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Occasionally the stock market gives important clues about its future direction. One way a clue can appear is through a divergence

May 4, 2009 – Markets always require vigilance and patience, but sometimes they demand even more. They sometimes require extraordinary patience. We are at one of those moments in time with regard to gold and silver. There is every reason to be bullish here about the prospects for both precious metals, both over the long-termRead more

I have explained in recent letters why I believe the US is on the road to hyperinflation. I think the writing is on the wall, but we will of course only know for certain in the weeks and months ahead.

May 4, 2009. Since March 23, 2001, we have been holding goldgrams as our Core Currency Position. The dollar remains within the same trading range that has confined it since last year, but importantly, its bear market rally is rapidly losing momentum. I have been expecting that the dollar will eventually break out of itsRead more

May 4, 2009 – On April 15th traders covered at 123-38/64 the Jun’09 T-note sold short at 125-20/64 on March 18th. The profit was 1-46/64. I would like to get short again. The contract has moved lower since we were stopped out, but is I think due for a bounce. The yield on the T-noteRead more

May 4, 2009 – The gold/silver ratio continues to hang on a precipice. I have written in the last two letters about the importance of the 68-69 area. So far the ratio has not broken below this key support level. I think it will. It just requires more time – more patience for it toRead more

April 14,2009 – An old Chinese saying declares that wisdom begins by calling things by their right name. Truer words could not be spoken about gold. If you call gold by the wrong name, you begin down the wrong road, which is a serious handicap. It can easily prevent you from understanding why you shouldRead more

Do you still doubt that the US is on the road to hyperinflation? Then consider this news item, released late Friday afternoon on a 3-day weekend in the hope that few will notice. “Reuters – U.S. budget gap soars in first half of fiscal 2009 – The United States posted a record $956.8 billion budgetRead more

April 13, 2009 – There is no doubt that I have some amazing subscribers. I received a bunch of emails regarding the new Sound Money Indicator (SMI) that I presented in the last letter, and all of them, quite frankly, are loaded with good ideas and suggestions. They are obviously the product of some veryRead more

March 23, 2009 – The other day at lunch with a friend, we began talking about my Fear Index. He suggested that I give it a new name in order to more accurately convey the important message it offers. Namely, it numerically measures the soundness of the dollar. Others have made similar suggestions for aRead more