Archive for June, 2012
John Paulson's Very Bad Year
In addition to the Paulson Gold Funds, which were launched in 2010, almost a quarter of the Advantage funds were invested in “gold event” in 2012, according to investor communications. When Morgan Stanley Smith Barney (MS) sent an internal memo to its …
June 29, 2012 (Investorideas.com Mining stocks newswire) Chris Wilson, president of Exploration Alliance, a niche consulting group, believes education is an investment basic.
June 29, 2012 (Investorideas.com Mining stocks newswire) Serious price as well as psychological damage was incurred in the precious metals complex on Thursday as frustrated market participants got tired of waiting (as they ought to have) for the conclusion of the EU meeting and liquidated long positions en masse after sell-stops were touched during the late morning. Spot gold cratered by over $28 to touch lows near $1,546 and to also close at the lowest level in futures since late May
Gold coin sales fall in quarter, loses safe-haven luster
Still, U.S. coin dealers expect gold coin sales to rebound in the second half of the year as investors seek refuge in physical bullion amid the European debt crisis and signs of sluggish economic growth in the United States and around the world. Sales …
Gold Bullion Coin – 1 Tonne Australian Kangaroo – Enters Guinness Book of …International Business Times
Is Gold on the Edge of a Violent Downturn?CNBC.com
2012-W $50 Uncirculated American Gold Eagle Coin ReleasedCoinNews.net
all 203 news articles »
PRECIOUS-Gold jumps over 3 pct on EU deal, logs monthly gain
Gold posts first monthly rise in five * Markets rally on EU deal to aid banks, intervene on bonds * U.S. Mint gold coin sales weak in Q2 * Bullion posts largest quarterly drop since Q3 2008.
Bullion 'Shot in the Arm' after First Half 'Breather'Resource Investor
Gold Set for Worst Quarterly Loss in 8 Years on European CrisisBusinessweek
Gold jumps 3 percent after EU deal, set for monthly gainCNBC.com
all 565 news articles »
Gold Traders Extend Bullish Call on European Debt Crisis
Gold tumbled 4.4 percent to $1598.40 an ounce since the end of March, the biggest retreat since the third quarter of 2008. Bullion is up 2 percent this year which compares with an 8.8 percent slide in the Standard & Poor's GSCI gauge of 24 commodities …
The Weekly Gold Digger!Inside Futures
Gold Traders Extend Bullish Call on European Debt Crisis – reportNASDAQ
Specs slash gold, silver longs, increase copper shorts
June 29 (Reuters) – Money managers cut their net long position in gold futures and options by 20 percent, the first decline in five weeks, as a lack of fresh monetary stimulus by the U.S. Federal Reserve prompted some bullion investors to lessen their …
Gwinnett Net Daily
Fed Considers Reclassification of Gold Bullion – Demand to Soar
Gwinnett Net Daily
At present, gold bullion is only valued or "weighted" at 50% because its value increases and decreases as it is traded worldwide. The move would give gold bullion the same 100% value as all other financial investments causing a much greater demand for …
We have climbed the wall of worry for over twenty years as wealth in the ground becomes increasingly desirable in a world that is threatened with the ghosts of depressions past. We observe the doubters who regale us with such headlines as “The Fed’s Big Move Is No Solution” or a noted economist writes that he senses the tone of urgency of Fed Governor Janet Yellen’s remarks that “the scope remains to provide additional accommodation.” Yellen’s comments are really repetitions of her boss The Fed Chairman Ben Bernanke.
The world is navigating very troubled waters. For over four years the top Central Banks orchestrated by the Federal Reserve Chief injected a flood of trillions of dollars into an ailing financial system. The result has been extremely volatile upswings as QE1 and QE2 were introduced and gut wrenching declines after QE2 expired. The Venture Exchange has been in a decline since the middle of 2011, while banks have been propped up by an accommodative Fed. This is what they call an economic recovery?
Gold and silver are building bases, while mining equities are reflecting valuations priced in for a pandemic meltdown. The banks and large resource companies are sitting on cash and treasuries as the media ushers the investment herd from Euros to Dollars. We can look from old posts from 2009 where the opposite occurred and Europe appeared stronger than the United States. The reality is that the main problem is not European Debt, but U.S. debt. A rising trend in value of the U.S. dollar and long term treasuries has been extremely deflationary, but will not last forever. Eventually, the U.S. must devalue the dollar in order to pay off soaring debts. Obamacare is another example of policies which could severely increase our national debt and cause us to possibly default like Greece.
