Tuesday May 31, 2011 - Make sure to be out of paper money and out of
long on the Dollar? Be aware the
American debt goes up by 4 billion dollars each day.
This statement has dramatic and explosive consequences.
You really have to be retarded not to understand the implications of
this. The Dollar is cooked, done, a death man walking.
Be aware a Treasury (Bond) is nothing more but an option to buy
worthless Dollars/Euro's. Did you see how fast the
Greek and Portuguese Bond markets collapsed?
Derivatives are unregulated and
uncontrolled investment instrument created by the Banksters.
The total value of derivatives in the world
exceeds total global gross domestic product by a factor of 10.They were at the origin of the 2008 financial accident
and subsequent deleveraging. Ever since NOTHING has been done to control
these and the financial bomb has become even more dangerous. Many hedge
funds, common investment funds, special funds, index funds, inflation
adjustable funds, interest rate adjustable funds all carry the cancer.
The safer you investment instruments appears, the more dangerous
it can be.
Monday May 30, 2011 - Gold is the answer, What was the Question?
farmland A Smart Hedge Against Inflation? NO
says Gonzalo Lira, NO says Goldonomic. Farm Land is a HOCGood and will
be adversely affected by the (hyper) inflationary depression. BOTTOM
LINE ANSWER is NO !
Never invest in funds of
funds, never invest in funds if you don't know how it is run.
Most funds and especially most Hedge funds are pure
scams. Over the past decennia they have grown like mushrooms
because investors had a blind trust in the Banksters. more by Monday
Is it not
ironic that even the Chinese stock market index has fallen in Stop Loss
when expressed in Gold. Such doesn't look good for
all those who were convinced China would solve all their investment
problems and provide huge capital gains. more by Monday
leaders are clearly pure IDIOTS! They NEVER learn and
make me throw up...France has said it plans to use its chair of
the G-20 group of big developed and developing nations to push for
commodity price regulation in a bid to block what it saw a speculation
in the market of food crops such as grain and cereals...more
Gold and Silver shares now come with a profile
(link to home page) . A click on the name of the
stock brings you there.
one of our
favorite Gold shares was up by 44% during the 1st Quarter.
We initially advised the stock at 75 cent. A
second medium sized stock holds 62.4 million ounces of gold,
90.9 million ounces of silver, and 1.4 billion pounds of copper
and is a CLEAR BUY at this level!
Friday May 27, 2011- "Permit me
to issue and control the money of a nation, and I care not who writes
the law" A
is the Achilles heel of the EU. The odds are that
it will be the 1st country which will return to the Drachma. We
brought this up months ago (will the EU survive). Complex societies
never survive expensive energy and it is not even sure that the US
will survive as we know it today!...more
.Politicians will off course do all they can to keep this Frankenstein
alive as their jobs (income) depends upon the survival of the EU. But
the dices have been thrown. The point of no return has been passed....What
is broken in Greece is also broken in many other European countries!
Socialist minister Christine Lagarde steps into fraught race for IMF
top job. Control of the money is better than
standing armies. She would sell her father and mother in an effort to
get the presidency of the IMF so she can serve the people!?
Are these the leaders supposed to look after the Welfare of the
people? [You are a den of vipers and thieves. I intend to rout you
out, and by the eternal God I will rout you out." President A.
President Kennedy signed a Presidential decree, Executive Order 11110.
This order virtually stripped the Fed of its power
to loan money to the US Government at interest. This order gave
the Treasury Department to issue silver certificates against any
silver in the treasury. In less than five months after signing
that executive order President Kennedy was assassinated on November
22, 1963. President Lincoln also took on the bankers and this
may also have cost him his life.
think I am crazy?
The EU to survive was published in
2008. At that time a Spanish unemployment figure of only 18%
was forecasted for 2010. The reality of today is an official figure of
23%. I invite and beg all those who think
I am just some stupid Doom teller to come up with ARGUMENTS! If
you are so sure I am wrong or blowing it up, do yourself and me a
pleasure...sent me an email with your arguments! If you're right, I'll
offer you ONE YEAR FREE ACCESS to Goldonomic and it's advices (worth
all the money if you consider the track record. In the 1980's I
already booked a performance of 20% per annum). The real problem is
that the Herd is STUPID and ALWAYS comes late. . Most of the time
being late ends up as a disaster: the Napoleonic Wars, Hitler,.
.History is full of examples and the world is full of people refusing
to believe that what is described in those books was at some
point REALITY and that this is happening over and over again just
because they REFUSE to use it as a catalogue of things not to do!
Thursday May 26, 2011 -
click here for the updated model portfolio
Japan is a
good example of the trouble we are in.
Europe and the USA are in big trouble and Authorities keep covering it
up. We don't feel like taking your and our time to
publish over and over again slightly different stories. Our scenario is
clear: the EU won't survive and the USA will go through hard times...GDP
and Employment are not picking up and Governments have more and more
problems financing the the system they created. The economy will
not come to a standstill. It never does. But from now on it will go from
bad to worse. Don't be so naive to believe countries in South-America
and the Far East won't have their part of misery. Social unrest is on
the rise and not only in North-Africa and the Middle-East.
have a clear strategy about how
you must protect yourself BEFORE an actually accident happens.
