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- Market Correlations Out Of Wack?
- Diamond ETFs Would Allow Investment In Precious Gems
- Gold ETF Rally May Keep Running
- The Gold Standard Gets Another Look
- Political, Economic Potholes Along The Yellow Brick Road
- Do they or dont they? Silver market manipulation and the U.S. Treasury
- Speculative Stocks For Those Who Believe Silver May Outperform Gold This Year
- 6 Analyst Approved Industrial Stocks Trading For A Bargain
- Arensberg, Embry review incipient breakouts in gold and silver
- The Gold Standard Gets Another Look
- Into the Meat Grinder: A “Market Meltdown the Likes of Which We’ve Never Seen Is Upon Us”
- “Political, Economic Potholes Along the Yellow Brick Road”
- Sandeep Jaitly, Ludwig von Mises, Ayn Rand and the Gold Standard Institute
- Gold Commission 2
- Central Banks Digging a Deeper Hole
- Euro Gold Technicals Look Near Perfect
- Jackson Hole Symposium Beckons
- Continued Bank Runs In Europe, Battle Lines Drawn & Gold
- Bernanke Might Not Take the Plunge
- Gold Smuggling Raises its Head Again in India
- Paulson Soothes Skittish B of A Investors About Fund Gold Holdings
- Top 10 Reasons To Buy Silver
- Why The Big Issues Are Missing from the 2012 Race
- Five myths about the Gold Standard I : Ron Paul and Larry McDonald
- Euro Bullion Technicals Looking Nearly Perfect
- Bernanke Disappointment 'Could See Gold Correct'
| Market Correlations Out Of Wack? Posted: 29 Aug 2012 12:21 PM PDT By Julian Marchese: The recent low volume in major global financial markets has contributed to large disruptions in market correlations. Over the past couple of weeks, we have seen stocks stagnant / falter as precious metals, the euro, and bonds have actually rallied significantly. It is of my opinion that this lackluster performance in stocks is simply due to hesitation and large positioning in U.S. equities to the long side, in anticipation of coordinated central bank action around the globe. The failure of the Fed and ECB to confirm any implemented easing program is causing what I would call a "rotational inter-market effect." In other words, market participants still believe that central bank accommodation is warranted, yet are spreading out their views in different markets. Essentially, we are seeing investors "rotate" out of U.S. equities, and into more "depressed" markets (gold and euros have largely underperformed stocks) that are offering more potential than Complete Story » |
| Diamond ETFs Would Allow Investment In Precious Gems Posted: 29 Aug 2012 11:47 AM PDT By Tom Lydon: Diamonds are widely used as decorative jewelry, but now, the exchange traded fund industry seeks to commoditize diamonds and allow more people to efficiently price the precious gems and invest in them. Considering the rising popularity of commodity ETFs, like the SPDR Gold Trust (GLD), which has $68.9 billion in assets under management, fund providers are toying with the idea of launching diamond-backed ETFs to satiate the growing demand for alternative investment assets. Fund providers, like GemShares and IndexIQ, are planning physically-backed diamond ETFs to help fill the investment void. GemShares seeks to create a benchmark basket of diamonds based on similar cut, color, clarity and carat size. The IndexIQ Physical Diamond Trust would create a "fungible" basket of one carat diamonds divided into different subcategories. In comparing diamonds to gold as an investment asset, both have high aesthetic value, are easy to transport and are limited natural resources, reports Complete Story » |
| Gold ETF Rally May Keep Running Posted: 29 Aug 2012 11:40 AM PDT By Tom Lydon: Exchange traded funds that track the price movement of gold toppled after prices almost hit $2,000 an ounce, but they have since recovered from their May lows this year. While the pessimists have been quick to call a bubble in the gold market, the gold rally may still have legs. For instance, the SPDR Gold Trust (GLD) added $1.5 billion in new assets under management over the past two weeks, writes Gary Gordon for ETF Expert. The ETF recently crossed over its 200-day moving average. Gold bulls are jumping back in. Bloomberg recently reported that gold investors were the most bullish in nine months, with 29 of 35 surveyed analysts expecting rising prices and only three were bearish on the metal. For instance, the $21 billion PIMCO Commodity Real Return Fund raised its gold allocation by 9% and the Soros Fund Management LLC doubled its GLD holding over the second Complete Story » |
| The Gold Standard Gets Another Look Posted: 29 Aug 2012 11:34 AM PDT By Peter Schiff: As Republicans convene in Tampa to nominate Mitt Romney and hammer out their party platform, one of the planks that could attract the most attention is the party's official position on the gold standard. As it is now being considered, the platform stops short of recommending a return to the gold standard, but does advocate a commission to consider the possibility. However, judging by the reaction with which many Republicans have greeted the idea, one would think that the platform might as well have called for the return of slavery. The fact that so many supposed conservatives liken a belief in a gold standard as the monetary equivalent of membership in the Flat Earth Society shows just how far the American public has come from a true understanding of how money works within an economy. But, if there were a parallel to be made between gold enthusiasts and flat earthers, Complete Story » |
