGold Ashanti Ltd. (NYSE:AU), Goldcorp Inc. (NYSE:GG) and Freeport McMoran Copper (NYSE:FCX). We have revised our price estimate for Barrick Gold to $59, roughly 13 percent above the current market price, to account for year-to-date performance and to reflect our strong near-term outlook for gold. Barrick Gold's stock is in high demand edging higher in the recent weeks. The stock slumped in last September as gold prices fell after touching a high of $1,900. Coupled with Complete Story » |
| U.S. likely holds German gold hostage, Rickards tells King World News Posted: 14 Nov 2011 04:00 AM PST |
| Former German chancellor silent on Fed memo linking him to gold suppression Posted: 14 Nov 2011 03:56 AM PST |
| Slovenian Economists "Our Banking System is on Brink of Collapse" Posted: 14 Nov 2011 03:44 AM PST |
| Gold Daily and Silver Weekly Charts - Rickards and Grant Discuss Money and Gold - Jack Kennedy Posted: 14 Nov 2011 03:39 AM PST Jesse's café |
| $500K worth of 'Pirate treasure' found in a storage locker. Posted: 14 Nov 2011 03:28 AM PST I guess the episode hasn't aired yet so that's why there aren't very many details. I just don't understand why the picture is of silver coins if the discovered booty contained a half million in gold :confused:. I'm sure the show is wholly or partially scripted as the initial story certainly doesn't pass the smell test. Having said all that though I'll certainly watch the episode whenever it airs ;). Attachment 12652 The people behind "Storage Wars" just stumbled upon their most incredible discovery yet -- a real-life pirates' chest that's at least 200 years old ... containing half a mil in gold doubloons Dan and Laura Dotson came across the stash inside a foreclosed storage locker at an auction in Contra Costa County, CA -- which they sold off to one lucky bastard for just over a grand. The Dotsons discovered the pirates booty after auctioning off the locker -- a small treasure an expert described as "Pieces of Eight Spanish Gold," dating anywhere between the 16th and 19th century. According to one source, the coin box was so heavy ... it took 3 people to move it out of storage. We're told an appraisal expert valued the collection at around $500,000. Yo ho ho! LINK: http://www.tmz.com/2011/11/13/storag.../#.TsFEQPQr27t |
| Eddie Hobbs: “You need to seriously consider getting out” Posted: 14 Nov 2011 03:05 AM PST "If you have any cash at all you need to very seriously consider getting some of that cash out of Euro and out of this jurisdiction the ideal safe haven is gold. As I speak, any body that has access to any type of informed advisor, in other words wealthy people are doing this in Italy, they are doing it in Spain, they're doing it in other countries because they are reading the tea leaves exactly as I am reading them… The facts are that wealthy people are doing this as I speak, they are moving their money. Follow the money… If Italy fails, this is an economic event that we haven't seen in the last 100 years." – Eddie Hobbs (Alert Starts @ Min 3:55) ~TVR |
| Ronald-Peter Stöferle talks Gold with James Turk Posted: 14 Nov 2011 03:04 AM PST Ronald-Peter Stöferle, Analyst at Erste Bank, and James Turk, Director of the GoldMoney Foundation, talk about his "In Gold we trust" report. They explain why gold's high stock-to-flow ratio makes it very different to commodities. Gold is not consumed, it is accumulated, which is why it is great for monetary purposes. Mine production and supply of gold in general is not very important in setting the gold price, whereas demand for gold is. All economic goods are subject to supply and demand, including money, something that many economists overlook. The decreasing trust in fiat currencies, which are gold's real competitors, is what really drives bullion prices. It is Gresham's law that we should use to model gold's demand. They talk about the gold price correction in September. Ronald explains that it was a normal, healthy correction within the bull market. He explains that negative sentiment is a good indicator that we are far from a mania or bubble. The parabolic move to over 1900$ in August was too fast too soon. October's negative seasonality will mean a consolidation and then another leg up in the present and continuing uptrend. Considering fundamentals, Ronald asks whether real interest rates have turned positive or structural debt problems have been solved… in the absence of such a development the positive fundamentals are well in place for gold. They talk about Chinese and Indian demand. Gold is increasingly seen as money and less as a commodity, which is how it was seen in the first stage of the bull market. The lack of counterparty risk is an important quality of gold, which gives it an advantage over the euro and the dollar. Fiat currencies, backed by nothing, will eventually lose all trust. Ronald explains that he is very confident on gold mining companies because they provide leverage on the price of gold, especially the juniors. However he is not bullish on mining stocks in the very short term, since he is bearish on the stock market and has not yet seen gold miners decoupling from the crowd. He also talks about his forthcoming report on silver. This interview was recorded on October 1st 2011 in Vienna |
