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- Peter Grandich: Gold & Silver Get No Respect
- Lizadfuel: Silver Shortages
- Momentum Trades XI: Hot Hands ETFs In April
- Goldman Sees 'Currency Of Last Resort' Up 15% At $1,840/Oz. In 6 Months
- 4 Dividend Gold Plays On Sale
- EndlessMountain: Silver Update 5.10.12
- Indian central bank challenged in court to repatriate countrys gold
- Impossible To Pay Speeding Fine Because No Gold Coins In Circulation
- Is gold in your permanent portfolio?
- The Influence of the General Stock Market and Crude Oil on Gold
- Gold Update: Looking for a Turnaround
- China & the Other Central Banks Are Buying Gold
- Goldman Sees “Currency of Last Resort” Up 15 pc At $1,840/oz in 6 Months
- Precious Metals Steady as China Spurns Euro Debt, Greece Warned on Euro Exit
- Hoffman: Central Banks Are Buying Gold
- Pollock: The Domestic US War Game for Economic Collapse
- Northern Tiger’s 3Ace and Sprogge Projects Lead New Yukon Gold Rush to the Hyland Gold Belt
- Precious Metals Steady as China Spurns Euro Debt
- Morning Outlook from the Trade Desk 05/10/12
- Goldman Sees ‘Currency of Last Resort’ Rising
- Quo Vadis Gold?
- A silver bear turns bullish
- Accumulation/Distribution Trends in Gold and Silver
- Market Has Longest Losing Streak In 10 Months
- Global Super-Bugs Herald Age of Silver
- Jim Rogers: Get Out of Stocks Buy Gold & Silver
| Peter Grandich: Gold & Silver Get No Respect Posted: 10 May 2012 06:20 AM PDT Peter Grandich weighed in on the latest precious metals rout; he's not worried and neither am I. All the reasons we bought gold in the first place are still present and actually increasing. from financialsurvivalnet: Central bank buying, excessive money printing, and all sorts of economic and monetary mayhem are occurring. Now is not the time to lose confidence or hope in a better tomorrow. We helped Peter celebrate his daughter's 20th birthday because when it comes down to it, while money and economic circumstances are important, they are not the most important things in our lives. When it comes to lasting satisfaction, happiness, and contentment, they aren't even close to our family and our friends. In trying times like we are experiencing now, it is extremely important to remember this over and over again. Go to http://www.FinancialSurvivalNetwork.com for the latest info on the Economy, Markets and Precious Metals. ~TVR | ||||||||||||||||
| Posted: 10 May 2012 06:17 AM PDT | ||||||||||||||||
| Momentum Trades XI: Hot Hands ETFs In April Posted: 10 May 2012 05:56 AM PDT By Fredrik Arnold: This series of (now eleven) articles has investigated a momentum ETF trading strategy called "Hot Hands" as taught by Courtney Smith. Courtney bears no resemblance to the blonde screen actress, except by name. He is an author, money manager, educator and trading advocate. He has authored seven books, appeared on countless TV shows and spoken at hundreds of events. Courtney is unique in having a high ranked mutual fund, stock picking newsletter, futures newsletter, and hedge fund simultaneously. He's a busy guy. Traded monthly, Hot Hands was created to select the strongest performing ETFs in which to invest. The momentum trades reported i this series all aimed to enter the market at the start of large market moves to the upside (or downside) to harvest gains. Hot Hands trading in April was accomplished in three steps. Hot Hands Three Steps Step One ETFs were selected for purchase by going here. Finding the "Performance" sector (in a upper left tab on the ETF Screen main page) was a list of ETFs. Filters were used at the top of the ETF Performance list to include short funds and, if so chosen, leveraged funds. Leveraged funds were optional to multiply potential rewards and risks in a fund by two or three times. The volume filter was used to choose funds trading in volumes over one million or over five hundred thousand shares. After making the selection of fund types and volume, clicking on the "update page button" updated the page. The downward pointing arrow on the column labeled Rtn-1mo at the top of the Performance list of ETFs and ETNs was clicked to arrange the list so that all the exchange traded funds were ranked from high to low by last month's returns. Upon generating the list, useless titles were removed including VIX funds, unintelligible titles, and funds based on similar assets. The aim was to create a well-diversified list. Note: The VIX Index measuring expected market volatility and, being a range trading index, which does not trend, was not deemed appropriate for momentum trading. If the title of the fund was unintelligible it was discarded. Also funds with underlying assets identical or similar to a fund already chosen, platinum, gold, or silver, for example were narrowed to one with the highest monthly ranking. The lists below show examples of charts of 10 ETFs from ETFScreen.com, ranked high to low, sorted by one month returns as of 3/2/12; 4/4/12; 5/4/12. Notice that three of the ten ETFs listed in March (tinted blue) were repeated in April and three new April listings carried through to May. Maybe it was time to cash in some winners. (click to enlarge) Step Two Two investing strategies were tested. The market order strategy below reports results from an even number of shares purchased at a price closest to $500 or $1000 for each of the ten selected exchange traded funds. Thus a conservative $5,000 or $10,000 was invested in the ten funds selected as of April 4. The broker was acknowledged with a commission of $10 per trade deducted from every transaction to reveal net income in the scenarios below. Courtney has recommended investing no more than 1% of one's total investment portfolio in any single Hot Hand ETF or ETN. He does not recommend trading without stops as shown in the market order examples. Step Three At least one month passed using the market order method before selected funds were sold in favor of a newly selected incoming strong performing funds as ranked by the ETF Screen website. In the current less volatile markets, the funds lingered in the top ten for several months as noted above. When Courtney's channel breakout (cb) strategy was used, buy stops were set at $.10 above the 55-day historic high for each fund selected and sell stops set at $.10 below 20-day historic lows for each. When trades were made based on his trend analysis (TA) approach, buy stops were set $.10 above recent 20-day historic highs and sell stops $.10 below most recent swing lows in price. An even number of shares totaling closest to $1000 funded each cb or ta trade Conclusion Using Market Order Methodology in April Preferred trading frequency was monthly. However, when one ETF was running strong momentum trading let profits run. The following chart shows price gains (losses) for the top ten from $500 or $1000 invested in each March 9 and sold as a group April 4 at market close. Four made profitable trades for the month. Six were losers. A $5000 investment resulted in a net loss of ($158.10) or (3.162%). Similarly, the $10,000 investment resulted in a net loss of ($116.20) or (1.162%). Proving once again that more money invested resulted in less money lost due to broker fees charged for losing trades. (click to enlarge) Conclusions Using Channel Breakout and Trend Analysis Methodology