Commentaries

The ISM has once again expanded.  Policy is working, so please Dear Mr. Bernanke, begin to withdraw not only a token amount of Treasury bond asset buying in October; make a real statement for the ‘organic’ economy.  Pull all T bond purchases and stop buying some MBS to boot.  You’ll not only help the Fed’s … Continue reading

Tensions in the Middle East have always had an impact on everyday life around the world through their effect on the price of oil. During the last month we saw this impact very clearly.

In the previous week the Fed surprised markets when it decided to stick with its massive stimulus measures

Inflation spigots are open and running 24/7…   and an economy that needs to purge the excesses keeps resisting the inflation… Within this, we are in a phase where policy makers appear effective because at the margins the economy is creeping toward improvement.  But in the big picture? We see a continuum of 1-2% growth … Continue reading

Last week the price of silver climbed to $23.45 after U.S. Federal Reserve Chairman said its huge stimulus program would stay in place.

In the fall, an investor’s fancy returns to the market. Michael Curran of Beacon Securities believes that the end of the summer doldrums could result in gold reaching a high of $1,500/oz this year. In this interview with The Gold Report, Curran argues that investors should pay particular attention to speculative plays with modest potential downsides and … Continue reading

In our 18th September Update we said that the Fed’s decision not to “taper” was not, in and of itself, meaningfully bullish for gold.

Last week the Fed treated us to a whipsaw as market perceptions apparently were not in line with the FOMC policy statement, which was basically a punt.  Then the very next day the Fed’s James Bullard  jawboned the media about a possible October Federal Reserve tapering.  Hence, a letter writer was left with images of … Continue reading

Of the 2000 junior resource companies we track, very few have the strength of Continental Gold Corp. It has over $130 million in the bank, analysts believe its 5.5 million ounce Buriticá high-grade gold deposit in Colombia will become a cash cow, its technical and management teams are well-experienced, and when the deposit gets permitted … Continue reading

According to Reuters, gold is often seen as an inflation hedge (while it is really a system hedge in our opinion) and this safe-haven investment, has fallen nearly 20% this year on fears of an end to easy central bank money, which had propelled it to record highs in 2011.

In my previous article (What if the Fed Really Tapers QE?) I focused on what would be the likely outcome of limiting the QE program on several key markets (gold, real estate, stocks and bonds). Today, we will provide you with an analogous analysis for a completely different scenario.

The Dow 30 continues to be presented and endorsed as a true reflection of the health of the U.S. economy yet it is anything but. The truth of the matter is that it’s deceptive in what it purports to represent.