We are fine tuning the strategy as time goes on and we get more
indications as into which direction the beast will move. Do it NOW and
don't wait until it is too late and the Sheeple start to move.
results are simply good. Know that we never
chased Fiat Paper Money profits. Hard to
understand if you live by month to month profits. Investment is NOT
making a profit each month. Certainly NOT today.
information added to the section of Gold fundamentals...click
Derivatives are a mighty dangerous sword.
"Manipulating cash prices for a larger derivative payout is a regular
feature in all markets. And $50 million is chump change compared to the
billions being made manipulating the markets on almost a daily basis."
That is, as the British economist Peter Warburton discerned in his
2001 essay, "The Debasement of World Currency -- It Is Inflation,
But Not as We Know It", market manipulation is the very purpose
Wednesday Mar 25, 2011
Weimar Hyperinflation started with an
inflation rate of 15%, next came 60%,...a year later the inflation rate
was 5,000%. Not the price of good and services went
up but the value of fiat paper money crashed down to ZERO. Those who had
invested in Real Estate saw that the Rents were blocked by Law and with
one month rent, they barely could buy a bread.
[this is why the price of German real estate is still relatively low]
. We have EXACTLY the same situation today
and the odds that Government will refrain from printing more Fiat Money
is as high as the ultimate value of what they serve: ZERO!
The danger is not one of banks going bankrupt but rather one of
Governments falling into default.
of the Dollar
will take all currencies along which are holding large amounts of
Dollars as Forex reserves. Equally dangerous are Fiat
currencies which have their economies/currencies pegged to the Dollar
(ex. South America). Make sure you don't hold any of these.
Real Estate is a High Order Capital Good
and one must by all means try to reduce its exposure
as much as possible BEFORE the
Hyperinflationary depression starts. Only extremely cheap bargains are
to be considered.
candle chart for Crude Oil. A schoolbook example it
in fact is...more
Gold and Silver
sector is gearing up to ride a monster wave.
When will it start and what will the wave look like...We
discussed this in detail yesterday.
Tuesday May 24, 2011
is stronger but so is Gold? Not many who expected to
see this. However for those who UNDERSTAND why the price of Gold/Silver
is going up such is absolutely no surprise. What we are experiencing is
a race of the Fiat Money currencies towards ZERO.
really have to fear a new 2008 style deleveraging?
Remember the danger NEVER comes out of a corner you don't expect, that
the Authorities are watching the 2008 corner and that even if it does
happen, it is better to be invested in physical Gold & Silver and Gold &
Silver shares than in Bonds and bank deposits/saving accounts as the
latter will take away all of you savings during a crisis while the
former will only correct. In only 2 years time the Gold and
Silver/energy sector fully recovered from the 2008 crash.
are overbought...expect a correction. Typical is to
have a correction each time the Dollar index strengthens.
Monday May 23, 2011 - Really scary it is - ACCELERATE your purchases of
Gold - Buy NOW !!!
to Hell is Paved by Central Bankers. The House of
Rothschild ( see slide show of March 1, 2011
symposium) had been the dominant banking family in Europe for two
centuries. They were known for
making fortunes during Panics and War. The Rothschilds of London
understood that a fiat currency system would benefit the few (bankers &
politicians) who understood it and the masses would be too ignorant to
understand they were being screwed:
“Those few who can understand the system
(check book money and credit) will either be so interested in its
profits, or so dependent on it favors, that there will be little
opposition from that class, while on the other hand, the great body
of people mentally incapable of comprehending the tremendous
advantage that capital derives from the system, will bear it burdens
without complaint, and perhaps without even suspecting that the
system is inimical to their interests.”
is what happened since 1971 when they made Nixon close the Gold Window:
Average Cost of new house
Median House Hold Income
Average Monthly Rent
Cost of a gallon of Gas
Average New Car Price
United States postage Stamp
The average standard of living has declined dramatically over the last
forty years and people don’t even know it. People have become the slaves
of bankers and pay the cost of their own slavery through inflation
and debt. It is not a coincidence that consumer debt,
which was virtually non-existent prior to the 1960s, began to take off
in the 1970s and went nearly parabolic from the early 1990s until the
2008 financial collapse. As the Federal Reserve and political
class created inflation, which reduced your standard of living, the
bankers who own the Federal Reserve and control the politicians used
their slick marketing machine to convince you that acquiring goods using
vast quantities of debt was just as good as buying things with cash you
Quantitative Easing to infinity is requested to keep the Bankers (and
politicians) alive. If
the Central Banks fail, the system will collapse and the value of ALL
bank deposits, Derivatives, Bonds and money instruments will crash to
ZERO overnight. If they succeed the system will run into a
Hyperinflationary depression until people stop trusting the Banks. At
that point the Financial System (Banks) will also fail. In both cases
Gold and Silver shares,
Energy shares,...see our
pyramid ) will still be there...As usual the Sheeple which
are mainly invested in
bank manufactured investment instruments, saving accounts, money market
funds, etc... and Bank Deposits will loose it ALL! Forget
never did well during
for it is a HOCG!
