Blog

September 20, 2010 – There is too much money being printed.  No rocket science is needed to reach that conclusion. The markets are giving us a clear message. For example, gold is trading at a record high, while silver has reached a 30-year high.  Those new high prices are happening for a reason.  The preciousRead more

There is a battle beginning as silver approaches $21, its highest price in 30-years.  There is a lot at stake. Those who are short silver don’t want their losses to become any bigger than they already are.  On the other side of the trade, everyone who is long silver wants to see silver appreciate toRead more

Inflation is coming back. In fact, it never really left, although there was a brief moment after the Lehman Brothers collapse when it appeared that the dollar would slip into a deflationary collapse. But after peering over the precipice, Bernanke and his central bank cohorts around the world did not like what they saw. So pump they did, and the dollar and other national currencies have been losing purchasing power ever since. But the loss of purchasing power is about to gain momentum.

September 13, 2010 – I am pleased to present the following article written by Mark Lundeen. He explains why the Barron’s mining stock average has outperformed the Dow Jones Industrials since 1920. The analysis excludes dividends on both averages, which in itself could be an interesting study. Nevertheless, his conclusions are thought provoking and worthRead more

If someone were manipulating the silver market, you would see exactly what has actually occurred in silver over the past several days. To manipulate the price you would use your buying power and accumulate long positions until you force silver above resistance in the high $18.40s and thereby trigger all the buy-stops sitting there, includingRead more

July 29, 2010 – Much has been made recently of the news that the BIS last year completed a 380-tonne gold swap with an unnamed commercial bank. This BIS transaction intuitively strikes me as being hugely important.  Unfortunately, the BIS and the bank involved have disclosed too little information for any of us outside theRead more

The accumulation pattern on the above chart is nearly complete. All silver needs now is one last push above the neckline around $20. As I noted back on April 1st, silver looks ready to soar once that key level is hurdled.

In presenting my outlook for 2010 I said: “We need to start thinking about silver hurdling above $50.” Noting that this event was only a 20% probability in my view for 2010, I went on to add that “this important event – which is unimaginable to many – will I expect happen in 2011.”

July 11, 2010 – The Fear Index has risen to a 16-year high.  As of June 30th, the Fear Index is 2.35%, based on M3 data made available by shadowstats.com.  Here is the formula and calculation for June 30th:   The following chart illustrates the Fear Index at the end of each month since DecemberRead more

July 10, 2010 – I need to correct an article I wrote last month stating that banks are lending again.  Total bank loans have indeed grown as I reported, but not because banks made new loans.  Instead, the increase was a result of pure accounting. On April 1, 2010, the accounting rules for banks changed.  CreditRead more

June 17, 2010 – Banks are lending again.  After many months of sitting on their hands while trying to repair their over-leveraged balance sheets, banks are making new loans.  They also continue to buy US government paper, though those purchases tapered off over the past month. Earlier this year I noted how banks were usingRead more