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Archives for January 2011

Monday January 31, 2011:

  • Banksters they are and the nasty role they played and still are playing in this depression will not go unnoticed by the history books: fractional reserve banking, uncontrolled bank manufactured financial products, the repeal of the Glass–Steagall Act of 1933 under President Clinton, ....JP Morgan head Jamie Dimon gets public smack down from French President Nicolas Sarkozy. Nicolas Sarkozy told the Manhattan moneyman that bankers made moves that "defied common sense" and harmed millions of people around the world....more

  • If we may believe the updated Juniors, the correction of the Gold and Silver sector may be coming to an end. Many candle charts show reversal patterns (only visible on the short term candle charts) It's virtually impossible to time in- and out trades during an ongoing primary bull market. Usually what happens is that the trader has moved out of the market just as the bull trend resumes.

  • Months ago we wrote that Juniors will offer better profits than uncontrolled and unregulated bank manufactured products: .Options, Turbo's, Futures, etc...

  • Has the price of Coffee and Sugar gone up more than the price of Gold and Silver? Click here to check out our new commodity charts...if you think for a second that  Gold and Silver can come down with these charts, you're absolutely wrong!.

  • Once debt is monetized, hyperinflation starts: The U.S. national debt of $14.1 trillion is at an unsustainable level, at more than $170,000 per each of the over 81.6 million U.S. families. The U.S. Treasury, however, reports debt on a cash basis so it does not take into account unfunded obligations for entitlement programs such as Social Security, Medicare and Medicaid. According to Shadowstats.com, the total debt on a GAAP basis from 2002 to 2009 was on average 6.4x greater than the debt on a cash basis. Applying this same methodology equates to total national debt of close to $1.1 million per U.S. family today. To make matters worse, in 2009 nearly half of American households paid no federal income tax; so with only half of households paying taxes, the national debt burden on a GAAP basis could be over $2.0 million per tax-paying family. This is clearly unsustainable and likely past the point of no return.

Saturday January 29, 2011 - latest Money supply chart - see how the line starts to curb upwards!

  • Inflation is a more than proportionate growth in money supply. It already is ALL over the Western World...Price inflation is a consequence of this growth in money supply AND lags. Today money printing is called TARP1, TARP2, Quantitative Easing 1, Quantitative Easing 2, Bailout 1, Bailout 2, Central banks buying Government bonds like there is no tomorrow.....Bernanke said he wants to generate some inflation but with these amounts of printed money he'll get a lot more than what would make him happy. With $ 110 billion the US is printing each month, they will get a lot more than what they ask for.

  • Bullish Key reversals for Crude Oil, Gold and Silver seniors, Gold and Silver juniors , Gold and Silver.

Friday January 28, 2011 -

  • Standard & Poor's downgrades Japan's Sovereign debt.  We told you Japan would rot to the core! The yen is nothing more than an instrument to park Fiat Money for a short period of time. Japan is approaching a debt to GDP ratio of nearly 200% or Japanese authorities are spending ¥ 2 for ¥ 1 of economic activity. The recognition that Japan is in deep trouble is critical as well as the fact that there is NO PLACE to hide except for Gold and Silver. [compare this to the debt of other countries]

  • Gold's open interest numbers for 25 January collapsed by 82,000 contracts: a 14.02% reduction from the day before. THAT'S HUGE! Such can be the result of a closing of some straddle/hedging positions but this is certainly not negative for the Gold market. Add to this the huge liquidation of Gold ETF's and the actual correction and we start to have a solid base for a new bull run.

  • The Authorities are there to help you!? Since the government took over Fannie Mae and Freddie Mac, taxpayers have spent more than $160 million defending the mortgage finance companies and their former top executives in civil lawsuits accusing them of fraud. The cost was a closely guarded secret until last week, when the companies and their regulator produced an accounting at the request of Congress. (sickening it is). With the Quantitative Easing program the US is buying $ 110 billion per month of US Treasury paper...but these injections fail to reach the consumers.

  • The result of all this new money creation is a Commodity index which has broken all previous historic records. As the authorities keep creating money and increase debt in a vain effort to kick start the economy they will land themselves into hyperinflation in no time.

  • The section of World Indexes has been updated....click here

Thursday January 27, 2011 - Tunisia seeks arrest of ex-leader - ( Ben Ali won't be the last one which will have to flee) and Egypt is in a state of revolt. Authorities are unable to quell to protest and don't know how to reach (off course they don't, they are a bunch of idiots living in Ivory towers and they haven't seen coming what we have been talking months ago)

  • What we now see all over the world, financially and politically is a prelude to what will come after the Hyperinflationary depression climaxes: a new World War. Have you all forgotten your History classes? Tainted as they are, they still provide some objective lessons. History also teaches Gold and Silver always comes in handy during Wars.

  • The orchestra keeps playing in the Oil section. Occidental petroleum is (successfully)  testing its a breakout level. Be aware that even though Oil stocks are often quoted in Dollar, these are 99% of the time NOT depending from a weak or strong Dollar. By buying an Oil share, you at the same time move OUT of the DOLLAR. The charts of Total Oil expressed in Euro is a good example if you compare it with the chart of Total Oil in Dollars.

