saveyourassetsfirst3 |
- Will Miners Underperform Precious Metals in the Weeks to Come?
- Are We on the Verge of a Bull Run for Gold?
- Gold “Ignited” by “Important Shift” in US Fed Policy as China Battles Worsening Slowdown with Fresh Cash Injections
- Odyssey Marine Has Sails Set
- Time To Get Bearish? 3 Funds To Consider Now
- Europe's Faceless Money, Part I
- MintChip Digital Currency – It’s Not About Ice Cream!
- FOFOA - Anniversary Four (years of Freegold discussion)
- Will the Republicans Be Returning to Gold?
- Republican platform to offer sop to Paul supporters: another gold commission
- Gold Favoured To Rise Next Week: Survey
- Opportunity Before The Storm
- Get 6.45% Yields South Of The Border With 5-Year Morgan Stanley Mexican Peso Bonds
- Fed Consideration Of QE3 Hurts U.S. Dollar
- Euro Gold closing in on its All Time High
- Republicans Consider Returning To Gold Standard: Real Or Red Herring?
- Welcome to the Third World, Part 8: A PhD Is Now a “Path to Poverty”
- Silver $150, “This Will Happen,” Says Swiss Money Manager
- ‘Grexit’ Fears Creeping Up Again
- Does China Have a Hidden Agenda on Gold?
- Egon von Greyerz: This Move in Gold and Silver Will Look Spectacular
- Gold, Silver & Crude Oil Set For Remarkable Advances
- America’s Descent into Poverty
- Republicans Eye Return to Gold Standard
- Reassessing Quantitative Easing Euphoria
- Silver to Hit High of $77 by Spring Before Correcting & Ratcheting Higher
| Will Miners Underperform Precious Metals in the Weeks to Come? Posted: 24 Aug 2012 12:00 PM PDT
Fish are jumping and the cotton is high. Yes, it's summertime and the living is (quantitatively) easy. At least that's how it looks from the Federal Open Market Committee minutes for the July/August meeting that revealed support among some of the members for a new round of quantitative easing. With the release of the minutes Wednesday, gold went up and the U.S. dollar took a dive. The Fed members see three pitfalls for the economy– the sovereign debt crisis in Europe, a global economic slowdown led by China and other BRICs, and the fiscal cliff, which could result in substantial fiscal contraction. (Fed Chairman Ben Bernanke has repeatedly asked Congress to solve the problem, but with a Presidential election coming in November it is difficult to see how Republicans and Democrats will reach an agreement.) Gold investors combed through the text of the FOMC's latest minutes to find a nugget that will make the value of their nuggets go up. What they found was a single sentence towards the end of the meetings that went like this: Many members judged that additional monetary accommodation would likely be warranted fairly soon unless incoming information pointed to a substantial and sustainable strengthening in the pace of the economic recovery. This sets the stage for further monetary easing possibly at the Fed's Jackson Hole, Wyoming meeting slated for the end of this month. Waiting for other hints from the FED, let's now turn to the technical part of today's essay with the analysis of the mining stocks (charts courtesy by http://stockcharts.com.). In the Toronto Stock Exchange Venture Index (which is a proxy for the junior miners as so many of them are included in it), we see a rally but it is quite small especially when compared to the recent several-week-long rally in the general stock market. It is likely just a correction after a breakdown below the recent huge head-and-shoulders pattern, so the implications are bearish for all precious metals mining stocks, not only for juniors. Let's now move on to a very interesting chart that gauges the performance of mining stocks relative to gold. It can shed light on which group of assets (miners or the underlying metals) will perform better in the next couple of weeks. In the miners to gold ratio chart (if you are reading this essay on sunshineprofits.com, you may click the above chart to enlarge), the medium-term trend is down and the recent rally here does not change the overall outlook. A short-term overbought status has actually been created, a situation not seen since previous local tops and the final top of 2011 which followed a big rally. The implications are bearish, the trend is likely to reverse, and the miners are likely to underperform the underlying metals in the coming weeks. Summing up, the situation is less favorable for the precious metals mining stocks than it is for the underlying metals. 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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| Are We on the Verge of a Bull Run for Gold? Posted: 24 Aug 2012 11:32 AM PDT Bloomberg's Su Keenen reports on the prospects of a bull run for gold as investment holdings of gold reach record levels. She speaks on Bloomberg Television's "Money Moves."