| Political, Economic Potholes Along The Yellow Brick Road Posted: 29 Aug 2012 11:34 AM PDT  By Gary Tanashian:MarketWatch has a piece today on the recent headline making noise out of the GOP about a return to the gold standard. GOP's Gold Standard Idea Isn't Likely to Shine |
| Do they or dont they? Silver market manipulation and the U.S. Treasury Posted: 29 Aug 2012 11:31 AM PDT
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| Speculative Stocks For Those Who Believe Silver May Outperform Gold This Year Posted: 29 Aug 2012 11:13 AM PDT By Speculation is always an interesting discussion. Right now there are a lot of unanswered questions driving the price of precious metals this month. Will the Fed step in and initiate yet another round of quantitative easing? Will the European Central Bank really do all they can to save the euro? Will China organize a soft landing or will it come down hard? Will the Republicans truly fight for some sort of gold standard in the United States? Have we reached so called peak gold? Will silver return to its historic 16 to 1 price ratio relative to gold? All of these questions are being asked by precious metals traders and their subsequent answers will impact the short and mid-term price trajectory of the metals. Regardless of the answers to all of these questions, one thing remains certain to this author; the long-term trajectory of the prices of precious metals is Complete Story » |
| 6 Analyst Approved Industrial Stocks Trading For A Bargain Posted: 29 Aug 2012 11:06 AM PDT By ZetaKap: It takes a practiced eye and investor to interpret when the timing is right for purchasing stocks that appear to be undervalued. Each stock presents a different pattern of highs and lows, and while there can be general similarities across the board, it always is important to review the fundamentals of each company. For our list today, we focused on finding industrial stocks that appear to be trading at a discount. In addition, these stocks have received recent "Buy" ratings from industry analysts. Take a look at the summaries and graphs below to begin your own analysis. The Price/Sales ratio is a price-multiple valuation metric used to help identify if a firm is cheap by its twelve month trailing sales numbers. In the most basic terms, it lets an investor know how much the investment community is willing to pay for every dollar's worth of sales. A firm with a Complete Story » |
| Arensberg, Embry review incipient breakouts in gold and silver Posted: 29 Aug 2012 11:06 AM PDT
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| The Gold Standard Gets Another Look Posted: 29 Aug 2012 10:36 AM PDT The fact that so many supposed conservatives liken a belief in a gold standard as the monetary equivalent of membership in the Flat Earth Society shows just how far the American public has come from a true understanding of how money works within an economy. |
| Into the Meat Grinder: A “Market Meltdown the Likes of Which We’ve Never Seen Is Upon Us” Posted: 29 Aug 2012 10:29 AM PDT shtfplan |
| “Political, Economic Potholes Along the Yellow Brick Road” Posted: 29 Aug 2012 09:39 AM PDT  MarketWatch has a piece today on the recent headline making noise out of the GOP about a return to the gold standard. GOP's Gold Standard Idea Isn't Likely to Shine "The gold standard, it is argued, would foster economic stability and prosperity, primarily by creating price stability, fixed exchange rates and placing limits government deficit spending as well as trade imbalances. It would also limit credit-driven boom/bust cycles through constraints on the supply of money." Yes, absolutely. "Opponents argue that the gold standard would limit the flexibility of governments and central banks in managing economies, restricting the ability to adjust money supply, government budgets and exchange rates. Opponents also point to the inflexibility of the gold standard, which may have contributed to the severity and length of the Great Depression." In other words, a gold standard would limit monetary authorities' ability to "manage" economies by manipulating money supplies. As a knock on effect, it would also limit their ability to provide welfare to favored constituents like the first users and abusers of newly created money, e.g. the big investment banks. The article then goes on to make several points about why a return to the gold standard is unlikely (I agree that it is unlikely any time soon). Here is the most telling reason, however: "Money is now a matter of pure trust. American dollars still [bear] the words: "In God We Trust". But God is not directly responsible for control of money; governments and central banks