Archive - May 2015 - Blog entry

It looks like US dollar's two-month downside correction ended.  Is the bull market resuming?

Nothing exposes the fallacies of the Fed’s policies of the last five years like its horror at the prospect of raising rates even a little bit. 

Smart money continues to maintain allocations or accumulate positions. U.S. mining financier Oskar Lewnowski is preparing to launch a base and precious metals fund. The 50 year old New Yorker has already invested almost $1 billion and hired a physical metals trader to handle supply.

That last meeting didn’t end well...

We're living in interesting times...

Janet Yellen at the Federal Reserve believes that the partying on Wall Street and in the financial institutions may “lead to trouble”.

You’re talking about a joint economy of $16 trillion in which 30%-56% of the population is employed b the Government and the Government is shredding democracy and the legal system. The cultural reactions will have financial repercussions for years to come.

The 2nd tallest building in the world, Shanghai Tower, will open to the public mid 2015 during a time when China's own economy is going through the darkest period in recent years.     

Just do it...

Sentiment towards gold is as bad as we have seen it since the 2003/2004 period. Bitcoin is the more sexy thing. People want to talk about bitcoin and anything with “bit” in the name seems to be doing very well. Whereas gold is very much less sexy ... for now ...

The economy is growing, the markets are up, stocks are flirting with record highs… The good times are back for investors, so it seems, but are they really?

This is jut one small part of the massive $9 trillion in US Dollars that has been borrowed and invested elsewhere. To put this number into perspective, it’s larger than the economies of Germany and Japan combined.

Bank of America advocates adding gold to one’s portfolio along with higher levels of cash. Citing factors such as liquidity, profits, technological disruption, regulation, and income inequality they say there exists a potential for a “cleansing drop in asset prices.”

The Mother of all Corrupt Racketeering Enterprises...

We have all read the latest crop of media articles challenging gold’s investment relevance. The typical approach to bearish gold analysis is to attribute hypothetical fears to gold investors, and then point out these concerns have failed to materialize. Sprott believes the investment thesis for gold is a bit more complex than simplistic motivations commonly cited in financial press. We would suggest gold’s relatively methodical advance since the turn of the millennium has had less to do with investor fears of hyperinflation or U.S. dollar collapse than it has with persistent desire to allocate a small portion of global wealth away from traditional financial assets and the fiat currencies in which they are priced.