Home Up Portfolio Investment Pyramid Daily Research Education Hall Press Video Literature Real Estate Subscribe

Archives for April 2010

Friday April 30, 2010 - Remember....R... I told you not to wait !

  • Gold broke through the $ 1165 level. The small reversed HS Shoulder and neckline have been confirmed. Objective is $ 1220.

  • Gold shares are following gold as the XAU index jumped up to a 3½-month high today. Keep your positions, and buy new ones in gold and the strongest metals shares.

  • Silver is lagging somewhat but it's looking good too and very strong above $17.80. The taxation on physical Silver is very high in many countries (especially in Western Europe) and this may be the reason why the price is not following Gold.

  • Five banks had to be closed down today, Champion Bank, Creve Coeur, MO CF Bancorp, Port Huron, MI Westernbank Puetro Rico, Mayaquez, PR - [En EspañolR-G Premier Bank of Puerto Rico, Hato Rey, PR - [En Español] Eurobank, San Juan, PR - [En Español]

  • Don't listen to this propaganda - unless you want to loose your savings. The situation in the USA is A LOT worse than the situation of Greece, Portugal and Spain...soon the Forex [€/$] pendulum will swing to the other side! Brace for more social unrest...what we have is a paradigm shift and we're not out of the woods yet...it will get a lot worse!!!


Thursday April 29, 2020

  • Ride the wave. Gold and Silver to continue their bull run. At a certain point this run will switch on the afterburner on the Gold and Silver mines.

  • Don't be late and sell your Bonds in time: ECB may have to turn to 'nuclear option' to prevent Southern European debt collapse. The European Central Bank may soon have to invoke emergency powers to prevent the disintegration of southern European bond markets, with ominous signs of investor flight from Spain and Italy. After Greece and Portugal comes Spain, Italy, France and Ireland...more Those who invested in Greek government Bonds will loose 50% to 70% of their savings. Banks did not sell their holdings in time: BNP Paribas Fortis has a position of € 1,5 bn, Fortis has an exposure of € 4,1 bn and KBC € 1,2

  • The Greek problems should be out of the way by Friday. Under no condition the ECB will let Greece go down. Once this is clear, we expect the Euro to rebound and the media to refocus on American debt problems.

  • Gold is "the only currency" worth investing in as it is a good hedge against the euro zone’s fiscal troubles. A public acceptance the Greek problems are solved and the knowledge the ECB will UNDER NO condition let the FPIGS go down, will 'at least' originate of correction of the Euro.

  • Banks were suffering this week but remain very resilient to a downward correction. We don't like the sector, however this does not mean bank shares won't show off as a result of the Zimbabwe effect.

Wednesday April 28, 2010 - we told you about Gold...but you either didn't have the time to pay more attention to what we wrote, either you still think we're nuts...Unfortunately, we're not and we know all to well what is gonna happen to Gold and Silver!

  • The Dollar/Euro has landed on a critical level. We need however a confirmation that the Mother of All Necklines has failed. Taking into account the stressed markets and overbought technical indicators it is too early to call for a trend reversal...more

  • World Stock markets were overbought for weeks now and a minimum correction towards the 200 day Moving Average is certainly possible. The forecasted correction has a last been initiated.

  • Gold has clearly broken new record levels and yesterday's action was impressive. New high for Gold in British pounds. Only days ago we wrote technical indicators would ensure that we would see a solid Gold run. Technical indicators on the daily and weekly charts are becoming increasingly bullish, so a continuation of this rally is likely. Expect new highs for gold in non-dollar currencies and a run for $ 1225 once the $ 1165 has been cleared.

  • Newmont Mining (gold mine) net income nearly triples! Newmont Mining Corp. (NEM 52.77, -0.42, -0.79%) on Tuesday said net income attributable to shareholders nearly tripled in the first quarter at $546 million, against $189 million in the year ago period. On a per share basis, the company earned $1.11 in the period against 40 cents a year ago. The company’s adjusted profit was 83 cents a share. Newmont mining is one of the gold mines we advise to hold/buy.

  • African Barrick Gold earnings rise 143pc in first quarter ! Still inclined to buy those extremely dangerous Bank/Financial stocks? Barrick Gold is one of the gold mines we advise to hold/buy

  • Standard and Poors has reclassified Greek Government bonds as junk bonds. The rating for Portuguese Government bonds has been reclassified to an A-  and a moratorium of the Greek debt is certainly possible. We know of many Greeks which will be sorry they did not invest their savings into Gold and Silver.

  • April 27 (Bloomberg) -- Harrisburg, Pennsylvania, which has missed $6 million in debt payments since Jan. 1, should consider seeking Chapter 9 bankruptcy protection, City Controller Dan Miller told a three-hour special committee hearing...more

  • Financials/bank equities crash not because allegations are made the Greek debt will be restructured (sold your Bonds?) but also because the bull run was WAY OVEREXTENDED and has been for weeks now running on a falling/weak volume. We told our subscribers not to play the Financials...way too dangerous...and if you get burned. you get stuck with nothing. We often ask ourselves why investors keep buying Bank shares as there are plenty of interesting alternatives...Math's today = magic tomorrow!

Tuesday April 27, 2010

  • BP doubles profit figures!  First quarter figures for British Petroleum are better than we expected. Oil stocks will offer an excellent protection for the coming crisis. (see our investment table). BP is one of the Oil shares we advise to hold/buy

  • Yesterday we had as forecasted an all time high for Gold in Euro and Yen. New highs we also had for Silver.

  • All time highs for Gold expressed in other currencies will follow. Today proofs how fast it can go.

  • Expect to see the price of Gold and Silver mines to follow in the wake of the Gold price: today they are math's but tomorrow they will be magic.

  • The time for the Euro to default hasn't come yet. The Euro continues to bottom out as Merkel (Germany) requests more efforts from Greece. At the same time long term Greek yields (9,71%) continue to soar and long term Portuguese yields (5,07%) have broken  through the 5% level as we forecasted and explained in our bond section. Be prepared to see similar action for other EU countries and US states as the crisis deepens. In the EU problems are POLITICIZED by the member countries and therefore it comes as no surprise that solutions take longer to negotiate.

  • Why one must not buy Bank shares. 


