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Archives for January 2011

Thursday February 24, 2011


Crude Oil is doing nothing more and nothing less than it is supposed to do. As usual the news is blown beyond dimensions by the talking head....more  The price of sweet crude has traditionally been higher than the Oil price we are plotting. Our Point and Figures chart are unfortunately indicating that the price increase for Crude Oil is not over yet. Oil stocks will encounter little resistance until they reach their 2008 pre-deleveraging top.


Wednesday February 23, 2011

  • The housing crash is hitting American cities once thought to be stable (New York Times).

  • Hedge funds lever up to PRE-LEHMAN prices. Better watch out where you invest...unless off course you like to see financial markets scare the hell out of you. something which eventually will happen.

  • DEBT is the problem, not the economy....more and the USA is technically bankrupt!

  • Saving on education is a suicide of society and the economy....more

  • Logic Mister Holmes: Because the USA has less regulation than Europe it can and will come out of the depression before Europe does...more

  • China is using American DEBT to pressure Washington....more

  • $-Gold will once it breaks out of this bullish consolidation aim for its next target or $ 1650. Those who have NO Gold MUST start to buy some today. If they don't they are in denial and refuse to see what is happening all around us and still trust way too much the Authorities and the so said stable SYSTEM (which in fact is bankrupt).


Tuesday February 22, 2011

  • Most people never experienced War or a Weimar style depression. We have come to a point where innocent American people which have been lied to are deceived. Such a situation is extremely dangerous...especially when countries have massive young populations which are at an age where they are entering the work force, forming families and in need of food, shelter and employment...and there are NO jobs.

  • With deflections among army and government to the side of the protesters, the fate of the Quadaafi and other similar governments are as good as sealed. Interesting is that in Libya and Egypt it becomes clear that the leaders had plans for their sons to take over power after their death. [We already mentioned that what we see from Morocco to Jordan is a remake of the French revolution].  Similar conditions occur in the USA and Europe where politicians tend to stay around for a lifetime and where they try to ensure their sons and daughters can take over power.

  • The selection of shares in our shopping basket for Oil stocks is doing very well...more Apart from our preferred Oil stocks (see portfolio) we do have some stocks which are lagging and are still below our low risk levels. Oil companies with significant oil reserves in politically secure parts of the world could attract a premium.

Oil shock fears as Libya erupts. The specter of full civil war in oil-rich Libya and reports of the creation of an Islamic emirate in country's "Barqa" region has moved the Mid-East crisis into a more dangerous phase, setting off an explosive rise in US crude prices...more


Monday February 21, 2011 - President's day - US financial markets are closed !

  • 20% of Europe's natural gas comes from Algeria. (click on the map for more) Crude oil and Natural gas pipelines cross North-African and Middle-East country side and are increasingly exposed to action of War....

  • You have to be ignorant and naive to believe that in North-Africa and the Middle-East Democracy has won (like the Talking Heads pretend). There is a lot more going on and this will lead  to WW III. Propaganda is a powerful weapon and believe it or not, it is used each day to control to Herd. North Africa from Morocco to Egypt and the Middle-East is on fire...unrest in Wisconsin. Domino, domino, who's next?...CHINA???...more

  • The Euro is playing the role of Gold during the Great Depression.  Member states (Greece, Spain, Portugal) cannot devalue their currency to adjust and stimulate their local economic system, hence they are forced into a cycle of PRICE DEFLATION. This is why the price of High Order Capital Goods (Real Estate) will keep falling and the price of many Low Order Consumer Goods (energy, food) will continue to go up.

  • What many don't understand is that China is a High Order Capital Goods producer. The Chinese economy is leveraged upon the Western World. The day the Western world collapses, the effect will be felt even more in China.

  • Real Money indexes are still BEARISH...more.. the time will come 1 oz. of Gold will buy A LOT more shares.

  • We have updated our long term charts (some of them also show the performance of the index versus Gold...more

  • If the USA would even dream of confiscating the American gold, it would sent the Dollar to ZERO overnight as most of the Dollars are overseas and NOT in the USA (the Dollar is a reserve currency)..