  • Ever since we advised to buy Gold (and Silver), this investment instrument which doesn't yield, is seen as Barbaric and useless has gone up by almost 20% per year....and the game isn't over until the Fat lady sings! What we see now however are the DIPS we are talking about and this could well be the last time this year you could be able to buy Gold and Silver so cheaply.. Having said this we have further indications a bottom could be near and it seems the ABC correction could be over. [check the short term candle of HUI in the Gold and Silver shares section]

Wednesday January 26, 2011 - There is NO food for the Algerian children - and there are 25 more countries where similar problems can unfold soon....more

  • Natural Gas is a bomb waiting to explode. As usual the danger sits in a corner nobody expects or talks about: Algeria where the unemployment is around 25%. The global Algerian situation can be compared to the situation in Tunisia...and it will at a certain time also explode. Algeria already supplies 20% of Europe’s natural gas and more than 30% of the EU’s LNG imports

    Algeria is an OPEC member and the ninth largest crude oil producer in the world. More importantly for this conversation, Algeria is the world’s sixth largest natural gas producer, pumping out just over 3 trillion cubic feet (Tcf) of natural gas in 2008. At the beginning of 2010, the country’s proven natural gas reserves stood at 159 Tcf, the tenth largest in the world, and notably, Algeria exports some 3.6 billion cubic feet (Bcf) of natural gas each day to Europe. On top of the natural gas flowing to Europe through pipes, Algeria has become a key supplier of liquefied natural gas, or LNG. In 2008, Algeria exported 711 Bcf of LNG, and 90% of it went to Europe. And along with high unemployment, high food prices, and little freedom, Algeria’s citizens are justifiably angry that their country’s resource wealth is not making things better for the average person. If Algeria’s rioters return, spurred on by their Tunisian neighbors or by their own government’s inadequacy, and overthrow Mr. Bouteflika in favor of an anti-European government, gas prices could take a serious jump...more

  • Be aware that QE 3 = Hyperinflation...and once this monster is released, there is NO WAY back until the Apocalypse and it will be too late to buy Gold and Silver.

  • According to where we are right now in the Gold/Silver cycle the correction will be the prelude to a run for the top of the trend channel... At this time, Put positions should be closed in time as the Bull will come back with a revenge.

  • Very hard to understand some people still don't understand Gold has no alternate but to go up. Especially when Central banks in China and Russia keep buying important quantities. Dips MUST be used to add to your positions, not to panic or to trade and hope to get back in at lower levels. The same applies to Silver!

MOSCOW (Dow Jones)–The Central Bank of Russia plans to buy from domestic banks 100 metric tons of gold a year in order to replenish the country’s gold reserves, Deputy Head of the bank Georgy Luntovsky said Monday, according to the bank’s press service.
In 2010 Russia’s gold reserve increased 23.9% to 790 tons, or 25.4 million Troy ounces


  • Science has many surprises. This is one:

Andrea Rossi and Sergio Focardi of the University of Bologna announced that they developed a cold fusion device capable of producing 12,400 W of heat power with an input of just 400 W. Last Friday, the scientists held a private invitation press conference in Bologna, attended by about 50 people, where they demonstrated what they claim is a nickel-hydrogen fusion reactor. Further, the scientists say that the reactor is well beyond the research phase; they plan to start shipping commercial devices within the next three months and start mass production by the end of 2011.

Rossi and Focardi say that, when the atomic nuclei of nickel and hydrogen are fused in their reactor, the reaction produces copper and a large amount of energy. The reactor uses less than 1 gram of hydrogen and starts with about 1,000 W of electricity, which is reduced to 400 W after a few minutes. Every minute, the reaction can convert 292 grams of 20°C water into dry steam at about 101°C. Since raising the temperature of water by 80°C and converting it to steam requires about 12,400 W of power, the experiment provides a power gain of 12,400/400 = 31. As for costs, the scientists estimate that electricity can be generated at a cost of less than 1 cent/kWh, which is significantly less than coal or natural gas plants.


  • Interest rates will continue to raise and Bonds and Real Estate will continue to crash. Last week it was Brazil, this week India and next week, or the week after, China. Interest rates are continuing to rise in the developing world. The Reserve Bank of India increased by a quarter point.

  • World equity markets are still in a bullish nominal constellation. In most cases the objective has not been reached yet. Results are due for some 127 companies. By the end of the week over 40 percent of the S&P 500 will have reported. As always, the tide of market sentiment will ebb and flow with the profile attached to the companies reporting on the day but thus far the results have been good. Some 70 per cent have been better than expected.

  • Even in South Africa the Real Estate bubble keeps deflating. A living example for all those in countries like Belgium, the Netherlands and France where the Real Estate cycle is somewhat lagging and the worst has yet to come...more

Tuesday January 25, 2011 - Gold is about to form a meaningful low  around $ 1300 ($ 1320 to $ 1280)!...but we have an extremely dangerous market constellation. In other words, it is dangerous to sell the Gold and Silver sector today in the hope of getting aboard at lower levels.....