    • What we see at present is a battle between the central banks and the collapse of the financial system fought on two fronts. On one front, the central banks preside over the creation of additional liquidity for the financial system in order to hold back the tide of debt defaults that would otherwise occur. On the other, they incite investment banks and other willing parties to bet against a rise in the prices of gold, oil, base metals, soft commodities or anything else that might be deemed an indicator of inherent value. Their objective is to deprive the independent observer of any reliable benchmark against which to measure the eroding value, not only of the US dollar, but of all fiat currencies. Equally, their actions seek to deny the investor the opportunity to hedge against the fragility of the financial system by switching into a freely traded market for non-financial assets.

Monday April 26, 2010 we expect an ALL TIME HIGH for GOLD in Euro, Yen, Swiss franc, British Pound

  • Goldman Sachs brilliantly failed in doing God's work. (click here to have fun) Therefore the best financial reform is to let the Banksters fail. What we live today is a story about the incredible world of government interference, a rally in Treasury bonds which doesn’t last and last but not least the story of a stupid Herd.

When plunder becomes a way of life for a group of men in a society, over the course of time they create for themselves a legal system that authorizes it and a moral code that glorifies it."….. FREDERIC BASTIAT (From his important book ‘The Law).

  • The World's manufacturing park has been moved to China.  The Chinese don't really care what will happen to the Dollar and the Euro. Assuming the Europeans and Americans don't behave properly they will simply seize the factories and machines the West has installed in their country during the past years.

  • The Dollar made a countertrend move and got a free ride on the back of the Euro...but by now it has become clear it has lost steam and a reversal is imminent. It's run was stopped by the Mother of All Necklines and the Fibonacci resistance level. Also the moving averages are in negative alignment and both are falling...more [In the USA a number of states are technically bankrupt and will be looking for the Federal Government to come to the rescue (read more money printing). These include California, New York, Illinois among others] . The greatest impact from the Goldman Sachs stream of lawsuits and felony charges, complete with potential will be on the USDollar and not the GS stock price.

  • In no way can the existing real USGovt debt be paid off without inflating the currency in which the debt is held, even to the point of hyper-inflation. A $5500 gold price per ounce would be sufficient to back up the money supply (M1) as an alternative to hyper-inflation and an inflationary issuance of the currency. Either powerful price inflation is permitted, or a five-fold rise in the Gold price is permitted.

  • And yes, we forgot to mention that last Friday 7 American banks had to close down: Wheatland Bank, Naperville, IL Peotone Bank and Trust Company, Peotone, IL Lincoln Park Savings Bank, Chicago, IL  New Century Bank, Chicago, IL  Citizens Bank&Trust Company of Chicago, Chicago, IL  Broadway Bank, Chicago, IL Amcore Bank, N.A., Rockford, IL


Saturday April 24, 2010

  • 93% of Investors Believe That Gold Will Fall.   We confirm this figure as we found out there is a correlation between the number of clicks we have for WWW.GOLDONOMIC.COM  and the price of Gold. Because of the number of clicks we actually know Gold is about to surge ...(The greatest returns are when a widely-held belief of investors proves incorrect)

  • The USA and the Dollar are no more the center of the world and the failure to see the price of gold in various other currency terms leads to erroneous conclusions. This is exactly what the Elliott Wave analysts are doing. Therefore we follow Gold in Dollar, CanDollar, Euro, Aussie, Swiss, Rupee, British Pound, South African and Yen.

  • Thinking of buying unregulated Gold, Silver and Gold and Silver mine derivatives!? Check out our Juniors first!...more

  • Markets are reacting in a stupid linear way. Have investors really become this shortsighted? Who did ever doubt Greece would not be bailed out? What sense did it make to see Gold come down as investors feared a contamination of the Greek problem? Authorities know what the problem is like and they won't take the smallest chance something goes wrong....

  • Dollar/Euro and Gold: a first warning was issued last Friday and a fresh one yesterday...The Dollar/Euro reversed sharply and Gold made an impressive run from $ 1135 to $ 1157.

  • Still listening to your banker? Better read this: Goldman Sachs (not only Government) is rotten to the core...much of the Wall Street Bailout process was designed by Treasury Secretary Timothy Geithner, Past President of the NY Federal Reserve Bank; Stephen Friedman, an ex-Goldman Sachs officer who still serves on the Board of the NY Fed; Hank Paulson, an ex-Goldman Sachs operative who designed the hedge funds that plunged the financial markets into turmoil in the first place; and Goldman Sachs financier Robert Rubin. As the crisis unfolded, Goldman Sachs continued to market these Hedge Funds to uninformed clients, even after becoming aware that mortgage-backed securities were crumbling. And when When AIG was bailed out...the primary beneficiary was Goldman Sachs... more

Friday April 23, 2010

  • Greece is a sideshow being treated like a main event in order to keep attention off the problems of the US and UK...As long as the State, or combination of States (EU/IMF) can issue debt, no one will be allowed to fail. The propaganda could not be better and the Herd is as usual falling for it. It is so short sighted it even fails to notice the wholesale prices rose more than expected last month as food prices surged by the most in 26 years...more

  • Cash and Bonds are trash. The next Top for Commodities and bottom for the Real Estate cycle will be in 2033/34. Between now and 2033/34 we expect rising commodity prices (especially Oil, metals, Gold, Silver, Copper) and falling Real Estate prices and a shrinking real estate market. At the same time we expect Fiat Paper Money and Bonds (paper assets) to loose their value because of a Hyperinflation and/or a debt moratorium. [2009 in Zimbabwe was all debt was abolished]. Those keeping a large portion of their savings in Cash, Bank accounts, Bonds, Common stocks  (see our section of Stock Market indexes expressed in Gold) and Real Estate will be disappointed.



  • World Stock market indexes and common stocks may well as we explained months ago continue to rise under the Zimbabwe effect. But what good will it do to your savings as they continue to slide when expressed in real money? NONE !  ...more

  • We have a worrisome debt situation in the USA, the UK and Europe and people can write books about it. But it will get a lot worse before it gets better. Greece is a good example of what is to happen...