| Silver Valley Mining Update – Part III Posted: 14 Nov 2011 02:42 AM PST This is the last of three special Silver Valley Mining Update issues. Taken together, they give you the big picture changes in the Valley mining industry over the past couple of years. |
| Keiser: “Gold & Silver Stake For Zombie Bankers” Posted: 14 Nov 2011 02:23 AM PST Italy's new prime minister, Mario Monti, has began work on forming a new 'technocrat' government to tackle the country's towering debt. An economist and former EU-commissioner, he now has to implement structural economic reforms to pull Italy out of its financial chaos. For more on this, RT talks to Max Keiser, financial analyst and host of the Keiser Report. ~TVR |
| Gold Call Options at $2,000/oz – Goldman and Credit Suisse Bullish Due to US Interest Rates Posted: 14 Nov 2011 01:24 AM PST |
| Physical Gold Will Outsell ETFs by 500% This Year Posted: 14 Nov 2011 01:17 AM PST Physical Gold to Trump ETFs by 500% in 2011 Hears Dubai Conference by Peter Cooper, Arabian Money via GoldSeek:
Physical gold will outsell ETFs by 500 per cent this year, Standard Bank's Walter de Wet told the 8th Dubai City of Gold Conference today. Two years ago the position was completely reversed with physical gold sales running at only 20 per cent of ETFs. 'It's a complete flip from ETFs to physical gold,' he said. 'And it seems to reflect people's lack of trust in financial systems and the shift in investment flows towards Asia and the Middle East.' $2,200 gold Standard Bank is expecting the price of gold to hit $2,200 at the end of the first quarter next year and $2,000 in Q4 2011. Dr de Wet made the theme of his presentation 'Gold as a currency' and forecast both a QE3 in the US and that 'the ECB will have to do exactly the same.' |
| Posted: 14 Nov 2011 01:15 AM PST from ZeroHedge:
For what it's worth, Goldman likes gold. "Consumers: We expect gold prices to continue to climb in 2011 given the current low level of US real interest rates. Further, with our US economics team now forecasting slower US economic growth in 2011 and 2012, we expect US real interest rates to remain lower for longer, supporting higher gold prices through 2012. Consequently, we recommend near-dated consumer hedges in gold through 2012. Producers: With gold prices expected to continue to climb through 2012, we find hedging opportunities less attractive for gold producers at this time." In other news, Goldman also likes Silver, Copper, Zinc, WTI and Brent. In other words: QE3 is coming. |
| Posted: 14 Nov 2011 12:49 AM PST SilverCrest Mines Inc. (the "Company") is pleased to announce that data compilation for the Phase I drilling program and a newly received historic database has identified a large, near-surface bulk tonnage target at its La Joya property in Durango, Mexico. The compilation by SilverCrest has involved data and/or drill core review of 51 historic holes (14,786 metres) and 26 Company drill holes (5,716 metres) totaling 20,502 metres of drilling in 77 holes on the property. |
| The U.S. dollar is approaching another super-important level Posted: 14 Nov 2011 12:46 AM PST From Gold Scents: ... The dollar is now at great risk of forming a left translated three-year cycle. A break below the October 27 intraday low would initiate a pattern of lower lows and lower highs of an intermediate degree.That is usually a sign that a major cycle has topped. If the dollar's three-year cycle has topped after only five months, we will be at great risk of a severe currency crisis in the fall of 2014 when the next three-year cycle low is due. Even more concerning is if the CRB cycle has bottomed. If it has, then commodities are poised for a huge surge higher during the next two years as the dollar deteriorates. The next two weeks are going to be critical for the dollar. It must hold above... Read full article... More on the U.S. dollar: It's all about the dollar and Ben Bernanke now Whatever you do, don't forget about the dollar Richard Maybury: The next war could kill the U.S. dollar |
| Gold traders are incredibly bullish Posted: 14 Nov 2011 12:41 AM PST From Bloomberg Businessweek: Gold traders and analysts are the most bullish they've been in at least seven years as investors accumulate metal at the fastest pace since August to protect their wealth from a widening European debt crisis. Twenty-one of 22 surveyed by Bloomberg expect bullion to rise on the Comex in New York next week, the third consecutive increase and the highest proportion in data going back to April 2004. Holdings in exchange-traded products backed by gold rose 27.5 metric tons this week, within one percent of the record set almost three months ago, data compiled by Bloomberg show. Gold exceeded... Read full article... More on gold: Gold has reached a critical juncture Now you can get paid to invest in gold A new gold and silver threat you need to watch out for |