  • Our shopping basket of Gold and Silver Majors has been updated...more

  • Our shopping basket of Gold and Silver Juniors has been updated...more

  • Because of its sloppy behavior we decided to exchange our full position KINROSS for Juniors...more



Friday February 17, 2011 - Gold and Silver have broken out !...click here for the €-objectives

  • Education is one of the key stones of society. Defense is most of the time the arrow which kills it. Clear is that it earns more for the authorities to cut on education and by doing so keep the Herd ignorant so later on it can be used as canon meat...The coming years will proof that all those who still are convinced Government is there for them are deadly wrong. It is sickening to see that Large Banksters were bailed out with Tax money and that The People are being taken away the RIGHT for EDUCATION.  You don't have to travel to Egypt or Bahrain (where the leaders declared they had to shoot peaceful protesters for the safety of the State!?) to see protests: they are spreading all over the USA and Western World.

  • We prefer the Juniors to the Seniors, to ETF's, to Futures, Options and Turbo's . The additional advantage Juniors have, is that they will be taken over by the Seniors as their own gold-ore-reserves decrease.

  • SO WHAT !? YES, Gold and Silver and the Gold and Silver sector, the energy (Oil) sector will definitely also correct when International Stock markets correct. We live a paradigm shift and the problem is DEBT (bonds, bank deposits,..). Authorities have NO PLAN to pay back their debt (as a matter of fact, they never do). For this reason one has to be complete out of his mind to stay invested in Bonds and similar debt instruments (like Bond funds).

  • The real problem is DEBT and not the Economy. As long as nobody even makes a plan to pay back the huge debt, all will get worse. This is a new era: the time to SELL all DEBT INSTRUMENTS (especially Government debt) , get out of fiat paper money and to convert your purchasing power into REAL ASSETS: Gold & Silver, the Gold and Silver sector, the Energy and Oil sector and world stock markets (make sure you omit Financial stocks).

  • We're about to live a time of Rising interest rates, falling bonds, volatile currencies, rising Gold and Silver (stop BUY), rising prices of Consumer Goods and last but not least falling prices of High Order Capital Goods (Real Estate).  With all the money they keep pouring into the system, there is little room for lower markets. Having said this, any correction must be used to convert fiat paper and DEBT into REAL ASSETS.

  • The outcome of the exchange rate between the Euro and the Dollar will be function of whether the USA will enter an era of Hyperinflation before or after the EU and Euro starts to fall apart.

  • Do check the updated PF charts of our Juniors...SALES !!

Thursday February 16, 2011 - Many fail to understand that what we live is the death of Socialism -

  • This is how Politicians get their thing done. The new American Health care bill requests 1,054 new IRS inspectors at a cost of $ 359 million. This adds to TSA (airport scanning personnel), Home affairs, the Animal Police, the Green police,.. In Europe ONE of 3 people of the work force is directly or indirectly employed by Government. If they cannot tax for the deficit, they make debts to pay for their employees...and who would even think a Government and a country like the former USSR could go bankrupt!? Communist USSR would not have done it better. A blatant example of the failing European politics are the Restaurant and Bar servers. In Europe they used to be TIPPED....some smart ass changed the law and now the tip is included in the check and the server's salary. Either the waiters have disappeared and the Patron degraded to a self serve man/woman or the Waitress doesn't give a f...k about you waiting to order a coffee, a beer and something to eat. After all, why would they care? If they loose their job the unemployment support often is extremely generous.

  • This is how the Authorities think about your pension: A Dutch Pension fund who in 2008 decided to invest some of  its free reserves in Gold has been ordered by the Dutch central bank and by an executive court order to sell all of its Gold positions and convert the result into Dutch Government bonds. In Belgium and most other European countries it is for Pension funds, insurance and re-insurance companies FORBIDDEN by law to invest in physical Gold and Silver. I do remember that in the 1980's when interest rates spiked as a consequence of Volker's policy the Belgian Minister of Finance sent out letters to 'their customers' which were at that time extremely reluctant to invest in Government bonds that either they had to buy out of free will or they would be forced to.

