Thursday February 24, 2011
Crude Oil is
doing nothing more and nothing less than it is supposed to do.
As usual the news is blown beyond dimensions by the
talking head....more The price
of sweet crude has traditionally been higher than the Oil price we are
plotting. Our Point and Figures chart are unfortunately indicating that
the price increase for Crude Oil is not over yet. Oil stocks
will encounter little resistance until they reach their 2008
Wednesday February 23, 2011
The housing crash is hitting American cities once thought to be
stable (New York Times).
Hedge funds lever up to PRE-LEHMAN prices. Better
watch out where you invest...unless off course you like to see financial
markets scare the hell out of you. something which eventually will
DEBT is the problem, not the economy....more
and the USA is technically bankrupt!
Saving on education is a suicide of society and the economy....more
Logic Mister Holmes: Because the USA has less
regulation than Europe it can and will come out of the depression before
China is using American DEBT to pressure Washington....more
$-Gold will once it breaks out of this bullish consolidation aim for
its next target or $ 1650. Those who have NO Gold
MUST start to buy some today. If they don't they are in denial and
refuse to see what is happening all around us and still trust way too
much the Authorities and the so said stable SYSTEM (which in fact is
Tuesday February 22, 2011
Most people never experienced War or a Weimar style depression.
We have come to a point where innocent American people
which have been lied to are deceived. Such a situation is extremely
dangerous...especially when countries have massive young
populations which are at an age where they are entering the work force,
forming families and in need of food, shelter and employment...and there
are NO jobs.
With deflections among army and government to the side of the
protesters, the fate of the Quadaafi and other
similar governments are as good as sealed. Interesting is that in Libya
and Egypt it becomes clear that the leaders had plans for their sons to
take over power after their death. [We already
mentioned that what we see from Morocco to Jordan is a remake of the
French revolution]. Similar conditions
occur in the USA and Europe where politicians tend to stay around for a
lifetime and where they try to ensure their sons and daughters can take
The selection of shares in our shopping basket for Oil stocks is
doing very well...more
Apart from our preferred Oil stocks (see portfolio) we do have some
stocks which are lagging and are still below our low risk levels.
Oil companies with significant oil reserves in politically secure parts
of the world could attract a premium.
Oil shock fears
as Libya erupts. The specter of full civil war in oil-rich Libya and
reports of the creation of an Islamic emirate in country's "Barqa"
region has moved the Mid-East crisis into a more dangerous phase,
setting off an explosive rise in US crude prices...more
Monday February 21, 2011 - President's day - US
financial markets are closed !
of Europe's natural gas comes from Algeria.
(click on the map for more)
Crude oil and Natural gas pipelines cross North-African
and Middle-East country side and are increasingly exposed to action of
You have to be ignorant and naive to believe that in North-Africa and
the Middle-East Democracy has won
(like the Talking Heads pretend). There is a lot more going on and this
will lead to WW III. Propaganda is a powerful weapon and believe
it or not, it is used each day to control to Herd. North Africa
from Morocco to Egypt and the Middle-East is on fire...unrest in
Wisconsin. Domino, domino, who's next?...CHINA???...more
The Euro is playing the role of Gold during the Great Depression.
Member states (Greece, Spain, Portugal) cannot
devalue their currency to adjust and stimulate their local economic
system, hence they are forced into a cycle of PRICE DEFLATION. This is
why the price of High Order Capital Goods (Real Estate) will keep
falling and the price of many Low Order Consumer Goods (energy,
food) will continue to go up.
What many don't understand is that China is a High Order Capital
Goods producer. The Chinese economy is leveraged upon
the Western World. The day the Western world collapses, the effect will
be felt even more in China.
Real Money indexes are still BEARISH...more..
the time will come 1 oz. of Gold will buy A LOT more
We have updated our long term charts (some of them also show the
performance of the index versus Gold...more
If the USA would even dream of confiscating the American gold,
it would sent the Dollar to ZERO overnight as most of the Dollars are
overseas and NOT in the USA (the Dollar is a reserve currency)..
