Archives Dec10

Friday December 31, 2010 - Expect much worse conditions in 2011 ! - check the SA-Rand section -

Believe it or not, this ain't Ripley's and the price of your steak will double in 2011. Cotton, wheat, corn, Soya,...all food commodity prices geyser. Scary it is. This as a result of rising energy and oil prices. Today many don't realize fertilizers are a product of crude oil. [who remembers the green guys which made the use of traditional fertilizer illegal?]
We cannot believe our eyes and ears when as we still see and hear some Analysts forecast $50 per barrel for crude oil. Are those people living on another planet? Having said this, the bull run of Crude oil is confirmed by a bull run for Coal and a plausible bullish breakout of Natural Gas. What is happening here matches exactly the rules for the coming hyperinflationary depression.
France is building one of the world first nuclear fusion plants. The country has traditionally been a leader for engineering and is the country with most nuclear fission plants on planet earth.
To say business is improving is one hell of a stretch. To say statistically business conditions are MOPED is closer to the truth. This coming year we're about to come out of the eye of the storm into the next more painful part of the Hyperinflationary Depression.
Those pretending the Recession is over and Recovery is around the corner should be arrested and put in jail! ....The Commodity index has DOUBLED since the end of 2008/beginning of 2009!

Thursday December 30, 2010

The future will be nuclear Fusion and/or Fission: Uranium spot prices rose 40% this year and 34% since the end of September to $62.50 a pound on Dec. 20, according to Roswell, Georgia-based Ux Consulting, which tracks the industry. Producers in Australia and Canada forecast demand for the metal will increase as countries, including India, expand their use of nuclear power to curb emissions from burning coal. Solar, wind, etc...will - because their yield is way too low and they cannot be used as a source of energy for most vehicles (automobiles, airplanes, ships) only live during the transition from Oil (liquid energy) to Nuclear energy. France is building a fusion plant in ITER.
South Africa is, whether it likes it or not, another [small] BRIC in the wall. SA is a commodity country and even with the problems it has to solve because of Apartheid, it does has some good traditions and is probably in a better shape than many other countries...more

Wednesday December 29, 2010 - A good pilot is an old pilot - A good financial advisor is an old advisor - Financial analysis is a full time job and requests a lot of experience...

Any investor which doesn't understand that today it is NOT about making money but because we have a paradigm shift, it's about PRESERVING buying power, will suffer a lot in 2011, 2012 and 2013.
It is understandable that investors who believe in paper money and paper-denominated assets do not understand gold. Gold, after all, is the natural refuge of disbelievers in the current financial paradigm; and, as today's credit and debt-based paper markets come under increasing pressure and gold moves increasingly higher, most "paper bulls" remain increasingly perplexed. [Darryl Schoon]
Over the past years Prechter and most Elliott Wave theorists have (and still are) predicting Gold (and also Oil and other commodities) will crash. In October 2009, when gold had again breached the $1,000 level, investment advisor Chad Brand warned investors not to jump onto "the gold bandwagon". Unfortunately, for Mr. Brand's clients, it was the time to jump-and still is today. Unfortunately for the Prechter fans, it's all - for obvious reasons - going the other direction....
Many laughed each time we published Gold would breach the 1000 level (whether it was can$ 1000, us$ 1000, € 1000, CHF 1000, ....). We still have to break the £ 1000 but are so close....
Many laughed each time we published the price of Crude Oil would go up because of Peak Oil and inflation. Many simply refuse to understand we will probably pay over $ 4 for a gallon of Gas in the USA next year. Expect a similar pattern in the EU with gas prices closing in to € 2 per liter (about $ 8 per gallon).

Tuesday December 28, 2010

Greece will be the 1st domino to fall. Is Greece Planning a Post-2013 Debt Restructuring? Greek newspaper Ta Nea has reported that Greek authorities have settled on a plan to restructure the debt after 2013 without a haircut by stretching maturities and reducing interest rates. Expect other EU countries to follow...The toll to pay for those who wait too long will be EXTREMELY HIGH
China hikes interest rates...so what!? The People's Bank of China has raised interest rates for the second time in Q4 2010, in an attempt to stem rising inflation in the face of excess liquidity and strong capital inflows. We wrote in 2009 this would happen and we know how Gold and Silver and the Gold and Silver shares and Juniors behave in such an environment. Certain countries can survive higher interest rates, other countries will not.

Monday December 27, 2010 - Be aware that the more dangerous the situation becomes the more the Authorities will claim ALL is Well Madame la Marquise and that there is no reason at all to park your savings in a particular way.