Real Income since 1960
Total Consumer debt
Debt held by the public
also the beginning of the exodus of the Manufacturing apparatus to the
Far East. After Made in Japan and made in Hong Kong it was
made in Korea, made in China and India. Capital must have felt that it
was tricked by cooked figures, increasing taxation (the more the profit
figures are inflated, the higher the % taxation), more and more
regulation (regulation by definition increases the cost of a product and
reduces the profit),
more and more Government intervention in the economy (Socialism).
Hyperinflation BEFORE the end of 2012 is a potential reality.
The Dollar (and probably some other fit currencies which are highly
interconnected with the Dollar) will NOT survive the coming
hyperinflation and in order to sell their new currency to the public
some kind of gold backing will be requested. I highly doubt however that
the solution will be a decent one. Your primary hedges are
but also the Australian Dollar, Swiss Franc and
companies from emerging to major producers have slowly begun the process
of issuing and
For some reason the bulk of the investors tend
the ignore the impact of dividend on total return and let them scare off
by the ebb and tide of the stock market. 1930 Homestake mining had
a dividend of $8 and Earnings of $6. By 1935 the figures were $56 and
$32. The share price rose from $70 in 1930 to $500 in 1935 ! (+700% or
+175% y/y). Be aware of the fact
that as soon as investors start to smell the juicy dividends, they will
sell off the ETF's, and other Bank manufactured gold/silver investment
instruments and buy the REAL STUFF...more
Gold expressed in Euro
is about to break out of this Huge Accumulation. [see
PF chart] Once it leaves € 1080 behind our 1st
medium term technical objective is € 1280
Gold expressed in Sa-Rand
has broken out and is a CLEAR buy. The technical
pattern is very similar to what we may see for Gold expressed in Euro.
Gold expressed in Yen
shows a schoolbook PF example of a secular uptrend.
The Yen however remains a SHORT against the Euro. Japan holds too many
Dollars...and is about to pay for this mistake.
Gold expressed in Swiss
Franc is an extremely interesting and an extremely BULLISH
chart. If for one second you doubt about the future
relationship of the Euro/Dollar check the Swiss/Dollar chart. A steady
schoolbook stair case uptrend it is. The price evolution of the
Swiss against the Euro is EXTREMELY NEGATIVE for the Euro!
remains the strongest Fiat Paper currency and we have
a fresh BUY signal against the Dollar.
Gold expressed in Canadian
Dollar has also broken out of a bullish coil and is a clear
Socialists loose elections
in Spain. More important however is the fact
that Spanish people openly state the Spanish problems originate beyond
left and/or right and beyond Spain. Spanish people stop believing that
Politicians can and will solve the pending economic problems and that
elections will bring any change. What "they" call Democracy ain't
Greece not ready for a
debt moratorium (restructuring) and arrogant Italy like Portugal now
also attacks Standard and Poor's after its Credit
Friday May 20, 2011
This is something your
banker will NEVER tell you and this is why Rising interest rates are so
dangerous. Rising interest rates will rip apart the
market for derivatives and bankrupt the financial system beyond your
imagination. Credit default swaps have been manufactured and sold during
the good days by only 7 banks....The next best solution (if you want to
survive, is to go for QE III, QE IV , etc...until we have Hyperinflation
and somebody else can be blamed for it.
Many of the silver bears
out there are non-specialist analysts who next week
may be commenting on markets in hogs, Soya beans or a murder case and do
not have the in-depth knowledge of those participating. There is a
disconnect between the paper Silver market and the Physical and for
example it took several months for the Sprott Physical Silver Trust to
be able to accumulate its silver. bullion suggesting a huge shortage of
actual physical metal available. Indeed paper silver trade clearly is a
Paper Joke. (don't expect JPMorgan to confirm this).
The price of real estate
is not only coming down in FIAT MONEY. It is also
coming down in REAL MONEY. Real Estate is a High Order Capital
Good and its price ALWAYS comes down during (hyper)inflationary
Thursday May 19, 2011 - There must be something wrong
with us? or not...ever since 2004 we have been laughed at, over and over
again we have been ridiculized and a bubble and a top was called for
gold and silver....but Gold and Silver keep on rising...and
rising...ignoring the critics.
people arrest and put former Presidents and Federal Reserve Officers in
jail? The next big problem is the problem of the
Governments being confronted by the Debt they are responsible for. The
chickens are on their way home to roost. Will the culprits be punished
or will they succeed in fleeing away in the middle of the night like
John Law did?
selling its silverware. Greece is bankrupt and will
NEVER honor its debt (Treasuries). This is only the beginning. Other
countries will follow in sequence and as the majority of the Sheeple is
invested in CASH (worthless fiat money) and Treasuries (an option to buy
worthless fiat money) the losses will be dramatic. Those amongst you who
think Real Estate will keep you safe, better be warned: Government
officials will act like Mob members and tax the hell out of everything
which they can lie their hands on. It is five to twelve to get out of
any investment instrument which carries some kind of official label.