through April April trades were set up and results were as reported below. Also one trade remained open from December, while one from January closed at a profit. The April list notably included three trades in funds previously described in February: RUSL; YINN; FAS; LBJ. December Carryover Trade The following trade was open from the December list and remains so. ITB (US Home Construction Bull) December 5: Buy stop triggered at $11.80. Bought 85 shares =$1003.00. Sell stop set at $11.39. Sell stops moved to $.10 below most recent swing low whenever a new 55 day high was reached: $12.90 on February 3; $13.11 on March 9; 13.90 on April 27. Remains open. April 4 closing price was $15.58. (HOT HANDS Rank 12/1/11 results in a $113.11 pending profit from trend trade if $13.90 sell stop is triggered.) (click to enlarge) January Carryover Trade The following trade was closed in April from the January list. UDOW (Ultra Dow Index) January 17: Buy stop triggered @ $140.76 opening. Bought 7 shares for $985.32. Sell stop set at $133.62 Sell stops moved to $.10 below most recent swing low whenever a new 55 day high was reached: $140.81 on February 3; 148.70 on February 29; $149.01 on March 16; $159.47 on April 2. Closed. April 9: Sell stop triggered at $155.55 opening price = $1088.85 - ($20 + $985.32) = $83.53 net gain. (click to enlarge) March Carryover Trades TYH (Technology 3X Bull) March 15: Buy stop triggered @ $58.50 Bought 17 shares = $994.50. Set sell stop set at $53.40. Sell stops moved to $.10 below most recent swing low whenever a new 55-day high was reached: $62.35 on April 3. Closed. April 10: Sell stop triggered at $62.35 = $1059.95 - ($20 + $994.50) = $47.14 net gain. UPRO (Ultra S&P 500) March 13: Buy stop triggered @ $79.81 Bought 13 shares = $1037.53. Set sell stop at $73.06. Sell stops moved to $.10 below most recent swing low whenever a new 55-day high was reached: $81.89 on April 2. Closed. April 9: Sell stop triggered at $81.89 = $1064.57 - ($20 + $1037.53) = $7.04 net gain. (click to enlarge) April Trades (click to enlarge) Here are the ten trades for April: DUST (Gold Miner 2X Bear) April 5: Buy stop triggered @ $51.11. Bought 20 shares = $1,022.20. Set sell stop @ 38.76. Sell stops moved to $.10 below most recent swing low whenever a new 55-day high was reached: $43.76 on April 12; $46.57 on May 3. Remains open. May 4 closing price was $56.55. KOLD (Ultrashort Natural Gas) April 9: Buy stop triggered @ $152.03. Bought 7 shares = $1,064.21. Set sell stop @ 137.21. Sell stops moved to $.10 below most recent swing low whenever a new 55-day high was reached: $152.90 on April 19. Closed April 26: Sell triggered at $149.15 market opening =$1,044.05 -($20 + $1,064.21) = ($40.16) net loss. TYH (Technology 3X Bull) March 13: Buy stop triggered @ $58.50 Bought 17 shares = $994.50. Set sell stop at $53.40. Sell stops moved to $.10 below most recent swing low whenever a new 55-day high was reached: $62.35 on March 23; Closed. April 10: Sell stop triggered at $62.35 = $1059.95 - ($20 + $994.50) = $45.45 net gain. FAS (Financial 3X Bull) April 4: Buy stop set @ $113.59 ($.10 above 55-day high) with closing price at $105.50. No Trade. TMV (20+yr Treasury 3X Bear) April 4: Buy stop set @ $87.38 ($.10 above 55-day high) with closing price at $80.56. No Trade. RUSS (Russia 3X Bear) April 9: Buy stop triggered @ $23.69. Bought 44 shares = $1,042.36. Sell stop set @ $20.86. Sell stops moved to $.10 below most recent swing low whenever a new 55-day high was reached: $22.30 on May 3. Remains open. May 4 closing price was $28.80. DRN (3X Real Estate Bull) April 25: Buy stop triggered @ $70.30. Bought 15 shares = $1,054.50. Sell stop set @ $69.60. Sell stops moved to $.10 below most recent swing low whenever a new 55-day high was reached: 65.60 on May 1. Remains open. May 4 closing price was $73.18. BZQ (UltraShort Brazil) April 5: Buy stop triggered @ $14.91. Bought 68 shares = $1,013.88. Sell stop set @ $13.71. Sell stops moved to $.10 below most recent swing low whenever a new 55-day high was reached: $14.98 on April 23; $15.48 on May3. Remains open. May 4 closing price was $17.17. URTY (Ultra Russell 2000) April 4: Buy stop set @ $74.00 ($.10 above 20-day high) with closing price at $66.99. No Trade. UPRO (Ultra S&P 500) March 13: Buy stop triggered @ $79.81 Bought 13 shares = $1037.53. Sell stop set @ $73.06. Sell stops moved to $.10 below most recent swing low whenever a new 55-day high was reached: $81.05 on March 27; $81.89 on April 2. Closed April 9: Sell triggered at $79.99 market opening =$1,039.87 -($20 + $1,037.53) = ($17.66) net loss. April Trade Conclusions Market order strategy with no stops made four profitable trades for the month. Six were losers. A $5000 investment resulted in a net loss of ($158.10) or (3.162%). Similarly, the $10,000 investment resulted in a net loss of ($116.20) or (1.162%). More money invested resulted in less money lost due to broker fees. Trend analysis method placing stops $.10 below recent swing lows lost at most ($12.37) on $3,000 invested in three trades for (.4123%) with four trades still open within the April collection. May Trades in Place The following May trades were set up for results to be reported in June. One trade remains open from December. That open trade results will be reported along with the following six (with RUSS, BZQ, DUST, & DRN carried over). (click to enlarge) Here are the six new trades for May: TMF (20+Yr Treasury 3X Bull) May 4: Buy stop set @ $67.65 ($.10 above 55-day high) with closing price at $66.26. TYP (Technology 3X Bear) May 4: Buy stop set @ $10.37 ($.10 above 20-day high) with closing price at $10.00. NIB (Cocoa TR Sub Idx) May 4: Buy stop set @ $32.20 ($.10 above 20-day high) with closing price at $31.08. ERY (Energy 3X Bear) May 4: Buy stop set @ $11.46 ($.10 above 55-day high) with closing price at $11.08. TZA (Small Cap 3X Bear) May 4: Buy stop set @ $20.98 ($.10 above 20-day high) with closing price at $19.81. BUNT (German Bund Futures 3X Bull) May 4: Buy stop triggered @ $32.72. Bought 31 shares = $1,014.32. Sell stop set @ $31.24. Hot Hands reports for June momentum will update the market movements detected here. Complete Story » | ||||||||||||||||
| Goldman Sees 'Currency Of Last Resort' Up 15% At $1,840/Oz. In 6 Months Posted: 10 May 2012 05:49 AM PDT By Mark O'Byrne: Gold's London AM fix this morning was USD 1,590.00, EUR 1,228.37, and GBP 987.39 per ounce. Yesterday's AM fix was USD 1,585.50, EUR 1,221.87 and GBP 984.17 per ounce. Gold fell $15.80 or 0.98% in New York yesterday and closed at $1,591.00/oz. Gold ticked higher in Asia but has drifted lower since Europe opened. Support is at yesterday's intraday low of $1,580/oz. Cross Currency Table - (Bloomberg) Gold is relatively unchanged after 3 days of gradual losses despite the degeneration in the eurozone crisis with the deteriorating situation in Greece and Spain increasing the risk of contagion. The continuous short term panaceas of recent months look set create an even bigger crisis - which will benefit gold in the medium term. Spain's banking troubles could create the next political and economic crisis in Europe. Spanish yields remain near 5 months high (10 year at 6.07%) after Madrid Complete Story » | ||||||||||||||||
