Silver looks to be on the verge of a major new upleg, finally emerging from the past couple years’ ugly sentiment wasteland.This beleaguered precious metal recently bottomed as futures speculators threw in the towel on their extreme shorting. And while investors’ ongoing silver stealth buying continues, it’s been modest. So there is vast room for capital inflows to accelerate dramatically as gold mean reverts higher.
Silver has always had a special allure for hardened contrarian investors.Its price action is exceptionally volatile, with massive rallies erupting from time to time that multiply capital deployed in it. With silver’s relatively-small market size, it doesn’t take a lot of new investment buying to catapult prices higher. And shifting sentiment, a powerful self-feeding motivator, fuels the big swings in capital flows that really move silver.
When investors wax bullish on this white metal, its price soars with a fury few other investments can match. Later when silver falls out of favor again, prices collapse.And that’s the miserable story of the past couple years. Silver dropped 19.7% in 2014 after plunging a brutal 35.6% in 2013.Such dismal performance naturally left silver universally despised, the pariah of the investment world. But that is changing. Continue reading
I’ll be honest. The thought of being in a retirement community in my later years surrounded by Deadheads doesn’t sound bad.
That was my reaction after reading an article in the New York Times recently about how niche and specialized retirement communities are being created to cater to people with similar interests and passions, even an affinity for the Grateful Dead.
The Times story discusses communities that cater primarily to those in “specific” markets such as the LGBT community (Fountaingrove Lodge) and to entertainment professionals (Lillian Booth Actors Home, around since 1902).
The wonderful thing about these communities is that they provide a community of “like minded” people to spend one’s later years with. They are often not cheap — the Fountaingrove Lodge has a $750,000 entrance fee — but they provide an experience that is more unique and focused than your typical retirement community. Continue reading
I hate to put a damper on the party, but the some of the reporting on the economy is getting a bit out of hand. The Post gave us an example, with a piece on the revised fourth quarter GDP numbers headlined, “Robust Economic Growth in the third quarter raises hopes that a boom is on horizon.” That’s not what Mr. Arithmetic says.
First, just to be clear, the third quarter numbers were definitely good news. Five percent GDP growth is a solid economic performance by any measure, so there is no doubt that it is a big step forward by any measure. The economy is clearly growing, and likely at a reasonably respectable rate. The issue is whether the term “boom” is appropriate. Continue reading
Johanna Pimentel said she and both of her brothers had taken out multiple title loans. Credit Dilip Vishwanat for The New York Times
The rusting 1994 Oldsmobile sitting in a driveway just outside St. Louis was an unlikely cash machine.
That was until the car’s owner, a 30-year-old hospital lab technician, saw a television commercial describing how to get cash from just such a car, in the form of a short-term loan.
The lab technician, Caroline O’Connor, who needed about $1,000 to cover her rent and electricity bills, believed she had found a financial lifeline.
“It was a relief,” she said. “I did not have to beg everyone for the money.”
Her loan carried an annual interest rate of 171 percent. More than two years and $992.78 in debt later, her car was repossessed.