Relevant is that People fail to understand we have a PARADIGM shift and that today the problem is far bigger than invest in a way which offers some return on your capital. As we move into the Hyperinflationary depression your MAIN GOAL must be to PRESERVE your CAPITAL. We don't think this will be an easy exercise but the best way not to preserve it will be to stay with the Bankers which are part of the problem we're having. If you keep investing like was fashion in the 1980's and 1990's you take a BIG RISK.
What many people don't know is that there is NO CAPITAL GAIN TAX in countries like Belgium. so far...but when the King's treasury chests are empty, this can change overnight. Only years ago the government in Argentina confiscated all the Private Pension plans (401k) and used the Forex (US Dollars mainly) deposits of Argentineans who thought they had made a clever move to keep their savings in US Dollars within the Argentinean Banking sector, to pay for the foreign debt.
What many people fail to understand is that the digitalization of Securities opens a HUGE door to Government confiscation. There are plenty of examples from the USSR to Argentina...In the OLD days one just had to cross to border and open a Bank account in the neighboring country or buy a house to escape Big Brother. With the advent of the EU all of this has slowly disappeared. With the Help of "Money Laundering Legislation" all escape routes have slowly but surely be sealed. Additional legislation even makes it illegal to provide any advice in this matter.
In the EU by 2012 ALL SECURITIES MUST be digitalized. In other words, no more paper securities and bonds one can hide under his mattress or in some safe. This comes after several EU countries allowed for some fiscal leniency towards those who repatriated their savings to their home country...something a lot of people did. As usual few could even think that in 2011 any form of Bank secrecy would disappear (also in countries like Belgium and we fear the same is to happen in countries like Luxemburg). But we expect that in 2012 insult will come to injury when Wealth Taxation will rule ALL OVER the EU.
Cities across the USA are raising property taxes, largely citing rising pension and health-care costs for their employees and retirees.In Pennsylvania, the township of Upper Moreland is bumping up property taxes for residents by 13.6% in 2011. Next door the city of Philadelphia this year increased the tax 9.9%. In New York, Saratoga Springs will collect 4.4% more in property taxes in 2011; Troy will increase taxes by 1.9%.In Illinois, towns have been raising property taxes to keep up with pension and health-care costs for several years, but the scale and scope of the increases this year are unprecedented, said Joe McCoy, a lobbyist with the Illinois Municipal League.

Friday December 24, 2010 - We wish ALL our readers and supporters a HAPPY HOLIDAYS -

Update will be minimum until the end of 2010.

Thursday December 23, 2010 - In the 13th century the Church opposed to the translation of the bible out of fear people (few people could read and those who could did could not read Greek ad Latin) would question their authority. Today the Authorities fear that people will read the Wikileaks and so question their authority. Nothing has changed...except for the wrapping.

What's in your stocking? Did you buy some goodies out of the Gold and Silver basket?
Within 4-5 months, the surge in costs at the wholesale level for food and for metals is going to be reflected in the retail side. When that occurs, consumers are going to learn how “tame” inflation is. Keep in mind this will be against a backdrop where wages are flat and the unemployment and underemployment remain high. Wonder how the Authorities will explain this!?
Overdrawn American cities could face financial collapse in 2011, defaulting on hundreds of billions of dollars of borrowings and derailing the US economic recovery. Nor are European cities safe – Florence, Barcelona, Madrid, Venice: all are in trouble. the U.S. remains the proverbial elephant in the bathtub in terms of pending effective sovereign bankruptcies. The U.S. remains the proverbial elephant in the bathtub in terms of pending effective sovereign bankruptcies and the US-Dollar an accident waiting to happen (as the £ was before its 30% crash in 2007-08) ...more
Turkish Central Bank Cuts Policy Rate 50 bps to Curb Capital Flows. The Turkish central bank lowered the policy rate by 50 basis points to 6.5% at its December 16 monetary policy committee meeting while widening the spread between overnight borrowing and lending rates in response to strong capital inflows and bank lending.
Debt-stricken Greece plans a garage sale as it has unveiled a privatization plan to raise €7bn through the sale and exploitation of state companies and other assets.
Why are Japanese bonds moving up after 10 years? weird...
Silver glitters and shines as we move through the year end...more

Wednesday December 22, 2010

We are too busy to write a 2011 scenario and maybe we don't feel like publishing one...out of fear to be called doomsayers. The problem is that we hardly can publish something we don't see and don't believe in. In other words we cannot wish you a happy 2011 when we know 2011 is going to be A LOT WORSE than 2010 and 2008. Better be prepared and don't take any chances...this will be a terrible financial storm! What is published below is nothing more than what we have been writing and publishing for months and years....it's a never ending story....where The People are unfortunately also playing a part and will have to take their responsibility because they don't do anything to correct it.
Banks are bankrupt and they will rotten all the way to the core. Still have Bank Bonds and/or shares? Be aware there is NO SOLUTION for the problems the banks are in...more
UK borrowing hits new record as government borrowing jumps. Be aware it is IMPOSSIBLE to spent yourself out of the problems as much as it is impossible to f..k yourself out of virginity. Such actions only make it worse!...more