  • We have decided about a new setup for our charts. Additionally to the Point and Figure charts (which are the main charts) we are adding a short term and a long term candle chart. The PF charts are displayed in full size. The candle charts as thumbnails (click on them to enlarge).

Point and figure charts don't have a time (horizontal axis). The years are indicated below and the month in the charts (1 to 9 for the months January to September and A,B,C for the months October to December). We use 3 point reversals. A cross (figure) becomes a point (o) if at LEAST three symbols can be plotted. This eliminates a lot of STATIC.

  • Our support level for Dollar-Gold - $ 1360-$1350 did not hold. This means the correction is not over yet. Next support levels are $ 1320 and $ 1260. Our Point and Figures charts are the indicated way to try to define the bottom of this swift correction. The bottom for Gold and Silver will be different for each Fiat Currency. DO CHECK THEM ALL FOR A CORRECT VIEW.  Expressed in Dollars our PF chart indicates a worst case scenario bottom of $ 1290. Puzzling however is that Gold in so many PF charts has already landed on the bottom trendline of the Secular rising channel and/or on the 200 day Moving Average. Because of the fundamentals but also technicals one may NOT risk to SELL the Gold and Silver sector NOW....what IF ! The correct way to handle this correction is to use it to either INITIATE and/or to ADD to your existing positions.

  • Expressed in Swiss Franc, Gold has landed right on the BOTTOM of the uptrend channel is a rather panicking way - (weird)...more

  • Expressed in Australian Dollar, Gold can come down by a maximum of 10%...more

  • The US-Dollar-index is doing exactly what we forecasted...more and does the EURO. Weird is that the Dollar and Gold/silver are coming down together.

  • Crude oil remains in a bullish mode...more AND so do OIL SHARES Remember we wrote that this is where the music is playing at this time.

  • Gold and Silver  bullion may correct somewhat but such doesn't necessarily apply to Gold-Silver shares  - Majors and Juniors. Don't start to rush out.....again, it's a tricky market. Barrick (ABX) has excellent charts which allow you to gauge the market. Check on these before you even consider to sell. The candle chart for Newmont is an excellent example of what's going on right now: see the huge volume!!!

Friday January 21, 2011 - What happened today on the Gold and Silver market made me think of following:

  • Hedge fund managers are social animals, just like most other active investors. They belong to the same clubs, go to the same dinners and conferences, share the same brokers and research services, and view the same reports and price charts. There is nothing new about the pack mentality which has been around for a lot longer than hedge funds. It is normal. However hunting in packs, in an attempt to muscle a market, which hedge funds and other large speculators occasionally do, is obviously predatory. Having said this, you must understand the price goes up or down because of the MARGINAL QUANTITY which is traded on a given day.

  • Major crashes by principle never make the headlines in the media several months in advance; and why Gold is cheap as chips and will go up a lot more...more

  • Brace for "a perfect storm" in Gold. John Maynard Keyes was an employee of the British crown (to say it in a polite way) and was completely wrong when he pretended  the dollar and Treasury bonds were “risk-free” assets and gold a “barbarous relic,” History proofs clearly the opposite...more

  • El Niña and why volcanic eruptions have a much larger impact on food prices than most people realize...more

  • China and High Order Capital Goods. Read this before you emigrate to China. High order capital good (HOCG) producers always suffer more than Low order consumer goods (LOCG ) producers. Because of decreasing exports to the USA and Europe, Chinese unemployment is rising dramatically and many return to the countryside to work on the farms...more

  • 30 'leading edge' indicators of the coming Great Depression 2...more

  • Bonds were absolutely crushed today falling nearly two full points again in yet again a repeat of the pattern that we have now been spectator to for the last month.

  • What is amazing is that one can lay a chart of $-gold over the chart of the Dollar and the two markets have had nearly identical chart patterns since November of last year. This correlation will as usual stop existing some day in the future for the same unknown reason as it started.

  • Don't forget to check the charts of the HUI index and RANDGOLD. (Randgold can be compared to BP - remember the saga?)..click here

  • Those uncomfortable with the price action of Gold and Silver MUST visit our Commodity section. It will take them only so long to be healed.

Thursday January 20, 2011 - Updated chart for €-Gold - click here (we have updated all our PF charts for Gold and Silver - WATCH for the 200 day Moving Averages: we're very close to important support and reversal levels)

  • Very important confirmation of the weekly key reversal of the Dollar Index and the Euro. Today's breakdown of the Dollar Index confirms last week's bearish key reversal (see below) and the Euro's bullish week key reversal. The Bar chart in the subscribers' section is important not only because of the Bearish HS formation but also because of the next technical objective.

  • The weak Dollar will have a direct impact on the Gold and Silver sector and the American (and World) stock markets. The odds to see a correction of the World stock markets are increasing as the Dollar weakens and interest rates rise.