are. Politicians and policy makers are unlikely to willingly cede the power that a paper money system provides" The article goes on to some silly stuff about a Tuscan spa, wealthy clients and the covering of these clients in 24k gold. So, we'll leave the article now except to note that it also has a link to the ever clear headed Mark Hulbert and his Bullishness rising faster than gold. Read it. Gold is not the risk/reward proposition it was a few weeks ago as it has raced to over bought levels in quick time. But that's how the barbarous relic rolls when it breaks out. From Hulbert: "Unfortunately, there's some bad news to accompany the good: Gold timers have reacted to bullion's recent strength by eagerly and enthusiastically jumping on the bullish bandwagon." We anticipated this in the newsletter, gave parameters for over bought upside and for a potential reaction to correct the over eagerness. A downside reaction, if indeed it comes about could be an ideal spot for traders of the metal to initiate new positions. Holders of the metal should have taken long term positions long ago and should calmly sleep through any near term turbulence. Back on theme, while there is talk about the gold standard by the Republicans, they are just blowing hot air and taking advantage of a hot button issue and relevant topic. Don't hold your breath on a gold standard even if Romney/Ryan gain the White House. You and I, as lowly market participants and economic survivalists need to read between the lines in a functional way. Gold is fine, as a standard or not. As long as it remains an asset class as opposed to official money, it will be subject to market forces and the macro manipulations of current power holders. These manipulations can constrain the metal as Operation Twist has played a roll in doing for a year now. They can also launch the metal to higher levels, when the manipulation is toward increased money supply. Sign up for Notes From the Rabbit Hole (NFTRH) to effectively manage the process if you would like an effective source of market intelligence to track the progress of gold as well as the bigger picture macro landscape. Or simply watch the blog and/or check out the free eLetter for a lighter and less formal version of the analysis. http://www.biiwii.blogspot.com Subscribe to NFTRH or
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| Sandeep Jaitly, Ludwig von Mises, Ayn Rand and the Gold Standard Institute Posted: 29 Aug 2012 08:38 AM PDT |
| Posted: 29 Aug 2012 08:35 AM PDT
from lewrockwell.com: There is talk of a plank in the Republican Party's platform calling for a gold commission. The commission will study the possibility of re-establishing a gold standard. The likelihood of a positive recommendation coming out of such a commission is as likely as a positive report of another commission to study the feasibility of restoring the Articles of Confederation. I did a Google search on these terms: "gold commission," Republican, platform. I got 20,000 hits. That's not too bad. I always like to see public interest in the restoration of gold as the backing for the U.S. dollar. Keep on reading @ lewrockwell.com |
| Central Banks Digging a Deeper Hole Posted: 29 Aug 2012 08:32 AM PDT
from financialsense.com: Dear readers, first of all, apologies seem in order. An unusual gap between blog posts has appeared on the Schlichter Files this summer. The reason is that I was travelling with my family in East Africa through most of August, enjoying the spectacular landscapes and the fascinating wildlife there, and meeting some very interesting people. Although, admittedly, I travelled in considerable comfort, and East Africa offers today reasonably good internet connections, often even in fairly remote areas, I decided not to read any newspapers, websites or even my emails for a few weeks, and instead tried to take my mind off the depressing subject of monetary meltdown and the destruction of capitalism and the free society at the hands of politicians and central bankers. So here I am, back in London after almost a month in the relative wilderness, slowly and reluctantly catching up with events in the strange world of 21st century finance. My first impression is that I have not missed much in terms of the unfolding crisis. None of the dynamics have changed. If anything, I feel my dire predictions and gloomy outlook again confirmed by recent events. Keep on reading @ financialsense.com |
| Euro Gold Technicals Look Near Perfect Posted: 29 Aug 2012 08:31 AM PDT
from goldcore.com: Today's AM fix was USD 1,664.25, EUR 1,325.04 and GBP 1,051.66 per ounce. Silver is trading at $30.79/oz, €24.62/oz and £19.54/oz. Platinum is trading at $1,519.10/oz, palladium at $630.80/oz and rhodium at $1,025/oz. Gold edged up $3.30 or 0.2% in New York yesterday and closed at $1,667.20. Silver slipped in Asia then hit a high of $30.985 in New York and finished up 0.59%. Keep on reading @ goldcore.com |
| Jackson Hole Symposium Beckons Posted: 29 Aug 2012 08:29 AM PDT