Tuesday December 21, 2010

Freedom of Speech!? Is this what the Authorities want to take away by controlling Internet? It is of course a lot easier to control the printed media, radio and television than internet. [Radio and Television stations are traditionally the first to be taken over in case of a war or revolution]...more . Venezuelan President Hugo Chavez also defended plans for a law that would impose broadcast-type regulations on the Internet, saying Sunday that his government should protect citizens against online crimes...more and in Britain they still play it in the old fashioned way using SEX and children as an argument...more
The FDIC shut down another 6 banks last week. 157 small banks have gone under this year alone. Instead of sounding the alarm, this news is met with a yawn by the mainstream media. What's wrong with the media?
Greece, Ireland, Belgium, Spain, Portugal,...The various European crises remain an intermittent foil for the U.S. dollar, pulling market attention away from the unfolding solvency crisis in the United States and a likely move to massive selling against the U.S. currency.
The buy of a life time we have. We've updated the sections of Gold and Silver shares and Juniors and you have to be blind not to see what we see. Some shares of these sections will be the buy of a life time!

Monday December 20, 2010

The HUI-index (Gold index) is correcting like a school book example would do. Don't miss what could be the last opportunity of 2010. Buy your 2011 XMas present NOW. Today's Math's will be tomorrows Magic.
As I sometimes write, one has to be blind not to see it. The 2011 scenario is so straight forward, is so clear that I start to have mercy of all those who don't see it and/or don't believe it. It more and more seems like the last days of 2010 could well be the last days of this huge SALES period and that it is very plausible we shall NEVER see these price levels again.
Better be very, very careful once politicians start to pretend the Euro has been saved from a certain dead. Watch their crappy faces when they lie about it. Once again it will cost a fortune to the BELIEVERS.... I've seen this scenario happening so many times...At some point, if a country does not get its fiscal deficit below nominal GDP (and this is true for the US as well!) it will run into the wall. Belgium's debt was also degraded by Standard and Poor's: "Belgian's current caretaker government may be ill-equipped to respond to shocks to public finances. The federal government's projected 2011 gross borrowing requirements of around 11 percent of GDP leaves it exposed to rising real interest rates."
Greek five-year bonds are now paying 12.8%. It is hard to grow your way out of a problem when you are paying interest rates higher than your growth rate and you keep adding debt and increasing your debt burden. It becomes more and more apparent that the very existence of the Euro will make any recovery of a member country impossible.

In due time whichever Debt (Treasuries, Bonds) cannot be inflated away will be rescheduled for at least 100 years by a debt moratorium. It happened in the past and it will happen again. Only this time it could happen to you! [if you are stubborn and keep your fixed interest investment instruments]
If you think you're SAFE because you're holding Bonds, check this out....more
Belgian judges sent bailiffs to shops because they start the Sales period before the law allows for!? Non-European readers will probably be stunned that such legislation even exists....such practices are indeed sickening and we have no doubt the USSR would have done it not better. We in fact doubt such legislation has ever existed in the former USSR. In Europe the Authorities dictate when Sales can be held. Any business which is not confining its sales to what is legally allowed is heavily fined. What most non-Europeans also don't know is that shop keepers ain't even allowed to keep their shops open all week: they by law have to keep their shop closed at least one day each week. Speaking of a recession and depression and politicians who-so-said try to solve the problem...but they don't allow shops to have sales and to keep their stores open when ever they want to?. Looking at what is happening in Greece, Ireland, Belgium and the EU it's not hard to see how poor business men these elected idiots are. Allow a politician to run a profitable business and within 3 years it will be bankrupt.
Europe is and keeps growing as a Seven Headed Political Narcissist Monster fed by the an exponential amount of Fiat Paper money. As usual Politicians are only thinking of their own survival and are increasingly endangering the savings of the European people to keep the monster alive. The untold problem is that the European Banks have become an inherent part of the depression and that a secession of the EU would also mean a de facto bankruptcy of these banks....Deutsche bank is one of them.

Friday December 17, 2010

The steepening Yield curve (long term interest rates keep geysering up from historic lows as we forecasted two years ago) is scaring off investors. Short term this can result in a correction for the World Stock markets (a correction is plausible as markets are overbought) and could even cool off more Gold and Silver. As long however as our support levels (see individual currency sections of Gold and Silver) are not broken, we remain positive. Gold and Silver sit in a secular Bull trend and traditionally go up together with interest rates.