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| Posted: 24 Aug 2012 11:04 AM PDT Gold "Ignited" by "Important Shift" in US Fed Policy as China Battles Worsening Slowdown with Fresh Cash Injections WHOLESALE MARKET gold prices ticked lower in London on Thursday from the highest Dollar and Euro levels since end-April after rising again in Asian trade. Wednesday's minutes from the US Federal Reserve's latest policy meeting "ignited" the gold investment market, according to one trader, with buy-stops triggered at $1650 according to another. The move took this week's gains in gold to 3.0% at $1667 per ounce – half of which has come thanks to a drop in the Dollar's exchange rate. Prices to buy silver also rose further overnight, extending this week's rise to 8.9% at $30.60 per ounce – the highest level since early May. "Platinum [also] continues it's steep ascent and helps to drive the rest of the [precious metals] complex higher," says senior trader Alex Thorndike at MKS in Sydney, pointing to further concerns over industrial unrest in South Africa – source of 75% of the world's annual platinum output. New manufacturing data from China, however – compiled in the HSBC/Markit Economics PMI indexes – today showed contraction in all areas except the stockpile of finished goods. The contraction rate in output, new orders and prices accelerated in August, taking the headline PMI down to a 9-month low of 47.8. A reading of 50 would indicate no change. Thursday saw the People's Bank of China conduct yet another "liquidity injection" into the nation's banking system, bringing the net injection of cash this week to CNY 365 billion ($43bn) – the biggest volume in 7 months according to Reuters and a level not usually seen outside the Chinese New Year holidays. "We see higher inflation because of rising commodity prices, unconventional monetary policies and increasing sovereign debt," said Nic Johnson, manager of the $20 billion Commodity Real Return Strategy at Pimco, the world's largest bond-investment group, to Bloomberg yesterday. Raising the fund's gold investment position to 11.5% of its portfolio, "We think gold is going to perform in a positive correlation to changes in inflation," said Johnson. "The [US] Fed's tone," reckons Chen Min, analyst at Jinrui Futures in Shenzhen, "is totally different in the minutes from previous comments. "That helped gold break into a higher price range ahead of the peak consumption season" – starting with India's post-harvest wedding and Diwali seasons, and then running into the Chinese New Year. Yesterday's Fed minutes said "many" members felt fresh quantitative easing would be needed "fairly soon". The option of a "flexible bond buying program" was also discussed, in contrast to the previous QE strategy of buying a pre-announced volume of US Treasury debt. "A move to an open-ended policy stance would be a important and powerful shift," says Michael Gapen at Barclays in New York. "It would, in effect, say that the Fed is in motion until the data tell it to stop." European stock markets meantime ticked higher on Thursday. German and French equities have now recovered three-quarters of last autumn's 30% plunge. Crude oil rose 1%, while broader commodity markets ticked higher. Major-economy government bonds also rose yet again, while weaker Eurozone debt fell. The gap between the rates of interest offered by 10-year Spanish and German debt widened to more than 5 full percentage points. In Athens on Wednesday, Eurozone finance chief Jean-Claude Juncker said Greece is facing its "last chance" to reduce government spending and so receive fresh bail-out funds from its single-currency partners. Although "totally opposed" to a Greek exit from the Eurozone, "I personally think ordinary people in Greece have suffered a lot," said Juncker, "and it would not be advisable to put further demands on them." Greek prime minister Antonis Samaras yesterday vowed a new package of cuts worth €11.5 billion ($14bn) would be announced in September. Samaras travels to Berlin on Friday, where German chancellor Merkel is today meeting French president Hollande to discuss the two-year crisis. 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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| Posted: 24 Aug 2012 10:00 AM PDT By Fair seas are ahead for Odyssey Marine (OMEX), the undersea treasure hunter. After the successful salvage of the SS Republic in 2003, the company found and salvaged 17 tons of silver coins from a shipwreck the courts later determined to be a Spanish warship. A federal appeals court held that US law and treaties provide for indefinite Spanish ownership of their sunken warships and cargo. The coins were then transferred to Spain. A new business plan was adopted whereby the identity of a shipwreck would be determined and agreements reached with potential claimants before salvage was commenced. The company has located a number of shipwrecks of UK-flagged ships, and agreements have been reached as to the sharing of salvaged articles. Generally, OMEX is responsible for costs of salvage operations until sunken cargo is recovered. The value of recovered cargo goes first to pay expenses of salvage, then is split 80% Complete Story » |
