Good day! And a wonderful Wednesday to you! A very confusing day for yours truly yesterday. I have my beliefs, and they have been proven to be true for a long time now. But now there’s something gnawing at those beliefs now… and then a wrench gets thrown into the works. I’m telling you now, so you can listen to me later: Confusion reigns…
[Read more...]How Central Bankers Attempt to “Cure” Insolvency
January 6, 2012 By Leave a Comment
Like trying to patch a nuclear reactor with scotch tape and chewing gum, the central banks of the world’s leading economies are trying to Spackle over cracks in the global monetary system with a variety of desperate tactics and measures.
Unfortunately, hiding the cracks does nothing to strengthen the underlying infrastructure. To the contrary, hiding the cracks dupes individuals into believing all is well, even as the monetary system is crumbling around them.
[Read more...]Why Has Gold Been Down?
January 6, 2012 By Leave a Comment
After all, in spite of some short-term fixes, there remains no real resolution to the sovereign debt issues in many European countries. We’re certainly not spending less money in the US, and now we’re bailing out Europe via currency swaps with the European Central Bank. Shouldn’t gold be rising?
[Read more...]Another Good Year for Gold and Gold Stocks?
January 5, 2012 By Leave a Comment
A new year, yes. But a well-aged story: Generalized fear and loathing about Europe is fueling the safety trade.
The longest, most-boring financial crisis in history continues.
For laughs, let’s tote up the damage:
- The Dow is down nearly 1%. Other US indexes are down more, others less
- Banks dragged down European stock indexes. Spain closed down nearly 3%, Italy 3.5%
- The euro is down to $1.279 — a level last seen in September 2010
- The dollar index is approaching 81 for the first time in a year
- The yield on a 10-year Treasury note is back below 2%
- Oil is down about 1%, to $102.21
Looking Past Gold’s Poor Performance
December 15, 2011 By Leave a Comment
You don’t go into a Mexican restaurant to order Fettuccine Alfredo; you don’t go into Home Depot to buy a wedding dress; you don’t go into Goldman Sachs to get fair a deal…and you certainly don’t go into gold and silver to lose money during a currency crisis.
But that’s exactly what’s happening.
[Read more...]In or Out: How to Play the Swings in the Gold Price
December 15, 2011 By Leave a Comment
Hey…what’s going on with gold? The dollar up, gold down. When we checked yesterday the price was crashing through the $1,550 level.
Our friend, Dennis Gartman, tells us to get out. Here’s the report:
Gold, in the 11th year of its longest winning streak in at least nine decades, is poised to enter a bear market, according to Dennis Gartman, who correctly predicted the slump in commodities in 2008.
[Read more...]
Gold in the Face of Facebook
Stocks are up today. The major indexes have jumped 1%… for no obvious reason.
There’s talk of a halo effect from the pending IPO of Facebook, which could file the paperwork as early as today.
Oy… Talk about “riding on a smile and a shoeshine,” to borrow from Death of a Salesman.
[Read more...]