from goldmoney.com: "Your window to buy gold below $1,700 is closing" according to Casey Research's Jeff Clark. As seen from the informative chart below, if previous correction and consolidation phases of this bull cycle are any indicator, Clark argues that it is not unreasonably to expect the gold price to have breached its September 5, 2011 record of $1,895/oz (London PM Fix) by Christmas. Keep on reading @ goldmoney.com |
| Continued Bank Runs In Europe, Battle Lines Drawn & Gold Posted: 29 Aug 2012 08:26 AM PDT
from kingworldnews.com: Today 25 year veteran Caesar Bryan spoke with King World News about the ongoing bank runs, battle lines being drawn in Europe and gold. Bryan, from Gabelli & Company, also discussed the massive undervaluation of the mining shares. Here is what Caesar had to say: "It's very interesting because gold closed yesterday at $1,666, and the XAU, index of gold equities, closed at 166. So the XAU is about 10% of the gold price. We've bounced off the lows for the gold shares, but I still think there's plenty to go." Keep on reading @ kingworldnews.com |
| Bernanke Might Not Take the Plunge Posted: 29 Aug 2012 08:24 AM PDT
from marketwatch.com: WASHINGTON (MarketWatch) — Ahead of a crucial speech, Federal Reserve Chairman Ben Bernanke may not be ready to take the plunge into a large-scale asset purchase program the central bank has admitted is under consideration. That's because he has yet to forge consensus of fellow policy makers that more purchases make sense. "He doesn't have the mandate to unveil or drop huge hints about quantitative easing," said Scott Anderson, chief economist at Bank of the West in San Francisco. For the past month, the Fed has been "like a diver eyeing the pool from the edge of the diving board, but can't seem to get themselves to move," Anderson said. The market's expectations about Fed policy has veered in recent weeks. Keep on reading @ marketwatch.com |
| Gold Smuggling Raises its Head Again in India Posted: 29 Aug 2012 08:22 AM PDT
from mineweb.com: MUMBAI (MINEWEB) – As gold prices have hit the roof in India, an unprecedented increase in the smuggling of the precious metal is being witnessed. Indian authorities are seeing a spike in undeclared gold being smuggled into the country. The Directorate of Revenue Intelligence recently detained two airport personnel who allegedly helped smugglers take contraband gold out of the Mumbai international airport. The Directorate has seized 5.5 kilo of gold in this instance and another 4 kilo just two days ago. In mid-August, the Directorate arrested a person at Jaipur airport with 2.5 kilograms of gold hidden in his socks. Investigations revealed that the accused had smuggled gold over 20 times in the past few months alone. Keep on reading @ mineweb.com |
| Paulson Soothes Skittish B of A Investors About Fund Gold Holdings Posted: 29 Aug 2012 08:11 AM PDT
from caseyresearch.com: Yesterday in Gold and Silver Well, the smallish rally in early London trading went nowhere early yesterday morning…and neither did the rally that began at the 10:00 a.m. Eastern time London p.m. gold fix. The high of the day [$1,673.50 spot] came around 11:45 a.m. in New York. From there it got sold off to just about unchanged from Monday's close. The gold priced finished the Tuesday trading session at $1,666.60 spot…up $3.00. Net volume was around 112,000 contracts, but I would guess that a large chunk of that would have been of the high-frequency trading variety. Keep on reading @ caseyresearch.com |
| Posted: 29 Aug 2012 08:00 AM PDT
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| Why The Big Issues Are Missing from the 2012 Race Posted: 29 Aug 2012 07:00 AM PDT Matt Stoller is a fellow at the Roosevelt Institute. You can follow him at http://www.twitter.com/matthewstoller. One of the reasons I loved Neil Barofsky's book Bailout is because it is a clear explanation of the incentive structures in our political system. One element of his story that you might find surprising is how rarely elections actually come up among policymakers. Careerism, intellectual capture, subtle forms of bribery, institutional embarrassment, intimidation, bureaucratic jujitsu – all of these have a massive impact on policy outcomes. But elections? Yes, they matter as well. But they aren't that important. And if you read Bailout, or really just pay attention, what you'll find is that policy simply didn't change when Obama took over from Bush, which is a fundamental challenge to our notion of democracy, perhaps even more so than corporate money flooding into our elections. That is, the idea that all politicians want to do is get elected, and therefore they are worth despising, is actually untrue. If it were true, then you would find politicians constantly proposing and implementing popular policies, like free universal health care, high taxes on corporations, jail for Wall Street bankers, and higher minimum wages. But they don't do this. The reason, as I wrote in June of 2011 in Beyond Elections – the Hedging Theory of Political Elites, is that political actors are only interested in winning elections to the extent that strategies for winning don't jeopardize their place in the political class.