Wednesday January 19, 2011 -  Many youngsters don't even know what a Bubble looks like -

  • There is NO such a thing as a Gold Bubble and we're not about to enter an era of Deflation. Deflation ALWAYS comes after Hyperinflation not before. EACH and EVERY time we have a consolidation/correction of Gold somebody comes up with this kind of idiocies! Gold will continue to climb its wall of worry and go to $ 2000 and higher and there is not the slightest doubt about this. It is incorrect to make fun of people who don't get it...but this time, I could not refrain myself. 1. The argument of the industrial use of Gold is absolutely meaningless. 2. Because of its intrinsic value Gold will never have a dividend yield 3. Because of its intrinsic value Gold will never have an earnings yield 4. If the USA would sell its gold to pay for its debt, the price of Gold would skyrocket into the 10thousands, 5. The more money the FED and the ECB prints, the more Gold will go up (the Fed and the ECB are digging their own grave) 6. What Soros and Paulson do has only a marginal impact on the price of Gold 7. The production of Gold is rising marginally and even if the World's gold reserve would double, it would only marginally impact the price of Gold 8. Gold sentiment is not at all at a bullish high...most people have no Gold 9. ETF's don't show any Top formation 10. What Buffet thinks is not important 11. Gold is the absolute barbaric money and those who don't understand this, need to remake their home work ...more

  • The charts of our Juniors have been updated and they don't tell us Gold is in a bubble either, on the contrary! Denison mines is a Uranium mine and a Strong Buy; High River Gold is a breakout, Axmin is a break out, ...more

  • There is some good news for the energy sector. The bad news however is that we must be very patient and that in the mean time the price of Oil  (and Oil stocks) will continue to go up...more  DON'T MISS THIS OPPORTUNITY!  Marathon oil has reached our objective...in a rather spectacular way. Don't forget the drillers....

Tuesday January 18, 2011 - Bottom fishing: Which way Gold and Silver ??? UP IT WILL BE !

  • Bearish sentiment on Gold and Silver and Gold and Silver mines is growing each day. The more Bearish Sentiment the smaller the odds to see a further correction. Be aware technicals indicate a further correction is plausible and can last until late spring. 2010 was extra-ordinary and markets may have to cool down.  We warned our readers for this last week. However I am not sure at all we actually shall see a decent correction. The price Gold and Silver expressed in certain Fiat paper currencies has broken through the top of the uptrend channel and resistance is now support. Expressed in other fiat currencies (Euro, CanDollar, Sterling, SA-Rand, Yen, Swiss, Aussie, Rupee, Ruble    ) the price of Gold and Silver sit in the bottom of the uptrend channel. Having said this, those amongst you which want to book a fiat paper profit in the hope to buy positions back in at a lower price (such will only be possible if we do see some correction and not an price acceleration) MUST make sure they ONLY exchange their holdings for the currencies in our investment table: Aussie, CanDollar, Swiss, and SA-Rand.

  • A good indicator for the Gold and Silver sector is the HUI index which has broken out of a 27 year bullish formation and has a support of 500. Most Gold and Silver stocks have eased back into the BOTTOM of their uptrend channel and are OVERSOLD!. Add to this a too much, too fast and too deep we had the last days....a potential bottom! IMPORTANT is to check all our updated charts in the Gold and Silver section...a picture tells a 1000 words. Juniors will be updated tomorrow....

  • We have rising interest rates and overbought World stock markets….a correction is due.  The Gold and Silver sector traditionally and historically is immune for higher interest rates but it always is possible to see a correction as general stock markets retreat. Such must be used to add to your positions.

  • How to manufacture a hyperinflationary depression: (recipe by Trichet and Bernanke)

Because of the Euro the EU countries which can no more devaluate their own currency (Peseta, lira, Belgian franc, French franc,…) are now ordered to engage in “internal devaluation”. Greece, Ireland, Spain, Portugal but also other EU countries running into problems are told to reduce wages, costs, government expenditures and budget deficits.[ Reducing Budget deficits is at this time already a problem since Government income (taxes) are already  falling and outlays are rising because of the Recession and Aging population].

The more successful each country is at reducing wages and costs, the heavier becomes the inherited debt load.  As a result Public Spending then has to be cut even more deeply. Taxes have to rise even higher to service the debt of the government. As a result of higher taxation, more capital flees the country and unemployment keeps rising.  The economies now get in even bigger problems and the Authorities have to bail out even more financial institutions and start even bigger incentive programs (trying to stimulate the consumption)….

The problem of a Manufacturing machine which has fled abroad and East cannot be solved by creating more government jobs, or by granting free money to the consumers.

More Fiat/digital money has to be printed as more and more inflation is generated and the effect of each injection diminishes…until we have the Apocalypse of Hyperinflation. At this point the Herd looses all confidence in the System, Banks collapse and the depression climaxes. People who have been promised a lifetime job will all of a sudden find themselves back on the street with no job and no social security.