  • One day closer to World War III: Iran sends war vessels to the Mediterranean and Israel is - off course - very unhappy (and very scared). World War II was all about COAL, STEEL, and yes also OIL. The next World War is clearly brewing in the Middle-East and will be about OIL. We just have to wait until somebody or something lights the fuse.....

  • Shadowstats reports a 22% unemployment figure for the USA. More than double of what Obama makes the people believe. with such a high rate of unemployment NO recovery is possible.

  • No doubt that Crude Oil, Uranium are far better investments than Natural Gas. The latter traditionally is laggard. The price of Brent Oil broke through the $ 100 ...

  • As usual the Media won't tell you this is to happen - until it's too late: We published this some time ago: The day is close where we shall see double top breakouts on most of the Point & Figures charts below (Copper and the Reuters Commodity index already have) ...and resistance will become support. That day will be the OFFICIAL beginning of the hyperinflation cycle...we need some confirmation but THESE ARE THE DAYS...At the same time the Bond Markets continue to crash...very scary it is.

Wednesday February 16, 2011 -  Will the Full moon attract Silver and Gold? ...see Gold in Swiss franc for a definition of what we see as dips. If you have no gold/silver and you refuse to buy some NOW, you do have a serious problem!

  • A clear failure of Communism and Socialism is chasing people into Capitalism. The Cuban government can no longer afford to pay for the  Government employees and has to fire them. They have spent all the money of others...To survive they are setting up small businesses. Government allows this to happen and by legalizing this action and allowing people to start small businesses they hope they will be able to tax them later on. No cigar for Castro!

  • There is no way the Euro and the EU (a complex society) will survive expensive energy!  The single currency is functioning so brilliantly, its vulnerable members are sliding towards bankruptcy....more 1....more 2...

  • Greece is urged to give up the Euro...more

  • Domino, domino...it will get a LOT worse before it gets better. Thousands rally across Yemen. Protests in Iran, in Algeria,...and Israel is preparing for the worst... more

  • It will take a dramatic improvement in crop conditions this year to avoid price spikes for staple foods which could exceed those seen in 1H 2008. Three years later, global reserves of most foods are lower and the total population of our planet is larger.

  • It is not a matter about If but rather one as to WHEN the 2nd act of the financial crisis will start. THE head of the International Monetary Fund (IMF), Dominique Strauss-Kahn, has called for a new economic paradigm for the world. The IMF has warned that another financial crisis is a matter of when and not if, and has called for better preparation for the crisis ..more

  • Hedge funds are piling back in the Gold and Silver sector and may well by doing this, give it a new boost...more

  • The Middle-East. Nothing will ever be the same...more

  • Now that it becomes very hard to cook the inflation figures, Authorities lie as they call it a "temporary" phenomenon. We know better. Inflation is here to stay and will get worse...more

  • Retail sales are offset fully by inflation:  assuming retail sales go up by 5% and the inflation is 5% the advance is ZERO.

  • No doubt the short term bull run of the dollar is over...especially when you look at the charts of the Swiss Franc...more ...if holders of US Dollars and Euro think of buying SWISS FRANC, better do it NOW!

Tuesday February 15, 2011

  • During times of high inflation and hyperinflationary inflation Interest rates rise and the price of Real Estate always falls (even when expressed in nominal terms) because Real Estate is leveraged (is a purchase over 20 to 30 years) it's price is function of the availability and the cost of Mortgages (Interest rates).[ In Argentina, if you want to buy a property, you still have to pay cash...mortgages are inexistent. They disappeared during the Financial and Economic crisis]...more by Gonzalo Lira (the blog takes some time to open)

  •  Monetization of debt explained: See the video clip...more

  • The American Public Debt is now larger than the Gross Domestic Product...more

  • We have a short term positive correction of the American municipal and Corporate bonds...more

  • Assuming $-Silver breaks and tests $ 31 positively we're in for a new bull run for Gold and Silver...more

  • Utilities are under construction but already have some useful information...more

  • The US-Dollar is preparing for another down-slide...more

  • Crude Oil is about to resume its bull run...more

  • Still opportunities in the shopping basket for Gold and Silver seniors...more

Monday February 14, 2011 - "It makes no sense to work 24 hours a day if you don't invest your money wisely and it does not make sense to invest your money wisely if you don't keep it out of reach of Government. In both cases you will loose what you worked for"

