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  • Currencies Depend on Faith, Gold Doesn’t
    By on July 30, 2015 | No Comments  Comments
    In his July 17th Blog, Let’s Get Real About Gold, author and Wall Street Journal columnist Jason Zweig likened investor interest in gold with the “Pet Rock” craze of the 1970’s, when consumers became convinced that a rock in a box would provide continuous companionship, eleva...
  • China: Major Devaluation Coming
    By on July 29, 2015 | No Comments  Comments
    The whole “market economy” thing is turning out to be a little trickier than China’s dictators expected. To set up the story: After the 2008 crash the country borrowed about $15 trillion (an amount that dwarfs the US Fed’s quantitative easing programs) and spent the proceeds on history’s b...
  • Central Banks Ready To Panic — Again
    By on July 27, 2015 | No Comments  Comments
    Less than a decade after a housing/derivatives bubble nearly wiped out the global financial system, a new and much bigger commodities/derivatives bubble is threatening to finish the job. Raw materials are tanking as capital pours out of the most heavily-impacted countries and into anything that look...
  • Absurd Gold Stock Levels…
    By on July 25, 2015 | No Comments  Comments
    Gold stocks suffered a full-blown panic this past week!  This exceedingly-rare magnitude of selloff was triggered by extreme futures shorting intentionally executed to force a flash crash in gold.  After gold’s major multi-year support failed in this Machiavellian onslaught, gold stocks plummete...
  • Record Gold/Silver Shorting
    By on July 18, 2015 | No Comments  Comments
    The miserable summer for precious metals grinds on, with both gold and silver limping along near major lows.  Such dismal price action has exacerbated the extreme bearishness long plaguing this sector, sparking even more capitulation.  But this incredible weakness will be short-lived, as it was dr...
  • Fed’s Full Normalization
    By on July 4, 2015 | No Comments  Comments
    The US Federal Reserve has been universally lauded for the apparent success of its extreme monetary policy of recent years.  With key world stock markets near record highs, traders universally love the Fed’s zero-interest-rate and quantitative-easing campaigns.  But this celebration is terribly ...
  • Extreme Gold/Silver Shorting
    By on June 27, 2015 | No Comments  Comments
    Gold and silver are languishing near major lows, trudging through the barren sentiment wasteland of the summer doldrums.  The major factor behind this weakness is extreme shorting by American futures speculators.  But their heavily-bearish bets are actually very bullish for both precious metals. ...
  • Gold Seasonals Bottoming
    By on June 17, 2015 | No Comments  Comments
    Gold remains deeply out of favor, languishing near major lows.  Traders are still convinced gold is going nowhere, and want nothing to do with it.  But provocatively that’s par for the course in early June, when gold slumps to its most-important seasonal low.  Gold’s seasonals are now bottomi...
  • Turns Out There’s Already Competition In The Gold-B...
    By on June 12, 2015 | No Comments  Comments
    The splash that BitGold made recently by buying GoldMoney led many (including this writer) to assume that the Canadian start-up was pioneering the gold-backed currency space. But it turns out that Peter Schiff’s Euro Pacific Bank already allows non-US customers to buy gold and/or silver, store it ...
  • Radical Gold Underinvestment!
    By on June 6, 2015 | No Comments  Comments
    Gold remains deeply out of favor thanks to global central banks’ extreme money printing.  This fueled a global stock-market levitation that has temporarily short-circuited normal market cycles, leaving investors infatuated with stocks to the exclusion of prudent portfolio diversification.  This ...
  • Gold’s Primary Driver Bullish
    By on May 24, 2015 | No Comments  Comments
    Gold has been fairly volatile so far this year, seeing plenty of big daily surges and selloffs.  But with all these largely netting out to the sideways grind of recent months, gold’s price action has been frustrating for bullish and bearish traders alike.  Gaming gold in these strange central-ba...
  • Interest Rates Spiking Everywhere
    By on May 20, 2015 | No Comments  Comments
    Just as ultra-low interest rates start to seem normal, the markets decide otherwise. US 10-year Treasury bonds yielded about 1.9% in April and are now above 2.20%: And the trend reversal isn’t limited to the US. Across Europe and Asia rates have spiked in the past month. From Bloomberg: What doe...
  • No Money, No Growth
    By on May 19, 2015 | No Comments  Comments
    Last August, the US Fed stopped creating new currency out of thin air and dumping it into the banking system. Which is another way of saying the US money supply stopped growing. Here’s the adjusted monetary base — a proxy for the amount of new currency the Fed is creating — over the past eight...
  • Silver Buying Only Starting!
    By on May 16, 2015 | No Comments  Comments
    Silver has enjoyed a fantastic week, awakening from its bottoming slumber to surge with gold.  And this strong silver investment demand is likely only starting.  American stock traders and futures speculators control two of the world’s largest pools of capital active in the silver market.  And ...
  • US Nearing Recession, Dollar Falling Hard
    By on May 14, 2015 | No Comments  Comments
    The dollar soars by a record amount versus the euro and the yen in 2014. And economists predict strong growth in 2015. Really? If a country can have a rapidly-appreciating currency with all the benefits that that confers, and strong economic growth with all the obvious advantages that that confers, ...
  • Currency War Collateral Damage: China Stops Growing, ...
    By on May 11, 2015 | No Comments  Comments
    When a country pegs its currency to a bigger one like the US dollar, it in effect outsources its monetary policy to the operator of that other currency. This confers several benefits, including the enforced discipline of the other, presumably more rigorous monetary regime and the simplicity of letti...

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