Our shopping basket of Gold and Silver Majors has been updated...more
Our shopping basket of Gold and Silver Juniors has been updated...more
Because of its sloppy behavior we decided to exchange our full
position KINROSS for Juniors...more
Friday February 17, 2011 - Gold and Silver have
broken out !...click here for the
Education is one of the key stones of society. Defense is most of the
time the arrow which kills it. Clear
is that it earns more for the authorities to cut on education and by
doing so keep the Herd ignorant so later on it can be used as canon
meat...The coming years will proof that all those who still are
convinced Government is there for them are deadly wrong. It is
sickening to see that Large Banksters were bailed out with Tax money and
that The People are being taken away the RIGHT for EDUCATION. You
don't have to travel to Egypt or Bahrain (where the leaders declared
they had to shoot peaceful protesters for the safety of the State!?) to
see protests: they are spreading all over the USA and Western World.
We prefer the Juniors to the Seniors, to ETF's, to Futures,
Options and Turbo's .
The additional advantage
Juniors have, is that they will be taken over by the Seniors as their
own gold-ore-reserves decrease.
SO WHAT !? YES, Gold and Silver
and the Gold and Silver sector, the energy (Oil) sector will definitely
also correct when International Stock markets correct. We live a
paradigm shift and the problem is DEBT (bonds, bank deposits,..).
Authorities have NO PLAN to pay back their debt (as a matter of fact,
they never do). For this reason one has to be complete out of his mind
to stay invested in Bonds and similar debt instruments (like Bond
The real problem is
DEBT and not the Economy. As long as nobody even
makes a plan to pay back the huge debt, all will get worse. This
is a new era: the
time to SELL all DEBT INSTRUMENTS (especially Government debt) , get
out of fiat paper money and to convert your purchasing power
into REAL ASSETS: Gold & Silver, the Gold and Silver
sector, the Energy and Oil sector and world stock markets (make sure you
omit Financial stocks).
We're about to live a time of Rising interest rates, falling
volatile currencies, rising Gold and
(stop BUY), rising prices of Consumer
Goods and last but not least falling prices of High Order Capital Goods
With all the money they keep pouring into the system, there is little
room for lower markets. Having said this, any correction must be used to
convert fiat paper and DEBT into REAL ASSETS.
The outcome of the exchange rate between the
Euro and the
Dollar will be function
of whether the USA will enter an era of Hyperinflation
before or after the EU and Euro starts to fall apart.
Do check the updated PF charts of our
Thursday February 16, 2011 - Many fail to
understand that what we live is the death of Socialism -
is how Politicians get their thing done.
The new American Health care bill
requests 1,054 new IRS inspectors at a cost of $ 359 million. This adds
to TSA (airport scanning personnel), Home affairs, the
Animal Police, the Green police,.. In Europe ONE of 3
people of the work force is directly or indirectly employed by
Government. If they cannot tax for the deficit, they make debts
to pay for their employees...and who would even think a Government and a
country like the former USSR could go bankrupt!? Communist USSR
would not have done it better. A blatant example of the failing
European politics are the Restaurant and Bar servers. In Europe they
used to be TIPPED....some smart ass changed the law and now the tip is
included in the check and the server's salary. Either the waiters have
disappeared and the Patron degraded to a self serve man/woman or the
Waitress doesn't give a f...k about you waiting to order a coffee, a
beer and something to eat. After all, why would they care? If they loose
their job the unemployment support often is extremely generous.
This is how the Authorities think about your pension: A Dutch Pension
fund who in 2008 decided to invest some of its free reserves in
Gold has been ordered by the Dutch central bank and
by an executive court order to sell all of its Gold positions and
convert the result into Dutch Government bonds. In
Belgium and most other European countries it is for Pension funds,
insurance and re-insurance companies FORBIDDEN by law to invest in
physical Gold and Silver. I do remember that in the 1980's when interest
rates spiked as a consequence of Volker's policy the Belgian Minister of
Finance sent out letters to 'their customers' which were at that time
extremely reluctant to invest in Government bonds that either they had
to buy out of free will or they would be forced to.