  • Greek Bond yields soar: long term government bonds pay 8,50 % versus 3% only weeks ago.  The market value of these bonds are crashing....as predicted in the section 2009 Bond crash.  Portugal continues to get dragged into the mud as their 10 yr yield is up 17 bps to 4.79%, the highest since March ‘09. [Greek national debt is 120% of GDP]

  • Britain has biggest annual deficit since World War II and a debt of £ 152.8 billion. The simple result of Jim's formula as Government income falls (less tax income) and expenditures raise. We expect this process to expand all over the EU and the USA...more

  • Nobody mentions it but Japanese debt [ national debt is 200% of GDP] is much bigger and the situation critical...Fitch Ratings has warned that Japan's sovereign debt is rising to ominously high levels as the workforce shrinks and deflation grinds deeper, while the government's reserve assets may prove unusable for defense in a funding crisis...more

  • German troops in Afghanistan call on Angela Merkel (Germany) to explain why they are at war. The operation costs a horrendous amount of money and is the joke of the day. The politicians are largely to blame. Since the beginning of the mission eight years ago they suppressed a realistic description of the situation... Deaths, injuries, battles and heavy weaponry -- none of these suit the picture that was painted back then...more

  • The DANGER of rising interest rates is that it will trigger the financial Nuke bomb of the Credit Default Swaps...more

  • Gold is the guarantee against a hung Parliament and irresponsible Authorities. Governments in a tight spot can print money or let inflation devalue the currency to float them off the rocks of excessive debt. But they cannot make more gold or debase this precious metal. Gold will go up and stay up..$ 1300, $ 1460 and higher...more

  • Check our key candle chart for GLD and more timing information. As soon as the free ride of the Dollar has come to and end (and Gold and Silver shares say this can happen any day) it will boost Gold to $ 1300..more

  • Even the Blind see it ! What I don't understand is how and why Investors still can doubt about the future performance and direction of Gold, Silver, Commodities and Gold-Silver equities. There is little doubt we'll see $-Gold over the $2,500 in the near future...

Thursday April 22, 2010

  • Those banks which inhabit marble palaces usually attract the most customers .The feeling of optimism and prosperity is contagious. It is human to be subconsciously influenced by appearances but such is at the same time is extremely dangerous. Unbelievable is that many readers don't even take the time to go through the open sections of this site. Many prefer to chase short term profits or park their savings in the wrong instruments. Financials don't change overnight but it is extremely important to KNOW and UNDERSTAND the fundamentals instead of 'Believing' the hollow talks sold by today's Media, Builders, Bankers and Authorities. Unfortunately, most of the time, people realize this when it is too late.

  • The long tail on the daily candle chart for Gold indicates we are to see more bullish action soon...more

  • We expect a major bull run for Gold expressed in the major world currencies. These are the next objectives for Gold: $ 1,460 - $ 1,650 - $ 6,000 - $ 6,221 - $8,000 - $ 10,000 - $ 15,000...more

  • Important is that we also have a positive test of the support/neckline for $-Silver...more

  • $-Bonds and British Gilts are overbought and ready for a fresh slide. Expect this to impact the Dollar Index. the Euro and Gold. The correlation of the Utilities with the Interest rates has stopped as investors prefer to buy these instead of the extremely dangerous Government Bonds. Utilities are Real Assets.

  • America's new $ 100 bill may as well be an Euro. In reality they are both not worth the ink on the paper or ZERO...so why must they look different? [click on the bill to enlarge]...more

  • Obama suggests value-added tax. Or how he odds are the USA may slide into the stupid taxation and regulation which is killing Europe and the EU at this time. The USSR and Communist China are recent historic examples that the theories of Karl Marx don't work. So why persisting in applying them? .more..

  • The relation price/quality of Real Estate in France and Spain is probably worse than what is available in North Africa. Rents are astronomically high. Certainly when compared to the income of the French and the Spanish people. In Spain literally thousands of finished homes are unoccupied and locked up while youngsters are forced to live with their parents because they cannot afford to pay for the rent. Both Builders and Landlords for some reason refuse to bring down the rents and prefer to leave the premises empty in the hope the market will pick up...but it will NOT! The Spanish Real estate market is an accident waiting to happen because it also is built poorly and with low quality materials. A similar situation exists on a smaller scale with existing buildings in Paris and suburbs.

Wednesday April 21, 2010 - The Austrian free-market economists use common sense principles.

  1. You cannot spend your way out of a recession. (Quantitative Easing doesn't work)
  2. You cannot regulate the economy into oblivion and expect it to function. (Too much regulation kills)
  3. You cannot tax people and businesses to the point of near slavery and expect them to keep producing.
  4. You cannot create an abundance of money out of thin air without making all that paper worthless.
  5. The government cannot make up for rising unemployment by just hiring all the out of work people to be bureaucrats or send them unemployment checks forever. (bureaucrats take away jobs)
  6. You cannot live beyond your means indefinitely. (Karl Marx and Socialism don't work)
  7. The economy must actually produce something others are willing to buy.

Following chart is showing the lack of competitiveness of European labor [www.thegartmanletter.com] It is no surprise that Greece, Spain and Italy score the worst.

  1. 1

A clear sign we are coming close to a breaking point is the fact that the yield of each additional created Dollar/Euro has become NEGATIVE. In other words, whatever amount of new money/debt is created, it won't be able to lift the economy out of the recession/depression. In order to survive authorities will continue to create debt/fiat paper money and this action will result in Hyperinflation. Those trusting the Government (those holding on to bonds and paper money will loose their savings). The danger is that "The Accident" can happen overnight....better be prepared!

  • The UK will eventually go bankrupt (like it did twice in the past). Ireland, Greece, Belgium, Portugal, UK, Spain, France and Italy will follow. A country goes bankrupt by redeeming its debt...in official terms it is called a debt moratorium.

  • Gold and the dollar keep moving into critical periods. Gold is correcting into a daily cycle low that should bottom this week. The next Gold up wave will take $-Gold to $ 1300 and eventually to $ 1460-$1500 . Options are set to expire this week so we could see further pressure in gold and silver until then.

