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As equity analysts have downgraded gold stocks (GDX), credit ratings have remained resilient but...

As equity analysts have downgraded gold stocks (GDX), credit ratings have remained resilient but Moody's says persistent gold prices below $1,300/oz. or more volatile pricing could prompt downgrades of several miners. Investment-grade producers such as Newmont (NEM), Barrick (ABX) and Goldcorp (GG) have more options to deal with low prices than smaller firms such as Iamgold (IAG) or Eldorado (EGO), Moody's says.
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Comments (7)
  • toughchoice
    , contributor
    Comments (18) | Send Message
     
    a downgrade from moody's is just the banksters cartel rigging the system yet again..the whole dam system has been corrupted...when it crashes there will be many who have robbed the masses and with no where to hide, will pay dearly....and not in gold and silver....imho
    25 Jul 2013, 02:54 PM Reply Like
  • montanamark
    , contributor
    Comments (1444) | Send Message
     
    moodys - LOL
    http://on.wsj.com/1c6CGGU
    25 Jul 2013, 03:06 PM Reply Like
  • angelg44
    , contributor
    Comments (15) | Send Message
     
    yes, whole financial world system is rigged, no question about it. Rigging and all kind of "analyst" made speculations will continue until whole system goes in flames. It has already happened many times in human history, just check hyperinflation collapses in France, Germany...name your country...during last centuries. But, the difference now is that the "system" is worldwide driven by the same elite, so the collapse will be worldwide as well. Buy until is still cheap, metals and tangibles cannot be printed...yet.
    25 Jul 2013, 04:20 PM Reply Like
  • TDWelander
    , contributor
    Comments (639) | Send Message
     
    The U.S. Federal Reserve and most central banks were created to prevent any kind of financial disaster. And based on the last five years, there should be no doubt in your mind the central banks will do whatever they have to do to stop any financial crisis in its tracks.

     

    The central banks assertive actions in markets during the last five years has been remarkable compared to anything in the past. Few people would say they have not done their jobs. As has been the case in the past based on hind sight; of not doing their job.

     

    We have all had the luxury of concerning ourselves with bubbles and potential inflation from all of the monetary expansion.

     

    The key of comparing the past to now: the German Weimar Republic and probably at least a dozen other governments thought they could just print money and get away with it. They could not (the rich would not let them indirectly) and caused hyperinflation.

     

    Central Banks in buying bonds and other financial assets has created a financial obligation. Or a transaction requiring real funds to cover it; not fiat currency as has been the case in the past. While some people may say this is splitting hairs because the debt the central banks are now holding is figuratively imaginary. Or they came up with the money to create the debt out of thin air; some say the credit worthiness of each nation.

     

    The above distinction is critical. We do not have any fiat currency in the classical or past sense. Government obligations have been created in order to distribute more currency. And rightly so.

     

    Anyone or any group or institution demanding currency should have near instant access to it based on their credit worthiness. Thus keeping the planet out of a financial strait jacket. And keeping the planet's economy growing; and also minimizing inflation as proven by the last five years of large monetary growth without significant inflation.

     

    If anyone doubts the above has not worked, I invite them to look at or reexamine the facts in detail. And probably crawl out from under the rock where they have been hiding.
    25 Jul 2013, 05:06 PM Reply Like
  • sinedo
    , contributor
    Comments (371) | Send Message
     
    The example of post-WWI Germany shows what happens when a Country's currency is irrelevant outside its Country. The U.S. Federal Reserve notes are considered the reserve currency of all the World banks, based on a tradition of sound money (relative to other currencies). "Money" is acceptable for trade as long as there is not too much pain attached to it. IMO, Bernanke's creation of at least $3 Trillion of digital money will eventually be circulated outside the U.S. banks, who are reaping the benefits of having their debts wiped-out and guaranteed profits on all mortgages they create. The Fed is transferring the debt of the Treasury and the big Banks to holders of U.S. "dollars" in whatever form they're held. Those new "dollars" compete with the savings of all dollar holders.

     

    Once a more reliable alternate to the U.S. $ becomes acceptable for world trade, its advantages will be recognized and it will compete with the $. China hoped to replace the $ with its currency, but they have been forced to do the same thing (inflate their currency) because of their bad economy. The new money is slowly being spent into the system, and sooner or later the inflationary destruction of monetary value will be obvious. When it happens, it will happen fast, but who knows when? Probably, during the next economic boom cycle, which will be inflation driven..
    Regards,
    26 Jul 2013, 01:46 PM Reply Like
  • TDWelander
    , contributor
    Comments (639) | Send Message
     
    Mr. Sinedo: Which should also mean gold and precious metals should maintain a stable to upward price movement as a safe haven against your cited currency manipulation by the U.S. Federal Reserve and others.

     

    The central banks currency manipulation based on their stated
    goals is financial stability and a targeted 2% U.S. inflation rate.
    Of course, outsmarting yourself, or missing some critical event
    has been a common past mistake by central banks causing multiple millions to suffer. They will probably see your
    scenario coming and will adjust for it as they see it and see fit.

     

    Increasing currency in circulation as long as it has a financial obligation tied to it is almost always a good thing, assuming low or moderate inflation also.

     

    With the increasing supply of gold, it certainly is possible for it to replace the U.S. $ as the reserve currency, at least with the rich
    and foreign governments as a method of stabilizing their currency and currency generally. With the beyond huge supply of U.S. dollars and most other currencies around, it does not seem very probable to spread to everyone.

     

    The most likely future scenario, are very short term interest rate hikes of a day or two to no more than a week or two. Anything more or longer would reduce macro commerce causing very large pain, which most central banks will avoid like the plague.

     

    The central banks can not afford to allow a boom cycle as seen in the past. Inflation once started is highly difficult to control or reduce;
    and usually with great pain to the population on any inflation reduction primarily due to the higher interest rates and resulting scarcity of currency or currency equivalents.

     

    So to prevent your quick monetary destruction will likely be met with piercing, quick, and very short interest rate hikes to arrest any sourcing inflation starts. Central banks, with all of their practice now for over a century, and as seen the last five years have become very proactive at countering anything as seen as threat to monetary system stability.

     

    As you have probably noticed in the U.S., the mortgage bankers have beat the central bank to the punch; attempting to raise interest rates to increase revenue. Does not appear to have stuck.

     

    So while your scenario is possible, the central banks will not likely let it happen.

     

    Mr. Bernanke has been playing dumb about gold and precious metals volatility; which appears to be a smart move: keep the speculators and manipulators guessing while passing on as much transparency as allowable.
    27 Jul 2013, 05:17 PM Reply Like
  • doloresreichhardt
    , contributor
    Comments (5) | Send Message
     
    Waiting for IAG to be downgraded again in early August so I can buy shares cheap before the cartel.
    25 Jul 2013, 10:18 PM Reply Like
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