Tag: Guest Bloggers

Election Time

Posted on by The INO.com Team

By Jeff Thomas, International Man

"Anybody who wants the presidency so much that he'll spend two years organizing and campaigning for it is not to be trusted with the office." - David Broder

"If voting could actually change anything, it would be illegal." - Noam Chomsky

Generally, I tend not to comment on elections, as I consider them to be largely unimportant. That is, regardless of which candidate is elected, the actual outcome tends to be much the same. In most countries, the higher the office being contested, the less real difference there is between the candidates.

First, unlike, say, a beauty pageant, in which the voter may have up to fifty contestants to choose from (as in the US), the governments of the world do all that is in their power to limit the choices to two contestants. Second, the more sophisticated the electoral system, the more likely it is that the two candidates are quite similar in both their level of ability and their apparent sincerity in serving the public who elect them. Third, the more apparent an issue is in the eyes of the voters, the less likely it is that the candidates will actually offer a specific plan to solve it. Continue reading "Election Time" →

October Frightfest: Failure to Break Concrete Ceiling Results in Pullback

Posted on by The INO.com Team

HEALTHY CONSOLIDATION OR DEEPER CORRECTION AHEAD?

The month of October has not been kind to Gold & Silver Bulls as the markets have continued to breakdown, ending a lackluster week with an especially weak close.

The inability or failure to take out the Bears’ Concrete Ceilings of resistance at $1800 Gold and $35 Silver has weighed heavily on the Bulls as this consolidation is wringing out any excessive bullish sentiment from these heavy metals, hard currencies.

Let’s take a quick look at how far (and how fast) these markets have recently fallen off their most recent highs: Continue reading "October Frightfest: Failure to Break Concrete Ceiling Results in Pullback" →

Will an OPEC Nation’s Runaway Inflation Spark an Oil Bull Market?

Posted on by The INO.com Team

By Marin Katusa, Casey Research

In the third century, greed got the best of Rome's emperors. As they spent through the silver in the treasury, one emperor after another reduced the amount of precious metal in each denarius until the coins contained almost no silver whatsoever.

It was the world's first experience with currency debasement and hyperinflation. As people saw the value of their savings evaporate, society grew angry and demanded a scapegoat. Christians became that scapegoat, and Romans turned on them with incredible violence.

This pattern – currency debasement leading to social upheaval and violence – would repeat many times over. Continue reading "Will an OPEC Nation’s Runaway Inflation Spark an Oil Bull Market?" →

Gold Chart of the Week

Posted on by The INO.com Team

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.

Weekly Gold Report (October 22nd through October 26th)

Last week concluded another five days of mixed data that continues the keep everyone guessing. When it comes to the fundamental side of the current market, traders are left scratching their heads fairly regularly. Each week we have to keep in mind that the US FED has made it clear that they will continue to print US Dollars and purchase debt (QE) which should help global markets avoid total disaster. Much of the sharp rally in Gold prices from late September into early October were in anticipation of this announcement. But it should be noted that the FED’s balance sheet is at the lowest level since June 2011 which means the $40B per month in easing has not yet begun. Last week reported less than favorable earnings for quite a few big names in the US markets, which prompted a hefty correction in equities that wiped out a three day rally in one session. Continue reading "Gold Chart of the Week" →

Goldman Sachs' Ian Preston Surveys the Gold ETF vs Equity Battleground

Posted on by admin

The Gold Report: Your recent commodity price research shows a gold price of around $1,811/ounce (oz) for 2013. Could you talk with us about how some of the macroeconomic issues influence that forecast?

Ian Preston: When we look at gold, we don't have in mind a specific supply/demand balance going forward. It's easy enough to see the supply side. In trying to forecast a price for gold, we tend to run out a 4% per annum contango from the current gold price until we think U.S. interest rate policy will reverse and rates will start to climb. That stage just keeps on moving outas it has with Quantitative Easing (QE) 3.

"If accommodative fiscal policies continue globally, gold could go significantly higher."

We look at the gold price to forecast earnings, and over the next 6 to 12 months, we'd expect $1,650/oz at the lower end and, if it breaks through, $1,8501,900/oz at the upper end. If accommodative fiscal policies continue globally, it could go significantly higher. But bear in mind that as equity analysts we're trying to forecast earnings, and to do so we want to be as close as possible to where the gold price will be for the next three to six months, even if the range is quite broad. Continue reading "Goldman Sachs' Ian Preston Surveys the Gold ETF vs Equity Battleground" →