In last week’s Metals, Mining, and Money, Jeff Clark estimated that given the magnitude of the correction that started last September, it may take until May 2012 for gold to reach a new high. This week let’s take a look at how long it may take for silver to rebound.
It’s a commonly known fact that silver is more volatile than gold. Already in this decade, silver has risen by a factor of 12 from its ten-year low ($48.70 vs. $4.07), while gold has seen about a sevenfold climb ($255.95 vs. $1,895).
This volatility – as you’ll see in a minute – holds for corrections as well. On average, silver’s retreats have been deeper and longer than gold’s. The three big gold corrections we looked at last week averaged 22.8%. Take a look at the three biggest for silver, along with how long it’s taken to recover and establish new highs.
Read more at http://investormind.blogspot.com
Today James Turk informed King World News that we are now headed into a vortex, and the Lehman event was a warm-up to a much deeper, widespread crisis and collapse which lies ahead. Here is how Turk described the warning signs and what to expect: “There are all of these warning signs out there and few people are paying attention. For example, hardly anyone cares that the US has lost its AAA rating and most dismiss it as a non-event. But even a cursory look at the US government’s financial position should raise investors concerns that it will not be able to meet all of its obligations.”
Read more at http://investormind.blogspot.com
From an article on Forbes by contributor Beth Greenfield, the Philippines ranked number 8 in the HSBC’s Expat Explorer Survey, released last month. “This country is friendly on wallets, too: 47% report an increase in access to luxuries, including domestic staff, swimming pools, and owning properties,” the survey revealed.
One of the main reasons why we have been not so focused on paper representations of real currencies (i.e., gold and silver) is that ever since the MF Global debacle, in which it became all too clear that if physical gold can be “hypothecated” via conflicting ownership, then there is no way that paper versions of precious metals are viable and indeed credible. After all, the only real owner at the end of the day is the certificate holder, which as we have explained before, is none other than DTCC’s Cede & Co. Good luck collecting when the daisy chain of counterparties starts falling. Which leaves physical. And for a good sense of what the “real” price of the metal is, not one determined by institutions whose interest it is to preserve the hegemony of paper, one can either try to procure gold and silver at a retail merchant, or one can look to the premium of a dedicated physical ETF over spot. Such as Eric Sprott’s PSLV which as of today is trading at an all time high premium of 30%! In other words, someone is willing to pay up to 30% over spot for the right to be closer to the physical metal than merely have a paper claim on a paper claim (pre hyper rehypothecation and what not). Incidentally the last NAV premium over spot record was back in April 2011 just as silver went parabolic and the entire commodity complex experienced the infamous May 1 takedown when it collapsed by $8 dollars in milliseconds on glaringly obvious coordinated intervention. Said otherwise, like back then, so now there is an actual shortage, manifesting itself in the premium. And while last time its was the price plunge which eased supply needs, we are not so sure how one will be able to spin a collapse of the current, far lower paper silver price.
Continue reading at InvestorMind.
The Little Currency That Couldn’t
The euro should now be recognized as an experiment that failed. This failure, which has come after just over a dozen years since the euro was introduced, in 1999, was not an accident or the result of bureaucratic mismanagement but rather the inevitable consequence of imposing a single currency on a very heterogeneous group of countries. The adverse economic consequences of the euro include the sovereign debt crises in several European countries, the fragile condition of major European banks, high levels of unemployment across the eurozone, and the large trade deficits that now plague most eurozone countries.
The political goal of creating a harmonious Europe has also failed. France and Germany have dictated painful austerity measures in Greece and Italy as a condition of their financial help, and Paris and Berlin have clashed over the role of the European Central Bank (ECB) and over how the burden of financial assistance will be shared.
Continue reading at http://investormind.blogspot.com
Investment letter writer Dennis Gartman has declared that he was wrong about gold.
In his daily investment letter Thursday, Mr. Gartman officially reversed his outlook for gold, saying he now views the precious metal as being in a bull market.
The new position follows a month where Mr. Gartman was the subject of some high-profile name calling from fellow investment letter writer, Peter Grandich. Mr. Grandich called Mr. Gartman “one of the Three Stooges” of gold forecasting after the latter declared that gold was officially in a bear market (if you’re wondering, the other two accused of being in that trio are Jeff Christian of CPM Group and Jon Nadler of Kitco).
Mr. Gartman’s reversal comes as he has failed to buy back gold below the price he sold it at a few weeks ago. He said that now that gold priced in euros has taken out its previous interim high, he sees the metal returning to a bull market.
Continue reading at http://investormind.blogspot.com
Isn’t it interesting that there’s a lot of bills coming out of the US that’s really questionable?
Watch the show at http://investormind.blogspot.com
I was lucky enough to catch Jim Rogers on the phone again for a few minutes to discuss MF Global’s affect on the commodity markets, the direction of the U.S., plus an emerging southeast Asian country which presents an “enormous opportunity”.