One day closer to World War III:
Iran sends war vessels to the Mediterranean and Israel is - off course -
very unhappy (and very scared). World War II was all about COAL, STEEL,
and yes also OIL. The next World War is clearly brewing in the
Middle-East and will be about OIL. We just have to wait until somebody
or something lights the fuse.....
Shadowstats reports a 22% unemployment figure for the USA.
More than double of what Obama makes the
people believe. with such a high rate of unemployment NO recovery is
No doubt that Crude Oil,
far better investments than
Natural Gas. The
latter traditionally is laggard. The price of Brent Oil broke through
the $ 100 ...
As usual the Media won't tell you this is to happen - until it's too
late: We published this some time ago:
The day is close
where we shall see double top breakouts on most of the Point & Figures
charts below (Copper and the Reuters Commodity index already have) ...and resistance will become support.
That day will be the
OFFICIAL beginning of the hyperinflation cycle...we need some confirmation
but THESE ARE THE DAYS...At the same time the Bond Markets
continue to crash...very scary it is.
Wednesday February 16, 2011 - Will the Full
...see Gold in Swiss
franc for a definition of what we see as dips. If you have no
gold/silver and you refuse to buy some NOW, you do have a serious
A clear failure of Communism and Socialism is chasing people into
Capitalism. The Cuban government can no longer afford to pay for the
Government employees and has to fire them.
They have spent all the money of
others...To survive they are setting up small businesses. Government
allows this to happen and by legalizing this action and allowing people
to start small businesses they hope they will be able to tax them later
on. No cigar for Castro!
There is no way the Euro and the EU (a complex
society) will survive expensive energy!
The single currency is functioning so
brilliantly, its vulnerable members are sliding towards bankruptcy....more
Greece is urged to give up the Euro...more
Domino, domino...it will get a LOT worse before it gets better.
Thousands rally across Yemen.
Protests in Iran, in Algeria,...and Israel is preparing for the worst...
It will take a dramatic improvement in crop conditions this year to
avoid price spikes for staple foods which could exceed those seen in 1H
2008. Three years later, global reserves of most foods are lower and the
total population of our planet is larger.
It is not a matter about If but rather one as to WHEN the 2nd act of
the financial crisis will start. THE
head of the International Monetary Fund (IMF), Dominique Strauss-Kahn,
has called for a new economic paradigm for the world. The IMF has warned
that another financial crisis is a matter of when and not if, and has
called for better preparation for the crisis ..more
Hedge funds are piling back in the Gold and Silver sector and may
well by doing this, give it a new boost...more
The Middle-East. Nothing will ever be the same...more
Now that it becomes very hard to cook the inflation figures,
Authorities lie as they call it a "temporary" phenomenon.
We know better. Inflation is
here to stay and will get worse...more
Retail sales are offset fully by inflation: assuming
retail sales go up by 5% and the inflation is 5% the advance is ZERO.
No doubt the short term bull run of the dollar is over...especially
when you look at the charts of the Swiss Franc...more
holders of US Dollars and Euro think of buying SWISS FRANC, better do it
Tuesday February 15, 2011
During times of high inflation and
hyperinflationary inflation Interest
rates rise and the price of
always falls (even when
expressed in nominal terms) because Real Estate is leveraged (is a purchase
over 20 to 30 years) it's price is function of the availability and the
cost of Mortgages (Interest rates).[ In Argentina, if you want to buy a
property, you still have to pay cash...mortgages are inexistent. They
disappeared during the Financial and Economic crisis]...more
by Gonzalo Lira (the blog takes some time to open)
Monetization of debt explained: See the video clip...more
The American Public Debt is now
larger than the Gross Domestic Product...more
We have a short term positive
correction of the American municipal and Corporate bonds...more
$-Silver breaks and tests $ 31
positively we're in for a new bull run for Gold and Silver...more
Utilities are under construction
but already have some useful information...more
The US-Dollar is preparing for
Crude Oil is about to resume its
Still opportunities in the shopping
basket for Gold and Silver seniors...more
Monday February 14, 2011 - "It
makes no sense to work 24 hours a day if you don't invest your money
wisely and it does not make sense to invest your money wisely if you
don't keep it out of reach of Government. In both cases you will loose
what you worked for"
take command in Egypt...we now have
to wait and see whether we shall get a remake of the Turkish Ataturk
scenario or not. The Egyptian military may attempt to bring up the
threat of Islamist militancy to justify its hold on power until it can
stabilize the country. Atatürk was a military officer during World War
I. Following the defeat of the
Ottoman Empire in WWI, he led the Turkish national movement in the
Turkish War of Independence. Having established a provisional government
in Ankara, he defeated the forces sent by the Allies. His military
campaigns gained Turkey independence. Atatürk then embarked upon a
program of political, economic, and cultural reforms, seeking to
transform the former Ottoman Empire into a modern and secular
this, at a time when Algerians start to rally nothing has been finalized
in Egypt...and Tunisian refugees keep entering Italy...it ain't over
yet...it is just starting!