  • Military take command in Egypt...we now have to wait and see whether we shall get a remake of the Turkish Ataturk scenario or not. The Egyptian military may attempt to bring up the threat of Islamist militancy to justify its hold on power until it can stabilize the country. Atatürk was a military officer during World War I. Following the defeat of the Ottoman Empire in WWI, he led the Turkish national movement in the Turkish War of Independence. Having established a provisional government in Ankara, he defeated the forces sent by the Allies. His military campaigns gained Turkey independence. Atatürk then embarked upon a program of political, economic, and cultural reforms, seeking to transform the former Ottoman Empire into a modern and secular nation-state...more Having said this, at a time when Algerians start to rally nothing has been finalized in Egypt...and Tunisian refugees keep entering Italy...it ain't over yet...it is just starting!

  • Socialism works until you have run out of other people's money. The unrest we have in Egypt will spread throughout the Arab world and blend with the discontent in Europe. This is the result of Socialism where politicians made promises (which they knew could not be kept) in exchange for votes. Because Government is once more dependent from the Banks, the DEBT which has been generated will not be addressed and the Western World is doomed.  Pensions and Social security have always been a Ponzi scheme and we can see these breaking up as the Baby Boomers are retiring and Banks will go bankrupt the very day Governments stop paying their debts because there is nothing left to tax and they cannot borrow more.. Socialism and communism (Globalism) fail because they are AGAINST the heartbeat of society: if everything was evenly distributed, we would have no Boom and no Bust and society would never progress. Having said this, so far NOTHING has changed in Egypt...except from the fact that Mubarak moved out of Cairo and the Army took over power. We have yet to see whether there will be a new Egypt. I doubt we will !

  • The IMF calls for dollar alternative.  Clear is that the IMF starts to get cold feet about the US-Dollar. Also clear is that those guys don't understand that it doesn't make sense to replace one kind of Fiat Paper money by another one....more

  • Many countries used to have Capital controls and some still have them. They range from disclosure to the impossibility to transfer funds abroad. Capital controls are put in place each time bankrupt governments seek to trap capital within its borders, maximizing the amounts available for taxation and confiscation. South-Africa and Morocco have restrictions, other countries like - the USA - make it their citizens impossible to open accounts in foreign countries by bullying the Banks (no bank wants to see its US assets frozen). When Germans who smelled RAT decided that it was time to pack up and leave, they imposed a "25% flight tax" on the value of all property leaving Germany. [ I am thinking about all those which were so naive to repatriate funds held abroad to Belgium to take advantage of the proposed Fiscal Amnesty. How can you be so stupid?]

  • In the Netherlands, a pension fund has been ordered to sell its holdings of Gold and to invest the funds into the safety of Dutch government bonds....what a joke! The Dutch central bank has found that such a large proportion of Gold is inconsistent with the interests of the participants?!

  • Belgians can no longer withdraw funds out of ATM machines outside of the EU. As usual the decision was taken for the safety of your money and to avoid fraudulent operations.

Friday February 11, 2011 - A paradigm shift we have - It's the Age of Aquarius !

  • My name is Bond and I have a license to kill - your savings! It is ironic that after the stock market crash of 2008/09 (stocks have recovered since) most investors cursed stocks and moved all or most of their savings into Bonds (or cash deposits) because these are incorrectly perceived as safe. A historic high number of savers are at this point keeping what is left of their savings in Bonds and they are about to loose this money. Nobody will be arrested and jailed for the largest holdup of this century as it will  be held by Authorities together with Central banks...more

  • Are there any similarities between the EU and the USSR before it collapsed and if so which ones?  There are plenty of disquieting evolutions going on in Europe today: the riots in the PIIGS countries, the appearingly permanent crisis in the banking world  ....more

  • The expectations of the Herd about Inflation and Deflation are INCORRECT: false signals are sent to the entrepreneurs!...more

