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Strong

Don't Keep Your Gold and Silver in the US, Says Marc Faber

Publisher Marc Faber discusses the fragile state of the US and global financial systems… how rising inflation will affect the average American… how soon the bubble will burst… and why gold and silver will triumph.

Here are a few highlights:

"The US is a country that likes to create trouble, but they don’t like to clean up things."

"We've now been five years into the bull market and the US economy bottomed out in June 2009. We already had a crack-up boom—not in the economy of the typical household, but in the economy of the super-well-to-do people, whose asset prices rose dramatically and as a result created a huge wealth inequality." [Read more...]

Which Companies Will Bring in the Green?

The Gold Report: In a call with Sprott clients last week, you said that the junior resource market is at an intermediate-term top right now and there will be good summer entry points. Why is the market at a top now instead of May, which is more typical? Should investors wait until the summer entry points to get into good juniors?

Rick Rule: The top could continue through mid-May. If investors have positions in their portfolios that they aren't thrilled with, they should use this market to sell. One of the things I've noticed is that if an investor paid $1 for a stock and the stock is at $0.35even if the stock was valuelessthey are unwilling to sell it for $0.35. In many cases, the stocks that fell from $1 to $0.25 or $0.35 are now selling at $0.50 or $0.60. My suggestion is that this is a great time to take advantage of it.

"Tahoe Resources Inc. has one of the finest silver deposits in the world."

I want to draw people's attention to the fact that the market is up 40% in some cases from its bottom. Amazingly, people are more attracted to that than a market that exhibited bargain basement prices.

Although I believe that the market has bottomed, we're going to be in an upward channel with higher highs and higher lows, but we are certainly going to exhibit the volatility that the market is famous for. It's my suspicion that the summer doldrums will see lows that, while higher than last summer, are substantially lower than the prices that we're enjoying today.

TGR: Gold has been above $1,300/ounce ($1,300/oz) for several weeks. Is that influencing the market? [Read more...]

Article source: http://feedproxy.google.com/~r/theaureport/Ajgh/~3/q1TvAozm7V4/15899

Gold's Grinding Message

Precious metals boosters will see gold's nominal price break upward and probably get excited.  They will marshal the troops for what could one day turn out to be a full fledged tout, as if the 40% decline of the last 2.5 years had never happened.

gold

But it is gold’s ratios to positively correlated assets that tells the interesting story.  Vs. Crude Oil, the story could be shaping up to be a positive one for the gold mining industry, which is counter cyclical and obviously energy and fuel intensive. [Read more...]

Chart of The Week - Silver

Each Week Longleaftrading.com will be providing us a chart of the week as analyzed by a member of their team. We hope that you enjoy and learn from this new feature.

In the May 2014 Silver (or Mini Silver) futures, a recent up-trend has consolidated just above the $21.500 level over the past seven trading sessions. Equity markets have been weighed down by a round of profit-taking in the initial morning hours, giving way to strong upside potential in the precious metals markets.

Yesterday's trading session, February 25, 2014, provided an outside reversal on the daily chart. The market failed on a downside move, reversed, and closed above the high at $22.030. This price action is a bullish near-term indicator. [Read more...]

Precious Metals Grind Out a New Trend

Gold is Monetary Value

We preface the post with a statement that has not changed since I began public writing nearly 10 years ago:  Gold is not about price; gold is about value.  This point was hammered home to me 11 years ago by a person who had much influence upon my viewpoint toward the financial system and its various diseased components at a time when I was ready to listen and understand.

So whether we are talking about 2013′s epic price crash or a new bull trend in 2014, the simple fact is that physical gold itself is a store of monetary value.  That applied last year as the value was marked down by greed and confidence and it will apply this year as it is marked up in the face of a likely unwinding of those things.  Humans, what funny and hyper kinetic animals. [Read more...]

David Morgan: 'The Silver Bottom Is In: Time to Hold, Add and Ride It Out'

The Gold Report: When we interviewed you last, you mentioned the possibility of "resource wars" in 2014 as referenced in Michael Klare's book of the same title. What will that look like to the average investor?