“These companies put people in a hole that they can’t get out of,” Ms. O’Connor said. Continue reading
Fed Delays Parts of Volcker Rule Until 2017
The US Federal Reserve has given Wall Street banks even more time to comply with parts of the Volcker Rule, a key provision of the 2010 Dodd-Frank financial reform bill. The rule prevents federally-insured banks from using their own money when investing in certain risky assets. (Read Full Story)
China Buys 39 Tonnes Gold In Single Session
However, the rally was not sustainable. “As we are accustomed to seeing recently, interest dropped off during the Chinese break before USD $1,200 was breached in the afternoon session,” they say. The analysts add that silver also pushed higher on the back of renewed gold demand from China. (Read Full Story)
Traders Hoping That Russia Will Sell Gold
Russia’s surprise interest-rate increase failed to stop the plummeting ruble. Another tool available to repair economic havoc caused by sanctions and falling oil prices: selling gold. (Read Full Story)
Bankers See $1 Trillion of Zombie Investments Stranded in the Oil Fields
In a stunning analysis this week, Goldman Sachs found almost $1 trillion in investments in future oil projects at risk. They looked at 400 of the world’s largest new oil and gas fields — excluding U.S. shale — and found projects representing $930 billion of future investment that are no longer profitable with Brent crude at $70. In the U.S., the shale-oil party isn’t over yet, but zombies are beginning to crash it. (Read Full Story)
There’s a Blacklist in the $800 Billion U.S. Loan Market and It’s Not Illegal
Unlike any other market in the U.S., the blacklist rules in leveraged loans. No regulator polices trading in the $800 billion market. Here, borrowers — and the investors who control them — choose who gets into the club. It would be as if Apple Inc. (AAPL) got to decide who could buy its stock. (Read Full Story)
The Greatest Tax Story Ever Told
The Feds may be screaming,
But we all are beaming
’Cause we’ll never pay taxes,
We’ll never pay taxes,
Never pay taxes again! (Read Full Story)
The Coin of the Realm: How Insider Traders Are Rigging America
Few traders on Wall Street ever know where the inside tips they use come from because confidential information is, in his words, the “coin of the realm in securities markets.” (Read Full Story)
CHICKENS WILL COME HOME TO ROOST: US Risks Economic Crash In Oil War With Russia
Why have Obama and Co. kept their mouths shut while oil prices have plunged, domestic industries have been demolished, and stocks have gone off a cliff? Could it be that they’re actually in cahoots with the Saudis and that it’s all a big game designed to annihilate enemies of the glorious New World Order? (Read Full Story)
Crashing Oil May Result In “Perestroika?”
It may seem fanciful, the scenario discussed below that is… and the various outcomes thereto no less, but as we all know by now, the truth is often stranger than fiction, by far…and then some. It’s quite a read for those with an interest in the subject matter. (Read Full Story)
This Is What Gold Does In a Currency Crisis
To say that gold is in a bear market is to misunderstand both gold and markets. Gold isn’t an investment that goes up and down. It is money in the most basic store-of-value sense. Most of the time it just sits there, and when its price changes in local currency terms that says more about the local currency than about gold.But when currencies… (Read Full Story)
The Fed Is Sitting On a $191 TRILLION Time Bomb
Stocks are bouncing today because the Fed will wrap up its monthly FOMC meeting and make a public statement this afternoon. Stocks have been rallying into FOMC meetings for the last three years, so traders are now conditioned to buy stocks in anticipation of this.The prime focus for the markets is whether the Fed continues to state that it will raise… (Read Full Story)
The Matrix of Power
The disappearance of knowledge from human consciousness is a rare phenomenon, but there are recorded instances of knowledge which has evaporated. As a curious example, Pancirollus, writing in the 16th Century mentions that, among many other cases of lost technology, in the time of the Roman Empire a man who had invented flexible glass was presented… (Read Full Story)
Would It Be Bad for the Economy If Oil Fell to $3 a Barrel?
If the price oil fell to $3 a barrel, and it stayed there for 10 years, that would be a good thing. What if this led to massive unemployment in the oil industry? That would be a good thing. But isn’t the primary task of a free market economy to balance supply and demand? Yes… (Read Full Story)
“Illegal Immigrants Steal Americans’ Jobs.”
The logic of economics applies across borders: county, state, and national. Deny this, and you deny economics. Conservatives deny economics. They promote tariffs and import quotas across national borders, but not state and county borders. Ludwig von Mises had a word for this: […] (Read Full Story)
Will Gold Soar to $2347 or Plunge to $810?