In regards to the recent MF Global collapse and it’s impact on commodity markets Jim said,“MF Global is causing forced liquidation right now, but longer term people will forget about it. People still need to trade wheat, they need to trade oil. In the longer term it will be like many other disasters in markets, it will be a blip–an unfortunate blip.” Jim added that, ‘This event will be another push to move commodities business away from Chicago and towards Asia.”
Read the full article at http://investormind.blogspot.com
If readers have the sense there has been a deluge of Kyle Bass reading (and viewing) materials on Zero Hedge in the past two weeks, it is because there has been: and why not – after all, unlike all other cheap talking heads, and know-nothing pundits who merely need a suit to make an appearance on one of the TV’s financial comedy channels, Kyle has been consistent in the most important thing – telling the truth.
Read the full article at InvestorMind.
In this letter to investors written by Kyle Bass of Hayman Capital Management. He talks about what he thinks may lie ahead for Europe and Japan.
Read the whole article at http://investormind.blogspot.com
Italian Welfare Minister Elsa Fornero broke down in tears and was about to announce to the Italian people that they will put an end to inflation indexing on all but the lowest pension bands, a move that will mean an effective income cut for many pensioners.
She was unable to say the word “sacrifici” or sacrifice. In which the new Italian Prime Minister Mario Monti took over and said the word “sacrifici”.
Watch at InvestorMind.
President Noynoy Aquino lambasted the Supreme Court led by Chief Justice Renato Corona in a nationally televised public forum at the First National Criminal Justice Summit hosted by the Department of Justice at the Manila Hotel.
Full article at http://palaisip.blogspot.com
In this video Chris Martenson – economic analyst at http://chrismartenson.com and author of The Crash Course and James Turk, Director of the GoldMoney Foundation talk about the problems facing the eurozone as well as the global economy. Chris Martenson points out that the whole world simply has too much debt. This is why he believes that there won’t be a real solution to the euro crisis. The big question will rather be who will take losses on the debt, which can’t possibly be repaid. The lack of political leadership and unwillingness to accept reality is contributing to this crisis. Additionally, the monetary tools central banks have traditionally used to revive economies are starting to show less and less effect. In Martenson’s view, the financial sector has become way to large and interlinked across borders, so that a default by one country could bring down the whole financial systems, because credit default swaps would get triggered and could bring down the writers of those derivatives.
Watch at http://investormind.blogspot.com
THE MONEY MASTERS is a historical documentary that traces the origins of the political power structure. The modern political power structure has its roots in the hidden manipulation and accumulation of gold and other forms of money. The development of fractional reserve banking practices in the 17th century brought to a cunning sophistication the secret techniques initially used by goldsmiths fraudulently to accumulate wealth. With the formation of the privately-owned Bank of England in 1694, the yoke of economic slavery to a privately-owned “central” bank was first forced upon the backs of an entire nation, not removed but only made heavier with the passing of the three centuries to our day. Nation after nation has fallen prey to this cabal of international central bankers.
Watch the full documentary at http://investormind.blogspot.com
Gerald Celente on the Tom and Todd show on November 30, 2011.
From the interview he said:
The European crisis is not ending. All they did was print more digital money not worth the paper it’s not printed on. And that’s why you see gold prices go up yesterday $35 an ounce because the smart money knows it.
Everyone I know in Europe and Greece has gotten their money out of the banks. As a matter of facts, the banks has gotten their money out of the banks.
Listen to the full interview at InvestorMind.
This is what happened to people’s money during the financial crisis.
Watch at InvestorMind.
Interview with James Turk, founder of Goldmoney Foundation talks about potential for gold to go to $11,000 by 2013-2015.
Watch the full interview at InvestorMind.
On November 16th, the US Congress held hearings on the first American Internet censorship system knows as the “Stop Online Piracy Act,” or SOPA. This bill can pass. If it does the Internet and free speech will never be the same.
If you are a blogger, a Tumblr, WordPress, Blogspot user, have a Facebook , Flickr, Etsy, Reddit, Linkd or Twitter account, etc. –under SOPA, any site that contains user-generated content, could be held liable for copyright infringement and be forced to shut down until the offending content has been removed.
(Reuters) – Gold rose on Wednesday in tandem with riskier assets, as the dollar fell on hopes the euro zone debt crisis will be contained after Slovakian parties reached a deal on plans to boost the region’s bailout fund.
Bullion moved in tandem once more with U.S. stocks and industrial metals, gaining after Slovakian lawmakers said they would approve a plan to expand the powers and size of the European EFSF rescue fund.
The precious metal has risen 2.5 percent in the past three sessions, lifted by optimism about a plan to tackle Europe’s debilitating crisis, which prompted gold — a traditional safe haven — to move in sync with equities and commodities.
Full story at InvestorMind.
For your enjoyment. Here’s the NBA All Stars which played against Smart Gilas at the Araneta Coliseum on July 24, 2011.
Watch at http://palaisip.blogspot.com