  • Russian Billionaires double their wealth. Who would have thought in 1989 we would even have Russian Millionaires? Russia (USSR) and China stopped reading and applying the theories of Karl Marx!...more

Tuesday April 20, 2010

  • Public debt sustainability has exploded as a serious issue in advanced economies. Today it is most noticed in the euro zone's “FPIIGS”— France, Portugal, Italy, Ireland, Greece and Spain—but also in many larger OECD economies, including the U.S. These issues within the euro zone stem primarily from a loss of compositeness, high wage growth and labor costs which outstripped productivity, undisciplined fiscal policies (too much taxation and regulation) and, crucially, the appreciation of the euro between 2002 and 2008. This will result in higher interest rates and a much lower bond market. Bonds are an option to buy Fiat Paper Money and their final value will be ZERO. Debt Monetization has already started and it will in due time initiate Hyperinflation. It always does! Got Gold?

  • Sovereign debt tops IMF worries. We warned our subscribers and readers about this more than one year ago...more

  • Mission Impossible: escape from Europe. Europeans respond to volcanic crisis by selling alternate means of transportation at astronomically high prices...more

  • Crude Oil saw a swift violent correction but the bull run is still intact...more

  • $-Gold is just doing what it must do before it can resume the bull run...more

Monday April 19, 2010


Life in Europe has almost come to a standstill because of the irresponsible way European Politicians have handled the volcanic eruption in Iceland.  Let politicians run a healthy company and before you know it runs at a loss and becomes a disaster. They say that if one takes the politician's brains and put it into a bird it will fly backwards. The reality is - and we have the proof now - the birds actually stop flying! Europe has become an old lady and visiting this continent has in many ways become scary as it has regressed in so many ways. It will be extremely hard for the EU to crawl out of the economic depression. If possible at all. Worst case scenario it becomes a North-African extension.


Apart from the huge quantities of CO2 (150,000 to 200,000 Tonnes) emitted daily into the nature because of the eruption (global warming?) the financial world resumed its activity as usual....no important changes are noticed and trends keep moving in the same directions.

Saturday April 17, 2010

  • It's the bankers who were bailed out with your money! Yesterday was Gold-options-expiration Friday. When the investment banks have a vested interest in making sure the call options they sold expire absolutely worthless.

  • Yesterday saw also a Key Reversal on the Euro Dow. We expect a correction towards the 200 day Moving Average...nothing more and higher World Stock  Markets later this year.

  • Reading a good book is enough to understand what is going on right now and that the Herd is led by the nose. Governments actually are not incompetent as most people think. IT is a lot worse: they are CORRUPT!...more

  • Hyperinflation was often delayed until all the Good Money (gold, silver) had been chased away by the Bad Money. [Law of Gresham] The bond market is in trouble and the Fed will need to start monetizing a greater portion of the debt. This is going to facilitate a transition to a period of powerful inflation. As the Fed increases printing and debt monetizing, foreign central banks will stop buying U.S. debt and countries such as China, Japan and Russia are going to aggressively begin to dump their treasuries and dollar reserves.

  • If the money consumed by public debt was invested in the private sector we would have NO unemployment. The GDP (domestic product) would explode and and the standard of living rise dramatically. Each government job (and this includes indirect government jobs) takes away 2 or more jobs in the private sector.

  • We almost forgot...yesterday 8 American banks were closed. City Bank, Lynnwood, WA Tamalpais Bank, San Rafael, CA  Innovative Bank, Oakland, CA Butler Bank, Lowell, MA Riverside National Bank of Florida, Fort Pierce, FL  AmericanFirst Bank, Clermont, FL First Federal Bank of North Florida, Palatka, FL Lakeside Community Bank, Sterling MI

  • Hyperinflations are caused by Government budget deficits.  Budget deficits amounting to 40% and more of expenditures cannot be maintained and always lead to Hyperinflation. Also the decrease of the real stock of national currency is a general characteristic of Hyperinflations. When inflation begins builder, manufacturers  and traders experience the fact that they can sell their goods for higher prices than expected. They incorrectly interpret this as an increase in demand and adjust their business accordingly. But as time goes by they realize that because of the rising inflation they have in fact been operating at a lower profit or at a loss.

Friday April 16, 2010

  • Derivatives and structured products are a financial Nuke Bomb and even the French, Germans and Italians used them:   these derivatives are sitting every where like a hidden cancer and the consequences are DRAMATIC and scary!
    (Bloomberg) -- The worst global financial crisis in 70 years arrived in Saint-Etienne (France) this month, as embedded financial obligations began to blow up. A bill came due for € 1.18 million ($1.61 million) owed to Deutsche Bank AG under a contract that initially saved the French city money. The 800-year-old town refused to pay, dodging for now one of 10 derivatives so speculative no bank will buy them back, said Cedric Grail, the municipal finance director. They would cost about 100 million euros to cancel today, he said. "It's a joke that we're in markets like this," said Grail, 38, from the 19th-century city hall fronted by an arched facade and the words Liberté, Egalité, Fraternité. "We're playing the dollar against the Swiss franc until 2042." Saint-Etienne is one of thousands of public authorities across Europe that tried to shave borrowing expenses by accepting derivatives deals whose risks they couldn't measure. They may be liable for billions of euros, according to the Bank of Italy and consulting and law firms in France and Germany. As global economies climb out of recession, the crisis is hitting Saint-Etienne in central France, Pforzheim in western Germany and Apulia, an Italian regional government on the Adriatic. They may pay for their bets into the next generation...[If you have No physical Gold and/or Silver...try to sleep after you have read this!]...more

The irony is that the financial institutions that sold the derivatives were many of the same ones that received government bailouts to weather the worst global credit crisis since the 1930s: Royal Bank of Scotland, Dexia Brussels/Paris and Deutsche Bank. These mechanisms actually helped to defer interest payments [read keep interest rates artificially low] - NO DOUBT THIS WILL COME BACK WITH A VENGEANCE -


Germany, Italy, Poland and Belgium also used derivatives to manage fiscal deficits. More than 1,000 municipalities in France had 11 billion euros in “risky” contracts at the end of 2009. A judge charged Deutsche Bank, JPMorgan, Zurich-based UBS AG and Depfa Bank Plc (Hypo Real Estate bank) with fraud linked to the sale of derivatives to the City of Milan, Italy’s financial and fashion capital.

  • The story of our long term candle charts: for most stock markets the respective Objectives of the Reversed Head and Shoulder patterns have in many cases been reached...more

  • Fractional reserve Gold [at least 100:1]: The investment bank gold business is actually a fractional-reserve scheme that cannot produce even a large fraction of the gold claims it has sold.  Gold has risen for a decade despite unfriendly selling by central banks and the Gold cartel is said to be in Panic.