I spent some time pointing out going over one example out of hundreds, as an illustration of standard operating procedure. Congressman Chris Van Hollen staffer Doug Thornell, while working for Van Hollen, railed against special interests in the health care space. PR specialist Doug Thornell in 2011 then railed against unfair tax penalties on corporations that wanted to repatriate and bring home their profits. And even today, Thornell tweets and writes pieces lambasting Republicans for their poor policy choices. Is there any doubt that someone like this is going to return to a staff position in government, and then cycle back out to earn huge sums of money yet again? Of course not. What is valuable to Thornell, therefore, is not making sure that Democrats win, it's to preserve his sinecure regardless of whether they do. Populism or left-policy policy implementation and communication is the way to jeopardize his position, so that's what he (and people like him) avoid like the plague. It's why Iran hawk Elizabeth Warren, who in her book The Two Income Trap equivocates on the government subsidizing child care, is seen as a left-wing ideological extremist (ha!). Another example of this is Bill Clinton's $80 million payday after he left office.
Clinton, who had scandals as significant as Eliot Spitzer, is a beloved figure worth enormous sums of money. In a country opposed to US interests, if the husband of the Secretary of State was taking large sums of money from entities all over the world with vested interests in that country's foreign policy, the US would be the first country to scream and cry "corruption". All of this is a way of saying that most US politicians by and large would like to win elections, but they aren't going to jeopardize a future revenue stream or even their membership in the club of the global elite to do so. This is true for all parts of the political ecosystem, from politicians to staffers to campaign operatives to pollsters to consultants. While losing a race isn't fun, if you rock the boat and lose, you're done. And the structure of how political consultants make money – similar to cost plus government contracting where the more they spend the more you make – means that you aren't rewarded for outcome, you are rewarded for not being worse than the other consultants. The only people who are desperate to win elections are activists that have a strong ideological stake in electoral outcomes. With that in mind, it's worth looking at a post by Redstate publisher Erick Erickson called The Con$ultant Cla$$.
So, Republican SuperPACs are raising hundreds of millions of dollars, and Romney himself is going to have a few hundred million dollars as well to spend. But are their ads actually resonating? Does the money matter? As always, it's hard to tell. You can't run a control election with certain ads and an experiment election with different ones. The incentives, though, align well with Republican operatives running a race that panders to billionaire donors, who will keep funding their lavish careers, rather than a race in which ads actually persuade voters. After all, when Republicans in the primary ran anti-Bain ads, their donors became upset, and threatened to cut off the money spigot. Establishment Republicans and their corporate allies, because they don't really fear a second Obama term, are willing to let the 2012 election be dominated by grifting billionaires and gratifying Romney's ego about the importance of the capitalist class. Anything could change, of course, and Romney might win regardless. But the messaging that would be devastating – on housing, unemployment, incompetence and corruption on the bailouts – hasn't been used systematically. There must be a reason.
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| Five myths about the Gold Standard I : Ron Paul and Larry McDonald Posted: 29 Aug 2012 07:00 AM PDT
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| Euro Bullion Technicals Looking Nearly Perfect Posted: 29 Aug 2012 05:33 AM PDT Gold is hovering near its highest price level in four months due to safe haven demand on concerns about global economic growth and the unresolved euro debt crisis. |
| Bernanke Disappointment 'Could See Gold Correct' Posted: 29 Aug 2012 05:16 AM PDT Wholesale gold prices dipped below $1,665 an ounce during Wednesday morning's London trading, slightly below where they started the week, while stock markets also edged lower, with markets focused on upcoming meetings of central bankers. |
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