works until you have run out of other people's money.
The unrest we have in Egypt will spread throughout the Arab world and
blend with the discontent in Europe.
This is the result of Socialism where politicians made promises
(which they knew could not be kept) in exchange for votes. Because
Government is once more dependent from the Banks, the DEBT which has
been generated will not be addressed and the Western World is doomed.
Pensions and Social security have always been a Ponzi scheme and we can
see these breaking up as the Baby Boomers are retiring and Banks will go
bankrupt the very day Governments stop paying their debts because there
is nothing left to tax and they cannot borrow more.. Socialism and
communism (Globalism) fail because they are AGAINST the heartbeat of
society: if everything was evenly distributed, we would have no Boom and
no Bust and society would never progress. Having said this, so far NOTHING
has changed in Egypt...except from the fact that Mubarak moved out of
Cairo and the Army took over power. We have yet to see whether there
will be a new Egypt. I doubt we will !
calls for dollar alternative. Clear
is that the IMF starts to get cold feet about the US-Dollar.
Also clear is that those guys don't understand that it doesn't make
sense to replace one kind of Fiat Paper money by another one....more
countries used to have Capital controls and some still have them.
They range from disclosure to the impossibility to
transfer funds abroad. Capital controls are put in place each time
bankrupt governments seek to trap capital within its borders, maximizing
the amounts available for taxation and confiscation. South-Africa
and Morocco have restrictions, other countries like - the USA - make it
their citizens impossible to open accounts in foreign countries by
bullying the Banks (no bank wants to see its US assets frozen). When
Germans who smelled RAT decided that it was time to pack up and leave,
they imposed a "25% flight tax" on the value of all property leaving
Germany. [ I am thinking about all those which were so naive to
repatriate funds held abroad to Belgium to take advantage of the
proposed Fiscal Amnesty. How can you be so stupid?]
Netherlands, a pension fund has been ordered to sell its holdings of
Gold and to invest the funds into the safety of Dutch government
bonds....what a joke! The Dutch central bank has
found that such a large proportion of Gold is inconsistent with the
interests of the participants?!
can no longer withdraw funds out of ATM machines outside of the EU.
As usual the decision was taken for the safety of your
money and to avoid fraudulent operations.
Friday February 11, 2011 - A paradigm shift we
have - It's the Age of Aquarius !
name is Bond and I have a license to kill - your savings!
It is ironic that
after the stock market crash of 2008/09 (stocks have recovered since)
most investors cursed stocks and moved all or most of their savings
into Bonds (or cash deposits) because these are incorrectly perceived
as safe. A historic high number of savers are at this point keeping
what is left of their savings in Bonds and they are about to loose
this money. Nobody will be arrested and jailed for the largest holdup
of this century as it will be held by Authorities together with
Are there any similarities between
the EU and the USSR before it collapsed and if so which ones?