| JSinclair - What is so special about Tuesday? Posted: 14 Nov 2011 12:28 AM PST November 13, 2011, at 3:03 pm by Jim Sinclair in the category In The News | Print This Post | Email This Post My Dear Friends, Alf Fields' outlook on gold is coming Tuesday morning.Regards, Jim Jim Sinclair's Commentary Gold is headed to the $2000s and that is for starters. Gold traders most bullish since 2004 on debt crisis Bloomberg Nov 12, 2011, 10.12am IST LONDON: Gold traders and analysts are the most bullish in at least seven years as investors accumulate metal at the fastest pace since August to protect their wealth from a widening European debt crisis. Twenty-one of 22 surveyed by Bloomberg expect bullion to rise on the Comex in New York next week, the third consecutive increase and the highest proportion in data going back to April 2004. Holdings in exchange-traded products backed by gold rose 27.5 tonne this week, within 1% of the record set almost three months ago, data compiled by Bloomberg show. Gold exceeded $1,800 an ounce for the first time in seven weeks on November 8 and hedge funds are holding their biggest bet on higher prices since mid-September , Commodity Futures Trading Commission data show. The metal is rebounding after tumbling as much as 20% in three weeks in September. Almost $9 trillion was wiped off the value of global equities since May and yields on Italian and Greek bonds rose to euro-era records this week. "Throughout history gold has protected people from the sort of turmoil that we're seeing," said Mark O'Byrne , the Dublin-based executive director of GoldCore, a brokerage that sells everything from quarter-ounce British Sovereigns to 400-ounce bars. More… |
| View From the Turret: Mixed Signals Posted: 14 Nov 2011 12:19 AM PST
On the other hand, positive economic growth out of Japan is giving commodity traders reason to push prices higher as demand is seen picking up. The trading environment continues to be "headline driven" with knee-jerk reactions to news items. It's becoming more and more difficult to anticipate these market movements, and trading is currently much more of a risk management game rather than an aggressively opportunistic venture. Volatility is typically very cyclical on a number of different time frames. During times of uncertainty, few solid trends emerge and volatile, choppy markets can chew up novice traders. But these volatile, unpredictable periods are usually followed by much better environments for aggressive traders. The key at this point is to focus on survival and maintaining an adequate capital base. That way when the environment becomes more attractive for trading, there is less of a hole to dig out of and high water marks are hit more quickly. With this in mind, we are still keeping our exposure very light – and focusing on broad, liquid vehicles that we can trade with low levels of slippage and more confidence. Below are a few of the areas we are interested in for trades this week…
Interview With a Trading Legend 30-Year audited track record with 41.6% compounded annual returns. How did he do it?? Get your FREE download of the interview here. Energy Pipelines Offer Stability and Growth One of our most profitable positions right now is Sunoco Logistics Partners LP (SXL). This Master Limited Partnership (MLP) is generating very attractive cash flow through its pipelines as well as terminalling and other energy services. SXL has an attractive earnings multiple, trading at 13.5 times 2011 expectations and a decent yield at 1.5% A number of other pipeline companies have much higher yields as the MLP structure requires the companies to pay out a large percentage of cashflow in the form of distribution. Since a portion of these distributions are classified as a "return of capital" the dividend payouts are also more tax efficient for many taxable accounts. Magellan Midstream Partners (MMP) is another strong name in the group worth considering. MMP is a bit more expensive than SXL – trading at roughly 18 times 2011 expected earnings, but a 4.9% yield helps to add more support to that price. More importantly, MMP has been consistently raising its quarterly distribution as the company's cashflow continues to grow. Investors accumulated the stock in October, pushing the price to a new all-time high. Over the past two weeks, MMP has pulled back a bit to test the breakout point – which also coincides with the 50 day Exponential Moving Average (EMA). The pattern sets up a good reward-to-risk entry point where traders will generate an attractive profit if the stock continues to hit new highs, and a tight risk point can be used just below the key support area.