Inflation statistics are cooked. We all know this by now. In India and Eastern countries where Governments haven't become so sophisticated, the cooking is of a lesser quality and the Official Inflation figures reflect more the truth. India's annual food inflation rose for the second consecutive week, to 9.46 % for the week ended Dec 4, as prices of food items like milk, poultry and fruits continued to rule high, official data release Thursday showed. Primary articles index rose to 13.25 percent, while that for fuels increased to 10.67 percent...more
No relief for Crude Oil users as its price steams to almost $ 92 / € 70 per barrel. Remember our Peak Oil ? It hasn't gone away! know what commodities do under inflation pressure? Hopefully you did not forget to shop in our Oil Share section as we advised you to some weeks and days ago...more
Remember we told you to buy BP at $ 28 !? Today (only months later) the same share is sold for $ 44 (+57%)

World stock markets still sit in a Nominal Bull trend. Markets are overbought and the Footsie is running into resistance. But so far the rising interest rates in no way indicate the end of the nominal rise we are living.
The Total Jobless rate = official unemployment + government employees + police force + TSA + all non-productive Jobs + ..... ALL of these have to be kept alive by a Private Sector moving from a Recession into a Depression. You don't have to be an Einstein to understand that such is impossible.

Thursday December 16, 2010 - Expect Gold to resume its bull run soon...now is the time to buy !

A foretaste of what is yet to come!? For now, politicians and banks are the scapegoats. Several politicians have been beaten up and abused on the street. [Following is 2002 news but it could happen again any day....] By seizing its citizens' savings, the government has broken a basic contract, and violated the rule of law. Trust between government and citizens—the essential glue of a prosperous democracy—has been destroyed. The past few weeks have seen Argentina default on its $155 billion public debt (Treasuries, Bonds) , the largest such default by any country in history.
- Since December 1st, savings accounts have been frozen. People's Dollar savings have been turned into devalued pesos. Depositors also face restrictions on how much they can withdraw from current accounts. In January, the banks were closed for all but half a dozen days...more
Check the ongoing Bond crash in the Bonds section. Bonds are as unsafe as dangerous and comparable with the Financials just as they started to crash some years ago. Note that the situation in California, Illinois and Michigan is worse than the situation in Italy. In Portugal the chickens are coming home to roost. In Europe it is now cheaper to hedge against corporate default than sovereign default. That is not the way it is supposed to be. Interest rates even go up in Japan!? Weird, weird,...

Hedge funds are also extremely dangerous...more
The charts in the Silver and $-Gold section have been updated. We do have a new objective for Gold which is visible on the PF Chart.
We have school book examples on our PF charts for €-Gold, ¥-Gold and £-Gold. And SA-Rand-Gold is also following a precise line. The Euro has successfully tested a very important level and the Yen continues to perform better than the Dollar and the Euro do. Checking on our charts of the Euro against the Yen, Swiss franc, Canadian and Australian Dollar we get a confirmation that our Investment roster is more than correct.
We have a similar formation on our PF chart of Gold in British Pound.
Financials and Bank stocks have been updated...pro forma....click here

Wednesday December 15, 2010 - We're not going to tell you another fairy tell each day as "all" what is unfolding has already been published in Goldonomic.

The Dollar and the Euro not only remain on the road to hyperinflation, the rise in commodity prices and bond yields mean that the dollar is picking up speed as it heads toward the fiat currency graveyard. Our vision is that the Dollar will win the race because there are a lot more dollars in circulation than Euro's...but that the Euro, the Pound, the Yen,...will follow because the Central Banks of those countries keep enormous amounts of Dollars. Our Investment Roster clearly indicates which currencies we advice to keep your Cash positions in. We're analyzing whether or not to add the Chilean Peso.
This chart of the commodity index gives an idea of what the inflation rate has been since 1970. It shows the temporary impact of the 2008 deleveraging, the 1981 top of the Gold price and the present level (definitely too low...) . We're only weeks ago of a new high of the Commodity index....and the day the Herd realizes prices will go up and up....Hyperinflation is just like Santa waiting to show up in the middle of the night. Once it does BONDS will become worthless overnight, so will fiat paper money. Derivatives will explode like a financial nuclear bomb and most bank manufactured investment products will be worthless. And yes, it is possible that the Stock markets crash....but given the choice between worthless fiat money and a Bond (or the option to buy fiat worthless money) those having Stocks will end up a lot better. Remember we have a paradigm shift and it is high time to think out of the box...[note the whipsaw we had in the late 1970's which looks exactly like the whipsaw of the 2008 deleveraging. 1981 the USA and Volker cranked up interest rates to double digit levels and managed to stop a pending financial crisis. Ever since it has all become so bad that higher interest rates will just make it all worse]