the dead of Socialism. Not the rich are to
blame (for they traditionally provide the capital which brings
employment) but the bureaucrats and politicians are. The cost of big
government is rising exponentially and needs to be funded. As they are
the law makers they will do whatever is requested to preserve their
position and income: legally take the money away where they can possibly
take it. It is not the rich (these don't have a police force, they have
no army) but the public employees which are the real thieves. In an
effort to survive they lowered artificially interest rates hereby
chasing away Capital (where ever Capital goes, employment follows), they
increased taxation to sickening levels, they increased the number of
Government officers to make up for the falling employment levels, they
increased regulation so they could appoint even more Government and para-government
officers so the employment rates looked even better. [one government job
takes away two jobs in the private sector]
the coming financial crisis will signify the END of HEDGE funds, the END
of DERIVATIVES (credit default swaps, and other investment instruments
which have been manufactured by the Banksters). We
have better alternatives....please
Wednesday May 18, 2011 - What we live is the dead of Socialism -
We have added the
Road to Serfdom by Hayek to our
library. This masterpiece of Nobel Prize laureate
is an eye-opener, strongly advocating the free market principles. In
this all-time classic Hayek persuasively warns against the authoritarian
utopias of central planning and the welfare state. Fascism, communism
and socialism share these utopias. For the implementation of their plans
these authoritarian ideologies require government power over the
individual, inevitably leading to a totalitarian state. According
to Hayek there is no difference between Socialism and Fascism.
This is probably the ideal
point to buy (Junior) Gold and Silver shares and to invest in this
sector. Three taps and a breakout is what these
shares will dance very soon (see
Junior Index). The Silver ETF
SLV (chart to the right - do not buy - only buy physical Silver)
clearly shows a HUGE selling climax (very bullish) and is building a
bullish wedge with $ 40 as price objective, Last but not least
GLD (Gold ETF -
do not buy - only buy physical Gold) is accumulating Bullish signals.
[Be advised the
Bearish/Caution signals come BEFORE a top and the Bullish/Buy signals
come BEFORE a bottom. WEDGES are tricky formations because the price
reverses swiftly after a spike].
Check our charts of
Commodities, Silver,...expressed in Real Money or Gold...more
Tuesday May 17, 2011 - Gold, Silver, Oil, Commodities
continue to bottom out .
debt ceiling. Today the American Problems
are in the spot light, tomorrow the European ones will be. Both
currencies are in fact a clear SELL.
Fiat currencies like the Aussie and the Swiss can
survive a bit longer...but nothing is sure. NOT one banker and one
politician who will tell you. In fact, they will do all within their
power to convince you of the opposite. Just like Madoff did. Only they
have more power than Madoff. Having said this, the USA will
increase the debt ceiling....more
happens in Hungry doesn't stay in Hungry. The USA
ain't better than the rest of the world.
It's so easy to tap the savings belonging to somebody else to cover your
own necessities if you're part of Government. My father used to call it
legal theft. Right he was...more
parts of Europe The Tulip mania has
become a Real Estate mania. A real Estate cycle takes
76 year to complete. A boom of about 50 years and a bust of about 26
year. The vicious part is that just
because it takes so long, those who could testify of the previous cycle
are all dead and today nobody has in fact experienced a serious real
estate bust because they haven't lived long enough. The
Mississippi scheme was in
fact a huge Real Estate bubble. There are similarities between the
Mississippi scheme and today's crisis especially because the notes were
issued by the Banque de France and were so said Inflation proof.
To be honest, it is extremely difficult to UNDERSTAND why there are
so many investors out there which BLINDLY BELIEVE (!?) that Real Estate
will continue to prosper. I suggest these believers ALL book a holiday
to Florida or Spain and meet the non-believers of 2006. Having said this
how is it possible to deny the coming real estate crash in certain parts
of Europe after for obvious reasons it happened in the USA, Manhattan,
South-Africa, Spain, Greece, Ireland, the UK (City of London), etc...Real
Estate is a HIGH ORDER CAPITAL GOOD!
ending soon...expect QE III a day later.
Fractional reserve banking is like a shark, credit must continue
to expand (swim) or it faces death. Better not be around the day it
$-Silver can ease
another 10% to around $ 30 per oz. Once it has, we
shall be almost 100% sure the correction is also over for Gold, Oil and
Commodities. The average Silver correction (top to bottom) is 40%.
Remember we advised to hold Gold instead of Silver and one of the
reasons is that Gold is less volatile than Silver
During the next rally in
precious metals, silver will not be the leader. After all, the
recent plunge has devastated investor sentiment. The precious metals
sector will experience a rotation, whereby investors and speculators
will now turn to gold. Accordingly, we believe that during the next
big advance, the yellow metal will provide leadership and appreciate
more than silver.
believe my eyes when I see how well the ECB and the Fed manage to trick
the Financial markets. The USA hits its debt ceiling
and Chinese stop buying American paper but Bernanke (with the help of
derivatives) manages to push up the price of
Treasury Bonds. A magician he must
be. Even the American municipal Bonds made an unexpected recovery.