  • Government sources widely proclaim the banking sector has recovered and the economy is turning around, with no challenge from a complacent press. Actually what I read in the world financial press most of the time is of a rather poor quality. People are not faring better economically when 35% more lost their homes than a year before and when each month unemployment figures are surprisingly higher. [Propaganda].

  • Today Goldman Sachs Group Inc. was sued by the SEC for fraud tied to the CDO's .  was sued by U.S. regulators for fraud tied to collateralized debt obligations (derivatives/structured products) that contributed to the worst financial crisis since the Great Depression. The firm’s shares tumbled as much as 16 % and financial stocks slumped...more [other financials risking similar actions are JPMorgan, HSBC, Deutsche bank, Citibank, Bank of America]

  • Short term bearish signal confirmed for the Financials/Banks. We expect this will impact the World Stock markets in general as bank/financials make up an important part of the SE-indexes.

Thursday April 15, 2010

  • This is the Never Ending Story. As the Herd makes the price, in the beginning we are always greeted by denial and ignorance. The Herd prefers to believe the lies and stories preached by the Authorities, well speaking politicians, sexy looking television speakers and sportsmen. Give or take a Soros. As time goes by and our scenario unfolds at first there is disbelief and a belief that what we see will only be short lived.  Only in the end when the Herd thinks it is a lost cause the stampede starts and prices go parabolic (up or down). Being an 'old chap' I often look with disbelief to the way many people invest: chasing short term signals and acting contrary to the fundamentals and technical situation of the financial markets like a untrained pilot makes an IFR approach without even knowing what an ILS (instrument landing system) is and how to use it...until they get stuck and silenced by the reality.

  • Dollar made the kiss of death yesterday. It fell through its recent floor of support near 80.20 on the USDollar Index and is very close to confirming a topping formation. A pair of closes below 79.75 would get the attention of the hedge funds. Keep in mind that the last Commitment of Traders report shows a fairly large speculative long position in this market. If that key technical level gets taken out, an avalanche of sell orders are going to be activated.

  • Once confirmed the break down of the Dollar will further push up the price of Gold and Silver. In the mean time Gold will consolidate just under the $ 1165 (last important resistance level before $ 1225).

  • The Gold and Silver mines index has successfully tested its reversal point...more

  • It goes beyond belief that even professional investors keep investing in Bonds which are nothing more than an option to buy worthless Fiat Paper money and are for this reason not worth a cent more.

  • The Zimbabwe World stock markets keep rising. The Dow took back the 11,000 level without a lot of noise as the SP500 broke through the 1200 level...we still think however the markets are overextended and a correction is plausible.

  • The Zim even affects the Bank shares. Last month we predicted the breakout and trend reversal of the Bank index which is happening now. Because of the bearish trend when expressed in Gold and the bad fundamentals, we advise to stay away. Beware: too much, too fast and too high also applies when stocks are up! Bullish sentiment is so high a correction must in some way be in the make!

  • The existence of the EU and the Euro are under pressure as it becomes clear the EURO and the EU is nothing but a HUGE political BLUNDER. You must indeed be a crook or an idiot to advocate that civilizations and economies which are so different from each other can be centralized/globalized. In the mean time these countries will have to carry out "internal devaluations" - or deep wage cuts - to bring their economies back into line with North Europe. Debt costs must be serviced from a shrinking economic base. Such a policy will push these states into debt-deflation spiral and CANNOT not work. [ FPIGS or France, Portugal, Italy Ireland, Greece, Spain]

Wednesday April 14, 2010 - When the end comes, it will be a surprise even to those who expect it.

Up to you to risk a life time of savings!  In this war no prisoners will be taken. Those not preparing themselves NOW will come to late and Fortunes will be lost!  - [The danger being that the present monetary policy sends FALSE signals to the Entrepreneurs...who for this reason conclude Austrian economists are idiots]...more: Derivatives or why Quantitative Easing cannot and will not stop!

The delusions of modern economists are many, such as central banking’s believed containment of inflation, what economists such as Paul Samuelson and Ben Bernanke call “the great moderation”, which is, in fact, but a communal delusion; a collective and fatal error the consequences of which have yet to be fully experienced.

The leading economies have fallen victim to a dangerous illusion, related to the anarchic development of global capital and credit markets. … the thesis is very straightforward: that both citizens and governments have become heavily addicted to borrowing and no longer care about the consequences.[Prof.Feteke]

While the European elites were correct that the Anglo-American empire was vulnerable; they were wrong in believing the euro would provide a meaningful alternative as the euro, like the dollar, would not be backed by gold and can freely be multiplied.

What we see at present is a battle between the central banks and the collapse of the financial system fought on two fronts. On one front, the central banks preside over the creation of additional liquidity for the financial system in order to hold back the tide of debt defaults that would otherwise occur. On the other, they incite investment banks and other willing parties to bet against a rise in the prices of gold, oil, base metals, soft commodities or anything else that might be deemed an indicator of inherent value. Their objective is to deprive the independent observer of any reliable benchmark against which to measure the eroding value, not only of the US dollar, but of all fiat currencies. Equally, their actions seek to deny the investor the opportunity to hedge against the fragility of the financial system by switching into a freely traded market for non-financial assets.

Keeping the bond markets open is absolutely vital at a time when corporate profitability is on the ropes. Keeping the equity index on an even keel is essential to protect the wealth of the household sector and to maintain the expectation of future gains. For as long as these objectives can be achieved, the value of the US dollar can also be stabilized in relation to other currencies, despite the extraordinary imbalances in external trade.[ Darryl Robert Schoon]

  • Crude Oil could well be the factor who will push the World stock markets into the next correction.

  • World stock markets refuse to correct as Quantitative Easing keeps pushing these upward...more

  • Morgan Stanley managed to survive the Great Depression. We doubt however that MS will be able to survive the Modern Great depression as it is one of those financial institutions with the largest exposure to Derivatives.

Tuesday April 13, 2010

  • Gold, Silver and Gold and Silver shares are overbought but all moving averages are moving up in unison and daily, weekly and monthly technical indicators show a similar constellation. For $-Gold there is not a lot of resistance between now and the all time high...we just need to give it some time....