Our PF chart for Copper is very worrying and is the canary in the mine shaft of what we expect for other sectors....Take some time to Google Double Top Breakouts....it could save your financial life.
Bonds continue and will continue to crash...and it goes fast... The least you can do, is to SELL ALL YOUR BOND HOLDINGS and keep the cash until you understand how to allocate the funds. This applies ALSO to most Bank Manufactured investment vehicles. Please understand that any financial instrument with a so said built in security system which will compensate for higher interest rates, higher inflation rates, lower currency exchange rates, a lower Dow Jones, etc...are ALL dependent upon the survival of DERIVATIVES (a huge financial nuclear bomb). There is NO such thing as a free meal and soon the chickens will come home to roost. The Central banks are only able to keep the short term interest rates low...for so long. Ultimately forces of Nature ALWAYS win.
The Fed stuck to its policy of buying $600 billion in Treasury bonds and keeping short-term interest rates near zero amid signs that the recovery is gathering steam. JPMorgan, Credit Suisse, UBS, ... and what they dare to say today will end up in the History books as an idiocy as big as the idiocy sold by the Banks before the Great Depression. What is wrong with these so said specialists? I presume the kids are happy as long as they believe in Santa...more
What do you think will happen with the Dollar once the USA looses its AAA rating? Hard to believe but It will crash in a worse way the Iceland Krona did...more

Tuesday December 14, 2010

This is how fast it goes once the Apocalypse starts. See how the Iceland Krona moved side ward for a long time before it all of a sudden 'fell out of bed' ....and devaluates 60% against the Euro and the US Dollar. The Icelanders who kept their savings in Barbaric Money or Gold did not loose one cent of savings...on the contrary, they increased!
Not a lot to mention, except that JPMorgan is covering its Silver shorts and the correction of the Gold and Silver sector is over again....sit tight and surf the wave...there is a lot more to come! Don't postpone you decision to buy the Gold and Silver sector and PLEASE request Physical delivery of your Gold and Silver and don't fall for ETF's and other bank manufactured products.
They even try to sell "Inflation free Bonds"! DO NOT BUY THESE as they are directly linked to extremely dangerous derivatives. This is the time to play it safe...during the last depression "they" sold GOLD guaranteed Bonds...which, off course became worthless!!

Monday December 13, 2010

Governments and politicians come and go...Bureaucrats and the Administration however stay. Governments succeed each other and each time add their Bureaucrats to the system. Give it some years and the Bureaucratic administration now is a Seven-Headed monster....and there is no way one can get rid of it without risking a major revolution. Whoever the people will vote for, whatever change they want...as long as this Monster hasn't been killed, nothing can and will change. During the process leading to the climax of a hyperinflationary depression the size of the Administration always increases. These jobs are also very secure and relatively well paid as they are the last line of protection for the leaders.
The day will come that even God won't be able to keep this Financial Atomic bomb from exploding. A Secretive Banking Elite Rules Trading in Derivatives: the men share a common goal: to protect the interests of big banks in the vast market for derivatives, one of the most profitable — and controversial — fields in finance. They also share a common secret: The details of their meetings, even their identities, have been strictly confidential...more
We have updated our Investment Roster...click here.
We have updated Wealth Preservation...click here
What we don't understand is why so many investors invested in dangerous Bonds (and some still are) when we have all these super buys around in the stock markets (stocks = real assets!)...see our Portfolio
Don't count on the Banksters to advice you to buy and hold Gold and Silver...they'd rather tell you to sell your holdings...so "they" can take advantage of it...more

Friday December 10, 2010 - Social unrest and ultimately WAR...

A situation becomes explosive from the moment those living in their Ivory towers (Kings, Queens, Princes, Politicians and Officials) don't understand what is really happening in the streets. When the French people revolted because they had no bread to feed their children Marie-Antoinette told them to eat cake. When the Spanish people revolted because pork became too expensive premier Zapatero told them to eat rabbit. The British students and not the police are blamed for revolting because the tuition fees are tripled...
The Rolls-Royce carrying Prince Charles and Camilla, the Duchess of Cornwall, was attacked in central London by revolting students. Cameron defended the government's contentious move to triple tuition at UK universities and said protesters, not the police, should be blamed for last night's chaos on Parliament street and nearby areas and for attacking a car transporting Prince Charles and Camilla, the Duchess of Cornwall...more
We believe investors should continue to hold Low Order Capital Good and food-related shares such as grains, wheat, corn, soybeans, and farm suppliers. John Deere is a good example.
Chile is one of the countries who has recently come into the news because of a mine drama who came out of a crisis not so long ago. The country has reshaped its banking system and exports important commodities (Copper, Gold and Silver) and wines.
We are reluctant to invest in countries like Thailand, , Indonesia, Colombia, and even China because we don't think their system is not politically and financially stable.
Taxation or Inflation is Deal or no-Deal between Democrats and Republicans. Whatever happens, the end result for the citizen will be the same. The King's chest is empty and money has to be found. Either by taxation or either by Inflation. Society can only be taxed so much before Capital leaves it for better and once the limit has been reached (it has in most western countries) the only mean tool which is left is taxation through inflation. Bond markets understand this!
Weak bonds mean the financing cost of the Authorities and its' debt will increase dramatically forcing them to print even more money to finance the debt.
Bond slide temporary halted by interventions of JPMorgue. [J.P. Morgan Chase is an agency of the U.S. government in manipulating the government bond market and discouraging money from leaving that market for precious metals.] Global bond rout deepens on US fiscal worries. Agreement in Washington on a fresh fiscal package has set off dramatic rise in yields of US Treasuries and bonds across the world, threatening to short-circuit any benefits of stimulus. The bond rout raises concerns that the US authorities may be losing control over events. The yield on 10-year Treasuries – the benchmark price of money worldwide and the key driver of US mortgages rates – has rocketed to 3.3pc, up 35 basis points since President Obama agreed on Monday to compromise with Senate Republicans on tax cuts.
Bottom fishing in on...buy the dips! Our technical signals for the Gold and Silver sector which we published last Wednesday are alive.

