Blog

June 25, 2009 – Yesterday the Federal Reserve completed the latest meeting of its Federal Open Market Committee.  It re-affirmed its plan to purchase by the end of the year some $1.8 trillion – yes, $1.8 trillion – of US government paper, comprising of agency debt, agency mortgage-backed securities and US Treasuries.  That’s nearly $6,000Read more

I continue to recommend that investors stay out of the stock market (except for my recommended stocks). Continue to hold ‘gold-cash’, not ‘dollar-cash’, thereby keeping your money safe and sound in bullion until stock prices fall to more reasonable levels when measured in terms of gold. I do not have any trading recommendations at the moment.

This past Tuesday the Dollar Index made a closing low of 78.40, which was a whopping -6.6% drop from our short sale price in only twenty trading days. The dollar literally collapsed, so it is not surprising that the dollar finally bounced somewhat toward the end of the week.

June 8, 2009 – My comments are the same as the last letter. With each passing day, December’s top in prices (i.e., low in yields) looks more and more certain. I don’t recommend that traders chase the T-note lower. I do not though have any specific recommendations at the moment as to when to enterRead more

June 8, 2009 – We can now see with the benefit of hindsight how important support was in the 68-69 area for the gold/silver ratio. When this support level finally gave way, the ratio sliced right through it and continued to tumble lower, with silver outperforming gold. This outperformance is important. It means that moneyRead more

June 8, 2009 – I’ve lost count of how many trillions of dollars have been created ‘out of thin’ air by the Federal Reserve to bail out the banks. But regardless of the quantity, these newly created dollars along with the dollars created to fund the federal government budget deficits explain why the US dollarRead more

May 25, 2009 – Since March 23, 2001, we have been holding goldgrams as our Core Currency Position. On May 4th traders sold the US dollar by shorting the Dollar Index at 83.97. Stop out this trade if the Index closes above 82.80. Since establishing this short position, the dollar has dropped 4.8%, which isRead more

A number of key factors have fallen into place over the past couple of weeks. Unfortunately, together they increase the probabilities that the US dollar is headed toward hyperinflation.

May 25, 2009 – I would like to get short again, but the T-note did not bounce up to the level I was looking for. It was a sign of weakness, and we have now seen that weakness play out as T-note prices have collapsed. It would not be unreasonable to sell short here, butRead more

May 25, 2009 – Our patience is finally being rewarded. The precious metals are on the move, and higher prices are likely in the weeks ahead. While for months there has been every reason to be bullish about the prospects for both precious metals from both a short-term and a long-term point of view, weRead more