The Golden Truth

The first “cut” of Q1 2010 estimated GDP was released on Friday. It came in slighly below expectations at a 3.2% annualized rate. This number will be revised a couple times over the next of couple months. Don’t forget that because the Govt underestimates true inflation, any estimated GDP statistic is mathematically skewed too high. That … Continue reading

One very reliable directional indicator for the price of gold is The Privateer 5×3 point and figure chart, the one below goes back to 1985. I was in a lazy mood today and I think this chart pretty much speaks for itself. The P&F pattern is a double-top breakout and the odds are high that the … Continue reading

The stock market plunged hard after S&P downgraded Greek debt to junk status and cut its ratings on Portugal sovereign paper.  What may have taken most observors by surprise is the spike up in gold that occurred, even with a move higher in the U.S. dollar.  Gold has been transitioning this year into its 5000 … Continue reading

The stock market plunged hard after S&P downgraded Greek debt to junk status and cut its ratings on Portugal sovereign paper.  What may have taken most observors by surprise is the spike up in gold that occurred, even with a move higher in the U.S. dollar.  Gold has been transitioning this year into its 5000 … Continue reading

Germany’s Prime Minister, Angela Merkel, was in the news today defining the conditions upon which Germany would provide financial assistance to Greece. Included in the list of requirements is a plan…..

One way to measure the potential investment upside of silver is to measure it against gold. Right now the gold/silver ratio is around 63.5. In the last couple years years it’s been in the 80’s and as low as 48…..

Fred Hickey of the High Tech Strategist newsletter fame gave a brutally honest interview with The Wall Street Cheat Sheet about the financial/economic condition of the United States and how China and Russia, two of the largest financiers of our Government, are protecting themselves from the reckless policies of Obama and Bernanke. Here’s is a … Continue reading

MGIC is the largest U.S. mortgage insurer – outside of the U.S. Government, of course. They released horrible results, forecast massive future losses, and will issue $700 million of new stock on top of $300 million in junk bonds. Perhaps – with much emphasis on that modifier – there might be asset coverage for the … Continue reading

A: His lips are moving.   Here’s a direct quote from a speech Bernanke gave to the National Economists Club in 2002, when he was jockeying to become Greenspan’s successor: “U.S. Dollars have value only to the extent that they are strictly limited in supply. But the U.S. Government has a technology, called a printing press … Continue reading

I suggested to some colleagues earlier that, ulitmately, this Goldman Sachs derivatives scandal will further hasten investor distrust of paper “assets” and most likely accelerate the ongoing large flow of capital into phsyical gold and silver (and the movement toward investing strictly in gold/silver vehicles that offer verifiable, authentic custody) and ultimately cause the price … Continue reading