Francis Schutte

Roubini Doesn't Believe in Gold

How can you NOT believe in Gold!? Even if you don

Gold Surges to New Record Highs: Media Is Apathetic

This is static about Gold breaking into news highs expressed in poor US dollar terms...Months ago this scenario was seen for gold in Canadian and for Gold in Swiss franc. Levels for the Swiss franc were different, but charts look similar.
We're en route for a new top expressed in Dollar and once Gold expressed in Euro, South African Rand, Aussie, Swiss franc, etc..break out again of the consolidation built over the past months, they will just add momentum to the upswing.

South African Gold Stocks: No Margin of Safety

In the 1960's and 80's we used to say that "the market capitalization of gold mines was as big as Coca Cola"! [a least Coca Cola has ever since produced something better than the crap sold by JP Morgan!]


On Sep 14 09:16 AM JudeJin wrote:

> the market cap of jp morgan alone equals to all of the gold miners
> listed in the US combined!
>
> try to compare this with where it was in the late 1960s, you'll definitely
> find the opposite answer.
>
> there's too much margin of safety in the gold/silver miners nowadays
> than any time in history!
>

South African Gold Stocks: No Margin of Safety

If the IMF gold is really to be sold, be assured that not 'a single ounce' will see the open market...and it is not difficult to find out who's gonna take the whole lot without blinking.


On Sep 14 09:34 AM JS Partners wrote:

> One caveat.....
>
> The IMF holds $103M ounces of gold and now that they are looking
> to fund bailouts and raise cash there is a chance they might sell
> into the market which could cause a stir and perhaps a downturn in
> gold producers.
>
> I doubt it would be enough to lower the dividend to SA historical
> prices
but I know what I am going to be buying when the IMF releases
> that press release!

South African Gold Stocks: No Margin of Safety

One cannot compare the mismanagement of ABX with this of other Gold mine co's. Not all Goldminers hedged their Gold Production! Having said this, today's yield on goldminers is indeed a lot lower than it was in the 1980's but one should not forget that whatever is written, interest rates are low all over the world and Goldmines = Gold to be mined...and maybe the future has some surprises ready for us.


On Sep 14 09:11 AM JudeJin wrote:

> i think the reason that the dividends are not there this time around
> is because the gold miners were almost detroyed during 1980 until
> recently. abx just lost $5 billion hedging(betting) gold futures.
> had abx simply didn't hedge, abx should have been paying handsome
> dividends in the past 3 years!
>
> before nixon got rid of gold standard, the gold miners had been doing
> far better than they did during 1980-2000

Four Keys to Gold’s Next Move

Technically, we're breaking the huge neckline of this huge reversed Head and Shoulders pattern. Ideally, we now need to run for another week or so and next the neckline 'must' be tested. Once this has been done, we're more or less sure Gold will reach $ 1,260. However, because the price of Gold was artificially kept down for too long, we expect to see much higher levels.

Gold Is Still the Opportunity of a Lifetime

Whatever comments are written (journalism always clusters and it is easy to kill something that takes year to built), this article is excellent.

Xie: Chinese Stocks Are a Ponzi Scheme

Hopefully you don't think the western world still lives in a Democracy! Not so any more....


On Aug 31 09:07 PM notsosmart wrote:

> what is the matter with the dumb-dumbs in this country.china is a
> dictatorship.russia is also but they trie to disguise it.well-its
> your money to lose in whatever dictatorship you want.

Xie: Chinese Stocks Are a Ponzi Scheme

He who thinks 'only' the Chinese stock market is a Ponzi sceme is very naive! The whole Western banking system is a Ponzi sceme and this includes Wall Street and most stock markets. These are going up because the trillions of freshly created fiat paper money seep into these as a consequense of communicating financial vessels. See goldonomic.com

The 1929 DJIA and the 2000 Nasdaq

Honestly, I think one must compare the present situation with the Weimar revolution in Germany and not with the 1920-30 situation. In those days, we did NOT have Fiat paper money like we had today. Hence the stock market continued to come down. According to our theory of "communicating financial vessels", the money has to go somewhere...and in those days the amount of money was limited because it was linked to GOLD. Today 'they' can create unlimited amounts of money..which end up seeping in the Stock markets. The Zimbabwe effect is kicking in! Having said this, we expect markets to go up only in 'Nominal Terms'.

Has the Dollar Hit a Major Bottom?

Excellent! You just nailed it. The problem with many analysts and investors is that they are impatient and trade a lot.


On Aug 17 08:13 AM chap08 wrote:

> Like most commentators, Prechter gets 50% wrong and only talks about
> the ones he got right.
>
> As for the dollar, I can't tell you what it will do in the short
> term (no one can), but in the long term:
>
> - It is overvalued against asian currencies. They keep paying the
> price to keep the dollar up. This can't last for ever.
>
> - It is overvalued against gold. We'll be printing a hell of a lot
> more greenbacks but they wont be making too much more gold.

Why Gold Could Hit $1,300 This Year

Technical analysis is a windsock and what we have for Gold is clearly a reversed Head and Shoulder pattern. It signals a Trend reversal; and a trend reversal we have! Remember, Gold has been going down in 2008. It lost 30%.
The HS pattern is only complete once the price break through the neckline; and the neckline happens to be $ 1,000. Having said this, note Gold in CanDollar has a very similar chart pattern and it broke the neckline of the CanDollar HS pattern in 2008.


On Aug 04 03:42 PM tedfoo wrote:

> Sigh. The head and shoulder and it's inverse are trend reversal patterns.
> This chart just looks like a head and shoulder...a false positive
> if you will. This "inverse head and shoulder" is not a trend reversal
> or a signal with a price target because gold hasn't been going down,
> it's been going up.
>
> If anything your chart is telling you that there is an ascending
> triangle with resistance at $1000. Consolidation has been taking
> place and gold is still poised to pop provided it can break the $1000
> decisively. End result is the same, but don't cheapen your article
> with fuzzy technical analysis.

Analysts Forget That Markets Always Climb a Wall of Worry

Deflation ALWAYS comes after Hyperinflation. There is no such thing as negative inflation, desinflation and stagflation. These terms only live in the minds of Politicians and talking heads. Hyperinflation is a monetary happening and has nothing to do with a potential recovery.


On Jul 27 05:25 AM aldous wrote:

> Hyper -Inflation??? Get real, deflation has not yet run its course
> and when it finally does, stagflation will be the end result. The
> US and Europe are on the canvas for the next 5 years. Recovery indeed!!
> If You live long enough you get to see just about everything.

Analysts Forget That Markets Always Climb a Wall of Worry

Well..exactly the same scenario will unfold as we had in Zimbabwe. People did not bother about high interest rates and bad earnings. They went into the stock market just to be out of fiat paper money: nothing less, nothing more!


On Jul 26 10:37 PM untrusting investor wrote:

> Sounds like wishful thinking to the nth degree. What's gonna happen
> when the Fed/Treasury and the bond markets are forced to drastically
> increase interest rates in order generate the massive debt issuance
> required. Looks like a replay of the 1970's to many of us.

Holy Cow! Look at the Treasury Auction Schedule

This is Quantitative Easing or Monetization of the debt in its purest possible way. Zimbabwe, here we come: a Dow Jones of 30,000 and 300,000 and probably 3,000,000. HYPERINFLATION in capitals it will be. The odds to see deflation now are simply 'zero'.