| Time To Get Bearish? 3 Funds To Consider Now Posted: 24 Aug 2012 09:57 AM PDT By Remember sell in May and go away? That seemed to work out pretty well, especially if you came back in June. Now we are faced with the historically weak month of September approaching. This fall we are faced with uncertainty of the presidential election and the impending doom of a potential fiscal cliff, which if not acted upon will send us into a recession according to the Congressional Budget Office. Dr. Doom, Marc Faber, recently stated the odds of global recession are now 100%. I believe he actually meant 100% likelihood or probability of global recession, as anyone who has taken my course in epidemiology knows odds range from zero to infinity, making 100% seem somewhat benign. In all seriousness, the pressure on the bulls this fall is mounting. One way to position your portfolio is by buying insurance with gold or silver in the form of (GLD), (IAU) or Complete Story » |
| Europe's Faceless Money, Part I Posted: 24 Aug 2012 09:56 AM PDT A short history of ancient Gold Coins – and what they say about Europe's faceless Euro today... |
| MintChip Digital Currency – It’s Not About Ice Cream! Posted: 24 Aug 2012 09:49 AM PDT In April 2012, The Canadian Mint announced its intention to withdraw pennies from circulation. This means that transactions requiring pennies will be rounded to the nearest 5 cents. This is true, at least, for cash transactions. On the other hand, if the transaction is settled electronically then it will settle as usual. Is this policy the forerunner of other political moves to discourage use of tangible (paper notes and metal coins) currency? Perhaps. Shortly after the Canadian Mint made this announcement they also announced their intent to create a digital currency, an initiative they have dubbed "MintChip." |
| FOFOA - Anniversary Four (years of Freegold discussion) Posted: 24 Aug 2012 09:43 AM PDT |
| Will the Republicans Be Returning to Gold? Posted: 24 Aug 2012 09:42 AM PDT A gold commission may be added to Mitt Romney's Republican Party platform for the November 2012 elections. Such a commission was held under a previous Republican administration, slap-bang between the 1980 and 1984 elections in fact. |
| Republican platform to offer sop to Paul supporters: another gold commission Posted: 24 Aug 2012 09:37 AM PDT |
| Gold Favoured To Rise Next Week: Survey Posted: 24 Aug 2012 09:27 AM PDT |
| Posted: 24 Aug 2012 09:02 AM PDT "Many members [of the Federal Reserve rate-setting committee] judged that additional monetary accommodation would likely be warranted fairly soon unless incoming information pointed to a substantial and sustainable strengthening in the pace of the economic recovery…" Minutes from the Fed's recent policy meeting, released 8/22/12 Rarely do the Fundamentals, Technicals, Interventionals and Actual Share Values line up so Favorably as now, but only for a very few select Sectors. Why? Consider one of the Wise Old Timers of Market Forecasting – Richard Russell's observation that these Markets are "as Difficult and Puzzling as any that I've ever had to wrestle with." Russell notes that while Key Fundamentals are Lousy, and Dow Theory is signaling we are in a Bear Market, (both True) the Equities Markets have nonetheless been bullishly approaching recent highs. Russell has recently expressed Puzzlement at that too. We do not. There are 4 Main Reasons that certain Markets and especially Gold and Silver (as we earlier forecast) have been increasingly signaling "Bull." 1) The Massive and Ongoing Liquidity Injections, plus the (repeated!) prospect of more QE (e.g. per above quote) into the Markets by Major Central Banks such as the Fed and ECB have temporarily lifted the Prices of certain Risk Assets, even though The Actual and Prospective Fundamentals do not Justify elevated price levels (except in the Commodities Arena – see below). 