  • Gold and Silver equities are still sitting pretty close to their uptrend line. Hence a severe correction can be ruled out.

  • Our long term $-Silver candle chart sits in a HUGE bullish triangle. A breakout can occur at any time and the price objective is $ 30...more

  • Last week we wrote World Stock markets were overbought and the least we have to expect is a consolidation of the gains...more  Expressed in Real Money or Gold we still have a solid down trend...more

  • BONDS are an accident waiting to happen. Don't forget Governments are holding the level of interest rates artificially low so they can cover their deficits at the lowest possible price. Soon the Interest Rates will go up in a revenge pushed by [hyper]inflation...more .In the mean time the Authorities will [with the help of derivatives and Fiat Paper Money and the stupidity of the Savers] do whatever they can to keep the Bonds rates from breaking down of the huge Bearish HS pattern.

  • Copper hits  20 month high. We had a breakout of a huge Reversed Head and Shoulders formation and must first test the breakout level before the climb will be resumed...more

  • Platinum broke out of its halfway stop and the next objective is the 2008 top...more

  • The Oil index - will we have three taps and a break out for Oil shares!?...more

  • UK trade deficit narrows as weak pound finally starts to have effect. This is the natural economic reaction of a 30% cheaper currency. Imports get more expensive and come down but Exports are also cheaper and more goods are exported. The balance of Trade corrects and so does the balance of payments. This automatism has stopped existing for all of the countries which became part of the EU and the EURO. A stupidity it was...more . Only Oligopoly, Monopoly (Globalism) and Politicians [it pays for their jobs] profit of a single currency. Every body else looses.

  • US trade gap widened in February. This tells us that contrary to the exchange rate for the British Pound, the exchange rate for the Dollar is still too high...more

Monday April 12, 2010

  • Jeff Christian of CPM Group continues to step in crappy paper as he tries to explain how the gold and silver markets really are just fine -- as long as gold and silver buyers don't actually take delivery of their metal. If Christian is the best the central banks and bullion banks can muster as a defense of the gold and silver price suppression schemes as those schemes begin to draw major media scrutiny, the market rigging may be nearing its end. The Gold pool wasn't able to control Gold in the 1960's....it won't be able today as the ratio physical gold to paper gold is 1:100

  • The section World Indexes has been updated...more July 2009 we forecasted an objective of 12,500 for the Dow Jones industrial index...more

  • We NEVER hided we don't like Banks for their Immorality. [fractional reserve banking] What they did to Greece they did to other countries, municipalities and cities...more It's a dangerous place to be but 'in nominal paper money' the trend is up!

  • For those calling us pessimists we forecast a Dow of 30,000 and higher. Today we are fairly sure we shall see a Dow Jones industrial index of 30,000 and higher over the coming years. Unfortunately this will be nothing more than a FIAT MONEY level as we foresee the World Stock market indexes will continue to crash when expressed in Real Money or Barbaric Gold.

  • For those calling us pessimists we just want to remember we started to advise to buy Gold in 2001 (when Gordon Brown sold the Gold of the British) and that we foresee $ 1300 in a not to distant future and higher levels. Non-believers must check Gold in the different sections (Pound, Euro,...) and write down the objectives we foresee now.

  • Gold and Silver juniors have been updated...still some buys around...more

  • Gold and Silver stocks are bullish and we still find BUYS...more

  • China trade figures $ 7 bn in the red...or exactly what Von Mises economics predict. China is a HOCG country and will suffer in an leveraged way from the depression...more

Saturday April 10, 2010

  • Over the Easter weekend, 7 nuclear reactors throughout the United States stopped operations [Green idiots don't realize you need to break the eggs to make the omelet]. , and natural gas prices skyrocketed by over 20%. And this was when most of the country was enjoying mild weather and businesses were shut for the long weekend.

  • Pelosi's Health care bill is adding another head to the already large Governmental Monster. No wonder the US Unemployment figure stopped raising...more

Friday April 9, 2010

  • There is a life for the Euro beyond Greece. [there is a bullish hanging man on the candle chart for the €/$] There is NO way the ECB will let Greece go down. Such would at this point break apart the EU and have disastrous consequences for the European economy. Once the Greek problems fade away, we may or we may not see more problems in Europe. At the same time the American problems keep growing and the day will come these will take over the Newspaper Headings and stop the free ride of the Dollar. This doesn't mean that in the end we are positive the EU and/or the Euro will disappear...ANYTHING will be done to rescue Greece!One reason we have not seen an all-on collapse - yet - is that the US government has stepped in and has borrowed and spent a literal $3 trillion over the last two years for the purpose of hiding the insolvency of virtually every bank and a good number of citizens in this nation, along with virtually every pension plan, annuity and other "defined benefit" plan and institution. They also changed the rules of the game regarding asset valuations. Unlike the 2008 collapse I don't think you're going to get any warning at all this time around. The reason is that the gearing that has been taken on and the bets being placed are several times as large as those of the last time. The distortions in the economy today, net-on-net, are nearly triple what we saw in 2007.

  • Fitch brings Greece's rating down to BBB-. In other words Greek government bonds are just ONE step away of junk bonds.

  • Los Angeles faces thread of Insolvency. A bitter political dispute between this city's elected leaders and its powerful municipal utility threatens to push the city into insolvency as early as next month...more

  • Bonds are nothing more but an option to buy Fiat Paper money. Those holding Greek bonds are being slaughtered and in fact deserve nothing more. It is only a matter of time before the Bond holders of Italian, French, Spanish, Portuguese but also American debt will undergo the same...more . The way the interest rates were artificially slashed down by Authorities during the past decennia is nothing more than PREMEDITATED THEFT. more...

  • The gold shares stand on the cusp of a major breakout. Most Gold stocks technical setup produce a similar conclusion. This formation implies at least a double in price after the breakout.

  • Rarely have I seen a time when such a large and vocal consensus of brokerage house analysts and Wall Street traders are convinced that natural gas prices will wallow below $6.00 for the next several years.  The greatest returns are when a widely-held belief of investors proves incorrect.

    Markets exist to accommodate a range of participants with divergent views or economic interests, so it is hardly a surprise that almost any position can be justified somehow. Those who judge the position right are rewarded, while those who do not are penalized.