Is it not a wonderful world!?
Utilities are safer than Bonds but I expect some sort of Summer
Monday May 16, 2011
fear always comes from anticipation.
Today the anticipation is that QE II is coming to an end
in June. However better be aware that your biggest partners are
Bernanke and Trichet who by all means will try to avoid any
kind of stock market crash 2008 style. Expect the markets to resume the
bull run once they understand they are safe.
Crude Oil!? an
ongoing bull trend...expect higher gas prices to coke
the economy...but such makes only worse what it already is...
is giving a good idea of how long the actual correction
in the Gold and Silver sector (and Oil, Commodity sector in general) can
take and what the potential intensity could be. Just check for the
Why is it
that each time Gold correct by less than 10% we always read these kind
of stupidities published by so said popular Media!?..more
Friday May 13, 2011 - Instead of Sell in May and stay away, we might see
exactly the opposite. At least for the sectors we advice to be invested
have eased back in Oversold territory. The House of
Representatives voted to open more of the nation's oceans for oil and
gas exploration on Thursday by a vote of 243 to 179. High time
Politicians and movie stars living on the Californian coastline
understand all this Green propaganda doesn't make sense as long as we
have a shortage of energy...read
more. Individual shares will be updated this weekend.
bullish tails on our candle charts for
in our Gold and
Silver Majors section have fallen back to low risk buy
levels. Charts for individual shares have been
updated....here and there we happen to see sell climaxes (bullish).
Price tables and shares in
Junior Section were
also updated. At this point we prefer Gold shares to Silver shares.
Thursday May 12, 2011
government raids private
pension plans. This is a taste of what is to come
in 14 other European countries. There were similar raids in Argentina
and Hungry. Governments are crooks...those who don't believe it will
have the luck to experience it soon... [physical Gold/Silver can be
hidden out of sight and worst case scenario it is better to hold
Gold/silver at a loss than Private Pension plans which are stolen by the
Silver section has
been updated. So far top to bottom $-Silver has
corrected by 30% (a figure of 40% was/is possible) Again I issue a
WARNING. There is important technical damage on the Silver charts and it
may take a lot longer than anticipated before the damage gets repaired.
At this time the Point and Figures chart for Silver expressed in
Swiss Franc is our canary in the Silver mine.
are so overvalued that they will turn into the BIGGEST ever graveyard of
the people's wealth, overtaking the ongoing
real estate debacle. Prices are artificially high because
Central Banks have been buying them in their effort to keep long term
rates down in a misguided attempt to prop up property values as well as
the stock markets.
The section of
Gold and Silver juniors were updated.
This sector lives its final sell off spike and
offer tremendous buying opportunities,
Wednesday May 11, 2011 - History repeats because mankind is just too
stupid to learn from its past mistakes.
taking Economists to court for bringing down their credit rating!?
. Those Politicians have no self respect
whatsoever by starting a court case against Standard & Poor's
economists. They are the origin of all the problems Portugal has right
now but they as usual point the finger to somebody else. Sickening it
is! What we live is the final showdown of Socialism and I expect
Governments will run off the cliff. As long as they are running a
deficit (10% for the UK and the US, 7% for France, 5% for Canada and
Australia the debt will escalate and the debt bubble getting bigger and
bigger. Balancing the budget becomes impossible as Tax income keeps
falling due to the depression and expenditures keep rising....
capital leaves, then the better managers follow.
Because of the improper actions of the Authorities capital keeps
concentrating elsewhere. Slowly but surely the public starts to find out
that Stocks are a far better alternative to worthless bonds/treasuries
(bonds are nothing more than an option to buy worthless fiat paper
money). Hard to understand for many investors because they have NO
EXPERIENCE and they feel safer to keep believing in the lies of the
Authorities and Banksters. Raising interest rates only makes sense if
Governments are NOT the largest borrowers and keeping the interest rates
artificially low only buys more time. In the end the natural forces of
the economy will push up interest rates and the devastation will only be
bigger than if they had allowed the market to auto-correct.
PF Charts in
the section of $-Gold and
€-Gold , PS-Gold have been updated...more
PF Charts in
the section of Silver have been updated. NOTE the ERRATUM
which was the consequence of an incorrect Silver price in Swiss Franc...more
It is five
to twelve for all Bond Holders...the time to sell
Bonds is NOW...not when it is too late!...more
Crude Oil is a
good indicator that the Correction for Gold is probably over
and that we have seen a short term bottom. Check the PF
chart and see how the price of Oil bounced off the bottom of its uptrend
Tuesday May 10, 2011 - There is a disconnect between the Physical and
paper (futures, ETF's, warrants, options, Turbo's,...) market for Gold
and Silver. If you have paper Gold/Silver you have NO Gold/Silver!
the correction for Gold and Silver has short legs, the legs of
correction could be even shorter. Remember the
magical numbers: 1.44 € and $ 1444 for Gold. Only Silver has a problem.