2) The President's Working Group on Financial Markets has the Power to Boost, or suppress, various Markets. We are approaching the Election. Enough Said! 3) The Major Economies are still slowing and they are all (U.S., Eurozone and China) over-indebted, with (so far as the U.S. and Eurozone are concerned) debts that cannot be repaid given any Reasonably likely Economic Scenario Going Forward. And that Debt is Compounding, thus Further Weakening Economies going Forward. Russell's Analysis has it right On Wall Street nobody knows anything -- and nobody is doing anything -- because nobody knows what to do. Volume has sunk to ridiculously low levels. The hour glass for trouble is running out -- and what I mean is that debts are compounding, and the balance sheets are looking worse every day. And this is happening with the current low interest rates. The US MUST do something about its deadly compounding debts. The US dollar must be devalued in order to shrink the destructive power of debt. And on a hopeful note for equities Bulls, Russell adds: Finally, a hopeful signal. Yesterday, amid all the low volume and sluggishness, the Transports gave us just a hint of something hopeful. It was a breakout of the declining trendline, as you can see on the chart. The Transports have been the laggers all year, and it seemed as though if the Industrials closed above their May peak, the Transports would not confirm. Now with this little upside breakout, the Transports are giving us a ray of hope. Maybe, just maybe, the Transports will add on a few more point, and get in the game. "The Trend is your friend – until it ends." (Jim Dines) Richard Russell, Dowtheoryletters.com, 08/16/2012 4) The Major Central Banks continue to repeatedly Dangle the Hope/Prospect of further QE in front of The Markets to juice them up. So consider how all this is likely to play out. Equities In Equities, note well that Volatility has been Near Record Lows, but given the foregoing Challenges, this cannot last, for long, though relatively low levels may last through the November Election. The Bullish Tone in Equities in recent weeks (The Dow has been bumping against its May Highs and even the Trannies have been showing a little Upside Breakout) is entirely inconsistent with the underlying Economic and Market Fundamentals. But that is not surprising given, especially, #1 and #2 above. However, none of the foregoing changes the fact that we are in a primary Bear Market, and therefore subject, at any time, to Events causing Market Takedowns. This is primarily because the Real Economy is still quite unhealthy in the US, Eurozone, and especially, in China. (Recent Chinese export and PMI Numbers have been quite bearish.) Therefore it is no surprise that Dow Theory confirms we are in a Primary Bear Market. The Trannies have not confirmed the Dow's recent surge up and the post-Fed-minutes-release Market Action suggests they may not. Moreover, a recent confirmed and reconfirmed Hindenburg Omen – reflected in an Ominous Jaws of Death Pattern on the Charts -- indicates the probability of a Major Market Crash in the next four months is substantial – at least one in four. Longer Term: Realistically, were it not for Overt (and Covert) QE, and the prospect/hope for more, it is highly likely the Equities Markets would have crashed already. We do not have a healthy Economy or Markets when Equities performance is reliant mainly on QE. The fact remains that Neither the U.S. nor Eurozone has solved their Debt Saturation and other Problems and China is slowing. This is bound to adversely impact the Equity Markets going forward. One can exploit the coming Equities Market Crash by going short (such as we recommended with five leveraged short positions before the 2008 Market Crash); at the right time. Sovereign Debt and Interest But all the massive Q.E. and Easy Credit of recent years has created a Bubble of Excess Debt which is now beginning to Burst. Indeed, The U.S. Treasury Securities are starting to deflate, albeit slowly at first. Over the next few months, and very few years, the Treasuries Securities weakening should accelerate into an eventual bursting with consequent sky-high yields, interrupted only by The Coming Storm – The Great Equities Crash of 2013. Even longer term, U.S. Treasuries are a Dead Man Walking, at anywhere near current levels. Gold and Silver Until just this week, The Cartel (see Note 1) had been able to hold Gold Price in its Consolidation Zone just above $1600. But in recent days, the Technicals have been signaling ever more strongly what the Fundamentals have been telling us for years. Gold, Silver and their mining shares are likely to explode upward very soon, as we earlier forecast. Indeed both Precious Metals exhibited a nice breakout this week. Both Equities and the Precious Metals have been trading together off Liquidity Injections and Expectations in recent months, but with the Precious Metals upside action has been hamstrung, until just this week, by The Cartel. The Gold Price has recently broken out and up through the 90 day MA confirmed by a MACD Buyers Cross and A/D line signal of Share Accumulation. While we see much more upside to Gold and Silver, mid to long term, this does not preclude Gold and Silver being taken down very temporarily by a Cartel attack with Gold dropping perhaps to $1525 and