During this process either governments succeed each other rapidly, either there is some kind of dictatorship (Tunisia)

note: US states and municipalities cannot print money, and so have no choice but to cut spending, raise taxes, or renegotiate the debt. Ultimately we expect a combination of all three. The uncertainty of this outcome has driven down municipal bond prices and is comparable to the European sovereign bond crisis.

Monday January 17, 2011 - last week saw a "weekly key reversal" for the Dollar and the Euro -


potentially bearish $

potentially bullish €


  • Short, medium and Long term preservation of Wealth. Technical Analysis has its limits. Technical signals not always work. Sometimes they don't work at all and sometimes the price formation lags. Short term it is by principle always harder to nail it correctly than medium and long term. Having said this, Technical Analysis must ALWAYS be projected on the wall of fundamental analysis. Point and Figures charts are (this is my experience) A LOT more reliable than Candle charts. Important is that one must  at all times look at the GLOBAL picture before making any long term decision. A Global picture is usually given by a larger number of Point and Figures charts.

  • Nero burned down Rome so he could built a new Palace and he blamed the people for it. We have no doubt that Gold and Silver and the Gold and Silver sector (major and juniors) will end up 'a lot higher' by the end of 2011. Between today and December 31, 2011 we can and we will see some fluctuations. One may never forget that we do have Banks, Central Banks, Plunge protection Teams , Gold Pools and Politicians (Authorities) which only have ONE GOAL: to stay in power as long as possible using all the instruments which are available. They will do all they can to keep the people BELIEVING in worthless fiat money.

  • Democracy is a contradiction.  Most of the time the Herd makes out just over half of the population; 51% is a good number. A smaller fraction understands what is happening but because they have no majority they cannot counter what 1% of the Authorities decide.

  • Most people act as a Herd and don't BELIEVE something will happen until it is happening. They don't even TRY to understand what is happening and/or can happen. As long as there is food and games which keep them busy they will do whatever the Talking Heads instruct them to do. Before and during WW II about 3 millions of Jews were deported and sent to extermination camps. None of them actually realized they would be killed upon arrival in the camps. Few were clever enough to see through the smoke curtains of the Authorities and left...Today is not different. All those staying with fiat money will loose it all: fortunes will be made and fortunes will be lost. Tunisia will not remain an isolated event.

  • This applies to any US and/or EU citizen:

For an EU citizen, opening up and account in a bank OUTSIDE of the EU zone will put you well ahead of the game. There are still NO restrictions upon opening a Bank account in any non EU- country...as long as you pay the taxes correctly.

For a U.S. citizen, if you did nothing more than opened up a Canadian bank and brokerage account, you’d be well ahead of the game. While Canada has its own share of problems, the banking system there is in far better shape than here, and as a “foreigner” you are far less susceptible to government intrusions into your affairs.

Saturday January 15, 2011- Due to currency fluctuations it is possible to see a correction for Gold expressed in Dollar while Gold expressed in Euro continues to rise...and vice versa.


Bottom line are $ 1360 , € 1030 and a HUI index of 500 for the Gold and Silver sector. [Different support levels exist for Gold expressed in other fiat currencies]. The more the Gold and Silver sector becomes oversold over the coming days and/or weeks while these Support levels hold, the smaller the odds for a correction which could take us to $ 1260. Having said this, the larger the actual consolidation/accumulation zone, the more the Gold and Silver sector will geyser once we have a break out ($ 1430).

China, contract prices at the Shanghai Gold Exchange (SGE) ended Wednesday’s session unchanged at the equivalent of $45 per gram – some 1.8% above London benchmark quotes and equal to a premium of more than $23 per ounce.

  • Uh...no inflation...!? All is well Madame la Marquise - People can only be fooled for so long...the day the Herd wakes up because it is hungry, political leaders always have to run for their lives...

  • Tunisian Prime Minister Mohamed Ghannouchi has taken over the country's interim presidency amid reports President Zine al-Abidine Ben Ali has left Tunisia in the wake of mounting unrest...more

  • Remember the French revolution: Egalité, fraternité, liberté !? Those days saw poor harvests and an economic depression. When people were complaining to the King and Queen (Louis XVI)  there was no bread to feed their children, Marie-Antoinette replied that they had to eat Cake instead.

  • Jordanians march against inflation . Thousands vent anger in Amman and other cities against government's inability to rein in prices and poverty. Thousands of Jordanians have taken to the streets of the capital Amman and other cities to protest against rising commodity prices, unemployment and poverty...more

  • Inflation picks up at UK factories. The costs of raw materials at British factories rose at the fastest rate in eight months in December, posing a headache for policymakers tasked with keeping inflation under control...more

  • Energy Pushes U.S. Prices Higher  Core inflation remained subdued in December, though overall prices moved up on more expensive oil, while U.S. industrial production posted solid gains.

  • Euro-Zone Inflation at 2-Year High The euro zone's annual rate of inflation rose above the European Central Bank's medium-term target for the first time in more than two years in December. Core inflation and even the Health index are rising...

Friday January 14, 2011 - Volcano eruptions ALWAYS have a negative  impact on the world weather conditions and vegetation.