There are plenty of disquieting
evolutions going on in Europe today: the riots in the PIIGS countries,
the appearingly permanent crisis in the banking world ....more
The expectations of the Herd about
Inflation and Deflation are INCORRECT:
false signals are sent to the entrepreneurs!...more
See our fresh fundamental
information about URANIUM...more
The Age of Aquarius or and the
situation in Egypt is just unacceptable. Such is the
bare opposite of the mockery which is called Democracy. The Media don't
seem to understand the fundamentals behind the Egyptian freedom
movement. Similar protest in other Middle and North East countries don't
really hit the front pages : Jordan, Syria, Libya, Algeria and even
Saudi Arabia...The remake of the French revolution will be complete once
the army takes the side of the people. The remake of the
French-Egyptian revolution will be complete once the army openly takes
the side of the people like happened in Turkey years ago...more
Thursday February 10, 2011
Politicians should keep their hands off the economy.
Give them a healthy company and within 5 years it is
bankrupt. Obama wants to invest $ 53 bn into high speed trains at a time
where Amtrak is almost bankrupt. What's worse is that the maximum
allowed speeds of the high speed trains will be limited to 39 mph. Clear
is that the politicians are not educated and have NOT the proper
capacities to do what they are doing....
Luke warm BULLISH
[nominal] MARKETS WE HAVE !...but don't built on them...they will have A LOT of
HEAD WIND...will suffer from rising interest rates and deteriorating economic
conditions. Bernanke (QE II) and Trichet however are
really trying to pump up the stock market to regain consumer confidence.
When consumers see their 401ks and private pension plans doing better,
they feel wealthier and spend more. This spending translates into
earnings. And higher earnings will prompt the companies to expand. As a
result, unemployment is reduced. At least this is what they hope will
happen...more . Not amazing that
the German DAX index
is one of the best performers followed by the Austrian ATX.
have gained somewhat over the past weeks but still don't look very
Wikileaks cables: Saudi Arabia cannot pump enough
crude oil to
keep a lid on prices US diplomat convinced by
Saudi expert that reserves of world's biggest oil exporter have been
overstated by nearly 40%.
(We published more than a year ago what Wikileaks is publishing now:
Shares are in a secular bull trend and
oil shares (fully integrated, drillers and
service) must be added to your
positions when prices correct. Remember that corrections during a
Bull Market are SWIFT and VIOLENT!
Authorities can with the help of the Banksters and Derivatives create a
temporary abnormal spread between Brent en Crude oil:
the price of one is used for the calculation of the
Inflation rate. The price of the other one NOT.
Wednesday February 9, 2011 - Logic that most
people who don't belief in Gold, silver and oil won't even trouble
themselves and read this newsletter. They will buy from you when we
decide to sell!
the wave and enjoy...don't even look back to the Herd which continues to
live in disbelief....there is not a lot we can
add to what the financial markets are doing right now!
Propaganda is all over the World. Most people
are unable to understand what is happening in North-Africa, the
Middle-East and Egypt in particular because they see it
through the tainted glasses of the Media. But these parts of the world
have been a powder keg for years now...waiting for something or somebody
to light the fuse.
can the Herd be so stupid that it keeps believing in the Cooked
price-inflation figures that authorities publish in the Western world?
Do yourself a
favor and compare today's prices with those of 10 years ago...
raised interest rates again (to cool off inflation) and Gold and
Silver like higher
interest rates. They always have and they always
go up together with interest rates (up to a certain point).
JPMorgan Chase & Co. will accept
Gold as collateral for trading.
Crash of the Bond markets
goes on. Interesting is that somebody is buying up US Municipal bonds in
a desperate effort to stop the slide...more
and...not only Government Bonds (Treasuries, Gilts)
are breaking down.
forget to check the new
Our charts don't need a lot of comment.
We have also updated the charts of
Gold in British Pound,
Gold in SA Rand,
Gold in Yen,
Gold in Swiss franc,
Gold in Aussie
Canadian Dollar ( I
don't buy the Propaganda story that the CanDollar and the US-dollar
would merge), Gold in
South African Rand
(see our investment table)
may have given a WRONG signal.
It so, this ain't the 1st time this happens. This
is why it is always important to wait for a technical confirmation
before making your final decision.
Tuesday February 8, 2011
are at this time two cartels operating on the financial markets.