Silver to $25-26ish (a great Buying Opportunity, by the way); however, there is an increasingly robust floor under these Precious Metal Prices due mainly to robust Asian buying, with the Buyers actually taking delivery of the Physical Metal. Crude Oil As usual, Crude Oil is the "Truth Teller" in this era of Manipulated Markets. Our following Crude Oil forecast has been right on. The key point is that since we already have Real QE-generated Inflation (9% in the U.S. already for example per shadowstats.com – see Note 2), which Officialdom tries desperately to hide, WTI Crude continues to slowly trend upward, approaching $100/bbl. As well, when and to the extent we get "Risk-on" Equities Rallies, that should impel a very modest Crude Price Rally and a somewhat stronger Energy Shares Rally. So long as Risk-On Equities Rallies Continue the Crude Price is likely to Trend Modestly higher. When Equities tumble, Crude is likely to drop again too, [but not proportionally as much – This is because, recall, we still have Ongoing Real Inflation]. Caveat: a wider Mideast War would send Crude to the Moon. Key Commodities and Q.E. The Central Bankers ongoing Q.E. is boosting the Prices of Commodities, especially those which get used up. (Recall the "Arab Spring" uprisings were sparked by rising Food Prices.) The recently higher-trending Crude Oil Price (as we forecast) and uptrending Copper prices are not the result of Drought in the US. And Higher Prices for Corn, Wheat, and Soybeans are only partly caused by Drought. Note well, the Cargill CEO's recent forecast, that Food Prices could rise 40% to 50%. Given population growth pressures, and limitations on productive arable land, we do expect Food Prices to continue increase dramatically over the mid to long term. On dips, we expect to recommend additional purchases in this sector, so stay tuned. In sum, even though the Markets have been remarkably quiet and with low volume for several weeks, this has led to select spectacular opportunities. One is clearly in Gold and Silver. And if another one which we just recommended were "merely" to return to its 52 week high that would generate about a 4,500% Return (that's a four thousand five hundred percent Return) (see Note 3). Moreover, (while it is not likely to move all that way in the next 52 weeks) there is good reason to believe it will make a major move in that direction in the next few months. Low Volume Markets generate Opportunities which can be exploited in The Coming Storm. Best regards, Deepcaster August 23, 2012 Note 1: We encourage those who doubt the scope and power of Overt and Covert Interventions by a Fed-led Cartel of Key Central Bankers and Favored Financial Institutions to read Deepcaster's December, 2009, Special Alert containing a summary overview of Intervention entitled "Forecasts and December, 2009 Special Alert: Profiting From The Cartel's Dark Interventions - III" and Deepcaster's July, 2010 Letter entitled "Profit from a Weakening Cartel; Buy Reco; Forecasts: Gold, Silver, Equities, Crude Oil, U.S. Dollar & U.S. T-Notes & T-Bonds" in the 'Alerts Cache' and 'Latest Letter' Cache at www.deepcaster.com. Also consider the substantial evidence collected by the Gold AntiTrust Action Committee at www.gata.org, including testimony before the CFTC, for information on precious metals price manipulation. Virtually all of the evidence for Intervention has been gleaned from publicly available records. Deepcaster's profitable recommendations displayed at www.deepcaster.com have been facilitated by attention to these "Interventionals." Attention to The Interventionals facilitated Deepcaster's recommending five short positions prior to the Fall, 2008 Market Crash all of which were subsequently liquidated profitably. Note 2: Shadowstats.com calculates Key Statistics the way they were calculated in the 1980s and 1990s before Official Data Manipulation began in earnest. Consider Bogus Official Numbers vs. Real Numbers (per Shadowstats.com) Annual U.S. Consumer Price Inflation reported August 15, 2012 1.41% / 9.02% U.S. Unemployment reported August 3, 2012 8.3% / 22.9% U.S. GDP Annual Growth/Decline reported July 27, 2012 2.21% / -2.15% U.S. M3 reported August 4, 2012 (Month of July, Y.O.Y.) No Official Report / 2.86% e Note 3: The fact that many Major Money Managers and most of the Eurozone Elite are on Vacation until September has created a deceptive low-volume, low-Volatility Lull in the Markets. Bogus Official Statistics contribute to the low volatility. Come September, Europe's entirely unsolved Debt Saturation problem and the USA's entirely unsolved Debt Saturation and Fiscal Cliff problems will rear their Ugly Heads. And increasing Real Unemployment in both the Eurozone and USA (nearly 23% per Shadowstats.com) is bound to increase Social Turmoil which weaken most (but not all) Markets. But these Impending Crises and the complacency engendered by Bogus Statistics create significant Profit and Wealth Protection Opportunities and we describe Salient Ones in last week's Alert -- "Exploiting the Coming Storm; Forecasts: Gold, Silver, Crude Oil; Equities, U.S. Dollar/Euro, U.S. T-Notes, T- Bonds, & Interest Rates". Two Sectors in particular are poised to provide Substantial Profits and we identify one in this week's Letter. |