| Posted: 10 May 2012 05:45 AM PDT By Dividendinvestr: Gold prices have declined about 9% since February of this year to the current level of $1,605 a troy ounce. This slide has dragged down stock prices of gold producers. Despite the decline in bullion's price and the recent downward revisions to price forecasts, expectations of gold prices generally remain bullish. Several major investment banks, including UBS, Bank of America Merrill Lynch, and Goldman Sachs expect gold prices in a range between $1,680 and $2,000 a troy ounce over the next year. Expecting a rebound in prices, Standard Bank of South Africa sees the current price levels as good entry points for bullion investors. Stock investors can leverage their exposure to the gold market vis-à-vis investments in several dividend-paying stocks. Therefore, with prices of several gold miners hitting new 52-week lows, now may be a good time to accumulate positions in the following dividend gold plays. Anglo-Gold Ashanti (AU) is Complete Story » | ||||||||||||||||
| EndlessMountain: Silver Update 5.10.12 Posted: 10 May 2012 04:02 AM PDT | ||||||||||||||||
| Indian central bank challenged in court to repatriate countrys gold Posted: 10 May 2012 03:20 AM PDT | ||||||||||||||||
| Impossible To Pay Speeding Fine Because No Gold Coins In Circulation Posted: 10 May 2012 03:19 AM PDT | ||||||||||||||||
| Is gold in your permanent portfolio? Posted: 10 May 2012 03:18 AM PDT    Posted MAY 9 2012 by JAN SKOYLES in GOLD BULLION, ORIGINAL COMMENTARY In a week where we have seen the gold price plummet and return to levels below $1600, investment decisions are feeling as confusing as ever. No-one knows if the Eurozone will make it to the end of next week and the markets are responding to various elections and announcements in a reflective manner. For gold investors it is particularly confusing especially when Warren Buffet and his Merry Men continue to trot out the 'gold is stoopid' line. We have written so many times in regard to how gold will protect its investors in times of financial difficulties, but at present we are sitting in a bit of limbo in regard to the markets and the gold price does not seem to be enjoying it. Earlier this week the FTSE 100 fell to its lowest level this year by 1.78 per cent to 5,554.55. Other indices fell around the globe on the back of fears that Greece may be forced to leave the Euro and concerns that faith in major parties in Europe has disappeared. How has gold responded? It has fallen below $1600 in a similar pattern to its fall just before Christmas. Understandably, some investors are feeling wobbly about their gold bullion and wonder if they should sell before they lose more money. Should investing be so stressful?The reason Warren Buffet and his friends don't like gold is because they don't understand its value. Because it doesn't pay any dividends, because it does not have a clear revenue stream, or a clear business model it is, in comparison, not as easy to value as it is with stocks and shares. But perhaps savers, gold bugs and loyal Berkshire Hathaway fans should meet in the middle and appreciate the value which lies in a portfolio which is balanced between all major asset classes. Gold investment was never supposed to be a short-term game. It was always there for the long-haul, to guide you through the good times and the bad. Is it better than other investments? As the Daily Reckoning recently pointed out, if it makes up part of a balanced portfolio you will see the benefits. In 1981 investment guru, Harry Browne, developed a 'set-it and forget-it' portfolio strategy. The portfolio consisted on four main elements. As the Daily Reckoning reports, the portfolio was laid out as follows: '25% cash, 25% bonds, 25% stocks, 25% gold.' The idea behind the portfolio was to sit back and allow each element to perform when its time came according to the current economic environment. The Permanent Portfolio's proven success is due to its wide and true diversification across asset classes. As its managers argue, 'You have exposure to assets that can grow you money safely at all times without having to predict the future. You also have protection in the diversification against losing large amounts of money which can cause you to abandon the strategy in bad markets.' Between 1972 and 2008 this set it and forget it strategy was able to achieve 9-10% compound growth per year (CAGR). The CAGR for the entire period was 9.7%. For evidence of the value of investing in gold alongside other investment classes (such as those in the Berkshire Hathaway portfolio) we can look at how gold has performed in the portfolio and kept it balanced during times of major financial turmoil. In the 1970s, when inflation was rife, and stocks, bonds and cash were all down the portfolio was still able to generate positive returns. This was thanks to the inflation-proof asset of gold. Having 25% of your investment portfolio in gold sounds like a hefty amount. Particularly in a world where, according to the World Gold Council, as recently as the end of 2010 gold holdings accounted for approximately 1% of global assets under management. But if you are of the Warren Buffet mind-set then, according to the World Gold Council, you don't even need to commit 25% of your portfolio to gold. The WGC finds that by adding an allocation of gold of between 3.3% and 7.5% the investor can 'obtain a desired expected return while incurring less risk than on an equivalent portfolio which does not include gold.' But was gold a success in the Permanent Portfolio because times were different then? Is gold no longer a modern enough investment for market-savvy investors?
The naughty noughtiesWarren Buffet is open about the huge gains gold has made since the 1960s, however stocks have made similar, if not higher, gains. The issue gold investors should remember however is that Mr Buffet chooses to forgo the protection gold offers in order to enjoy the upside of stocks. Gold investors invest in the yellow metal in order to enjoy the protection of gold and still enjoy some upside. The success of gold investment, and reasons for it, are highlighted by investment decisions made by legendary investor Jim Rogers. He has made one decision about allocating his capital to an asset class every ten years in order to enjoy higher returns than one would with a diversified portfolio. Mr Rogers invested in gold during the decades of 1970s and the 00s. In both decades he saw huge returns, 1,363% and 391% respectively. This is reflected in the Permanent Portfolio's performance in during each of these periods. Since 2000, inflation has steadily been creeping up on the markets. In the last decade alone, gold has increased by 500%. The noughties is the second period where gold has shone and proved its worth. Namely since 2001 gold has provided a significant positive return. But is this just a reflection of the seventies, will things get better; will we see a drop in the gold price once again? According to Bill Bonner, it's not likely: In the seventies, the US was on top of the world…and headed higher. It was owed more money by more people than any nation ever had been. It was the leading energy exporter. It was the world's leading capital investor. Its people were earning more and more money — in real terms. Total consumer and government debt, as a percentage of GDP, was barely a fifth of today's level.