Thursday December 9, 2010 - Those Bankers are so reliable and trustworthy Madame !?...and you can built on these Treasuries...

Too early to tell when JP Morgan will become JP Morgue but eventually they will. We have still too many willing sellers of Silver and maybe the Fed and ECB have found other ways of shorting Silver. Remember that those who print the Fiat Paper money out of thin air can - as long as we don't have a Hyperinflation print exponential amounts of it. Having said this we keep listening to what our charts tell us.
GoldMoney's James Turk knows of a silver investor who for two months has been unable to induce a Swiss bank to return 20,000 of silver for which the investor long has been paying storage fees. (click on the silver for the story)
US Treasuries hit by biggest sell-off in two years. US Treasuries suffered their biggest two-day sell-off since the collapse of Lehman Brothers, following a torrid month that has seen borrowing costs for western governments soar. Germany, Japan and the US have all seen their benchmark market interest rates rise by more than a quarter in the past month while the UK’s has risen by nearly a fifth. The Bond crash we forecasted in 2009 is alive and well. It's five to twelve to get rid of these extremely dangerous investment instruments. Having said this, remember that CREDIT DEFAULT SWAPS and other DERIVATIVES are directly negatively affected...more If you think Stock markets are dangerous, better prepare for you haven't seen what a crash of the Bond markets will mean for your Savings: Bonds, Saving accounts, Bank deposits,...Greece is insolvent, Portugal has a liquidity problem, Spain has a liquidity problem, Belgium has been cooking the books for a long time, Italy has been cooking the books for a long time and the UK is totally insolvent! If you keep holding on to Bonds sold by these and/or their Bankers you will also become insolvent!
The HUI (Gold and Silver mines index) experienced a bearish engulfing pattern on its daily chart yesterday and that is leading to follow through selling today in the mining shares. Watch the support levels closely and see how the shares act as they move into this region especially if you are acquiring for the long term. The HUI has remained above the 40 and 50 day moving averages since August of this year on an end of trading session basis. Should it move down into this region again and refuse to breakdown, you will know what to do...BUY!

Wednesday December 8, 2010

We told you so: "Take physical delivery of your Gold - don't leave it with any bank, not even a Swiss bank!"

Interviewed by King World News, market analyst and scholar Jim Rickards of Omnis Inc. says he knows of a gold investor who recently had to struggle for a month with a Swiss bank to arrange return of his gold -- not a futures contract receipt but real gold that had been put on deposit at the bank. Only the gold owner's threat to restore to legal action and the news media pried the gold loose, Rickards says. He concludes that the bank didn't have the gold it should have had and that this shorting is endemic to the Western banking system. (click on Santa for the Interview)

Both US-Dollar and Euro holders should stop playing the Dollar/Euro casino. All this time, the Australian Dollar, Canadian Dollar, Swiss Franc, Japanese Yen and even the South African Rand have been performing better. Gold and Silver have done A LOT BETTER!
Selling all your gold is an act of madness at any time, and during the greatest crisis in modern history, it is “beyond madness”. Having no Gold is an act of stupidity...
Copper is "also" preparing for a major breakout. Once it does, we have a calculated objective of $ 5.25 and those using Natural Gas or Coal must also prepare for an expensive winter. [we mentioned the reversal already last August and in October we gave a distinct Buy signal] Our charts for Uranium, Agricultural commodities, Platinum bring their own story about the coming Hyperinflation.
Most Commodity markets have recovered all of their 2008 deleveraging loss. The multi-billion dollar question is: "Will the Authorities find another trick to delay the stampede of the coming Hyperinflationary depression?"
The Oil share index is about to make a Double top breakout. Don't forget to shop before it gets too expensive.
Key reversals on our charts of the Gold and Silver mines (Seniors and Juniors) indicate we could have a small correction. Use the correction to add to your positions. We'll keep our subscribers informed. We urge subscribers to study the key reversal chart for Yamana in the Gold and Silver juniors section...and ALSO to check the scenario we show on the HUI points and figure chart inside the subscription section. [A dip is something we'll probably see these coming days....]
Bankers are Best case scenario, nothing more than Car Salesmen. When talking heads of BNP Paribas pretend cash and Gold will be the worst investments for 2011, I also have a problem. This problem gets even bigger if one looks at the disastrous results their investment funds show over the past years. Unbelievable investors still listen to those guys! Do people NEVER learn? I started to advise to buy Gold in 2001 and you have not to be an Einstein to figure out how well any investor did who followed up my advises. And this includes Real Estate. For this reason it should not be difficult to understand I get upset when people ask for a TRIAL SUBSCRIPTION....knowing that 90% still hasn't got an ounce of Gold and are keeping their Fools' gold or paper and digital money with the banks and their fabricated dangerous investment articles. Apparently 2008 hasn't teached them a thing!
Before I forget, American Bonds were very weak...hopefully ALL of our readers have SOLD these dangerous investment instruments. After all we already advised to get rid of these in 2009!