The correction in precious metals, now in its 39th month, has been devastating for long-term bulls. At recent lows, gold was trading 42% below its September 2011 Comex high of $1952. As for silver, which peaked at $50, it has plummeted by an astounding 72%. From a technical standpoint, both look like they have further to fall: gold, currently trading around $1200, to exactly $810; and silver, quoted today near $16, to – better sit down for this – $7.86. (Read Full Story)
PIGMEN WIN AGAIN
“The real owners are the big wealthy business interests that control things and make all the important decisions. Forget the politicians, they’re an irrelevancy. The politicians are put there to give you the idea that you have freedom of choice. You don’t. You have no choice. You have owners. They own you. They own everything. They own all the important land. They own and control the corporations. They’ve long since bought and paid for the Senate, the Congress, the statehouses, the city halls. They’ve got the judges in their back pockets. And they own all the big media companies, so that they control just about all of the news and information you hear. They’ve got you by the balls. They spend billions of dollars every year lobbying lobbying to get what they want. Well, we know what they want; they want more for themselves and less for everybody else.” – George Carlin (Read Full Story)
Never before have I seen so many pieces of information to be put together in the span of just one week. This past week we were bombarded with connectable dot after connectable dot, nearly each and every one of them on their own would have caused a panic 30 years ago. I say “30 years ago” because this was before the 1987 crash, this was before anything and everything, nailed down or not …was levered many times over in what eventually became an inflation party. 30 years ago, black was not white, wrong was not right and “debt” was still in its infancy of being money. Fast forward to present day and we now have a monetary system with one foot on a banana peel and the other in a grave! Continue reading
Homeownership and Wealth Creation
Since the housing bust, renting has been in and owning a home has been out, especially among young adults who in earlier decades would have been first-time home buyers. As the rate of homeownership has declined, from a peak of nearly 70 percent in 2004 to a 20-year low of 64.3 percent recently, the number of owner-occupied homes has barely budged, while the number occupied by renters has increased by nearly 25 percent. (Read Full Story)
Swiss Voters Reject Gold Intiative
Swiss voters rejected a measure in a referendum requiring their central bank to hold a portion of its assets in gold, a measure its President Thomas Jordan termed an “invitation to speculators” that could have hurt the economy. Bullion tumbled to a three-week low. (Read Full Story)
Anti-Gold Propaganda Prevails In Swiss Vote!
If the initiative would have passed, the Swiss National Bank would have been required to hold at least 20% of its balance sheet in gold. This demand was denounced by the mainstream media as a “radical” step that would massively restrict the central bank’s actions, although not that long ago, the constitution required a 40% backing of the Franc with gold. (Read Full Story)
Ponzi: Treasury Issues $1T in New Debt in 8 Weeks—To Pay Old Debt
Treasury took in $341,591,000,000 in revenues. That was a record for the period between Oct. 1 and Nov. 25. But that record $341,591,000,000 in revenues was not enough to finance ongoing government spending let alone pay off old debt that matured. (Read Full Story)
Household Debt Balances Increase as Deleveraging Period Concludes
…and now it’s the Holiday season. How much more debt will we go into? (Read Full Story)
Gold Shortage, Worst In 21st Century
But how is it possible that there is a shortage of gold when gold prices keep tumbling day after day, the skeptics will ask? Simple… (Read Full Story)
How JPMorgan struck gold with copper
Once again, JP Morgan (the Pirate) strikes again!!! (Read Full Story)
New Mortgage Lending Drops to 13-Year Low
After mortgage rates jumped in the middle of last year, from around 3.6% in May to 4.6% in June for a 30-year, fixed-rate mortgage, refinancing withered. And it hasn’t returned. (Read Full Story)
Looks Like it Was a “RED” Friday Weekend
This was an unequivocal disaster. All the hype. All the deals. All the advertising. All the extra hours. And sales PLUMMET by 11% versus a shitty Black Friday weekend last year. (Read Full Story)
OIL GIANT: Crude Could Crash To $30
More than 50% lower. That is how far Canadian billionaire Murray Edwards, chairman of Canadian Natural Resource, thinks oil prices can fall from here. (Read Full Story)
RERUN: The US Government Has Rigged Precious Metals Markets For 80 Years!