| Get 6.45% Yields South Of The Border With 5-Year Morgan Stanley Mexican Peso Bonds Posted: 24 Aug 2012 08:53 AM PDT By Randy Durig: Today we are looking at a newly issued five-year Morgan Stanley (MS) Mexican peso bond that will yield 6.0 the first three years, and then step up to 7.25% in years four and five. The high yield and medium length maturity of this Mexican peso denominated bond, when considered with its solid A3/A- rating, compares very favorably with other high-yielding instruments in our Foreign and World Fixed Income Holdings. We believe the dollar's longer-term weakening trend against many world currencies remains a major concern for investors seeking protection against its devaluation and a further erosion of its buying power. We view this as an opportune time to increase our exposure to a currency that we think has one of the better potentials to appreciate. Wealth Preservation and U.S. Dollar Concerns With both domestic and emerging market bond yields continuing to sink amid the current global economic uncertainty, wealth preservation remains Complete Story » |
| Fed Consideration Of QE3 Hurts U.S. Dollar Posted: 24 Aug 2012 08:20 AM PDT By Ralph Shell: Release of the recent Fed Minutes showed active consideration of QE 3, a perceived stimulus for the globally lethargic economies spreading beyond U.S. shores. Chicago Federal Reserve Bank President Charles Evans, in China, urged China to join the U.S., and increase the money supply to stimulate the global economy. A frequent complaint to this type of monetary stimulant is that the central banks have no idea where the money will be spent. Some claim it causes commodity inflation, and from experience I know there is nothing like a good bull market in commodities to enrich Chicago traders. Today gold raced ahead $35 per ounce following the easing talk. Is this why Chicago Federal Reserve President Charles Evans is such a bellicose supporter of QE 3? It helps the home town economy. Many of the US reports since the last FOMC meeting have been somewhat better than anticipated. This prompts some Complete Story » |
| Euro Gold closing in on its All Time High Posted: 24 Aug 2012 08:11 AM PDT
from traderdannorcini.blogspot.ca: The following chart reveals the strength of gold when priced in terms of the Euro Currency. Notice that it has been steadily working higher and is within striking distance of an overhead resistance level coming in just shy of 1350. If can push through this level, it should be able to match or exceed its all time high. It has been in a consolidation pattern since late last year but with a definite higher bias as can be seen from the series of higher lows riding along the lower red support line. Notice that mini-trend higher has accelerated since April of this year. Keep on reading @ traderdannorcini.blogspot.ca |
| Republicans Consider Returning To Gold Standard: Real Or Red Herring? Posted: 24 Aug 2012 08:06 AM PDT
from zerohedge.com: Stranger than fiction perhaps but the FT is reporting that the gold standard has returned to mainstream US politics for the first time in 30 years with a 'gold commission' set to become part of official Republican party policy. While this could simply be a reach for as many Ron Paul marginal voters as possible (with the view that the GOP would never really go for it); it appears drafts of the party platform from the forthcoming rain-soaked convention call for an audit of the Fed and a commission to look at restoring the link between the dollar and gold. The FT, citing a spokesperson, adds that "There is a growing recognition within the Republican party and in America more generally that we're not going to be able to print our way to prosperity," but "We're not going to go from a standing start to the gold standard," although it would provide a chance to educate politicians and the public about the merits of a return to gold. Interestingly, the Republican platform in 1980 referred to "restoration of a dependable monetary standard", while the 1984 platform said that "the gold standard may be a useful mechanism." Keep on reading @ zerohedge.com |
| Welcome to the Third World, Part 8: A PhD Is Now a “Path to Poverty” Posted: 24 Aug 2012 08:04 AM PDT