One is the
Gold Cartel which intervenes daily around the
close of London and opening in New York by punching down the spot price
by $ 10. The Oil cartel does exactly the opposite: this one
tries to push the Oil price up.
Monday February 7, 2011 -
urged to give up euro. THE Greek
government has been advised by British economists to leave the euro and
default on its €300 billion (£255 billion) debt to save its economy. The
Centre for Economics and Business Research (CEBR), a London-based
consultancy, has warned Greek ministers they will be unable to escape
their debt trap without devaluing their own currency to boost exports.
The only way this can happen is if Greece returns to its own currency.
Greek politicians have played down the prospect of abandoning the euro,
which could lead to the break-up of the single currency....more.
Crude Oil does exactly what we have told it would do and Oil
stocks shine. Even BP does. Those amongst you
who bought when we told to, have a solid profit by now...and will
receive a dividend.
Spectacular moves of some stocks we selected and you can find in
the shopping area for
Oils, fully integrated, service and drillers.
Baker Hughes moves up from $ 60 to $ 67,50, Marathon Oil from $36 to
What happens in Egypt is a perfect excuse for
engage in a new bull run towards new price records expressed in ALL fiat
currencies. Having said this, be aware that what
we live now is A LOT MORE than just an economic and financial crisis. It
is also a crisis of society and better prepare for a major shift in how
countries and people will be governed in the future. The Magna
Charta was the end of Absolutism. The 2010 hyperinflationary depression
will be the end of the political system like it exists today.
NOBODY mentions it, but what we see in Egypt could be the
beginning of World War III.
We found all the ingredients: an
economic recession, thousands of unemployed and poor youngsters,
religion extremes and Israel,....There are problems from Morocco,
to Algeria, Libya (best kept secret), Egypt, Jordan, Yemen, Afghanistan,
Pakistan.... The very seeds for World War III have been put in place by
the British after World War II in Israel.
Friday February 4, 2011
prices are bracing for liftoff…
Two dogs fight over a bone but a third one eats it. Americans
have tried to reign in Africa by dividing.
Because of the subsequent unrest, the colonial rulers were as a rule
kicked out. The bet Americans made didn't realize....they never
understood the situation in Africa. A good example was that black
diplomats were not accepted by African blacks because they were seen as
descendants of slaves. Chinese filled the vacuum and replaced the
colonial rulers. They have been building bridges and roads for decennia
Food commodities have gone up by 266% since 2002...more
We told you
the politicians would blame anybody but themselves for the expensive price
of food and other commodities. French President Nicolas
Sarkozy said in Davos last week that speculation was driving up
food prices. World food costs rose to a record in December on higher costs
for sugar, grain and oilseeds, according to a United Nations report
earlier this month, contributing to the uprising that ousted Tunisia's
Zine El Abidine Ben Ali on Jan. 14. Protests have spread to Egypt,
Algeria, Morocco and Yemen. [you have to be very
naive and even stupid to believe what Sarkozy tries to sell]
better...Expensive food and the rising price of commodities is a direct
consequence of monetary inflation or the debasing of the fiat paper money
by politicians and central banks.
...ever heard of fractional
reserve banking and its consequences!?
Jokes of the
week: (are these really jokes?)
- If I resign now, there will be chaos in Egypt.
- The current surge in food and commodity prices is
temporary and there is no need for a monetary
squeeze (increase of interest rates).
- The recovery should gain speed this year, but
continued support from the Fed is needed amid high
unemployment and low inflation, shrugging off higher commodity
prices. Ben Bernanke....more
- The opposition and
most citizens favor the lifting of the state of emergency and curfew
set by Algeria
in 1991. President Abdelaziz...more
our Gold and Silver sections for the last and updated charts.
February 3, 2011
Gore says snow doesn't disprove global warming!? If
you have enough arrogance and you keep saying it, many people will keep
believing your lies even if this kills them.
this out: Mubarac has sucked Egypt to death for 30 years and yet he
still has supporters!?