The Permanent Portfolio's golden successWhilst both Warren Buffet and Jim Rogers have made huge amounts of money from their investment strategies, their investment decisions are their careers. For the average investor, a diversified portfolio, and one which does not require over-active management suits the modern investor looking for somewhere to first preserve, then grow, their wealth over the long-term. The success of Mr Browne's Permanent Portfolio was down to its stability and growth, both of which can be attributed to its breadth of diversification across different asset classes. Unlike other popular investors he is not just focused on one asset class, or one country. People talk about the US, Japan, China, Brazil, without remembering that they are investing in equities in all these geographies. Other people talk about having exposure to the dollar, the euro, the pound, or other currencies, whilst forgetting that these exposures are all to fiat currencies. The Permanent Portfolio went beyond this. In line with the advice from the Swiss banking tradition, Mr Browne's portfolio has a significant holding of gold. This acts as an anchor during times of stormy economic downturns and threats of hyperinflation. Unlike the decade of the seventies we do not appear to be coming to any sort-of quick fix solution, nor does anyone seem to know which authority or country to turn to in order to guide us out of this mess. We can't even agree on whether we should be tightening our belts or digging deep into our pockets. No one has a crystal ball, not even billionaires such as Warren Buffet. Therefore, perhaps we should take a leaf out of Harry Browne's book and not worry too much about what may happen, balance your portfolio with the 'civilised' and (apparently) not so civilised investments. Place gold on the other side of the scales and sit back as it balances you out during the rough and the smooth.
Want to balance your portfolio with gold? Buy gold bullion in minutes… -OR- SIGN UP NOW to receive your FREE* oz of silver Please Note: Information published here is provided to aid your thinking and investment decisions, not lead them. You should independently decide the best place for your money, and any investment decision you make is done so at your own risk. Data included here within may already be out of date.
About the Author Jan SkoylesJan first became interested in precious metals and sound money when she met Ned Naylor-Leyland whilst working at Cheviot Asset Management in the summer of 2010. Jan then went on to write her undergraduate dissertation on the use of precious metals in the monetary system. After graduating from university Jan joined The Real Asset Co research desk and now contributes to the Cobden Centre, The Commentator, The Renegade Economist and Market Oracle.
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| The Influence of the General Stock Market and Crude Oil on Gold Posted: 10 May 2012 03:04 AM PDT
We're getting whiplash from all the political changes in Europe, neo-Nazis in an unstable government in Greece and a changing of the guard in France– "adieu" to Nicolas Sarkozy. We see plenty of reasons for holding on to our long-term gold positions despite the clobbering the yellow metal got on Wednesday down to a four-month low. The euro tumbled this week against the dollar in the worst run since 2008. There is an intense resurgence of political risk in Europe and a couple of months of weak jobs numbers in the U.S. All that has put stimulus back on the table. Another item on the table is the risk of a Greek euro exit, which has risen to as high as 75 percent; according to Citigroup Inc. We also see a rising anti-austerity tide gaining ground in Europe and the abolishing of a gold excise duty in India, all favorable for gold. Francoise Hollande has been elected France's president, the first socialist president in almost two decades, on the promise that he would deliver an alternative to the austerity diet. The French have been wondering who had moved their high-calorie cheese. They have become tired of the message reiterated by Nicolas Sarkozy that painful choices and belt tightening will bring jobs and growth. Hollande takes power at a critical juncture for both France and Europe and he will have to deliver fast –no honeymoon vacation. France has a ten per cent unemployment rate and its labor costs are among the highest in the OECD. With a budget deficit for almost 40 years, France lost its triple A credit rating this year. The day after Hollande takes power next Tuesday, France must raise €12 billion on the markets. He then will have to convince German chancellor, Angela Merkel, who was cozy with Sarkozy, to renegotiate the European budget austerity pact to add measures on growth. Investors are worried about potential tension between Germany and France, the two eurozone heavyweights. It is not likely that Germany will be willing to foot the bill for Hollande's campaign promises. Having discussed the political factors driving the price of gold, let us now see how the markets can influence the yellow metal's behavior in the days to come. We will start today's technical part with analysis of the S&P 500 Index and begin with the long-term chart (charts courtesy by http://stockcharts.com.) In the chart, we see that prices have moved below the support line created by the 2011 highs, which looks bearish. Taking a relative comparison to the similar rally that we saw in the second half of 2010 (more on that topic can be found in last week's commentary) with the current price patterns, it seems quite possible that we could have simply seen a correction with a rally now to follow. Let us now take a look at the financial sector. In the Broker Dealer Index chart (a proxy for the financial sector), we do not have any clear "buy now" signals (based on this chart alone) but may have some confirmation here that a bottom has formed in the general stock market. This index bottomed at the 50% retracement level of its previous rally, something that could be expected during a correction (just like a bottom being formed with financial at other Fibonacci retracement levels, so, again, this is not a crystal clear buy signal). Let us now move on to the crude oil market and try to find out whether the black gold will have an impact on the real one's future price. Looking at the chart we see that prices have moved lower after trying to break out above the declining resistance line. Since that attempt, prices have declined and are now actually close to the long-term support line. RSI levels suggest that a rally is likely to begin sooner rather than later. Another small move to the downside may be seen, and a powerful upturn could follow. The situation will become clearer once oil price finally confirms either a breakout or a breakdown. Overall, the signs here are blurry but favorable for gold in the short term, as the gold market has been generally aligned with the crude oil market this year. This is not necessarily true for the very short term, but the two markets were generally positive correlated lately and their overall directions are similar. The implications from the crude oil price chart are a bit more bullish for gold than not as the support line is closer than the resistance line and the RSI says "buy". To finish off today's essay let's have a glance at our in-house developed tool that traces the intermarket dependencies. The Correlation Matrix is a tool, which we have developed to analyze the impact of the currency markets and the general stock market upon the precious metals sector. This week we see that precious metals are negatively correlated with the USD Index and positively correlated with the general stock market. The outlook for the general stock market is more bullish than not, and the implications for precious metals are therefore more bullish than not as well. Summing up, the situation in the general stock market is mixed for the long term and a bullish scenario seems a bit more likely than the bearish one for crude oil. The implications for gold based on the outlook for crude oil and the general stock market seem to be a bit more bullish than not at this time. To make sure that you are notified once the new features are implemented, and get immediate access to my free thoughts on the market, including information not available publicly, we urge you to sign up for our free e-mail list. Gold & Silver Investors should definitely join us today and additionally get free, 7-day access to the Premium Sections on our website, including valuable tools and unique charts. It's free and you may unsubscribe at any time. Thank you for reading. Have a great and profitable week! P. Radomski * * * * *
Sunshine Profits provides professional support for Gold & Silver Investors and Traders.
All essays, research and information found above represent analyses and opinions of Mr. Radomski and Sunshine Profits' associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Mr. Radomski and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above belong to Mr. Radomski or respective associates and are neither an offer nor a recommendation to purchase or sell securities. Mr. Radomski is not a Registered Securities Advisor. Mr. Radomski does not recommend services, products, business or investment in any company mentioned in any of his essays or reports. Materials published above have been prepared for your private use and their sole purpose is to educate readers about various investments. By reading Mr. Radomski's essays or reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these essays or reports. Investing, trading and speculation in any financial markets may involve high risk of loss. We strongly advise that you consult a certified investment advisor and we encourage you to do your own research before making any investment decision. Mr. Radomski, Sunshine Profits' employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.