  • The Australian Central Bank (RBA) raised interest rates to 4.25% yesterday. We expect interest rates all over the world to go up the coming months and reading between the lines this is also what both Bernanke and Trichet are telling us.

  • Gold has been acting like a currency and is and will go up relative to all currencies: Gold in Pound broke out of a bullish triangle, Gold in SA Rand and Aussie Gold bounced up its trendline, Yen Gold shows a triple top breakout, Swiss Gold shows a double top breakout,

  • The Dow Jones and other Stock markets are stalling and are initiating a correction expressed in Fiat Money.

  • Following Wall Street newspaper heading is absolutely ridiculous: The recently ended recession was longer and deeper than any in the U.S. since World War II, but experts disagree over whether it deserves the 'Great Recession' label.!!??...more

  • Misery for British motorists as petrol hits £6 per gallon. Only days ago we warned for the consequences of rising oil and commodity prices and a weak Euro and British pound...A ­perfect storm of rising wholesale costs, the weak pound and more Government tax hikes will propel fuel costs even higher. Drivers were warned to brace themselves for a 5p-a-litre surge in the next three months, pushing unleaded prices to a 125p a liter average by the summer holidays...more

Thursday April 8, 2010

  • Credit default swaps are being used as the hammer to destroy nations. They are doing this by shorting sovereign debt, then using the media to bring about the profit of their position. The players doing this have no conscience, are oblivious to the side effects, are power crazed, and believe they are gods. In the end they will like Louis XVI and Marie-Antoinette be taken to the Guillotines to be beheaded. Sovereign debt is the next bomb to implode and as this happens Credit Default Swaps and their ruthless issuers will go down the drain with Governments.

  • The day this financial CDS-Nuke bomb explodes, there will be no place to hide and all those PLAYING the financial markets will be destroyed in a whim.

  • It's all in the price is especially true for Real Estate. While € 150,000 buys you a  35 year old worn out hump of bricks (no kitchen, no AC, no isolation, no garage) in Europe, the same amount of money buys you a NEW 3000 sq. f (300 sq.m.) home in the USA. SALES we have and this is the time to act!...more

  • Social unrest in Alicante - Spain, Kyrgyzstan, Bangkok - Thailand declares state of emergency....a logic consequence of the mismanagement of society by politicians and bankers.

  • We're still not out of the Woods for the exchange rate between the Dollar and the Euro. For the last months the Dollar has been moving up against the Euro: the bullish wedge correction.  Our subscribers however were been informed in time which Fiat Money currencies would be better to hold. And stronger they are: Aussie, Canadian Dollar and Swiss franc! A couple of weeks ago we added a 4th fiat currency...more

  • The world is now so dependent on Oil that even during a major economic crisis the demand for oil has remained on a high level [contrary to the 1980's]. he transition form Oil to other energy sources will be have consequences as important as the appearance of the Steam train and the invention of the Automobile. Also Complex Societies (the EU and the USA) will not survive the expensive energy...more

  • South African gold mines are at this level being given away...see charts

  • OTC derivatives have multiplied wealth like a fractional reserve banking system, but they’re hollow.  When someone can no longer provide a guarantee, the system collapses or at least part of it does.  Investors and the public have been too cavalier in their approach to risk...more

  • Crude Oil and Commodities not only go up because we have Peak Oil and Chinese demand but also because all major currencies are mortally damaged and the central bank franchise system of monetary management has failed in spectacular fashion.

  • Natural Gas looks set to repeat the “out of the hole” performance of the Dow and the FXI from the 2008/2009 respective lows.

  • The upward boost of the gold market is in progress, whether or not people wish to see it. We told you so!

Wednesday April 7, 2010 -  Hyperinflation occurs when a country's Bond market breaks -click here for the scenario towards Hyperinflation -

  • All the stories about Gold manipulation, Gold Cartels, fractional Gold, a Goldless IMF [Almost every single claim of impropriety, price suppression, falsified accounting, corruption in metals exchanges, and treason by US and British financial leaders lodged by GATA have come to be proven true] .etc...come together in our PF charts. In the end these never lie and save a lot of time...more... Having said this you have to be an absolute IDIOT to short Gold and/or Silver and even GOD will - in the long run - be unable to stop the Bull run.

  • Prechter will have to eat his Hat before the summer ends.  According to Santelli we can see $ 4 gas and $150 oil before the Summer cools down [Oil is $ 87 now]. If the Dollar doesn't reverse its course against the Euro soon (we have no doubt it will) , we don't know how they will keep the European cars on the road as gas hits € 2 for 1 liter ($ 10 per gallon)...more

  • Bonds are breaking down their support line. We have explained in details what will happen once Bonds break down...click here for our 2009 Bonds crash prediction.

  • World Stock Markets are overbought and we expect at least a correction. This ain't the time to to play Russian roulette. Better make sure your investments are made wisely and that you have requested physical delivery of the Gold and Silver your purchased.

  • Those who get too optimistic about the actual bull run of the Stock markets, MUST check on our PF charts of these Stock markets expressed in Real Barbaric Money...click here..

  • The IMF (international monetary fund) may not have the Gold it claims to have...more

  • Lies, lies, damn lies....Not later than last week Talking Heads (Media) were confirming Bernanke was halting Quantitative Easing.  The following chart proof that in fact the opposite is happening. But propaganda keeps the Titanic afloat (for the time being).


Tuesday April 6, 2010 - Ride the Golden Commodity wave!

  • The recovery is around the corner!  This is what the Newspapers and politicians were pretending right before the worst of the Great Depression was to happen. Today ain't different! According to Wall Street, the latest data on weekly jobless claims provides further evidence that the economy is on the mend. What a disillusion this will be! The graph below need no comment and the trend and dramatic level applies both for Europe and the USA. If we would adjust the number by deducting the jobs which are directly and indirectly provided by government, it would look a lot worse. Amazing is that it is so easy to fool the actual generation. Amazing it is that - as Ludwig von Mises explains it - it is so easy to sent out incorrect signals to the modern managers ...!? The poor generation is so busy chasing money that they forget or don't think necessary to make their home work. Why is it so hard to understand that Fiat paper money and Bonds (an option to buy Fiat Money) will end being worthless?