  • See our fresh fundamental information about URANIUM...more

  • The Age of Aquarius or and the situation in Egypt is just unacceptable. Such is the bare opposite of the mockery which is called Democracy. The Media don't seem to understand the fundamentals behind the Egyptian freedom movement. Similar protest in other Middle and North East countries don't really hit the front pages : Jordan, Syria, Libya, Algeria and even Saudi Arabia...The remake of the French revolution will be complete once the army takes the side of the people. The remake of the French-Egyptian revolution will be complete once the army openly takes the side of the people like happened in Turkey years ago...more

Thursday February 10, 2011

  • Politicians should keep their hands off the economy. Give them a healthy company and within 5 years it is bankrupt. Obama wants to invest $ 53 bn into high speed trains at a time where Amtrak is almost bankrupt. What's worse is that the maximum allowed speeds of the high speed trains will be limited to 39 mph. Clear is that the politicians are not educated and have NOT the proper capacities to do what they are doing....

  • Luke warm BULLISH [nominal] MARKETS WE HAVE !...but don't built on them...they will have A LOT of HEAD WIND...will suffer from rising interest rates and deteriorating economic conditions. Bernanke (QE II) and Trichet however are really trying to pump up the stock market to regain consumer confidence. When consumers see their 401ks and private pension plans doing better, they feel wealthier and spend more. This spending translates into earnings. And higher earnings will prompt the companies to expand. As a result, unemployment is reduced. At least this is what they hope will happen...more . Not amazing that the German DAX index is one of the best performers followed by the Austrian ATX.

  • Financials have gained somewhat over the past weeks but still don't look very inviting...more

  • Wikileaks cables: Saudi Arabia cannot pump enough crude oil to keep a lid on prices US diplomat convinced by Saudi expert that reserves of world's biggest oil exporter have been overstated by nearly 40%. (We published more than a year ago what Wikileaks is publishing now: Crude Oil).

  • Oil Shares are in a secular bull trend and oil shares (fully integrated, drillers and service) must be added to your positions when prices correct. Remember that corrections during a Bull Market are SWIFT and VIOLENT!

  • Authorities can with the help of the Banksters and Derivatives create a temporary abnormal spread between Brent en Crude oil: the price of one is used for the calculation of the Inflation rate. The price of the other one NOT.

Wednesday February 9, 2011 - Logic that most people who don't belief in Gold, silver and oil won't even trouble themselves and read this newsletter. They will buy from you when we decide to sell!

  • Ride the wave and enjoy...don't even look back to the Herd which continues to live in disbelief....there is not a lot we can add to what the financial markets are doing right now!

  • Propaganda is all over the World. Most people are unable to understand what is happening in North-Africa, the Middle-East and Egypt in particular because they see it through the tainted glasses of the Media. But these parts of the world have been a powder keg for years now...waiting for something or somebody to light the fuse.

  • How can the Herd be so stupid that it keeps believing in the Cooked price-inflation figures that authorities publish in the Western world?   Do yourself a favor and compare today's prices with those of 10 years ago...

  • China raised interest rates again (to cool off inflation) and Gold and Silver like higher interest rates. They always have and they always go up together with interest rates (up to a certain point).

  • JPMorgan Chase & Co. will accept Gold as collateral for trading. no comment...

  • The Crash of the Bond markets goes on. Interesting is that somebody is buying up US Municipal bonds in a desperate effort to stop the slide...more and...not only Government Bonds (Treasuries, Gilts) are breaking down. Corporate Bonds also are...more

  • Don't forget to check the new €-Gold objectives. Our charts don't need a lot of comment. We have also updated the charts of Gold in British PoundGold in SA Rand, Gold in Yen, Gold in Swiss franc, Gold in Aussie (important chart), Canadian Dollar ( I don't buy the Propaganda story that the CanDollar and the US-dollar would merge), Gold in Russian Ruble.

  • The South African Rand (see our investment table) may have given a WRONG signal. It so, this ain't the 1st time this happens. This is why it is always important to wait for a technical confirmation before making your final decision.