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| Gold Update: Looking for a Turnaround Posted: 10 May 2012 03:00 AM PDT The bullish expectation is still very much justified. We would need a turnaround very soon though, to continue the mega bullish expectation. If we do not get the turnaround very soon, then price could go even lower than $1,500. | ||||||||||||||||
| China & the Other Central Banks Are Buying Gold Posted: 10 May 2012 01:49 AM PDT Andy Hoffman | ||||||||||||||||
| Goldman Sees “Currency of Last Resort” Up 15 pc At $1,840/oz in 6 Months Posted: 10 May 2012 01:44 AM PDT gold.ie | ||||||||||||||||
| Precious Metals Steady as China Spurns Euro Debt, Greece Warned on Euro Exit Posted: 10 May 2012 01:28 AM PDT
WHOLESALE MARKET prices to buy gold and silver repeated yesterday's rally in London trade after a slight drop Thursday morning, rising back above $1594 and $29.30 per ounce respectively as platinum and palladium also stemmed this week's sharp drops. "Technically, many [precious metals] are now oversold," says a note from dealers Intl FC Stone, pointing to chart analysis and noting that gold trading volume on the Globex futures platform was 40% above the last month's quiet average on both Tuesday and Wednesday. "The [price] drop was large and quick, Bloomberg quotes analyst Xiang Nan at CITICS Futures Co., calling a rebound in Asia's wholesale demand to buy gold overnight "not surprising. "But the Dollar looks to be strong in the near term and this will limit gains." Thursday morning saw the US Dollar creep back from its near-2012 highs vs the Euro, while major-economy government bonds also slipped in price, nudging yields higher from yesterday's historic lows. Asian stock markets fell however for the fifth session in a row on Thursday, despite news of a turnaround in China's balance of trade to a surplus of $18.4 billion in April. Crude oil extended its drop to 9 days on the run, the longest stretch since early 2009. European stock markets rallied around lunchtime in London, after giving back all of an early rise. "We doubt whether effective demand by households and firms in the US and the UK today is being boosted materially by 10-year Treasuries being at [historic low yields]," says a new paper from Citigroup economist – and former Bank of England policymaker – Willem Buiter, co-authored with Ebrahim Rahbari. "[It's time for] reducing rates all the way to zero" across the US, Euro, Japan and UK they advise, "carrying out more imaginative forms of quantitative easing and credit easing…[and] engaging in helicopter money drops: a combined fiscal monetary stimulus." The Bank of England voted today to keep UK interest rates at a record low of 0.5% for the 38th month in succession. It also left its "quantitative easing" program of government-bond purchases unchanged at £325 billion – equal to almost one-third of all gilts currently in issue. Sterling pushed up to fresh 3-and-a-half year highs versus the Euro currency. Prices to buy gold in British Pounds held near 9-month lows beneath £985 per ounce. Gold priced in Euros recovered from Wednesday's 4-month low at €39,200 per kilo. Shorter-term, howerver, prices to buy gold "continued their melt-down" on Wednesday, says the latest technical analysis from bullion bank Scotia Mocatta, pointing to the sharp recovery from yesterday's 4-month low. "[That] 1585 level was also our initial downside target on this move," says Scotia. "A close below this critical support level will open up a full retracement to 1522. Topside resistance is at 1612, the previous interim low." Strong demand to buy gold "will likely require continued deterioration in Europe or in the United States," says Goldman Sachs' updated gold price forecast today. Restating Goldman's 2012 target of $1840 per ounce on average, "The case for higher gold prices remains in place," says team leader Jeff Currie, calling gold a "currency of last resort" and warning that June will prove a key period because of US Federal Reserve decisions, European political summits, and a possible re-run of last week's indecisive Greek election. "If Greece decides not to stay in the Eurozone, we cannot force Greece," said Germany's finance minister Wolfgang Schaeuble at a conference Wednesday/. "There is no alternative to the agreed consolidation program if Greece wants to remain a member of the euro zone," said his former deputy – and current European Central Bank member – Jorg Asmussen to the Handelsblatt newspaper. China's $440 billion sovereign wealth fund China Investment Corp. has suspended new purchases of Eurozone government debt, its president Gao Xiqing said in an interview Thursday. "What is happening in Europe right now is of course of concern," Gao said. "We still have our people looking at opportunities in Europe, even though we don't want to buy any government bonds." Adrian Ash Gold price chart, no delay | Buy gold online at live prices Adrian Ash is head of research at BullionVault, the secure, low-cost gold and silver market for private investors online, where you can buy gold today vaulted in Zurich on $3 spreads and 0.8% dealing fees. (c) BullionVault 2012 Please Note: This article is to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it.
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| Hoffman: Central Banks Are Buying Gold Posted: 10 May 2012 01:26 AM PDT "Ranting" Andy Hoffman gives us the update on the lastest precious metals slam down; the reasons to own gold and silver couldn't be stronger. from financialsurvivalnet: If the prices stay down this low, don't be surprised to witness a major flood of buying. We're also getting into the Indian Wedding Season, which will result in increased demand along with massive sovereign central bank purchases. This is worse than 2008, and banks are blowing up all over Europe. Spain has just bailed out its third largest bank. Who's going to bail out Spain? Greece is planning to reneg on its debt. Who knows which other nations are going to follow Greece to the blessed pastures in the land of sovereign default. Go to http://www.FinancialSurvivalNetwork.com for the latest info on the Economy, Markets and Precious Metals. ~TVR | ||||||||||||||||
| Pollock: The Domestic US War Game for Economic Collapse Posted: 10 May 2012 01:24 AM PDT A festering economic collapse may be probable, while US insurrection met with a rational US response is not probable on both counts. US citizens will be structurally and culturally tuned more towards resignation. The US government will be incapable of doing anything except spinning uselessly on the last problem.. from wepollock: It is of course it is possible to be ahead of the curve on everything, to anticipate concerns, and then address them ahead of time, to avoid crisis points, and to negotiate enough time needed to allow change to occur to mutual benefit… A good place to start would be the protection of capital and the restoration of the rule of law. That is not going to happen thus economic collapse remains a huge possibility to which nobody worldwide would be able to escape unscathed. Its best to concentrate therefore on what you value and what is really wealth and important to you and your children. As for the US government we need to reestablished the informed part of informed consent, as we realize and respond to our government being a blocking force to progress and thus a major part of at the current crisis and future problem. "The one source that we have I've known since 1979," Hagmann continued. "He started out as a patrol officer and currently he is now working for a federal agency under the umbrella of the Department of Homeland Security; he's in a position to know what policies are being initiated, what policies are being planned at this point, and he's telling us right nowâ€"look, what you're seeing is just the tip of the iceberg. We are preparing, we, meaning the government, we are preparing for a massive civil war in this country." ~TVR | ||||||||||||||||
| Northern Tiger’s 3Ace and Sprogge Projects Lead New Yukon Gold Rush to the Hyland Gold Belt Posted: 10 May 2012 01:16 AM PDT Simon Russell, mining analyst at our friend Peter Spina's GoldSeek.com put together this comprehensive look at Greg Hayes' Northern Tiger Resources, one of our Vulture Bargain issuers. We found it worthy of sharing, especially with NTR.V (NTGSF in the U.S.) so low-priced by the recent buyer's strike for junior exploration companies. (Editor) Simon Russell, GoldSeek.com Mining Analyst reports Bonanza-grade assays at 3Ace expand the New Yukon Gold Rush to the Hyland Gold Belt as 2011 exploration builds momentum into the 2012 season. Northern Tiger Resources Inc. (TSX-V.NTR, NTGSF.PK) is leading the expansion of the New Yukon Gold Rush to southeastern Yukon's emerging Hyland Gold Belt with their high-grade 3Ace and adjacent Sprogge discoveries. The New Yukon Gold Rush was sparked by Underworld Resources' White Gold discovery near Dawson, which was acquired by Kinross Gold Corp. (NYSE.KGC, TSX.K) in 2010. The Dawson Range has mines in production and significant exploration and development underway, including the Northern Tiger's Sonora Gulch Project. The addition of the Hyland Gold Belt to the New Yukon Gold Rush was triggered by Alex McMillan's discovery of a bonanza-grade quartz vein outcrop with spectacular visible gold at the 3Ace Project.