Because the Silver price spiked it will need MORE
consolidation/digestion before it resumes its bull run.
difference a day makes. The price of
Gold is bouncing off its 50 day moving
average (bullish) but we still have to clear the old
top of $ 1570 before we can confirm a new bull run is alive. Important
is that our technical indicators have moved into a BUY position. If the
bull run is confirmed over the next days (bottom fishing is difficult)
expect the next top for $-Gold to be higher than $ 1650.
difference a day makes.
Silver has penetrated its 50 day MA but we have a bullish
long tail on the candle chart and our technical
indicators have also moved into a BUY position and the purple
acceleration uptrend is holding...Technically speaking Silver is as
cheap as last February. Extremely important is the chart of Silver
expressed in Swiss franc and the fact that the blue acceleration line is
holding. This will confirm the potential trend acceleration of the
Silver price. We may however need more consolidation/accumulation BEFORE
a new bull run for Silver will be initiated and I still think Gold will
over the next months perform better than Silver.
Mister Holmes. If the paper price of Silver comes down
but you can't buy any physical Silver, it indicates the price of
physical Silver keeps raising...and the paper investor is holding thin
we CLEARLY advise you NOT to sell physical Silver.
As a matter of fact ANY drop in the paper
(COMEX) price of Silver and Gold MUST be used to add to your positions.
One must not be an Einstein to see that by manipulating down the price
of Gold and Silver 'they' actually INCREASE the DEMAND. The day the
physical market explodes in 'their face',
the Gold and Silver pool raiders (the FED, JPMorgan, GSachs, ECB...)
will look like idiots. And idiots they will be....By rigging the markets
(Bonds, Gold, Silver, Financials, Real Estate,...) Government and Too
big to fail are digging their own graves. This time won't be different
Mississippi Scheme (John Law). Most people simple refuse to learn
from their mistakes and tend to forget that John Law had to flee Paris
in the middle of the night....
something weird about people who blindly keep "believing" in Government
and Banksters while it has become visible and
evident that they are more dangerous than Madoff!?
Propaganda is being served on a daily basis and financial markets are
openly manipulated and rigged...and still, the Herd keeps believing in
the system and their leaders....The Herd simply refuses to accept the
fact that they are being knowingly misled and that it has become a
reality that they can loose all of their savings overnight. Whether this
happens because of (hyper)inflation or deflation doesn't matter as they
are convinced they will be able to escape the Apocalypse by acting the
day BEFORE the drama unfolds.
Central banks are playing God with the interest rates
and refuse to accept the poisonous potion they
are brewing by doing so. After the Real Estate crash of 2007 came the
Stock market crash of 2008 and the
Bond market crash of 2011. As always the
Sheeple will try to get out of the Bond market at the same time....For
obvious reasons the credit rating of the USA has been kept a AAA and at
the same time the Municipal Bonds have, in only one month time,
recovered miraculously. Derivatives are a powerful and magic
weapon...uncontrolled and unregulated with off balance sheet items.
Using them one can rig the interest rates and financial only in the
short term. The Natural forces of the Financial markets ALWAYS
come back with a revenge....but like John Law and Le Roi Soleil,
Bernanke, Trichet, Paulson, JPMorgan & Co. are too stupid to admit this.
Interest rates remain at historic low levels but the Bank of America
has raised the interest rate for credit card debt to 30% !...more
Estate in the USA took another hit. It was the biggest drop since 2008.
Prices were down another 8% on a year to year basis and we may not see a
bottom before 2012..more.
Monday May 9, 2011 -
fluctuations are like a Roulette. What counts is to be correctly
invested and to ride the waves (up and down). If Gold expressed in Swiss
Franc sits in the bottom of its uptrend and is oversold, how much more
then can Dollar- Gold correct? DANGEROUS and SCARY is the market action
for Swiss Franc, Aussies and CanDollar against the US-Dollar and the
Euro this past Friday....(see the candle charts)
$CCI (commodity index)
provides a good indication as to how important the correction can be for
the commodity sector as a whole. This has
implications for stocks, Gold, Silver, Copper, Bonds, the Dollar, the
Euro,...Do check the candle charts and remember at all times that
NOTHING goes up or comes down in a straight line!
could have very short legs. Having said this, the
maximum correction from top to bottom of correction is about 10% (don't
let the big numbers scare you) and bottom fishing has always been a hard
discipline. Prices will go up when TIME has come! The
Silver PF chart
looks toppy after the $ 50 spike and here we may need more time
and Silver will as usual correct heftier...Don't forget our
Silver/Gold ratio has moved in FAVOR of Gold. Expressed in Swiss
franc we may have seen a Bull trap. If confirmed Silver will need a lot
more time than Gold to come out of the woods. Eventually it will resume
its bull run in the same way we saw it during the past weeks.
