We Are Not Off to the Races Yet With Gold

gold price

Gold has had a nice bounce now off the bottom set in December of 2013, but are we off to the races just yet? Here is what I wrote last month where I concluded  "we could go higher from here for a bit to trap more of the bulls who say the bottom is in." We should start to see gold and silver begin their meteoric 3rd phase rise beginning sometime this year. Before that occurs I have been calling for one more test of the lows and will wait patiently for it. If you call me and ask what I think, I … [Read more...]

The Awful Truth about Mutual Fund Managers and Hedge Fund Managers Performance

Table of Redeemed Value 10 years

The following is an excerpt from my forthcoming book, "Illusions of Wealth" with an update on my thoughts about gold and silver to follow. The Awful Truth about Mutual Fund Managers and Hedge Fund Managers Performance Why are you invested in actively managed mutual funds? Many of you who invest in Mutual Funds were probably told to buy them because some financial advisor recommended you do so. The harsh reality is the one's who own 90% of the $17 Trillion held in mutual funds didn't beat … [Read more...]

Recap of 2013 and Past Calls on Gold and Silver

Unlike most gold dealers, I don't spend all my time writing articles that call for a dollar crash or that hyperinflation is around the corner. I could do that and probably get more people to buy, but I would rather present the data as I see it and call the markets better from a short term perspective as well. The long term will take care of itself as gold and silver prices will move higher. I call the markets like I see them. Below you will find a recap of my 2013 calls on precious metals to … [Read more...]

Will Gold Fall Below the 1980 Peak of $850?

AAPL 5 Year

When seeing what Market Makers and Hedge Fund Managers can do with stocks as they have with Apple (AAPL), Netflix (NFLX)  and Herbalife (HLF), could we also see the Professionals push gold lower to break the 1980 high of $850 and hear the financial media declare the gold bug dead? How would the pro gold crowd react to such a move? Is this scenario out of the realm of possibility? Breaking Through Psychological Price Points While the $1,000 mark for gold is a psychological breaking point, … [Read more...]

Gold and Dollar Down but Both Will Rise Next Year

dollar index

As I pointed out in my last article, I expected continued selling of gold by the big boys; the Hedge Funds, Mutual Funds and Professional traders and they didn't disappoint. The largest ETF; SPDR Gold Shares (GLD) saw an outflow of 12.9 metric tons last week. From Kitco; Holdings of gold by SPDR Gold Shares (GLD), the world’s largest exchange-traded fund backed by the metal, fell last week by 12.9 metric tons to 801.22 tons, according to a weekly report issued by the plan administrators. … [Read more...]

Why Gold and Silver Will Break to New Lows and Tax Moves to Capitalize Upon

GDP Growth Explained

We have seen the perfect storm come down on gold and silver this past week with the Fed taper, Congress agreement on the budget for two years and higher than expected GDP, but there is another reason why gold and silver prices are falling. This stems from the year-end tax moves that the big players in the precious metals market; Hedge Funds, Mutual Funds, Banks and Professional Traders, are doing by locking in dollar for dollar their losses against gains. The good news is, individuals who own … [Read more...]

Fed Quantitative Easing Coming to an End Sooner than Expected? Hardly!

CNBC Fed Taper

The results of the Fed decision came in. No taper. But the stock market sold off that day and so did gold. Why? The answer may be found in the following article posted at CNBC where they state; "but markets interpreted language in the decision to mean that the end may come sooner than expected." If markets and price action tell you what's right at that moment, how can they be so wrong? It's because they are fooled by what the Fed "says" and ignore what the Fed does.   This was … [Read more...]

The Federal Reserve – Lender and Buyer of Last Resort

Feds Balance Sheet

Can the Federal Reserve save the U.S. economy from failure? Is this their mandate? When you research "lender of last resort (LLR)," which is what the Fed is supposed to be, you mostly find the source to be Walter Bagehot’s Lender of Last Resort Doctrine.  This doctrine came about from Bagehot's book, Lombard Street: A Description of the Money Market. Hartley Withers, in 1915 wrote of the book; "It is a wonderful achievement, that a book dealing with the shifting quicksands of the money market … [Read more...]

Gold and Silver Are Insurance against $17 Trillion of National Debt and More

10goldcert

Gold and Silver Are Insurance Against $17 Trillion of National Debt Investing in physical gold and silver is not a profit driven investment. It is a mindset. It gives investors the same type of peace of mind that protects their wealth they receive by insuring their home, auto or health...just in case something happens where they need it. What other type of insurance gives a return that is guaranteed not to be zero and has a 4,000 plus year history of purchasing power stability? What other … [Read more...]

Do Financial Advisors Ever Caution You Against Buying Stocks?

Recently I had someone tell me that I am biased in favor of gold and silver (meaning always bullish) because I sell gold and silver.  This was rather presumptuous on their behalf which is why I copied the articles below to show what I have actually written over the past five months about the gold and silver markets. Sept. 16 Calling the Fed Taper Bluff and What Gold Might Do Next http://bit.ly/196sABe Aug. 29; Sticking With Stronger Dollar and Weaker Gold Through End of … [Read more...]