Precious metals, uranium and rare earths appear to be testing key support levels, which should hold. We are forecasting a reversal of the 2011 downtrend in the second half of 2012-2013. We expect China to continue to squeeze the West and a renewed interest from investors and end users to participate in the rare earth sector which will once again hit the mainstream.
Rio Tinto outbidding Cameco for Hathor indicates the bargain basement prices many of Hathor’s uranium peers are currently being valued. We expect continued excitement in the vital nuclear sector worldwide.
We may see continued lateral movement due to us being in the summer doldrums before the markets challenge and breaks through old highs. We are also witnessing support levels still holding indicating that despite all the doom and gloom the markets are improving. Listen to what the markets are telling us, not what the media is reporting.
Now we hear the voices of the Cassandra’s and the prophets of doom as they inform us that a rally in precious metals and miners is devoid of lasting power. We disagree. The mining sectors and natural resources are in a period of rest now preparing for a new launch as investors realize that the U.S. dollar is far from a safe haven. The underlying quandary in still in need of repair. For now we are in the quiet summer doldrums. The economic cancer continues to metastasize albeit out of sight and out of mind. Come this Fall and Winter our sectors in precious metals, uranium, rare earths and graphite should shine as wealth in the earth is realized as a true hedge against hyper-inflation which is preceded by this current deflation. Remember that during the 1920’s the U.S. dollar rose against other currencies. After the crash, the dollar still maintained its value as investors who were on margin had to raise cash. After all of the de-leveraging was finished and the herd entered the dollar, FDR devalued the U.S. dollar and raised the gold price from $20 an ounce to $35 practically overnight. All private ownership of gold became illegal. This history lesson teaches that rallies in the dollar during deflations are often followed by gut wrenching hyper-inflationary environments.
Silver is testing 2011 lows and is extremely oversold with an RSI reading below 30. We believe silver could rebound off of these extreme oversold levels and possibly break resistance to the upside.
Rising precious metals markets love climbing walls of worry which are in this case spreading malignantly. We do not enjoy being a harbinger of sad tidings. However, the Fed and its European acolytes have failed to address the real issue of the malaise in which the world finds itself. Specifically, the cancer consists of too much reckless spending and dependance on governments whom one suspects doesn’t really know what is going on. Watch gold and silver as it finds support at key levels.
The elites of the west possess all they need for the wives, children and grandchildren to live in splendor. They are trying to solve fiscal malignancies with financial dollars. Our leaders are addressing the debt problem with financial band-aids. This is a perilous Keynesian experiment, which has long ago been disproven, but which arises every time capitalism reaches for a solution and comes up with the old pump-priming.
Over a century ago another failed economist wrote that a specter is haunting the Western World. In some respects, the French have a saying that, “the more things change, the more they remain the same”.
Who could’ve dreamt that in 2011, we would see demonstrations in the Tahir Squares of the World that would result in Egypt coming under the control of the Islamists. Perhaps the past is prologue and we are destined to witness the same old scenes of revolt in other countries as well. The masses are not stupid. Everyone has a smart phone with plenty of rare earths, lithium and graphite in it. They all want the good things of life for their families.
In any event, we are reaching a societal point of no return where entitlements such as Obamacare can no longer be afforded. They think we can make everything right by monetizing the debt which is only months away possibly after the election.
In conclusion, what does all this mean? As time goes by the only true repositories of wealth exists in the natural resource area as it has since the days of Athens and Rome. Oddly enough after millennia we have come full circle, the same countries are going broke. History may not repeat, but it recurs and mimics. Be careful of the coming debasement of the dollar and hold on to your precious metals and wealth in the earth. Monitor for a reversal off of these oversold levels at $26 on silver and $1550 gold.
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Regulators Are Looking Into Labeling Gold A Tier 1 Asset
Regarding gold versus gold-mining shares, as different ways to invest in gold: gold-mining shares are valued on the long-term expected future price of gold, plus on the given mining company's management and other distinctive features; but physical gold …
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