from dollarcollapse.com: Newly-minted anthropology PhD Sarah Kendzior has written a chilling piece for Aljazeera on what things are really like in academia these days: The closing of American academia It is 2011 and I'm sitting in the Palais des Congres in Montreal, watching anthropologists talk about structural inequality. The American Anthropological Association meeting is held annually to showcase research from around the world, and like thousands of other anthropologists, I am paying to play: $650 for airfare, $400 for three nights in a "student" hotel, $70 for membership, and $94 for admission. The latter two fees are student rates. If I were an unemployed or underemployed scholar, the rates would double. Keep on reading @ dollarcollapse.com |
| Silver $150, “This Will Happen,” Says Swiss Money Manager Posted: 24 Aug 2012 08:01 AM PDT
from beaconequity.com: If there was ever a sleeper asset poised to moonshot, it is silver. And $150 is the target price for the white metal on this next major move higher, says Swiss money manager Egon von Greyerz "We could see those levels ($4,500 – $5,000 on gold) within a year and possibly much faster," von Greyerz tells King World News, Thursday. "This autumn we are going to have a very strong move. "If we look at silver, silver is going to move a lot faster than gold. The same technical target for silver is $150. That would move the gold/silver ratio down to 30/1." Keep on reading @ beaconequity.com |
| ‘Grexit’ Fears Creeping Up Again Posted: 24 Aug 2012 07:56 AM PDT
from goldmoney.com: Worries about global growth and a Greek exit from the eurozone – the so called "Grexit" – were again putting pressure on stock markets around the world, while precious metals continued to rally. Yesterday the DOW Jones Industrial Average posted its biggest loss this month, shedding 115.30 points and closing at 13,057.46. The selling continued in Asia with the Nikkei losing 1.17%. Greek Prime Minister Antonis Samaras, who is visiting European leaders this week to fight for Greece to remain in the eurozone, is going to meet with German chancellor Angela Merkel in Berlin today. His main objective will be to negotiate a longer time window to implement his reforms. He hopes that Greece will reach the EU budget deficit goal of 2% in 2016 – 2 years later than demanded by the Troika. Keep on reading @ goldmoney.com |
| Does China Have a Hidden Agenda on Gold? Posted: 24 Aug 2012 07:54 AM PDT
from mineweb.com: LONDON (Mineweb) – One thing that is most apparent about China relative to virtually any industry is that nothing is done without the approval, or instruction, of government. When you have an enormous population of over 1.3 billion – around 20% of the global population – the government's policies are all aimed at maintaining order among its people, and for the past decade or so this has revolved around massive internal growth. This has been done, first by becoming the world's supplier of cheap goods, and second the building of an internal demand economy to help support this massive annual growth. Nearly half the country's population has moved from the country's old rural economy into a modern industrial one – but this is now seen as faltering under massive bank debt, much of it in potentially bad loans brought on by government-engendered cheap finance supporting the country's internal manufacturing and infrastructural growth. Given the Chinese state-owned company aims are not necessarily to make money, but to provide employment, this may not be a sustainable economic model, which could have some dire consequences for those companies, particularly in the resource sector, which have been providing the raw materials that help keep the Chinese factories maintaining uneconomic production levels. Keep on reading @ mineweb.com |
| Egon von Greyerz: This Move in Gold and Silver Will Look Spectacular Posted: 24 Aug 2012 07:53 AM PDT
from caseyresearch.com: Yesterday in Gold and Silver Gold rose another ten bucks during Thursday morning trading in the Far East…adding to the twenty dollar gain on the Fed news in New York on Wednesday afternoon. Around noon Hong Kong time, the price traded more or less sideways before giving up most of those gains in late-morning trading in London. The London low came around 12:30 a.m. BST…7:30 a.m. in New York. From there the gold price rose to its high of the day…$1,676.20 spot…which came around 11:30 a.m. Eastern time…and it then sagged a bit going into the close of Comex trading, before trading flat into the 5:15 p.m. electronic close. Keep on reading @ caseyresearch.com |
| Gold, Silver & Crude Oil Set For Remarkable Advances Posted: 24 Aug 2012 07:50 AM PDT