We have updated he major fiat currencies expressed in Real Money
and a walk through these sections will as usual give you
a CORRECT picture of the expectations for Gold over the next days and
weeks. Interesting is for example the
candle chart of Gold expressed in Euro.
has been updated. The correction is early
but at the same time allows for a higher top of $ 1750. IMPORTANT
is to understand the PF charts are telling us that EITHER we shall see a
upward acceleration of the Gold price or Gold is to fall back to the
bottom of its secular bull trend (
Swiss Franc, Dollar, Ruble,
to the BOTTOM of the sideward accumulation (South-African
Rand, Euro, Can Dollar,
I increasingly get the feeling that the correction we have for Gold and
Silver is engineered by panicking central banks. Financial History shows
over and over again that this is the last available weapon (together
with misinformation - call it lies) . Gold is # 1 money, the
Aussie # 3 , the Swiss # 4 and the CanDollar # 5.
correction also could have short legs. Having
said this, such is of minor importance for Goldonomic
as we advised months ago to move away form these currencies into the
Australian Dollar, Swiss Franc and Canadian Dollar. Gold off course,
remains our #1 currency.
The Point and Figures chart for the Dollar and Euro versus SWISS FRANC,
CANADIAN DOLLAR and AUSTRALIAN DOLLAR spells DANGER, DANGER.
most important chart for the Dollar is the
Dollar/Swiss franc . It is the canary in the
Forex min for the Dollar. Remember that for the last weeks we told
you to buy SWISS FRANC!
The day is
coming where not only Greece but also Spain, Portugal, Ireland, Italy
and France will abandon the Euro and go back to their
good old currency which they could devaluate each time their economy
. What Caesar, Napoleon and Hitler failed to unite won't be done by a
bunch of incapable professional narcissistic politicians.
Friday May 6, 2011
in the mine shaft for the Stock markets - The Footsie -
did once more not manage to break through the 6100 level...more
on the stock market indexes A random walk through the different
World Stock indexes still don't convince me that this year the "Sell
in May and stay away" expression will be honored. Markets may be
overbought but the intermediate bull trend is still intact for
Mexican Central Bank buys 100 Tonnes of Gold. Only
years ago, Mexico went through a financial meltdown....they know what
they are doing...more
If Central Banks (China) continue to buy Gold the correction we see
right now will have VERY SHORT LEGS!...more
Gold and Silver
continue to correct. How deep will the correction be
and why is Silver correcting so severely? Most investors forget or fail
to understand it is the paper market and NOT the physical market which
is coming down. In all cases, any dip must be used to ADD PHYSICAL GOLD
and SILVER to your positions. Important is to monitor how Gold is doing
when expressed in other currencies (Euro, Sterling,...) as this allows
to judge the severity of the correction.
in backwardation...so what!? When we are
dealing with the Comex silver market we are dealing with a paper market.
Keep in mind that hedge funds that trade the paper markets do not care
about fundamentals. They are pure technicians who rely solely on their
computer trading algorithms to make trading decisions. These algorithms
are utterly indifferent to the realities in the physical market.
US dollar is
oversold and the Euro overbought....give it some time
to digest the move before the initial trend is resumed. But don't expect
Thursday May 5, 2011 - Gold and Silver shares will go A LOT HIGHER! (and
so will Gold & Silver)
would ask you to take some time and learn about following technical
formation so you can better understand the PF formations we see for the
Gold & Silver Index (HUI), Copper, e.o.
The HUI index has broken though a 27 year long resistance
line. After all these years Resistance is overwhelmed because of
external factors. In a rising market, a previous resistance level,
once penetrated becomes the initial support (500
on the HUI index) level. Most investors will at this time
re-establish their positions and as is often the case, only a modest
amount of buying is sufficient to launch a self-feeding upward trend.
Existing investors let their profits run (less selling) and new
investors become more aggressive (more demand).
We have a consolidation/accumulation formation right
on top of the Support line (500 on the
HUI index). Such is an additional confirmation of the Long Term
Trend Reversal. A similar pattern is developing for
Copper right on the Support line of 400
If Silver sticks
to its historic pattern, I expect a correction of around 40%
Gold and Silver
technical BUY signal
Oil shares are
overbought. Expect a correction (probably not for
drillers and oil services)
Wednesday May 4, 2011
had a spectacular technical breakout of Occidental Petroleum.
(one of our favorites) Short term the
is overbought and running into the 2008 resistance. Buy the dips....The
shares in this shopping basket will go A LOT HIGHER...after a
There is a
50% profit locked in our
sits on the verge of a breakout and
COAL is heating up the boilers.
We don't like ETF's but we're sure they will start to
the Agricultural index are consolidating right on top
of their breakout level and Platinum has
resumed its bull run...more If we get
another hot summer we may be on the road to create a 7 year weather
cycle that will burn up crops and keep food prices rising (notice the
increased volcanic activity)
Gold and Silver juniors have
corrected back either to the 50 day (strongest) or
the 200 day Moving Average, are oversold and a BUY. The 6 month long
consolidation/accumulation is coming to an end. Be aware that the sector
books exponential earnings and can suddenly reverse course. Gold and
Silver shares CAN move up by 30% and more in a day's time...All
those who have been patient for the last 6 months must not give up NOW.
