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02.09.10- Time to Ride the Silver Bronco?
02.08.10- Why central banks are starting to hoard gold
02.06.10- Falling Copper Prices: The Doctor is Out
Copper has fallen more than 10% in 2010. It will probably go down a lot further. Chinese companies stockpiled the metal last year, causing its price to double. Now, they've got more than enough. And if the world economy is still slowing down, which is what the Baltic Dry Index is probably telling us, you can expect the price of copper to collapse. Stay tuned... Read More 02.05.10- Economic Viewpoints and the Outlook for Silver
Congressman Paul blames the country's economic woes on a long-dead economist by the name of John Maynard Keynes, whose present-day adherents, he says, are the ones bringing the country's economy to the cliff's edge. Read More 02.04.10- Breakdown in the Gold Market
02.03.10- Why $15,000 Gold is Possible
02.02.10- Living in a Powder Keg and
02.01.10- Witches & Dragons...The Long Term
When the short term is a puzzle, I take refuge by studying the long term. Above is the 15 year, monthly basis chart of the CRB index, which gives us a good handle on the (second upswing of the) commodity pendulum. The horizontal line in the middle of the chart is at 337, and this was the top of the (first upswing of the) commodity pendulum in 1980. Note that this level, which was then resistance, was penetrated in 2005, and this was followed by the blow-off of 2008. Read More 01.30.10- The
Patriotic and Moral Imperative for Owning Gold and Silver (Editors Note: One of the perks of editing "the Bear" allows me to post my own rants. I originally published The Patriotic and Moral Imperative for Owning Gold and Silver in October, 2004.)
Remember when you learned those words? It was back when everything was simple. The Pledge of Allegiance was written in 1892 by Francis Bellamy, the circulation manager of the Boston based "The Youth's Companion" magazine. The end of the Nineteenth Century was a much simpler time. The world was a much simpler place. It is not so simple anymore. When we recite those seemingly patriotic words, what are we really pledging our allegiance to? To the flag? To the United States? To the Republic for which it stands? Read More 01.29.10- Palladium; the Silent Champion
01.28.10- Will It Go Up?
01.27.10- Win With Silver
As with many of the greatest, long-term investment opportunities, the reasons for investing in silver are numerous and obvious - and will (like all things) become much more obvious, in hindsight. The simplest place to start is with the patterns in price movement, and the reasons for those patterns. Read More 01.26.10- Is That Gold Bar Real?
Well, the counterfeiters are out there, and have been for millennia, but how to counter them? You probably remember movies about the Old West, wherein a shady-looking character would offer to exchange a gold coin for a horse, and the nag's owner would bite down on the coin. That was about all you could do, if you lacked proper assaying equipment and had to make a snap judgment on the fly: depend on your teeth to tell you whether the metal in your hand was sufficiently soft to be genuine gold. Read More Copyright © 1996-2009
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What's up, pussycats? When both metal and the market take a beating in the same two-week period, what's going on? I suppose someone could hazard, "Everybody is in profit-taking mode?" but that's entirely too simple for this Li'l Ol' Conspiracy Theorist. Particularly in a world where a lot of us eye Federal Reserve Notes with more than our usual disdain and feelings of insecurity.
What's the real solution to the constant boom and bust of our credit markets? Simple: a sound currency whose price (interest rates) is set by the demands of the global market, not by any government. 
Copper, you'll recall, is the metal with a Ph.D. in economics. It's the metal that you find in home wiring, refrigerators, offices, automobiles, cell phones - just about everything. So, when the price of copper goes down it means something. Usually, it means business is slowing down.
Perhaps you may have heard mention recently of the Austrian School of Economics versus the Keynesian branch. Maybe you saw televised interviews with Congressman Ron Paul (R-Texas), the Congressman who has been trying for decades to pass a bill that would give Congress the power to audit the Federal Reserve Bank. What was once a ridiculed, marginal proposal recently passed the House and will soon be considered by the Senate. 
A great disconnect exists in the gold market between the exchange futures contract price (the paper price) and the gold bullion paid price for transactions (the physical price). The differential in price is growing wider, enough to place tremendous pressure on the gold market itself. Look not to the gold premium paid for purchases, but to high volume purchases in the tens of million$. In mid-December, almost every demand for gold contract delivery was matched by a cash delivery, complete with 25% bonus premium offered. The officials even produced a new ledger item called 'Cash For Delivery' that was necessary to balance their badgered books. It prompted little attention. Some call it a basic bribe. Others call it a technical default. 
Well, we had quite a week! Obama's State of the Arrogant speech confirmed that we will continue on with more of the same. More big projects, cool new bullet trains, and more big, expensive government. Helicopter Ben was confirmed for another four-year term, sure to be chock full of QE, both overt and covert. And Congress cleared the way for another $1.9tn in deficit spending. Quite a week indeed!
In the short term, gold bugs are in pain.
The last 3 weeks have seen a pull back to the Dec. 22 low of
$1,075 and have created a lot of short term anxiety. We have
two possibilities. Either gold will continue down to the $1,000
support level, or it has already made its turn, will leave a
gap above $1,000 and then break out above $1,229, April contract
(the Dec. 3 high).
I
pledge allegiance to the flag...
While we remained bullish on the precious metal's sector when it took a beating towards the end of 2008 to early 2009, instead of pushing Gold or silver our main focus was on Palladium. The reason, it was the single most ignored precious metal out there. Mass psychology dictates that when a market has taken a massive beating, makes for a good investment and is being completely overlooked by the masses, the astute investor should aggressively start building up a position. When it was trading close to its lows, we even stated that it made for a better opportunity than Silver. 
That is one of the most common questions asked of myself, son David, and daughter Melissa. Next week? Who knows? Next year? Is the Pope a Catholic? Will the sun rise tomorrow? Will water seek its own level? A year from now, you won't believe how high it could and will go. Here's a quote from my favorite book, ATLAS SHRUGGED.
With the Olympics just days away, and with precious metals sitting at very
As the 10-year gold bull continues its stunning run, rumors of fakery seem to be cropping up as fast as new Eagles can be minted. Should you be worried? Do you need to run to the coin shop for a home test kit?