 Consumer Staples Offer Stable Growth There's nothing sexy about the consumer staples area – which ironically makes the area particularly attractive in today's market. Institutional investors who are required to stay fully invested have been looking for safe places to park capital. The tobacco industry is one of the most reliable business lines when it comes to customer loyalty and recurring revenues. One of our newest positions in the Mercenary Live Feed is Altria Group (MO). Altria continues to improve its profit margins quarter by quarter, which has led to predictable earnings growth. The company recently raised its quarterly dividend to 41 cents per share – resulting in a 5.9% expected annual yield. In this zero interest rate environment, stable companies with attractive dividend yields are becoming better alternatives for investors who need to generate cashflow for living expenses. Institutional managers who manage individual accounts or funds designed to generate yield are finding few attractive areas to put capital to work. The good news is that as long as rates stay low, capital should continue to flow to these high-yield securities. The low-risk profile for consumer staples also adds value for managers who focus on capital preservation. Of course the risk for these securities is the fact that expectations for higher interest rates could eventually lead capital to move elsewhere. It's a risk to keep an eye on for the future, but today the dividend yield should be a significant attraction.
Europe Is the Wild Card Of course the major for the majority of 2011 has been the debt crisis in Europe. The situation changes from day to day – with the volatility making it difficult to place much confidence in any long-term predictions.
Two weeks ago, the euro surged on an expectation of yet another solution, only to fall two days later when it became clear that the situation was not exactly under control. The failed breakout is a classic pattern that traps initial buyers – who are then forced to liquidate as the trade moves against them. In addition to the bearish technical patterns, the fundamental backdrop is one of significant risk – and environment where the euro could trade sharply lower if it appeared that the multi-national currency was in danger of dissolving. Of course this is a low probability event, but the significance of such an event happening would be monumental. The short euro trade is an example of a trade that has a tremendous reward-to-risk profile, considering the worst-case scenario.
We've got a full week ahead, both in terms of market action along with a Mercenary Event after the close on Friday. If you're planning on joining us for the WSOP event at Lake Tahoe, make sure you send us an email and let us know you are coming. We're looking forward to some lively market discussion as well as plenty of action at the tables. Hope to see you there! Trade 'em well this week!
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| Gold Call Options at $2,000 Oz Posted: 13 Nov 2011 11:16 PM PST
Gold ETF data shows continuing safe haven flows and diversification into gold. Global holdings of gold rose last week, by nearly 897K oz, their largest weekly rise since the week ending Aug 5 2011, when holdings rose by a net 1.089M oz, according to Reuters. Total gold ETF holdings stand at around 68.854M oz, up a full 1.749M oz in the last month. November is shaping up to show the largest monthly inflow since July. So far this month, holdings have risen by 947K oz. Goldman Sachs today reaffirmed that it remains overweight in commodities. On gold it says it will roll over its Dec 11 long to Dec 12. "We expect gold prices to continue to climb in 2011 and 2012 given the current low level of US real interest rates, and as a result recommend a long gold position. Credit Suisse has said that gold may climb over $1,800 in the coming days with negative real interest rates as the 'key driver'. Read more @ Zerohedge |
| Bank Bazookas Will Impact Gold & Economy Posted: 13 Nov 2011 11:07 PM PST from King World News:
Michael Pento continues: Read More @ KingWorldNews.com |
| Posted: 13 Nov 2011 11:01 PM PST In the 11.14.11 Hyper Report:
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| LISTEN: Why Aren't Gold & Silver Flying? Posted: 13 Nov 2011 11:00 PM PST Stella cruising in his car talking gold and silver. ~TVR |
| LISTEN: Interview with Jeff Nielson Posted: 13 Nov 2011 10:57 PM PST SGT and Jeff Nielson from Bullionbullscanada talk shop. The state of affairs in this country has never been more perilous, and as we've seen with MF Global, any paper-based investments you have in this criminal system are at risk. ~TVR |