Northern Tiger's three principal gold projects are the 3Ace Project and the adjacent Sprogge Project in the Hyland Gold Belt in southeastern Yukon and the Sonora Gulch Project in the Dawson Range. In 2011, the company invested $7 million in the three projects including drilling at 3Ace, soil geochemistry surveys at 3Ace and Sprogge, and drilling at the Sonora Gulch gold-copper porphyry. Northern Tiger's 2012 season will focus on exploring the high-grade potential at 3Ace and Sprogge and considering options to leverage expensive, large-scale porphyry exploration and nuggety vein exploration at Sonora Gulch. A joint venture to explore Sonora Gulch is a sound strategy for Northern Tiger that helps to allocate resources prudently for all three projects. Along with Sonora Gulch, the company has a strategic exploration alliance on five projects in the Dawson Range with Capstone Mining Corp (TSX.CS), which operates the high-grade copper-gold Minto Mine. Yukon Territory Canada's Yukon Territory is a mining-friendly jurisdiction with long history in mining, starting with the 1897 Klondike Gold Rush. Mining remains an important part of its culture today as the Yukon experiences a modern gold rush. The Tintina Gold Belt, which extends from British Columbia to Alaska, is underexplored in its central section spanning the Yukon Territory including where it crosses the un-glaciated Dawson Range. The geologic potential in the Dawson Range is demonstrated by production mines and significant exploration and mine development projects, including the company's Sonora Gulch Project: · Capstone Mining Corp. (TSX.CS) is producing gold and copper from its Minto Mine
Other important developments in the central section of the Tintina Gold Belt include:
Across the territory from the Dawson Range, along the Yukon-Northwest Territories border near British Columbia, is the Hyland Gold Belt, an eastern extension of the larger Tintina Gold Belt. Northern Tiger's 3Ace and Sprogge Projects are located in the Hyland Gold Belt, where the company's discovery of a bonanza-grade outcrop with visible gold in 2010 sparked a gold rush to this area. Several other exploration groups have recently acquired claims in this area that has seen a few historic high-grade gold showings but is largely underexplored. With the impressive 3Ace discovery, historic gold occurrences, and an active tungsten mine in this area, exploration activities should increase in the emerging Hyland Gold Belt in the coming years. Already, other explorers are looking to join the rush. COMPANY PROFILE AND KEY MANAGEMENT Northern Tiger is a Canadian-based resource exploration company focused on gold and copper exploration in Yukon. Northern Tiger is publicly traded on the TSX Venture Exchange. Approximately 40% of the company is owned by institutions, including Haywood Securities and Sprott. The company's experienced management team has a track record of success and strong community relations in Yukon. Greg Hayes, CA, is President, CEO and Director and provides financial consulting services to juniorexploration companies and other clients in northwestern Canada. He is currently the Chief Financial Officer of Firestone Ventures Inc. and was previously the Chief Financial Officer of Shear Minerals Ltd., both based in Canada. He has been Chartered Accountant since 1997. Dennis Ouellette is Vice President of Exploration and has been in mineral exploration since 1977 including District Geologist for the Department of Indian Affairs and Northern Development, Yukon Region, and as Manager of the Yukon Chamber of Mines. His previous experience includes working for United Keno Hill Mines, Falconbridge, and Goldquest Exploration (Goldcorp). Brad Mercer, P. Geo., is an Independent Director of Northern Tiger and Vice President of Exploration for Capstone Mining Corporation. He has managed exploration programs and participated in feasibility evaluations focused in the Americas for 27 years and is credited with discovering eight copper-gold deposits at Capstone's Minto Mine in the Dawson Range as well as discoveries at the Cozamin Mine in Mexico. Jesse Duke, P. Geo., is an Independent Director based in Whitehorse, Yukon, and is a long-time Yukon resident with over 20 years of experience working in the mineral industry throughout the north. He is the principal of Ibex Valley Consulting, which provides services to northern mining companies. He was recently the Manager of the Whitehorse office for the environmental consulting firm Gartner Lee Ltd. that supports mining clients in Yukon, Northwest Territories, British Columbia and Alaska. Previously, he was Director of Mineral Development for the Government of Yukon and was involved in the design and implementation of many of Yukon's mineral industry programs and policies. Charles Liard McMillan holds an Advisory Board position and is the current elected Chief of the Liard First Nation, based in Watson Lake, Yukon. He has been responsible for operation of the Liard First Nation Government since first elected in 2003. Chief McMillan has been successful in implementing capital revenues for many new First Nation projects. He is active in negotiating an agreement with the Yukon Government with respect to the development, management and control of oil and gas resources in the Southeast Yukon. PROJECTS 3Ace Project 3Ace is located on 50,000 acres in the Hyland Gold Belt in southeastern Yukon along the border of the Northwest Territories, approximately 160 km north of Watson Lake. The property is adjacent to all-year access Nahanni Range Road, 40 km from the Cantung Mine operated by North American Tungsten's (TSX.NTC). Northern Tiger has an option to earn 100% interest on the property. In July 2010, a massive visible gold sample assaying at 4,820.6 kg/tonne gold (140.6 ounces/ton), was found at a Main Zone vein outcrop.