Tuesday December 7, 2010 -

It's all in the price...those amongst you who subscribed years ago and started to buy Gold around $ 250 and Silver around $ 4 are in a far more comfortable position than those who are only joining us now. This are unfortunately the rules of the game. The less informed you are, the more you listen to static (Banksters and Politicians) the more you will pay for your Gold and Silver protection. But we may have come to a point where one should focus more on Gold and let Silver cool down for a while....remember too much, too fast and too high...
During the last weeks, we advised to buy the dips and/or the breakouts. Yesterday we again advised to buy the confirmed breakout of the Gold and Silver sector. A correction has to be expected some time next year...but like things look now, the longer you wait, the more you will have to pay. Try to study our site and browse through the sections of Gold and Silver and Gold and Silver Majors and Juniors...the charts will tell you what to buy and when. Most important is to know that the coming weeks and months, we expect the Gold and Silver sector to be strong. Having said this, be aware we don't advise to buy the Gold and Silver sector to make money but rather to PRESERVE YOUR SAVINGS.
The Dollar index and the Euro have bounced off its 200 day Moving Average as expected..
It will tell you more than 1000 words. As usual we refer to the charts of Gold expressed in different Fiat currencies to judge about the short term trend. See Gold expressed in Euro, in South African Rand, in Yen, in Sterling, Swiss Franc, Aussie, Canadian Dollar, Rupee and Ruble
Those amongst you who need to keep some cash/liquidities on hand don't forget the Australian Dollars. Having said this, the Aussie is a canary in the mine shaft for the US-Dollar.
And I almost forget, one barrel of Sweet Crude Oil costs about $ 90...close to the $ 100 or our 1st objective (deflation they said?). Don't forget to shop in our department of Oil shares...

Monday December 6, 2010 - There is the Invisible thief (Hyperinflation and Inflation), the Taxation thief but also direct confiscation by the Authorities.

Philip the Fair had all Templars arrested and confiscated all their belongings. He also did this after arresting the Jews so he could seize their assets to accommodate the inflated costs of modern warfare. He debased the coinage. When he also levied taxes on the French clergy of one half their annual income, he caused an uproar within the Roman Catholic Church....[this shows you how far these guys can be trusted]. His reign marks the French transition from a charismatic monarchy – which could all but collapse in an incompetent reign – to a bureaucratic kingdom. Philip the Fair wasn't fair at all...
Beating the Hyperinflationary depression is one thing, keeping your savings out of reach of the Authorities will be another. What sense does it make to invest your savings properly if over the coming months and/or years the Authorities take these away in a similar way they took them away after the 2nd WW (Operation Gutt) or like happened in Argentina some years ago and as is happening now in Hungary.
In Europe (EU) as of 2012 ALL SECURITIES must by law by DIGITALIZED or they will become worthless. Physical Gold and Silver can be stored away in an old tool box or paint container in your garage. Real Estate cannot be deflated and hidden in some stash [Napoleon taxed Homes on the number of windows they had] Bank deposits and saving accounts are digital and so are Securities (Bonds and Stocks). Or how easy it will be for the Authorities to confiscate (with the help of their best buddies The Banksters your savings. Hence one must think twice before deciding upon a bank and a location where to keep your bank deposits and Gold and Silver shares.
JPMorgan cornering the Copper market in London is for us just another indication we're heading for a Hyperinflation...and probably also for a WAR (Copper is extremely important for Warfare) ...more
Gold and Silver have initiated another short term bull run and those who have none MUST buy some as soon as possible. We have a paradigm shift and SECURITY comes before price. Having said this, in many EU countries Silver is taxed (21% VAT !) and Gold is not. Either one must buy old silver or stay with Gold coins and Gold bullion which are not taxed.

