Tuesday May 31, 2011 - Make sure to be out of paper money and out of Bonds!

• Are you 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.

• Are you long Bonds? 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?

• Is 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 ! more

• 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

• Political 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.

• Profits of 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 Rothschild

• Greece 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!

• French 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!? sickening....more 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. Jackson.]

• 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.

• Do you 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.

• We know 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.

• We also 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.

• Our 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.

• New information added to the section of Gold fundamentals...click here

• 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 of derivatives.

Wednesday Mar 25, 2011

• The 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.

• The fall 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.

• Remarkable candle chart for Crude Oil. A schoolbook example it in fact is...more

• The 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

• The Dollar 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.

• Do we 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.

• Utilities 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  !!!

The Road 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.”

This is what happened since 1971 when they made Nixon close the Gold Window:

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 saved.

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 (and certain stocks: Gold and Silver shares, Energy shares,...see our investment pyramid ) will still be there...As usual the Sheeple which are mainly invested in Treasuries, bank shares, bank manufactured investment instruments, saving accounts, money market funds, etc... and Bank Deposits will loose it ALL! Forget Real Estate...it never did well during hyperinflationary depressions for it is a HOCG!

Real Income since 1960	Total Consumer  debt	Debt held by the public

1971 was 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).

A 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 Gold and Silver, but also the Australian Dollar, Swiss Franc and Canadian Dollar.

Gold companies from emerging to major producers have slowly begun the process of issuing and raising dividends. 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!

The Australian Dollar 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 Buy.

 

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 democracy !

Greece not ready for a debt moratorium (restructuring) and arrogant Italy like Portugal now also attacks Standard and Poor's after its Credit downgrade...more

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 depressions.

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.

• Gold comes back sharply,  Silver rises 4.8%. 90% of the Investors still think they know better and are investing in anything but the sectors we advise you to be invested in!  Weird it is!

• Will the 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?

• Greece is 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.

• This is 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]

• Be advised 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 use them.

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 Friedrich Hayek 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 .

• USA hits 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

• What 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

• In some 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!

• QE II 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 dies.

• $-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.

• I can't 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 correction.

Monday May 16, 2011

• The worst 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...

• The Commodity index 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 support levels.

• 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 in -

• Oil shares 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.

• Fat bullish tails on our candle charts for $-Gold and $-Silver.

• All shares 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

• Irish 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 Government]...more

• 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.

• Bonds 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.

• Portugal 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....

• First 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 channel.

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!

• If the correction for Gold and Silver has short legs, the legs of Dollar 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.

• What a 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.

• What a 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.

• Elementary 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 air.

• Be aware 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 to the 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....

• There is 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.

• The 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

• Real 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 - Short term 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)

• The $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!

• The $-Gold correction 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. The $-Gold scenario 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 ( Sterling, Yen, Swiss Franc, Dollar, Ruble, Rupee) and to the BOTTOM of the sideward accumulation (South-African Rand, Euro, Can Dollar, Aussie). 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.

• The Dollar/Euro 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.

• The single 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 requested...more . What Caesar, Napoleon and Hitler failed to unite won't be done by a bunch of incapable professional narcissistic politicians.

Friday May 6, 2011

• Our Canary 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 particular markets.

• The 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.

• Silver is 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.

• The 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 anything spectacular.

Thursday May 5, 2011 - Gold and Silver shares will go A LOT HIGHER! (and so will Gold & Silver)

I 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 shares: technical BUY signal

• Oil shares are overbought. Expect a correction (probably not for drillers and oil services)

Wednesday May 4, 2011

• We had a spectacular technical breakout of Occidental Petroleum. (one of our favorites) Short term the petroleum sector is overbought and running into the 2008 resistance. Buy the dips....The shares in this shopping basket will go A LOT HIGHER...after a correction...

• There is a 50% profit locked in our Uranium mines.

• Natural Gas 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 perform properly....

• Copper and 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)

• The 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!

• We told 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!

• Amazing is 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 objectives (Silver)

Tuesday May 3, 2011
 

• The Ghost 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.

• The fact 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 MONEY!

• Many Gold 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.

• $-Silver has landed EXACTLY where we predicted it would: Objective #2 ...more

Monday May 2, 2011 - Today is a Bank Holiday in most of Europe.

• Your 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 their savings?

• 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!

• Spanish 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.

• Today 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.

• The 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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