  • No price Inflation uh...!? The fact that inflation eased somewhat hits the front pages of the Indian media...more

Corn and soybeans jumped to the highest prices since July 2008 and wheat rose after the government cut forecasts for U.S. inventories, signaling tighter food supply as demand increases and adverse weather hurts crops.

Production of corn in the U.S., the world's largest grain exporter, dropped 4.9 percent last year and will leave supply before the 2011 harvest at the lowest in 15 years, the Department of Agriculture said today. The agency also cut its estimate of the soybean crop by 1.4 percent and said domestic wheat inventories will be 16 percent less than a year earlier.

Corn, used mostly in livestock feed, has surged more than 60 percent in the past year, while soybeans and wheat advanced 45 percent. Wholesale world food prices tracked by the United Nations rose 25 percent last year to a record, fueled partly by rallies in grains and oilseeds. Exports of U.S. crops are headed to the highest ever, boosting farm income and profit for agriculture companies including Cargill Inc. and
Deere & Co.

  • Portugal has tapped the market for € 600 million (you and I did not buy it, the ECB did for you), Spain needs € 3 billion and Italy € 6 billion. Peanuts "they" say. Hyperinflation "I " say.

  • We still have peak oil and whatever the West saves is consumed by the East...more

  • American Banks repossessed 1 million homes last year — and 2011 will be worse. The bleakest year in foreclosure crisis has only just begun. Tout vas très bien Madame la Marquise...more. Real Estate cycles never turn around overnight! For Belgium, France and the Netherlands the Question is not as to WHEN the Real Estate bubble will bust (it already has) but rather as to WHEN it will become visible to the large public.

  • € 1030 is a very important support level for Gold...more

Thursday January 13, 2011 - We are NO PESSIMISTS, just REALISTS ! We only publish what we see and cannot help that it is not rosy.

  • 'Not Owning Gold is a Form of Insanity' Gold will eventually rally exponentially and investors who don't own the precious metal are "insane," and may be showing "masochistic tendencies," Robin Griffiths, technical strategist at Cazenove Capital, told CNBC.

  • How can some people still sell Deflation when Commodity markets are on fire?

  • The downward trend in the Dollar is awesomely powerful. It's vital to get yourself out of the dollar long-term on any significant rally. Continuing to own a currency that is going to be printed virtually into oblivion … is crazy


Wednesday January 12, 2011 - The physical demand for Gold is the only REAL demand and it is this demand which all over the world is keeping the Gold price steady and up. Paper Gold can only taint the real market for so long.

  • 2011 won't see any recovery at all and we have no doubt it will get a lot worse! Better put those safety vests on, cause the boat is going to be rocked beyond your imagination.

  • This year we will start with a focus on Stocks, Physical Gold and Silver, Gold and Silver stocks, Energy stocks: coal, oil (don't forget to shop for Oil shares), uranium (Denison) and Commodity currencies. Bonds, Real Estate, ETF's , Bank manufactured products, common funds, Tak21, Tak23 ...all need to be avoided. Be advised that you MUST BE EXTREMELY CAUTIOUS selecting your stocks. This won't be a walk through the park....Once the "BELIEVE" of the Herd in the Authorities starts to melt away this spring, a lot of painful stuff can happen. Such will without any doubt rock the boats of the Bond and Stock markets in an extreme way. When such occurs - just to minimize losses - it will be better to be in Gold and Silver and a certain type of stocks: energy stocks, oil stocks and to have NO BONDS.

  • Real Estate has, even in the USA not seen its very Bottom. More dangerous are even the Real Estate markets of countries like Belgium, the Netherlands and France which still haven't seen some kind of REAL CRASH situation.

  • Belgian Bond holders beware. Belgium has joined the ranks of Greece, Portugal, Spain, Ireland, etc Belgium used to be a lovely dynamic small country known for its beers, chocolates and good food. Politicians however succeeded in ruining it...more You'll see more of this on the other side of the Atlantic in the USA with Cities, Counties, Municipalities,...this will negatively affect the US-Dollar.

  • During 2011 it is more than ever important to adhere and follow our Investment table. In case you need to keep some Fiat money on the sidelines for later purchases, try to stay with those currencies selected by us.

  • What happened in Arizona should not have happened but as usual and expected  the message Media are sending is  a tainted one of dangerous weapons and crazy people. Because poor black people can't afford to buy guns or knives In South Africa most people are killed with ordinary bricks The deeper we are sinking in the depression, the more dangerous the job of a politician will become. Ask Louis XVI, Marie-Antoinette, the last Russian Tsar - just to name some. Having said this, it is really sickening to see the Political commentators using this incident to push their agendas. Disgusting.