The Herd is stupid and brainless and part of the answer as to why
democracies don't work. The situation in Egypt is becoming increasingly
precarious and the King of Jordan has dismissed its government in
the hope the violence won't spread to his kingdom. In Yemen the
President Ali Saleh vows not to seek extension and to pass on the reins
to his son. The French revolution stopped the succession of
the King's power from King to son. This revolution will stop the
succession of the president's (politician) power from father to son and
make Kings and Queens disappear all together.
ironical: World leaders denounce violence in Egypt :
something they created themselves!
Rising food prices have helped bring about the
political upheaval currently underway in Egypt, and the
rising cost of food has been an effect of monetary inflation
deliberately caused by Egypt's policy-makers.
Egypt’s financial situation has turned from
bad to worse as the Egyptian pound has fallen 6% in the last three
months. Furthermore, Egypt’s EGX 30 stock index plunged 16%, and bond
yields have surged to 11.63%.
controls don't work. They never have and never will.
The fact that European Authorities even dare to tackle this is proof
they simply don't know what they are talking about, have not the
slightest notion about economics and have nothing other in mind than to
appeal to the emotion of the Herd.
Silver continue to consolidate (building a coil).
the Real estate crisis has moved from residential to Commercial.
Store closures leave empty premises in shopping malls.
Before there were waiting lists; now more businesses are
closing down in the biggest shopping centers, unable to pay the high
rent. In the past it was extremely difficult to buy a commercial
property. One could only rent. Today people don't even want to buy.
Wednesday February 2, 2011
name is Bond and I
have a license to kill (savings)! - click on the
thumbnail to enlarge -.Today the bonds magically levitated off their
worst levels turning what was a full point plus move lower into a modest
loss for the day. The Fed’s dealers are alive and well.
program has let down people at a time when they need it most.
At a time when they were about to retire they have to
return to the work force filling the ranks of the unemployed. The scary
part is that the Real Estate continues to come down, the stock market
could get another hit and the Bond market could take away whatever there
is left. Having said this, the Central banks are to blame for
this for they kept creating fiat paper money out of thin air and they
manipulated interest rates down to unrealistic levels. Because the Herd
fails to understand how the system work, people like Greenspan, Bernanke
and Trichet will walk away from this blood bath unharmed.
World Stock markets have since their
bottom of 2009 been bullish in nominal terms only. It
took a lot of energy to make these fly again. Our fear is that if the
wings melt because of interest rates heating up the Gold and Silver
sector could suffer again (but so far nothing is sure). Having said
this, it is better to keep your savings in Stocks than it is to keep
them in Bonds and Bank deposits.
is still playing in the
Oil sector and
offer a good alternate to Gold and Silver stocks and help
to put your portfolio in equilibrium...Gold
Silver Juniors will probably perform better than the Majors.
We more and more expect the Seniors to take over the juniors as their
gold reserves are dwindling.
Euro and the Dollar keep doing what we
about the real value of Gold, one has to check the chart of
Gold expressed in Yen.
and the chart of Gold
expressed in Swiss franc. Amazing is Gold exactly nailed the
bottom on our PF chart of
Gold in CanDollar.
Tuesday February 1, 2011
While the biggest threat to the Middle East
region is the possibility that the population of Saudi Arabia
may try to imitate what has been happening in the area, thereby
bringing total chaos to the established regional geopolitical and more
importantly, energy, structure, the first protests in the Saudi Arabia
city of Jeddah are already in the books. The Middle-East is a
POWDER KEG and the fuse has been burning for a long time....hard to
tell when it will explode. But when it does, the price of
gas will go through the roof.
Social unrest in Morocco. Algeria, Libya, Yemen and
other Muslim states are either being censored or put in the shade of
the Egyptian revolt.
Silver were steady and gave the Talking heads not
the opportunity to use the happenings in the Middle-East as an excuse.
99 % of
daily silver futures trading has nothing to do with the physical
market. Such makes the silver market extremely
volatile and dangerous. If you don't ask physical delivery, don't buy
Silver (or Gold) because such doesn't make any sense. Having
said this, at this point we expect GOLD to do better than Silver.
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