The US government’s Exchange Stabilization Fund within the Treasury Department was established way back in 1934. It was initially financed by $2 billion of the profits the US government realized when it raised the official price of gold from $20.67 to $35 per ounce. (Read Full Story)
This Has Utterly Corrupted Our Economy
TV screens are flat. Some singers are flat. Cakes come out flat. Tires go flat. Prizefighters are laid out flat. Dead men, too. Sooner or later, we all go flat. (Read Full Story)
Snyder: Guess What Happened The Last Time The Price Of Oil Crashed Like This?…
There has only been one other time in history when the price of oil has crashed by more than 40 dollars in less than 6 months. The last time this happened was during the second half of 2008, and the beginning of that oil price crash preceded the great financial collapse that happened later that year by several months. Well, now it is happening again, but… (Read Full Story)
Economic Cycles Are Far Bigger than Presidents
I’ve never had a good word to say about Barack Obama, and I’m not going to start now. But it would be disingenuous to blame him for the Great Recession that has persisted for most Americans since the downturn ended officially in 2009. Politically speaking, there is nothing Obama or any other president could have done to alter the course of economic events after real estate prices collapsed in 2007-08. (Read Full Story)
Stocks Have Been More Overvalued Only ONCE in the Last 100 Years
Stocks are not cheap. In fact, they’ve only been more overvalued ONCE in the last 100 years. In the words of Beavis and Butthead, can you say, “Cornholio!”? (Read Full Story)
Legend of the Golden Fleece was REAL
Greek myth originated near the Black Sea where miners used sheepskin to filter gold from mountain streams, geologists claim. (Read Full Story)
We have been bearish on gold prices since January 2013, when it was trading above $1,650 an ounce. Since then, the price of gold has declined by almost 30%. There are three main reasons for this underperformance over the last two years:
1. Gold as an investment hedge has become less attractive to Europeans as the chance of a break-up of the European Monetary Union declined after Spain, Portugal and Greece were bailed out by the EMU’s richer members, such as Germany.
2. Gold has become less attractive to Americans as the U.S. dollar strengthened and recently hit a four-year high.
3. India, which accounts for one-quarter of the world’s gold consumption, slapped a 10% import duty on gold during August 2013. Indian gold demand dropped by close to 40% year-over-year in the fourth-quarter of 2013 and did not recover until this summer. Continue reading
Last year, I was roundly criticized when I said the Cyprus scenario is coming here. I was told there would be a revolution if this happened and the government would be to afraid to try such a thing. I marvel at people who hold to such naive beliefs. The American people have been through several beta tests related to our private wealth being confiscated and no resistance was offered (e.g. MF Global).
Listening to the sheep that believe Wolf Blitzer who tells us that the economy is in recovery, is like listening to a country song played backwards. You know the all-to-familiar message, the wife does not leave, the truck still runs and the guy stops drinking. Maybe it is all the fluoride in the water that is causing such widespread ignorance and apathy.
First of all, our government is not the main enemy. This is not the government we are dealing with. We are battling organized crime in the form of corporations like Goldman Sachs who have hijacked our government and now they have captured the G20. They are lining up for the last great garage sale before they collapse the economy and roll out martial law. There are forces lining up to steal everything that you and I own. It has already begun but this country is so dumbed down, we do not see that it has already started. Continue reading
Gold and silver price manipulation, “we” have talked and written about it for years. I can still remember speaking two or three times a week with the late Harry Bingham back in 1997 and ’98 regarding this topic. No matter what “event” popped up which logically and in the past should/would have pushed the price of gold higher, we would see waterfall action instead. Then along came Bill Murphy and Chris Powell of GATA. They put forth all sorts of anecdotal evidence, work by Frank Veneroso, James Turk and others which made the “manipulation picture” clearer. Each piece along the way was added to the previous pieces and made it more clear “we were right”. (Zero Hedge)
Of course, along the way there have been slurs and smears of GATA’s work and those of us who put the pieces together shedding light on the fact that gold and silver prices were manipulated. I must say, it was quite a frustrating experience when often times there was obvious evidence to the 3rd grade mentalities out there yet supposedly “smart” people would just turn their noses up saying “that proves nothing”. Even the latest operation last Wednesday at 12:30 AM where one week’s worth of global gold production (40 tons) was sold in the tight window of and Indian holiday and Chinese/Japanese lunch break was “apologized away” as being “routine selling”. Yes, I will agree, it has “become routine” but in no way is it “right”. Selling that which does not exist is illegal, morally wrong and in this case aimed squarely at suppressing the price. This is either “price fixing”, or “collusion”, both supposedly illegal. Continue reading