  • If you have no physical Gold/Silver, you simply have NO MONEY. In 1971 you could sell Gold and receive $ 35 in exchange for one oz. By 1980 you could get $850 and today you receive $1360.  What other kind of proof do you need? What most people fail and/or refuse to understand, is that Governments can print all the money they want. Today they don't even need to use paper and ink to do so...a simple click on Enter does the job. Frightening dangerous to give this kind of power to a Politician! The clicking results in weird things like Dotcom bubbles, Real Estate bubbles, ...depending where the so created funds are misallocated. However the amount of DEBT that can be issued is far more limited than paper money. Starting 2010 it is exactly this very debt problem which starts to wreck the financial system and the economy. To add insult to injury it is unfolding at a time where we're bout to see a hyperinflation of the general level of prices as a consequence of a hyperinflation in money supply.....

Tuesday January 11, 2011 -

  • Conflicting short term signals make it still hard to clearly picture the short term. Our subscribers' section as a whole does however give a good picture of what to expect in the medium run.

  • Which kind of money will crash : fiat paper Dollars, fiat paper Euro's, fiat paper Pound Sterling, fiat paper Ruble? or real barbaric GOLD?  Do you mind when fiat paper money receives a temporary 10% premium or do you simply use it to get more real money? Remember we have a paradigm shift and this is not about making money but rather about PRESERVING YOUR MONEY.

  • No inflation? one has to be blind not to see we already had HUGE INFLATION:  Tarp 1, Tarp 2, Quantitative Easing 1, Quantitative Easing 2, Central banks are buying Government bonds like there is no tomorrow....Bernanke said he wants to generate some inflation but with these amounts of printed money he'll get a lot more than what would make him happy.


  • What we still haven't seen is the Price inflation which always comes after monetary inflation...Once the HERD realizes the prices won't come down again, we'll have Hyperinflation.

Monday January 10, 2011 -  We have a retracement in the bull market of $-Gold and $-Silver...bottom fishing however is never easy: Buy the dips!


  • COAL prices are rising as consumers scramble for this black gold. Weather conditions in Australia have flooded many coal mines...more

  • The north African countries are not spared from the recession. There is trouble in Tunisia and Algeria. ..more The North African countries are the mini China for Europe (HOCGood producers) and suffer because of less consumption in Western-Europe and the rising cost of living because of the rising energy and food prices.

  • The Euro happens to be strongly oversold but Gold expressed in Euro is still a hell of a buy. Whatever is happening to the Euro and to the US-Dollar, we have far better: see our investment table.

  • $- Gold and Silver have been under some pressure (especially when expressed in Dollar) but our indicators start to become oversold...which is good.

  • Nothing special in the section of Banks and Financials...more

  • We have been updating the section of World Stock Markets and what we have been writing for some months now, gets confirmed. There is however ONE exception to the rule (so far) and this shows what can happen in case of an accident. The section of Real Money Indexes was also updated.

  • Crude Oil keeps doing what it is supposed to do. Our Peak Oil section describes in detail what the situation is like. Adding another and newer chapter would just be a waste of your and our time. Don't forget to shop for Oil Stocks. They are better than Bonds!

Friday January 7, 2011

  • One trillion of additional debt each year is A LOT of money. Even for the USA. For those who are becoming bullish on the US-Dollar this video clip.


  • Yesterday the Dollar was stronger and Gold/Silver, Stocks and Oil weaker. Would this in any way be connected to the publication of the Jobs Report in the USA today?

  • Bonds will continue to be weak in 2011. The question to ask is which Fiat Currencies one must park his liquidities in and additionally HOW to allocate these when time has come or during a correction.

  • Pigs get eaten: adding France we already changed PIGS into FPIGS. And FPIIGS it in fact has become since Ireland must be added too.  Adding Belgium now becomes quite an exercise.

    Anybody knows what the Western troops are in Afghanistan for? Rep. Lynn Woolsey (D-CA) talks about the "disastrous" war that is Afghanistan. "This war represents an epic failure, a national embarrassment and a moral blight," Rep. Woolsey said. After the British left, the Russians came in. The USSR left right before it went bankrupt and when they left, the USA and Western-Europe moved in...

  • After Goldman Sachs, JP-Morgan is now also moving into Washington D.C. Obama selected William Daley as chief of staff...more

  • Don't forget the Stop Loss (stop loss levels) for $-Gold and $-Silver. If these are violated, we could see a correction lasting some weeks and maybe months. We don't see this happen as the Gold and Silver sector is already oversold...but one never knows.

    “The returns over the last 10 years, gold returned over 18% and silver close to 24% annually.  These are spectacular returns and we haven’t seen anything yet, we’re not even close to the third leg which is the blow off"

  • .Volcker is stepping down as head of the Advisory panel to President Obama. He became a legendary figure on Wall Street when as Fed chief he broke the back of double-digit U.S. inflation in the early 1980s by sharply raising interest rates, began advising Obama during his 2008 presidential campaign and has wielded clout on issues ranging from financial regulation to fiscal policy. The news will be made public by Obama today...more

  • And last but not least, the BOND markets keep falling apart...

Thursday January 6, 2011 - Do you really think it's normal a Bank puts your money into Facebook?