David Morgan: The resource wars have already started. Look at Mexico. It has a resource that it covets very much, and that's energy. That is why the government levied a new tax designed primarily at energy but subsequently adds a 7.5% royalty on mining profits. Is it a war? Not per se, but it is detrimental to companies that operate in Mexico today and in the future. I think we will see even more of this kind of thing in 2014.

TGR: Last year was a volatile year for precious metals prices with silver going below $20/ounce ($20/oz) and gold bobbing around $1,200/oz at the end of the year. Are we still three or four years from $100/oz silver as you said in your last interview? What's going to push it to that level? [Read more...]

Article source: http://feedproxy.google.com/~r/theaureport/Ajgh/~3/l1jX0Fdi3to/15819

Precious Metals: Risk Management to Opportunity

What Has Been

A solid 2.5 years of risk management (to varying degrees) has been required of precious metals investors.  It was most intensely required after the announcement of QE3, when the net commercial short position in silver began a relentless march toward a very bearish alignment in late 2012 and then the HUI Gold Bugs index lost an important support level at around 460.  Here is the chart of silver with a heavy commercial net short position from NFTRH 215, dated 12.2.12:

si.cot

As for the HUI, NFTRH 215 also noted this on 12.2.12: [Read more...]

The Peerless Way to Precious Metal Profits

The Gold Report: In a July research report, you wrote that the ongoing decline from the all-time high in the gold price may represent a correction of the last large up leg, which some say began in 2009 or mid-2008. Or it may represent a correction of the entire 1999 - 2011 advance in the gold price. Which is it? And has that correction run its course?

Tom Szabo: We are in a correction of the 20082011 rally and it is ongoing. Big picture, the gold price needs to drop below $1,155/ounce ($1,155/oz) and then subsequently below $1,067/oz before this would represent a correction of the entire gold cycle that goes back to 1999. We haven't seen such a decline at this point so we can't conclude that it's a larger correction.

TGR: We've seen modest upward momentum in the gold price since the lows of April. Is there enough momentum to invest in gold equities? [Read more...]

Article source: http://feedproxy.google.com/~r/theaureport/Ajgh/~3/0nVJ-1Q2l9g/15660

WTF - It's not what you think

Hello traders everywhere! Adam Hewison here, President of INO.com and Co-creator of MarketClub, with your mid-day market update for Friday, the 11th of October.

I first learned about the real meaning of WTF while I was a member of the Chicago Mercantile Exchange, back when I was trading in the pits, standing shoulder to shoulder with some of the smartest traders in the world.

It was back when the movie Star Wars was all the rage and George Lucas was at the height of his very successful, creative career. The iconic line from the movie that struck a cord with everyone was, "May the force be with you."

How that quote made it into the trading pits of Chicago will always be a mystery to me. The members of the exchange took WTF, a slang term, and translated that to stand for "What's The Force?", loosely interpreted to mean, is the force up or down for the market? This term was especially common on Fridays when traders had to decide whether they were going to hold or fold their positions over the weekend.

So I say to you this Friday, WTF? [Read more...]

Technical Status: Gold, Silver & Much More…

In response to a subscriber’s request, I am pleased to announce the addition of a simple yet helpful new aspect to the NFTRH service that will be of value to subscribers and potential subscribers who do not always have the time or inclination to wade through the  whole detailed NFTRH report each week.

The NFTRH service will now include clear, uncluttered charts (as follows) focused on a daily time frame for strategic ETF’s.  This is an addition (at no extra charge) to the already well rounded service that includes the detailed weekend letter and interim email/website updates during the week.

We now provide handy and unbiased short to intermediate technical signals for gold (GLD), silver (SLV), gold stocks (GDX), silver stocks (SIL), commodities (DBC), broad US markets (SPY),  Europe (EZU), emerging markets (EEM) and China (FXI).  ETF content is subject to change as their strategic value changes. [Read more...]

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