Commentaries

As the Euro makes a panic spike down, Gold priced in Euros is ramping higher, acting as a perfect currency hedge and a much better one than the stock market. Here’s a 6 month chart of Gold priced in Euros thru today’s close (chart courtesy of goldprice.org): Meanwhile, the European stock markets (using the Dow … Continue reading

If the market is topping, it’s doing so in the face of rosy news in every area except for employment and there is nothing more ominous than a stock market turning down in the face of a “bright” economy. At such times, nobody is ready or positioned for a sudden reversal. [Are you?] In further … Continue reading

Source: Ellis Martin and Karen Roche of The Gold Report 5/3/10 http://www.theaureport.com/pub/na/6209 It’s often called the “Poor Man’s Gold,” but according to “Silver Guru” David Morgan of The Morgan Report and www.silver-investor.com, silver is poised to outperform gold. “The amount of silver mined meets industrial and investment demand. We’ve reached equilibrium,” Morgan explains. In this … Continue reading

As the attached chart demonstrates, the S&P may soon take out the 1.00x ratio to gold price per oz. With the IMF facilitated Greek bailout, the euro is now a sideshow and nothing more than a political corpse in the hands of a few million Nordrhein-Westfalen voters next weekend. That a bailout of a country … Continue reading

“May 3 (Bloomberg) — Construction spending in the U.S. unexpectedly increased in March, propelled by gains in state and local government projects.” Here’s the story link: Debt Makes You Free? Rather than help States and Municipalities balance their spending budgets and reduce their outstanding debt, the Federal Govt gave local contruction spending a boost in … Continue reading

As for nominal market charts, little is resolved by today’s expression of relief. Once again the bear case for the broad markets finds itself on a thin line. If silver breaks upward in ratio to gold (SLV-GLD shown here) then PM stocks should rebound strongly yes, but so too will the bull case likely remain … Continue reading

The bullish structure is degrading and the open interest is increasing but I don’t think the price of gold cares just yet. Next upside target remains open. But still, CoT is just one of many tools and indicators to keep an eye on and it is not great looking. http://biiwii.blogspot.com/2010/05/gold-cot.html

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

I’m going to start off by stating that I don’t think Bernanke is going to “get away” with the insane monetary policy he’s chosen. Printing trillions of dollars, cutting rates to zero, trying to manipulate the bond market and generally tampering with the natural market forces is going to have consequences. There is a price that … Continue reading

Jack Chan’s Weekly Review of the Precious Metals Sector…