from kingworldnews.com: Today Tom Fitzpatrick told King World News that silver will quickly advance 23%, or $7 higher than current levels. Fitzpatrick also expects massive moves in gold and crude oil that will stun market participants. Here is what top Citi analyst Fitzpatrick had to say, along with some powerful charts: "We remain bullish on the gold price. Most importantly, this is a bullish gold view, not a gold/dollar view. So while the gold/dollar chart now looks strong, and momentum is picking up, we believe gold will outperform all paper currencies in the developed world. This is because there is so much money printing taking place, particularly in the West. Keep on reading @ kingworldnews.com |
| America’s Descent into Poverty Posted: 24 Aug 2012 07:48 AM PDT
from paulcraigroberts.org: The United States has collapsed economically, socially, politically, legally, constitutionally, and environmentally. The country that exists today is not even a shell of the country into which I was born. In this article I will deal with America's economic collapse. In subsequent articles, i will deal with other aspects of American collapse. Economically, America has descended into poverty. As Peter Edelman says, "Low-wage work is pandemic." Today in "freedom and democracy" America, "the world's only superpower," one fourth of the work force is employed in jobs that pay less than $22,000, the poverty line for a family of four. Some of these lowly-paid persons are young college graduates, burdened by education loans, who share housing with three or four others in the same desperate situation. Other of these persons are single parents only one medical problem or lost job away from homelessness. Keep on reading @ paulcraigroberts.org |
| Republicans Eye Return to Gold Standard Posted: 24 Aug 2012 07:30 AM PDT CNBC reports this mornings Financial Times piece: The gold standard has returned to mainstream U.S. politics for the first time in 30 years, with a "gold commission" set to become part of official Republican party policy. Drafts of the party platform, which it will adopt at a convention in Tampa Bay, Florida, next week, call for an audit of Federal Reserve monetary policy and a commission to look at restoring the link between the dollar and gold. The move shows how five years of easy monetary policy — and the efforts of congressman Ron Paul — have made the once-fringe idea of returning to gold-as-money a legitimate part of Republican debate.Marsha Blackburn, a Republican congresswoman from Tennessee and co-chair of the platform committee, said the issues were not adopted merely to placate Paul and the delegates that he picked up during his campaign for the party's nomination. "These were adopted because they are things that Republicans agree on," Blackburn told the Financial Times. "The House recently passed a bill on this, and this is something that we think needs to be done." The proposal is reminiscent of the Gold Commission created by former president Ronald Reagan in 1981, 10 years after Richard Nixon broke the link between gold and the dollar during the 1971 oil crisis. That commission ultimately supported the status quo. "There is a growing recognition within the Republican party and in America more generally that we're not going to be able to print our way to prosperity," said Sean Fieler, chairman of the American Principles Project, a conservative group that has pushed for a return to the gold standard.
A commission would have no power except to make recommendations, but Fieler said it would provide a chance to educate politicians and the public about the merits of a return to gold. "We're not going to go from a standing start to the gold standard," he said. The Republican platform in 1980 referred to "restoration of a dependable monetary standard," while the 1984 platform said that "the gold standard may be a useful mechanism". More recent platforms did not mention it. Any commission on a return to the gold standard would have to address a host of theoretical, empirical and practical issues. Inflation has remained under control in recent years, despite claims that expansion of the Fed's balance sheet would lead to runaway price rises, while gold has been highly volatile. The price of the metal is up by more than 500 per cent in dollar terms over the past decade. A return to a fixed money supply would also remove the central bank's ability to offset demand shocks by varying interest rates. That could mean a more volatile economy and higher average unemployment over time. Copyright 2011 The Financial Times Limited August 24, 2012 (Source: CNBC) |
| Reassessing Quantitative Easing Euphoria Posted: 24 Aug 2012 06:48 AM PDT Friday's spot metals dealings opened to the downside amid mild profit-taking and amid incipient signs that pre-weekend book-squaring was underway. Spot gold opened with a loss of $6 at the $1,665 bid level while silver dropped 27 cents to start at $30.31 the ounce. |
| Silver to Hit High of $77 by Spring Before Correcting & Ratcheting Higher Posted: 24 Aug 2012 06:41 AM PDT Charleston Voice |
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