Gold remains on track (as far as our template). Here is the potential bullish outcome. longer Gold holds above $1160 and that trendline, the more likely the bullish outcome. [Read more...]

As we've discussed recently, persistent deflationary forces do not augur for a repeat of Japan circa 1990s or the US in the 1930s. Instead, because of the inability of government's to finance their current and future debt burden (there is a dearth of domestic savings and global capital), deflationary forces will ultimately lead to severe inflation or hyperinflation. In today's missive, we explain how this will happen but in various stages. [Read more...]

As we've discussed recently, persistent deflationary forces do not augur for a repeat of Japan circa 1990s or the US in the 1930s. Instead, because of the inability of government's to finance their current and future debt burden (there is a dearth of domestic savings and global capital), deflationary forces will ultimately lead to severe inflation or hyperinflation. In today's missive, we explain how this will happen but in various stages. [Read more...]

Recently, I had written about how a deflationary impulse in the capital markets would be a catalyst for the gold stocks. This turned out to be accurate as stocks and commodities weakened while treasuries and the US Dollar advanced. Gold and gold stocks also moved higher. Nevermind the comments I received about how we are in an inflationary period and Gold will go down in a deflationary period. [Read more...]

Recently, I had written about how a deflationary impulse in the capital markets would be a catalyst for the gold stocks. This turned out to be accurate as stocks and commodities weakened while treasuries and the US Dollar advanced. Gold and gold stocks also moved higher. Nevermind the comments I received about how we are in an inflationary period and Gold will go down in a deflationary period. [Read more...]

Financial markets experienced one of the most dramatic weeks in years as sovereign debt worries triggered an avalanche of risk reduction. The Euro remained under pressure all week as the market viewed the Greek bail out with scepticism and renewed selling pressure on southern European government debt and banking stocks followed. Investors seeking a safe haven from the turmoil drove ten year government bond yields in Germany down to a record low at 2.8%. [Read more...]

Financial markets experienced one of the most dramatic weeks in years as sovereign debt worries triggered an avalanche of risk reduction. The Euro remained under pressure all week as the market viewed the Greek bail out with scepticism and renewed selling pressure on southern European government debt and banking stocks followed. Investors seeking a safe haven from the turmoil drove ten year government bond yields in Germany down to a record low at 2.8%. [Read more...]

In the wake of continuing global financial turmoil, we hear quite a bit about 'safe havens.' Ask someone today and they'd tell you that the US Treasuries are a safe haven and probably Gold also. On a day-to-day basis, certainly the US Dollar and US Treasuries are safe havens. The financial media loves to point that out while noting big single day losses in Gold. [Read more...]

In the wake of continuing global financial turmoil, we hear quite a bit about 'safe havens.' Ask someone today and they'd tell you that the US Treasuries are a safe haven and probably Gold also. On a day-to-day basis, certainly the US Dollar and US Treasuries are safe havens. The financial media loves to point that out while noting big single day losses in Gold. [Read more...]