Technically speaking we have an additional confirming consolidation
right on the 27 year support line. Once the Index brakes out of this
consolidation, prices will AT LEAST DOUBLE. Don't forget that at a
certain point the investor will shift from the dangerous Gold/Silver
derivatives into Gold and Silver shares which contrary to these
derivatives will pay nice dividends.
If you are really impatient, ADD to your positions NOW. It will
make you feel better!
you to be cautious about
Silver. If $
42 does not hold, expect to see $ 39. The correction has started. The
increase in margin requirements by the CME (COMEX) did again have the
expected result. The change came into effect AFTER yesterday's
close. I expect in the near future to see the Silver margins to be
raised to cash. Expect the correction to be swift and violent!
that each time Gold
and Silver are initiating a correction as they bump
into the top limit of their PF trend channels or after reaching the
Tuesday May 3, 2011
of Osama Bin Laden must be powerful:
according to the talking Heads it made the price of Gold
and Oil come down and pushed the value of Stocks upwards....these simple
minds should be banned all together for they do no more harm than good
and make the investor feel insecure. It is sickening to see the
proliferation of so much idiocy through the Media.
This is a
secular bull market for Gold. Make sure you have physical Gold, store it
safely and sit tight...and PLEASE don't start trading.
A top to bottom correction of 10% ain't worth the risk of
a mistake. If $-Gold rises from $1570 tot
$ 1650, makes a nice short term top at $1650 and corrects to $1480
before resuming its uptrend, it really isn't worth the hassle
to try to nail the top, and suppose you do, make sure you nail the
subsequent short term bottom. [even if we adjust the objective and
correction, the correction margin remains 10%. [ Translated in
Euro's one may because of the exchange rate fluctuation between the
Dollar and the Euro even not see any correction at all.
that the price of Gold mines still sit around a level of 2001 Gold, is
not the result of the potential nationalization risk of these mines.
The reason it that many investors have directed their
savings into DANGEROUS DERIVATIVES: ETF's, Warrants, Turbo's,
Options,...and other unregulated-uncontrolled bank manufactured
investment instruments. The day that the market starts to smell RAT
these funds (of the left overs) shall be redirected into the Gold and
Silver shares. Add to this that you must hold the share to receive a
dividend....and dividends of Gold and Silver co's will SOAR.
Better think twice before you decide for a bank manufactured product!
Also be aware that Bankers have been shorting extensively the shares of
Gold and Silver mines: they can short the stock and go long the
Derivative.... The argument that the price of Gold and Silver
shares lag because of a potential nationalization risk is not correct.
No African leader will take this risk. A perfect example is Randgold
(which has a gold mine in Ivory coast). Even during the worst of the
Civil War the mine was operating as nothing happened. Most African
countries are depending upon the export of commodities for their
survival and to risk a nationalization would be suicidal. Gold and
Silver miners are earning BIG
and Silver shares are (also) quoted in US-Dollars. But
the fact that a share is traded in Dollars on an US stock exchange
doesn't mean that by acquiring such a share, you also acquire a Dollar
risk. Harmony and Kinross
not only have mines over the whole world, but the shares are traded on
different stock markets. The financial institutions (trading
departments) ensure the price of a share is regulated all over the
world. Assume you buy Kinross on Wall Street in Dollars, the price of
the shares will go up when expressed in Dollars if and as the Dollar
weakens and vice versa.
has landed EXACTLY where we predicted it would: Objective #2 ...more
Monday May 2, 2011 - Today is a Bank Holiday in most of Europe.
emotions are your #1 enemy when investing. You may be
a successful business man/woman but this does not make you a successful
investor. Bankers know this and operate out of impressive buildings and
wear Armani suits. Unfortunately many find out that their knowledge and
experience fails. Why do most people run to see a doctor as soon as they
don't feel well but fail to talk to a specialist if they see that
something is ashtray with the financial system and this will affect
The more I
see the financial press forecast a correction of Gold and Silver, the
less probable it is to happen...see the section of
Gold objectives...and how small a potential correction
will be. A maximum correction of 10% from top to bottom is hardly
worth the risk!
people love big figures. The
day the Euro was introduced in Spain retail prices were
often multiplied by 4. Spanish people were used to high nominal prices.
One hundred peseta was worth almost nothing and all Spanish were peseta
millionaires. Today their double stupidity (becoming part of the EU,
adopting the Euro and multiplying prices by 4) is the main reason why
the chickens are coming home to roost: official unemployment figures are
21% (reality is a lot worse). Real Estate prices suck (hard to call the
junk they built real estate) and Spanish people are back to square one:
olives and sheep. As long as Spain is part of the EU their economy
will DEFLATE up to the point where prices would have been after a
devaluation of the Peseta.
professions which are of basic importance for society are rewarded LESS
than those which bring no real added value.
We live a reversal of fields where a football
and a tennis player make more money that anybody having an university
degree, than a medical doctor, an engineer,...Such not only adversely
affects society but also states a bad example for the youth.
Oil sector is
making big bucks and is rewarding its
share holders not
only by paying out a dividend but also by a capital gain (rising share
prices). We still advise to add to your positions: buy dips/corrections
and sit tight.
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