| Posted: 13 Nov 2011 09:58 PM PST Parkinson's 'linked with solvent' BBC Antihunger Campaign Forgoes Images of Starving Children New York Times. Huh? I suppose this is product differentiation. Putting the Brakes on Web-Surfing Speeds New York Times (hat tip reader furzy mouse) How the US Justice Department legally hacked my Twitter account Guardian (hat tip reader May S) Andrew Bacevich, The Passing of the Postwar Era TomDispatch (hat tip reader Aquifer) Bundesbank warns against intervention Financial Times Pressure on the ECB grows as Mario Monti rides to rescue Ambrose Evans-Pritchard, Telegraph Eurozone, why did we bother FT Alphaville Standard & Poor's shoots France in the head, then says it's sorry. Time for a duel. FireDogLake (hat tip reader Carol B The only way to save the eurozone from collapse Wolfgang Münchau, Financial Times Cities Hit as Funds From Bonds Pay Other Bills Wall Street Journal It's Recall Time for Wisconsin Governor Scott Walker Mother Jones Deficit Panel Seeks to Defer Details on Raising Taxes New York Times Dealing With the Budget Deficit: Does the Middle Class Have to Take the Hit? Dean Baker Cost, need questioned in $433-million smallpox drug deal Los Angeles Times (hat tip reader 1 SK) Occupy Wall Street plans NYSE shutdown Crains New York (hat tip reader furzy mouse) The Bidding of the Many, Not the Few: APEC Gets Occupied and Serenaded Common Dreams (hat tip reader Aquifer. See the song performed here. The Global Super Rich Stash: Now $25 Trillion Nation of Change (hat tip reader RC) BofA Says Regulators May Limit Transfer of Merrill Derivatives Bloomberg. Maybe shutting the barn door after most of the horses have left. Fears rise over banks' capital tinkering Financial Times Antidote du jour:
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| Gold & Silver Market Morning, November 14, 2011 Posted: 13 Nov 2011 09:00 PM PST |
| BrotherJohnF: “MF Global” Posted: 13 Nov 2011 08:52 PM PST In this one hour segment Brother John details the collapse of MF global and it's future implications.
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| British Pound Falls Versus US Dollar Posted: 13 Nov 2011 08:27 PM PST England, according to recent reports, is one of the worse-off nations of the West. Not only is the currency skidding, but its housing remains in a race to disintegrate; except for the very rich. Project housing, also known as "The Projects" provides shelter for the needy but manufactured a huge neighborhood base for crime. This one in the USA is basically ugly but others were much worse and eventually torn down. The old middle class paradigm of single family homes on single lots was becoming unaffordable in early 2000's, when industry saving interest rates dropped to near zero. Worse yet, if you had a pulse you got a home. Now the chickens are coming home to roost and credit damage from derivatives throughout U.K, most of Europe, and USA suburban areas are crumbling nests of crime and decay. Note Detroit. The Pound declined the most in three weeks against the dollar and gilts climbed after reports showed business expectations slumped and U.K. house prices fell. Sterling depreciated from within one pence of a seven-week high against the greenback as separate data showed U.K. mortgage approvals fell in September. The U.K. currency surged as much as +4.1% versus the Yen after Japan intervened to weaken its currency. It also gained versus the 17-member Euro as concern mounted the European rescue plan may fail to contain the sovereign debt crisis. The business barometer was pretty low," said Chris Walker, a currency strategist at UBS AG in London. "As expectations are so low, these bad data readings are having less of an impact but on the margin I would still want to be selling" the pound. Sterling fell -0.7% to $1.6021 at 11:59 a.m. London time, after sliding -1% the biggest decline since October 6." "An index of business expectations for the economic outlook fell 22 points in October from the previous month to minus 15, the weakest since March, 2009, according to Lloyds Bank Corporate Markets. A separate report by property researcher Hometrack Ltd. showed the average cost of a U.K. home fell -0.2% from September and was down -2.8% from a year earlier. A Bank of England report showed lenders granted 50,967 loans to buy homes, down from 52,347 in August. Economists forecast a drop to 50,600, according to the median forecast of 20 economists in a Bloomberg News survey. The pound has weakened -2% in the past month against a basket of nine developed-market peers, extending its decline over the year to 4.4%, according to Bloomberg Correlation-Weighted Currency Indexes." -Lucy Meakin 10-31-11 Bloomberg.net         This posting includes an audio/video/photo media file: Download Now |
Europe is once again taking center stage as we head into a new trading week. Italy was able to successfully issue new 10-year bonds this morning, but traders are registering concern as the yield was nearly a full percentage point above the last offering in October.
Gold Call Options at $2,000/oz
With gold and silver consolidating recent gains, today King World News interviewed Michael Pento, of Pento Portfolio Strategies. When asked what the central planners are up to and how it will impact gold and the markets going forward, Pento responded, "The reason for the latest round of optimism on the part of the MSM was based upon the supposed resolution—once again—of all of Europe's problems. What was the ultimate solution you ask? It was the speculation that an epiphany had been reached on the part of the European Central Bank that they would arm themselves with a bazooka to purchase all of the PIIGS distressed sovereign debt."
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