Tuesday February 8, 2011


There are at this time two cartels operating on the financial markets. One is the Gold Cartel which intervenes daily around the close of London and opening in New York by punching down the spot price by $ 10. The Oil cartel does exactly the opposite: this one tries to push the Oil price up.

Monday February 7, 2011 -

  • Greece urged to give up euro.  THE Greek government has been advised by British economists to leave the euro and default on its €300 billion (£255 billion) debt to save its economy. The Centre for Economics and Business Research (CEBR), a London-based consultancy, has warned Greek ministers they will be unable to escape their debt trap without devaluing their own currency to boost exports. The only way this can happen is if Greece returns to its own currency. Greek politicians have played down the prospect of abandoning the euro, which could lead to the break-up of the single currency....more.

  • Crude Oil does exactly what we have told it would do and Oil stocks shine. Even BP does. Those amongst you who bought when we told to, have a solid profit by now...and will receive a dividend.

  • Spectacular moves of some stocks we selected and you can find in the shopping area for Oils, fully integrated, service and drillers. Baker Hughes moves up from $ 60 to $ 67,50, Marathon Oil from $36 to $46, ...more

  • What happens in Egypt is a perfect excuse for Gold to engage in a new bull run towards new price records expressed in ALL fiat currencies. Having said this, be aware that what we live now is A LOT MORE than just an economic and financial crisis. It is also a crisis of society and better prepare for a major shift in how countries and people will be governed in the future. The Magna Charta was the end of Absolutism. The 2010 hyperinflationary depression will be the end of the political system like it exists today.

  • NOBODY mentions it, but what we see in Egypt could be the beginning of World War III. We found all the ingredients: an economic recession, thousands of unemployed and poor youngsters, religion extremes  and Israel,....There are problems from Morocco, to Algeria, Libya (best kept secret), Egypt, Jordan, Yemen, Afghanistan, Pakistan.... The very seeds for World War III have been put in place by the British after World War II in Israel.


Friday February 4, 2011

  •  Uranium prices are bracing for liftoff…

  • Two dogs fight over a bone but a third one eats it. Americans have tried to reign in Africa by dividing. Because of the subsequent unrest, the colonial rulers were as a rule kicked out. The bet Americans made didn't realize....they never understood the situation in Africa. A good example was that black diplomats were not accepted by African blacks because they were seen as descendants of slaves. Chinese filled the vacuum and replaced the colonial rulers. They have been building bridges and roads for decennia now.

  • Food commodities have gone up by 266% since 2002...more

  • We told you the politicians would blame anybody but themselves for the expensive price of food and other commodities. French President Nicolas Sarkozy said in Davos last week that speculation was driving up food prices. World food costs rose to a record in December on higher costs for sugar, grain and oilseeds, according to a United Nations report earlier this month, contributing to the uprising that ousted Tunisia's Zine El Abidine Ben Ali on Jan. 14. Protests have spread to Egypt, Algeria, Morocco and Yemen. [you have to be very naive and even stupid to believe what Sarkozy tries to sell]

  • We know better...Expensive food and the rising price of commodities is a direct consequence of monetary inflation or the debasing of the fiat paper money by politicians and central banks. ...ever heard of fractional reserve banking and its consequences!?

  • Jokes of the week: (are these really jokes?)

    -  If I resign now, there will be chaos in Egypt.  President Mubarak...more

    - The current surge in food and commodity prices is temporary and there is no need for a monetary
       squeeze (increase of interest rates).
    Jean-Claude Trichet...more

    - The recovery should gain speed this year, but continued support from the Fed is needed amid high
       unemployment and low inflation, shrugging off higher commodity prices.
    Ben Bernanke....more

    - The opposition and  most citizens favor the lifting of the state of emergency and curfew set by Algeria
      in 1991.
    President Abdelaziz...more

  • Visit our Gold and Silver sections for the last and updated charts.

Thursday February 3, 2011

  • Al Gore says snow doesn't disprove global warming!? If you have enough arrogance and you keep saying it, many people will keep believing your lies even if this kills them.