In 2011, a $6 million exploration program at 3Ace and the adjacent Sprogge Project continued exploration in the Main Zone and extended to additional targets. Nine new gold occurrences were identified at 3Ace, including the new Kaiser Trend, a 1,500 m by 250 m gold-in soil anomaly, extension of the Green Zone East target to 1,250 m by 500 m, location of an outcrop of quartz pebble conglomerate with gold-bearing quartz veins as a lode deposit, and the source of several gold-in-soil anomalies. Highlights of the drill program in the Main Zone, the source of the amazing quartz vein outcrop with visible gold, include: • 4.61 g/t gold over 35.0 m, including 106.21 g/t over 1.0 m • 2.58 g/t gold over 53.0 m, including 17.72 g/t over 2.0 m • 4.37 g/t over 10.0 m and 70.11 g/t over 1.1 m Numerous gold assays from soil geochemistry and drill intercepts imply 3Ace has potential for both surface and underground mining targets with high-grade veins and wider zones with disseminated low-grade mineralization. Geologically, the drill core indicated the holes are high in this orogenic-type deposit, so mineralization could continue much deeper. The bonanza-grade assays also imply this is an exceptionally rich system and potentially related to a very large underlying gold deposit. Sprogge Project Sprogge is a 14,000 acre property adjacent to the east boundary of 3Ace. The property was optioned in April 2011 from Newmont and Alexco, who will have a first right of offer on any proposed sale of the property for four years. Sprogge is on trend with 3Ace and, due to its close proximity, was explored in conjunction with 3Ace in the $6 million exploration program in 2011 that identified a 3km long trend of alteration and sulfide mineralization at Sprogge. The 2011 program at Sprogge consisted primarily of mapping and prospecting with the goal of identifying specific targets for drill testing in 2012. The 2,400 m by 1,200 m Sugar Bowl Zone hosts geochemical targets that make a strong case for further drill testing: Rock chip samples taken along a 2.5 km ridge contain numerous multi-gram gold values up to a maximum of 34.8 g/t, and including 6.9 g/t gold over 12.0 m and 9.6 g/t gold over 4.0 m.
The full potential in the target area remains to be explored. In 2000, NovaGold started a drill program that was restricted due to poor weather conditions to the lowest elevations along the northern boundary of the surface anomaly. The four holes that were drilled (762 m) revealed considerable hydrothermal alteration, but did not replicate the grades found in the surface exploration. Most of the Sugar Bowl Zone remains to be drill tested and a number of other geochemical targets warranting follow up have been identified on the property. Sprogge also has potential for a large halo of disseminated low-grade gold mineralization, and is being prospected for surface lode mine potential. The adjacent claims at 3Ace and Sprogge total 225 km2, but only 5% of property has been sampled. With ample anomalous gold assays to follow up on, there is potential for many new lode discoveries that could be part of an overall very large deposit. Sonora Gulch Project Sonora Gulch is located in the Tintina Gold Belt in the Dawson Range in south-central Yukon and is 40 km west of Capstone's high-grade Minto Mine. Exploration at Sonora Gulch has outlined a 9 km2 gold-in-soil anomaly containing a large multi-center porphyry system. A Titan geophysics survey indicated potential for a large porphyry deposit with similar age rocks and targets as the nearby Casino project by Western Copper and Gold. Past drilling intercepted high-grade gold in three separate zones:
In 2011, a 2,649 m diamond drill campaign was completed. The primary focus was the Gold Vein Zone, a 1.4 km by 500 m wide geochemical anomaly. Drilling intercepted thick intervals of near-surface, bulk tonnage mineralization, including:
A NI 43-101 Compliant Technical Report completed in March 2011 by Watts, Griffis and McOuat Ltd. recommended a 16,400 m drill program. Targets include both structurally or lithologically controlled gold-silver mineralization and bulk tonnage porphyry mineralization.
Precious Metals Steady as China Spurns Euro Debt Posted: 09 May 2012 11:59 PM PDT Wholesale market prices to buy gold and silver repeated yesterday's rally in London trade after a slight drop Thursday morning, rising back above $1594 and $29.30 per ounce respectively as platinum and palladium also stemmed this week's sharp drops. | ||||||||||||||||
| Morning Outlook from the Trade Desk 05/10/12 Posted: 09 May 2012 11:46 PM PDT Markets experienced a minor bounce yesterday. Focus on jobs data, equities and dollar today. Very nervous markets. would not be aggressive either way. The trend unless the Fed surprises with more easing talk continues to look lower. The Euro has clearly broken 1.30 which now becomes the resistance level. Us equities are due for a bounce which may be price supportive for the industrial metals. Movements will be exaggerated. | ||||||||||||||||
| Goldman Sees ‘Currency of Last Resort’ Rising Posted: 09 May 2012 11:43 PM PDT Gold is relatively unchanged after three days of gradual losses despite the degeneration in the Eurozone crisis with the deteriorating situation in Greece and Spain increasing the risk of contagion. | ||||||||||||||||
| Posted: 09 May 2012 10:41 PM PDT
from slopeofhope.com: DOW is down six days in a row. For last two days SPX is opening huge gap down and recovering most of the losses by the end of the day. The fight has been going on hold the 1360 line but ultimately it failed today. An important Demark trend line was barely missed by a whisker. SPX is down five of the last six trading days and Demark exhaustion signal can come by next Tuesday, which can also be a short term bottom. I still think we are playing the tape of last year and if so, we will see a bounce going into the end of the month. So lots of bounce points are converging at one place, 1330-40, Demark 9 up and we are reaching the oversold territory as well in addition to some short term bullish divergences. Keep on reading @ slopeofhope.com | ||||||||||||||||
| Posted: 09 May 2012 10:33 PM PDT
from marketanthropology.com: For the better part of the past year, I have maintained a bearish perspective towards what was once one of the more favorable corners of the market – the precious metals sector; more specifically – silver. This was largely due to a confluence of conditions, namely; 1. The extreme outperformance of silver versus gold through the first half of 2011, And while I am still skeptical of silver and gold's prospects as well as our own equity markets over the longer term, their immediate prospects look quiet compelling – should the price and momentum patterns unfurl as I believe they may. Essentially, many of the key asset proxies that comprise the risk on/off formula – gold, silver, the silver:gold ratio, the Australian Dollar and the Shanghai Stock Exchange, all present distinctly inverted head and shoulders patterns, as well as secondary momentum signatures, that indicate to me – a violent reversal is approaching in the coming sessions. Leading the way, the Shanghai Stock Exchange has already completed the right shoulder of its inverted head and shoulders pattern. Not surprisingly, the silver:gold ratio has trended very closely over the past several years with China's appetite for risk. I believe the silver:gold ratio, after completing its contractual agreement with structure – will continue to follow the SSEC, which should put a tailwind behind both the equity and precious metals markets going forward. Keep on reading @ marketanthropology.com | ||||||||||||||||
| Accumulation/Distribution Trends in Gold and Silver Posted: 09 May 2012 10:29 PM PDT
