Somebody out there is sure getting prepared for something really big. We have just witnessed a takedown of gold and silver unlike anything that we have witnessed in decades. On Monday, the price of gold had fallen by more than 10 percent at one point. It shocked investors all over the globe, and overall what we have just seen was the largest two day decline in the price of gold in 30 years. The price of silver dropped even more rapidly on Monday. It was down more th... (more)
In the opening years of the last decade, most mainstream investors sat on the sidelines while "tin hat" goldbugs rode the bull market from below $300 to just over $1,000 per ounce. But following the 2008 financial crisis, when gold held up better than stocks during the decline and made new record highs long before the Dow Jones fully recovered, Wall Street finally sat up and took notice. The new devotees helped to push gold to nearly $1,900 by September of 2011. For the next year and a half i... (more)
April 15 (Bloomberg) -- James Grant, publisher of Grant's Interest Rate Observer, talks about gold prices, inflation and credit markets. He speaks with Deirdre Bolton on Bloomberg Television's "Money Moves." Bloomb... (more)
Drudge is headlining the recent drop in the price of gold to below $1400, the price right now is hovering a little above $1,400. The HUI index just opened down over 7%, it's at a four year low of 280.
I've thought for a while now the imaginary number in my head for gold to become attractive again was $1,500, we cleared it a few days ago and there seems to be a mini-panic ensuing, especially in gold s... (more)
The lesson from the events of 2007-2008 should have been clear: Boosting GDP with loose money -- as the Greenspan Fed did repeatedly between 1987 and 2005 and most damagingly between 2001 and 2005 when in order to shorten a minor recession it inflated a massive housing bubble -- can only lead to short term booms followed by severe busts. A policy of artificially cheapened credit cannot but cause mispricing of risk, misallocation of capital and a deeply dislocated financial infrastructure, all of... (more)
For those of us who think that the world's central banks have been placing too much faith in the money printing press as a means of rousing sluggish economies, last week was bewildering. Gold closed the week below US$1500 per ounce. Not since June 2011 has the yellow metal traded beneath that level. Indeed, well before the breach of $1500, gold had been languishing after hitting an all-time high of $1900 in September 2011, stuck as it was within a range between $1800 and $1520.
Moments ago, it was none other than Takeshi Fujimaki, Soros' former advisor on all matters Japanese, who tripled down on the warnings, and told Bloomberg that the Bank of Japan's "huge bet" by boosting quantitative easing won't turn the economy around and is instead sending the nation toward default.
Their concerns aren’t centered around the possibility of an economic collapse, another down leg in the real estate market, continued deterioration of the labor market, or a US dollar currency meltdown.
With markets at all time highs and financial experts around the world predicting a turn-around in the global economy, a lot of “Mom and Pop” investors who experienced major losses in personal investment funds and home prices dur... (more)
April 12 (Bloomberg) -- Gloom, Boom and Doom Report Publisher marc Faber discusses the markets, gold and his investment strategy on Bloomberg Television's "Street Smart." (Source: Bloomberg)
Why the recent sell-off in gold and silver defies the fundamentals, ignores the facts, is predicated on a myth, and has succeeded in creating the necessary level of scepticism and fear to finally propel precious metals to new record highs.
Instead of the endless procession of "different this time", "buy-the-dip", "money-on-the-sidelines" asset-gathering, Muppet-fleecers that CNBC so typically trots out, Sam Zell graced them with his presence and the truth was allowed a voice for a few minutes. Joined by David Rosenberg, who clarifies the insanity that engulfs US equities, explaining in wonderment that it is "not surprising the market rises even in the face of bad ISMs, worse jobs, and worst NFIB data, because Japan and the US are ... (more)
Bitcoin just hit a low of $52.99 per Bitcoin on the BTC-e.com exchange, it stands currently at $59. MtGox has been down for hours for maintenance and the price has been plummeting throughout. Bitcoin hit a high of $266 just yesterday before the ensuing crash. At this point the price is still double what it was two months ago, so it's yet to go through a full routing erasing all gains since going parabolic.
If the media tell us that "the opening of XYZ mill has created 1,000 new Jobs," we give a cheer. When the ABC company closes and 500 jobs are lost, we're sad. The politician who can provide a subsidy to save ABC is almost assured of wide-spread public-support for his work in preserving jobs.
But jobs in and of themselves do not guarantee well-being. Suppose that the employment is to dig huge holes and filll them up again? What if the workers manufacture goods and services that no ... (more)