  • Goldman gets into Facebook. Goldman Sachs invests $500 million in Facebook. (more) This shows how sick the financial sector is and how dangerous Bankers are. The Glass-Steagall  act was voted and implemented after the Great Crash of 1929 because at that time it became evident that the fact Banks were allowed to buy and sell stocks (read speculate on the financial markets with the deposits of their clients) was an important factor behind the 1929 Stock market crash and subsequent collapse of the economy. By investing this amount of money into Facebook Goldman Sachs confirms that it thinks Facebook is worth more than the entire Silver market. Louis XIV also was convinced he was "Le Roi Soleil ". Louis XV is know for: "après moi le déluge and Louis XVI was decapitated...

Provisions that prohibit a bank holding company from owning other financial companies were repealed on November 12, 1999, by the Gramm–Leach–Bliley Act. [2][3] under the Administration of Bill Clinton.

The repeal of the Glass–Steagall Act of 1933 effectively removed the separation that previously existed between Wall Street investment banks and depository banks and is to be blamed for exacerbating the damage caused by the collapse of the subprime mortgage market that led to the Financial crisis of 2007–2010.[4]. ...more

  • Global Sea Surface Temperature continues to drop. This means the Global warming Hoax only lives in the brains and pockets of Al Gore, Maurice Strong and other Green politicians; that this wasn't the last cold winter and that we shall have less Hurricanes (Hurricanes request WARM water temperatures)...more

  • BEFORE you start to panic (because of a one/two day action of the Gold pool), do check our charts of Gold expressed in EuroBritish PoundSA-Rand, Yen-Gold, Swiss-Gold, Aussie, CanDollar, Ruble,  ... Technically speaking it is IMPORTANT the TOP of the Trend channel becomes support. If this fails, prepare of a test of the BOTTOM of the Trend channel.

  • Those who still worry must browse again at our Chart of the HUI-index (Gold bugs index). Randgold slipped because of troubles in Ivory Coast (Randgold Resources operates in Western Africa)...more [all charts of the Gold and Silver stocks section have been updated]

  • "The problem is that politicians and citizens alike have no clear vision of the costs of a seemingly perpetual trillion dollar annual deficit," Pacific Investment Management Co.'s Bill Gross said investors should favor emerging market corporate and sovereign debt as "mindless" U.S. deficit spending may result in higher inflation, a weaker dollar and the eventual loss of America's AAA credit rating.
    Buying debt in emerging market countries with higher real interest rates, wider credit spreads and strong balance sheets will offer more return as well as protection from dollar depreciation as U.S. policy makers run up record deficits at the expense of economic growth.

Wednesday January 5, 2011 - "The gold cartel really tossed the kitchen sink at gold and silver yesterday, but the bullish trends in gold and silver are still in place".


European Governments start seizing private pension plans. Hungary, Poland, and Bulgaria but also France take over citizens' pension money to make up government budget shortfalls. It is only a matter of time BEFORE this spreads out through all of Europe.

In November, the French parliament decided to earmark €33bn from the national reserve pension fund FRR to reduce the short-term pension scheme deficit. In this way, the retirement savings intended for the years 2020-2040 will be used earlier, that is in the years 2011-2024, and the government will spend the saved up resources on other purposes...more

  •  Energy prices deeply affect the economy and inflation figures. And what we see is rather grim...more

  • There is a serious seller for $-Gold around $ 1420 and there are serious buyers of $-Gold around $ 1360. Central Banks and the Authorities are working out their New Year's resolutions. But additionally, many Hedge, Common and other funds have to readjust their positions for 2011. Do check out $-Gold Points and Figures chart for the base of the trend channel en the Maximum Activity support line.

Tuesday January 4, 2011 - To buy Gold and Silver is one exercise, to know WHEN to get out another one which is as important, if not more important.

  • $-Silver  has done what $-Gold will do!  logic Mister Holmes...more

  • During the last Quarter of 2010, the Dollar was saved by the propaganda sold by the Financial Times. The problems in Greece were highlighted but those of the Municipalities where billions were lost, forgotten. This is how Sheep are controlled...but will this continue in 2011?. If it does it will be a lot more destructive than the 2008 Stock Market crash...more

  • Amazing is that EACH TIME the PUBLIC holds an HISTORIC maximum of Public Debt, this debt becomes worthless. This time it won't be different. The HERD simply refuses to learn. It always has an excuse ready until....it is too late. This section is worth a fortune to any Bond holder. ..more

  • Should I continue to hold Corporate bonds? are they safe? This section gives you ALL the answers you need...more

  • This is our new picture for Treasuries (Government Bonds) and we also have a NEW picture for the Utility index...click here

Monday January 3, 2011

  • France and the disastrous situation it is in is the best kept secret in the EU. The isolation of France out of the Euro would be catastrophic says French president Sarkozy. What he did not mention is that the Euro is a political Frankenstein and that the rising price of Energy (Oil) will break its back. Expensive energy always has and always will.  A break up of the Euro zone will have dramatic consequences for the German and French banks (they will probably not survive it)...more

  • Why South Africa, Canada and Australia are better options than the USA, the EU,...more

  • Price of Real Estate in the USA expressed in Real Money or Gold and the Real Estate cycles and interest rates...click here


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