from jessescrossroadscafe.blogspot.ca: he accumulation trends seem rather steady despite the recent volatility in price and protracted sawtooth downtrend. I have included GLD and SLV in case the futures calculations had induced some distortions. On the last chart I include the Chalkin Money Flows for GLD which are remarkably positive except for the year end selling we saw at the end of 2011. Someone had mentioned this phenomenon to me earlier today, but I did not think about it until I read Harvey Organ's futures analysis in which he noted his surprise that in the recent price smackdown's the Open Interest of gold and silver were steady or even went UP. That seems to imply short selling into demand, rather than long liquidation as the cause of the price declines. From this evening's commentary by Harvey: "The total gold comex open interest baffled everyone as instead of falling badly surprisingly it rose by 3906 contracts. The raid orchestrated by the bankers somehow did not cause any gold leaves to fall from the gold tree. The May delivery month surprisingly saw its OI rise from 64 contracts to 173. How on earth will the regulators explain this as we witnessed no liquidation of metal of any kind in a huge price downfall and yet more stood for delivery? …The total OI for silver was even more baffling to our bankers. With silver falling on its sword to finish in the low 29′s one would have thought that many silver longs would throw in the towel. Nope!! The total OI actually rose by 1410 contractions from 112,139 to 113,549. Both Ted Butler and I agree that some strong entity is after physical silver. There is no other explanation for this. The front delivery month of May also shocked our bankers. The OI actually rose by 3 contracts (from 406 to 409 contracts) despite the huge downfall in the silver price. Nobody liquidated. I wish the regulators can explain this phenomena to us." Keep on reading @ jessescrossroadscafe.blogspot.ca | ||||||||||||||||
| Market Has Longest Losing Streak In 10 Months Posted: 09 May 2012 10:20 PM PDT
from zerohedge.com: For the first time since last July, right before the market's grand plan collapse, the Dow has fallen for 6 days-in-a-row. We could of course have just copy/pasted yesterday's end-of-day as today was a case of deja deja vu all over again as we sold off hard overnight (basically top-ticking right before the US day-session close), made new overnight lows, then managed a miraculous rally into and across the European close only to stall once again as the dip-buying algos enabled bigger blocks to dump into momentum retail players. The European close hour saw your standard 4-sigma swing (low to high) in ES (S&P 500 e-mini futures) but gave half of it back it its typical VWAP reversion as for three days in a row we have dipped and tested the S&P's 50DMA and rallied on lower volume (though ended the day with the 3rd highest volume of the year). The USD rallied further with the EUR ending around 1.2950 (though off its lows of the day) but once again commodities (which sold off pretty hard overnight) managed to crawl their way back higher (closing rather interestingly at the same levels at which they opened the European day-session). VIX ended above 20% (its highest close in a month) and its flattest term structure in five months. Treasuries ended the day marginally changed (-1bps 10Y, +1bps 3Y) but ended well off their low yields of the day. High yield credit was a major underperformer – ending below yesterday's lows (as was IG credit) – bearishly diverging from equities again. Keep on reading @ zerohedge.com | ||||||||||||||||
| Global Super-Bugs Herald Age of Silver Posted: 09 May 2012 10:17 PM PDT
from bullionbullscanada.com: For several years I have been touting silver's unique anti-microbial properties. Out of the nearly infinite list of technological/industrial applications for silver, it always seemed inevitable to me that this one use would ultimately become our single greatest need for the Metal of the Moon. That suspicion/fear could, in turn, be traced back to a single threat which has loomed in an ever larger, ever more-menacing manner: Super-Bugs. This is the colloquial name given to the bacterial monsters we have created through the reckless, excessive, and simply idiotic manner in which our species has over-used its single most-important medicine: antibiotics. This is not a new issue, and so most readers are already familiar with the path that led us to what the World Health Organization is now openly labeling as the world's "post-antibiotic era". For those not already suitably terrified by the ominous meaning of those words, read this quote from WHO Director-General Margaret Chan: "Things as common as strep throat or a child's scratched knee could once again kill." This is not hyperbole, as Chan's warning has already gone from mere theory to actual fact. A chilling article in Bloomberg identifies two terrifying features of this newest and most-deadly Super-Bug. First of all it is completely invulnerable to any/all antibiotics in existence. That alone places it in an almost unique category of killers. However it gets much worse. The Super-Bug is described as "highly sexed". Translation: it can (does) merge itself with virtually any bacteria – including the most common species on our planet – and instantly transform those previously treatable bacteria into Mutant Super-Bugs, themselves. E. coli bacteria, cholera bacteria, even the (benign) microbes in our soil can all be transformed into Super-Bug killers. Bacteria which already outnumber our species by billions-to-one can (will?) become legions of nearly invulnerable killers. Keep on reading @ bullionbullscanada.com | ||||||||||||||||
| Jim Rogers: Get Out of Stocks Buy Gold & Silver Posted: 09 May 2012 10:10 PM PDT
from beaconequity.com: Wall Street's old guard of economists tell us the U.S. economy is recovering. However, famed commodities trader Jim Rogers disagrees. In fact, Rogers is betting the U.S. economy tanks in the "foreseeable future" and suggests investors stay away from stocks and buy gold, silver and agriculture commodities, instead. Rogers retorted, "That's a remarkable statement . . . Maybe I should go out and short some stocks . . . I don't think this is the most exciting time to buy stocks . . . I don't own any stocks in the U.S." In some cases, Rogers has taken a step further by shorting stocks. Moreover, as early as last week, Rogers told the Wall Street Journal he believes the economy in the U.S. will be bad enough to anticipates civil unrest across America. Gross Domestic Product (GDP) and labor statistics painted as rosy, or improving, by Washington's various departments don't jibe with the real world—a complaint routinely raised by Rogers. The economic numbers are "doctored," according to Rogers, and he believes the statistics lately have been especially doctored due to an election year. Rogers hasn't changed his mind since that interview with the Journal, and told BI the run-up in stocks since the March 2009 low of 666 on the S&P has exhausted itself, as the S&P typically leads the economy, not the other way around. Investors of stocks will be profoundly disappointment in the coming couple of years, according to Rogers. "The economy is going to be bad within the foreseeable future, and the markets look ahead," Rogers said. "I don't see this as a great time to buy stocks at all." Rogers said he's betting on gold, silver and agriculture commodities as the winners for the remainder of the decade as more and more investors realize they must jump ship on stocks and board the commodities bull market to preserve wealth as was the scenario of the 1970s and the bull market in tangibles a that time. Long term, "I'm very pessimistic about the U.S. dollar," and "it's going the way of pound sterling when it lost its status as the world's reserve currency . . . I own gold." "I'm more worried about those kind of problems [rioting] in the U.S. and Europe; this is where social unrest is going to be worse," Rogers told the Journal. "I would suspect that, when economic conditions get worse here and get worse in Europe, we're going to see . . . you've seen governments fail in Europe; you've seen countries fail in Europe. I suspect you're going to see more of it [rioting], yes. "We saw it in London; we've seen it in several countries in Europe in the last year or two. Yes, I expect to see it here, too. If you don't, look out your window." Keep on reading @ beaconequity.com | ||||||||||||||||
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