  • Figure this out: Mubarac has sucked Egypt to death for 30 years and yet he still has supporters!? The Herd is stupid and brainless and part of the answer as to why democracies don't work. The situation in Egypt is becoming increasingly precarious and the King of Jordan has dismissed its government in the hope the violence won't spread to his kingdom. In Yemen the President Ali Saleh vows not to seek extension and to pass on the reins to his son. The French revolution stopped the succession of the King's power from King to son. This revolution will stop the succession of the president's (politician) power from father to son and make Kings and Queens disappear all together.

  • How ironical: World leaders denounce violence in Egypt : something they created themselves! Rising food prices have helped bring about the political upheaval currently underway in Egypt, and the rising cost of food has been an effect of monetary inflation deliberately caused by Egypt's policy-makers.

Egypt’s financial situation has turned from bad to worse as the Egyptian pound has fallen 6% in the last three months. Furthermore, Egypt’s EGX 30 stock index plunged 16%, and bond yields have surged to 11.63%.

  • Price controls don't work. They never have and never will. The fact that European Authorities even dare to tackle this is proof they simply don't know what they are talking about, have not the slightest notion about economics and have nothing other in mind than to appeal to the emotion of the Herd.

  • Gold and Silver continue to consolidate (building a coil).

  • In Spain the Real estate crisis has moved from residential to Commercial. Store closures leave empty premises in shopping malls. Before there were waiting lists; now more businesses are closing down in the biggest shopping centers, unable to pay the high rent. In the past  it was extremely difficult to buy a commercial property. One could only rent. Today people don't even want to buy.

Wednesday February 2, 2011

  • My name is Bond and I have a license to kill (savings)! - click on the thumbnail to enlarge -.Today the bonds magically levitated off their worst levels turning what was a full point plus move lower into a modest loss for the day. The Fed’s dealers are alive and well.

  • The 401k program has let down people at a time when they need it most. At a time when they were about to retire they have to return to the work force filling the ranks of the unemployed. The scary part is that the Real Estate continues to come down, the stock market could get another hit and the Bond market could take away whatever there is left. Having said this, the Central banks are to blame for this for they kept creating fiat paper money out of thin air and they manipulated interest rates down to unrealistic levels. Because the Herd fails to understand how the system work, people like Greenspan, Bernanke and Trichet will walk away from this blood bath unharmed.

  • World Stock markets have since their bottom of 2009 been bullish in nominal terms only. It took a lot of energy to make these fly again. Our fear is that if the wings melt because of interest rates heating up the Gold and Silver sector could suffer again (but so far nothing is sure). Having said this, it is better to keep your savings in Stocks than it is to keep them in Bonds and Bank deposits.

  • The music is still playing in the Oil sector and Oil shares offer a good alternate to Gold and Silver stocks and help to put your portfolio in equilibrium...Gold is bottoming.

  • Gold and Silver Juniors will probably perform better than the Majors. We more and more expect the Seniors to take over the juniors as their gold reserves are dwindling.

  • The Euro and the Dollar keep doing what we forecasted.

  • To learn about the real value of Gold, one has to check the chart of Gold expressed in Yen. and the chart of Gold expressed in Swiss franc. Amazing is Gold exactly nailed the bottom on our PF chart of Gold in CanDollar.

Tuesday February 1, 2011

  • Domino, domino. While the biggest threat to the Middle East region is the possibility that the population of Saudi Arabia may try to imitate what has been happening in the area, thereby bringing total chaos to the established regional geopolitical and more importantly, energy, structure, the first protests in the Saudi Arabia city of Jeddah are already in the books. The Middle-East is a POWDER KEG and the fuse has been burning for a long time....hard to tell when it will explode. But when it does, the price of Crude Oil and Natural gas will go through the roof. Social unrest in Morocco. Algeria, Libya, Yemen and other Muslim states are either being censored or put in the shade of the Egyptian revolt.

  • Gold and Silver were steady and gave the Talking heads not the opportunity to use the happenings in the Middle-East as an excuse.

  • 99 % of daily silver futures trading has nothing to do with the physical market. Such makes the silver market extremely volatile and dangerous. If you don't ask physical delivery, don't buy Silver (or Gold) because such doesn't make any sense.  Having said this, at this point we expect GOLD to do better than Silver. Golden coins


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