Friday December 3, 2010 -

Bond markets keep on sliding and the Bond crash we forecasted in 2009 is gaining momentum...don't forget to check the section of Bond fundamentals. We've added a scary chart. And STAY AWAY and SELL CORPORATE BONDS. Bonds issued by Banks in particular.
November 3 we indicated the reversal of Crude Oil and Oil stocks!
There is NO ECONOMIC RECOVERY on its way in Europe. We shall have no until they have solved the basic problems of taxation and regulation, the misallocated funds have been washed out of the system and the problems of the Bond markets/debt have been solved.

Thursday December 2, 2010 - The Herd makes the market and it always looses: it doesn't get in when it's time and gets in when it's too late !

In the USA we have an ongoing battle between Democrats and Republicans about the Bush Tax cuts. They pretend the future of the USA is at stake. The battle itself is pure propaganda: the authorities will take your money either way - either by taxation or by Inflation. So simple it is.
You were good enough to buy the crappy paper (Repacked Mortgage contracts) from the bankers but now they refuse to buy it back from Fanny and Freddy!? Still leaving your savings to these Banksters? Still trusting them to manage your savings and keep your deposits? Still sitting with Bank-Bonds sold to you by these guys operating out of 30 stock marble buildings? Still trusting your well dressed banker around the corner who's doing nothing more than following up instructions and who doesn't understand what's really happening? ...more
Crude Oil has broken out of a solid bottom and Oil shares are surfing out of the dips we were talking about only weeks ago. See the updated sections and shopping baskets for details. The Oil sector offers a GREAT DIVERSIFICATION for the Oil sector! Don't forget to shop in this section NOW...what is happening now is only confirm what we wrote some weeks ago....Our charts in the section of Oil shares tell a thousand words.
Our Commodity section just confirms what we write in other sections...more
The coordinated efforts of the Gold Pool II (central banksters., etc...) are CLEARLY loosing their grip on the Gold and Silver sector. Last intervention was nothing more than an ambush in mid session...and it failed. Expect Gold and Silver prices to explode the day this happens...more

Wednesday December 1, 2010 - Fresh bull run of the Gold and Silver sector - Capital rushes around fleeing political changes and taxes just as it is attracted by prosperity!

The Financial Problems WON'T GO AWAY. They will get WORSE FIRST !!!! It is five to twelve for holders of Government Bonds, Cash and Real Estate (in Europe) to ACT NOW. Many have eyes but don't see, they have ears but don't hear. They fail to understand the Paradigm shift we have and their immobility will ruin them. American, Greeks, Irish,... know better because they are actually have been living the Real Estate crash in person. Government cannot save us, and will only assist the very economic and financial disaster we face. Financial problems shift from the Private to the Public sector but in the end the chickens come back to roost as it is ALWAYS the private sector who end up paying for the bills. As politicians explain, there are no problems as long as they can use your savings to cover their deficits. (like they did in Argentina, Hungary,...). Real Estate cannot be hidden away in a safe out of reach of the Authorities. Securities (Bonds, stocks) have been digitalized and in 13 months from now (2012) ALL will have to. What a luxury for the King as one phone call with his buddy the Treasurer does to tax his people in whichever way he needs to....
"At the beginning of the 20^th century, Argentina was the seventh richest nation on earth. It's very name means "silver." "As rich as an Argentine" was a byword. Even after falling from the heights through a series of bad decisions, the country was still so wealthy that, in 1946 when new president Juan Peron first visited the central bank, he could remark that "There was so much gold you could barely walk through the corridors."
Those who live in denial about Real Estate in Europe (Spain, the UK and Ireland have/are actually experiencing it NOW) should do themselves a favor and spent the year end in Florida. Sometimes you have to see it with your own eyes and have to touch the difference like I do by traveling from continent to continent so they can clear their mind of the incorrect propaganda. Only then you will be able to answer the question why €200,000 buys so little in Northern Europe and so much in the USA and Florida. Having said this there is something terribly wrong if you buy a € 1,000,000 flat on the Belgian or Dutch coast and/or a vacation house in Southern France...
The Secular bull run of the Gold and Silver sector is actually accelerating as expected. Check our charts in the subscription section for the breakouts....We have a clear picture in the Euro section. and £-section. These sections also bring a message for the Dollar/Euro/Pound Sterling exchange rate.
Take some time to check the GLD EFT chart in our $-Gold section. A school book example of break away gaps and what happens afterwards...[Run away or break away gaps proof a market is very bullish. Important is that most of the time these GAPS are closed before the bull run is resumed]
It is extremely hard to understand why people don't understand and see what is actually happening.
The inflation in India is 8.5% ....weird that it is a lot higher than we the Authorities pretend we have in the West. Or does somebody lie? Do you still trust Louis XVI?...more
Gold and Silver majors have been updated as well as Gold and Silver Juniors...interesting!

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