  • Gold confirms the break out of its bullish wedge...and keeps going up in Euro, British Pound [bullish triangle], South African rand, Japanese Yen, Swiss Franc, Aussie...March 2, 2010 we wrote Gold was behaving like it sat in a pressure cooker.

  • There are two ways of handling your savings. One is to have a random walk in Wall Street and/or on other Stock markets and buy/sell whatever seems to be a good investment at a certain time. The other and better one is to make your home work and invest according to what the fundamental and technical analyze tells you. The latter offers you a stable portfolio and more important less stress and a peace of mind.

  • As the price of Crude Oil and Commodities is breaking out, the EU will have little option but to do something about the weakening Euro...one plausible option is that the ECB will raise its key interest rate. On the other side of the Atlantic the failing American Treasury auction will also force the FED to raise its key interest rate.  If and when INTEREST RATES are raised (we all know Authorities do sell their mother) it will break the back of the Real Estate Market and have an impact on the World Stock markets. ONLY GOLD EQUITIES WILL SURVIVE RAISING INTEREST RATES.

  • One Canadian Loonie = one American Dollar! ...more...

Monday April 5, 2010a Bank Holiday in  Europe -

 We wish our readers a Happy Eastern  will bring lots of golden eggs, a better understanding of what is year after year remembered during the Holy week and Eastern and a better understanding of what is happening in the financial markets and the world right under our eyes. Although we talk a lot about money and Gold, history learns the adoration of Golden calves always brought death and destruction.


Thought of the day: Few people remember how during the Great Depression there was an Alcohol prohibition and how people were brainwashed Alcohol was bad, killed people and destroyed families. Alcohol production and consumption went underground [many will remember the Hollywood movies about Elliott Ness and Al Capone]. What we see today is a fresh run against Alcohol with a zero tolerance of alcohol when driving a car (especially in Europe) and a move towards a complete ban of Smoking tobacco. There is no doubt drinking and driving is dangerous, so is smoking but the Authorities are - just like during the Great Depression - using it as a means to increase income (fines) and control of the Herd. Having said this, we're about to see the legalization of Marihuana in Californian and we already have a large tolerance of it's use in the Netherlands.

  • Click here to see today's version of the Gold Pool : it is not hard to understand that this Ponzi game will explode sooner or later.

  • Real Estate in Britain to go lower: Capital Economics' Ed Stansfield tells Robert Miller that houses are still over-valued and prices will fall further in 2010...more...

  • Only 4 banks had to close in the US on Good Friday.

  • Taxation and regulation is killing Europe. Double taxation agreement between Spain and Denmark void. Thousand of pensioners either have to pay 50% more tax or return to live in Denmark.

  • US delays decision on China currency manipulation . The Irony is that all countries pursue the same (a low currency exchange rate) and that the strongest succeed. The West has sold its manufacturing to the East by too much taxation and regulation. To reverse the process, one must reverse the levels of taxation and regulation and not point the finger to somebody else.

  • Where Copper goes, Gold and Silver will go. Copper broke out of the bullish Reversed Head and Shoulders pattern and Platinum broke out of a bullish flag!...click here for more....

  • Natural Gas and Coal are also preparing a fresh bull run...click here...

  • Gold and Silver equities and Juniors are jumping up.

  • Crude Oil has - as we expected - broken out again.

  • Mining groups fear backlash in South-Africa as Eugene Terreblanche was hacked to death in his farm in Transvaal. Whatever is written, South-Africa will not jeopardize the Mining Industry (Anglo American, but Rio Tinto, BHP Billiton and Xstrata) and only means of income overnight. The day however that ownership of the Mines return into black hands it will be Zimbabwe II (SA is about 10 years behind Zimbabwe)...click here for more...

Saturday April 3, 2010

Friday April 2, 2010

  • Stochastics on the daily, weekly and monthly candle charts for Gold and Silver mines are to move in concerto. This is an indication we could see an important bull run ...click here for more...

  • Patience brings golden Eastern Eggs...click here to see the constellation of the Gold Juniors...

  • In the past I have tried to explain that Derivatives and Credit Default Swaps are a financial nuke bomb.  Those who prefer to live in denial will sooner or later have to deal with the consequences.

    • U.S. and European officials are trying to craft new rules to regulate the $450 trillion private derivatives market in broad efforts to avoid another financial crisis." I believe we are in a cabal. There are five or six players only who are engaged and dominant in this marketplace and apparently they own the regulatory apparatus," he said. "Everybody is afraid to regulate them."
  • Oil shares are coming alive again...more...

  • We cannot emphasize it enough. We have seen the Historic top for Bonds and those who don't get out will over the next months and years loose the major part of their savings. Especially if there is a connection with Credit Default Swaps and Structured products (or so said loss free investment vehicles brewed by the Banks)

Thursday April 1, 2010

  • Global warming!? or how easy you can manipulate people. Barring an about face by nature or adjustments, it appears that for the first time since 2001, Arctic Sea ice will hit the “normal” line as defined by the National Snow and Ice Data Center (NSIDC) for this time of year...click here for more...  Having said this, brace for a potential triple breakout of Crude Oil ($84)!

  • Remarkable breakout of Gold expressed in Yen...click here...

  • Steady goes the South African Rand against the Euro...click here..

  • Steady goes the Aussie against the Euro...click here...

  • Steady goes the Canadian Dollar against the Euro...click here...

  • Seems that the free ride of the Dollar is also over against the Swiss Franc....click here... and Fitch Downgrades Illinois to A-minus [remember last week Fitch downgraded Portugal]

  • Silver is running better than Gold is and it is breaking out of the bullish wedge...click here...

  • As of today about 85% of the advisors are bearish on Gold. Excellent news and extremely bullish (Commercials are also building off short positions)

  • Customer service is Europe has become almost inexistent. In the eyes of most business people, the customer is nothing more than a prey of which one must try to take as much advantage as possible (money)  in as little time as possible...The Europeans are reading Karl Marx and at this point the same symptoms are appearing I saw in Eastern Europe and the USSR in the years preceding the crash of their system in 1989. It is absolutely devastating to see a complete society falling into this human and economic Abyss!

  • World stock markets expressed in nominal terms remain very strong...click here to see our PF charts. Volume has been falling for some time now...but stock markets keep going up pushed by the Zimbabwe effect.


Goldonomic, Florida, USA - +1 (772)-905-2491