sorgmot

Gold: Supply and Demand Continues to Evolve

The date is November 21 2009.

We believe that the USA is about half way through the stock market correction now. The correction started in November 2007 will last 3 years to November 2010.

Using history as a guide, as in the last resection, the USA stock and real estate markets should have a second price drop in 2010.

If so, what would a USA investor do with her/his funds in 2010?

Buy stocks and loose money, but real estate and loose money, or buy gold derivatives and make money, .

Do not buy bonds as they will lose money in the future when interests rates rise due to inflation.

Yes, the Government explodes the money supply until it produces inflation and asset prices stop falling.




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Gold Could Take a Breather. Time to Place Some Stops

Longs, watch out.
We doubt it is wise to relinquish your long positions in gold and its derivatives.
We expect upward creep in them this week.
Then, a short 3 trading day decline.
Then a month long rally into year end to higher levels.

We are long gold miners.

Watch out for tricksters of all kinds with interests to protect.

See your advisers and make your own decisions. .

U.S. Interest Rates to Remain Extremely Low for a While

The Mad Hedge and Blood comments above are both on the mark.

The NYSE stock price rally is the product of zero interest rate money supplied by the FED which banks are flowing through to stock buyers.

Based on expected corporate earnings per share prospects and normal (4%) interest rates on margin loans, the stock price to earning (P/E) ratios would drop two third's which would be $4,000.00 on the industrial average.

These changed could prompt a jump in the price of gold during the coming year and a further decline in the US dollar relative to other currencies,

The USA is in a hole and the USA Congress is digging it deeper.

Good Luck

The FOMC Statement and Why I'm Recommending Precious Metals Again

The FRB is giving out interest free money for you to invest in stocks.

Everyone is doing it. Borrow and Buy stocks. They are going up.

Company earning prospects are weak. Company P/E ratios are high.

Who cares? Buy, buy. Get in on the run.

But wait. What happens when interest rates rise?

Market crash when interest rates rise.

Buffett's BNI Purchase: Bearish Bet on the Economy?

The question is not why did Buffet buy.

The question is why did the present owners sell.

This is a poor time to sell a railroad.. The price will be 2 or 3 times higher in 3 or 4 years. It was 30% higher 2 years ago. It will be 30% less as soon as the Fed puts an interest rate above zero on money

Are they broke?

Gold Entering Traditionally Strong Period of November and December

Obama, Bernanke, and Geithner are the 3 blind mice in the midst of USA financial collapse and chaos looking for clock to run up until the clock strikes nine so they down pulling the their bad ideas behind them.

Compare the countries that are prospering to the USA. They are Brazil, China, India, Australia, Indonesia, and those in Eastern Europe, and those in the Middle East.

Look for demographic differences particularly age profiles.
Look at their cost of government per non government citizen.
Look for monopolies and cartels in their businesses.

Focusing on Precious Metals and Farmland

The end of the socialist government system on planet earth.

2010 AD by the USA calender.

The problems facing socialist states of which the USA is one.

They have lost the ability to produce goods and services at competitive prices relative to non socialist states. They export IOU

Investing in Gold Now

The point is that the USA has become a terminal financial entity at this time, 2009 A D. Vast changes are needed, now. It's political parties have no motivation to change. What should you do with your US $?

Investing in Gold Now

The game the USA can' twin.

Average life expectancy in the USA was something like 40 in 1900. Now it is 80 in 2000..

Cost of living in US$ has risen 100 times in the period 1900 to 2000.

Poverty is a condition faced by over half the USA population. The USA kills kids because parents are in poverty. That and high medical costs caused by keeping too many old alive too long is a perscription for social and financial collapse and the USA is seeing it.

Prices of goods and services are set by monopolies and cartels with government approval. Workers can not afford the price of the car they drive to work. On their pay rate and taxes they lose 2 hours pay just getting to work and home. The home builder cartel has put hose prices to a level at which the workers that build then can not afford them thanks to the current costs of the house builder cartel, the electric monopoly, the town tax monopoly, and legal regulation monopoly. Cartels exist because they pay off legislators.

Good luck.

The Three Types of Gold Buyers

In the USA now (Oct 17, 2009) $ prices of goods, services, capital goods, and securities are going two ways at the same tine.

Up when supply is limited by nature (gold,silver,copper) or monopolies or cartels (oil, breakfast cereals, and things made by strong unions) or the common stocks of companies which are monopolies or cartel members and down when prices are competitively set in a free market as for example houses and buildings.

Your house 's market value goes down while bank stocks go up.

Your paycheck goes down while food and gasoline prices go up.

Retails, sell fewer items but at higher prices and layoff help and cut pay rates. Towns raise real estate taxes and the US Government raises income taxes.

Gold's Next Bull Market Has Begun

cnbc cheers for DJIA.

At $1,100 in year 2000 and $1,000 in October, 2009, the DJIA is down 10%. In gold ounces it could buy, it is down 70%.

This makes USA paper investments a disaster.

It makes USA Government a disaster.

Good Luck.

Is Gold's Price Rise a Speculative Bubble or Fundamentally Supported?

Push has come to shove. Countries outside the USA think they will get little back on their US$ loans to the USA.

Why loan more? It is like throwing their assets away.

Hey, lets sell California to China for 4 trillion and New England, New York, and Pennsylvania to the Saudis for 2 trillion.

Good Luck.

Preserve Your Wealth with Precious Metals

Excellent presentation. You might add to gold all other consumable natural resources like oil, gas, coal, copper, silver, and rare earths.

Good Luck

China Voices Dollar Concerns at G20 Summit

The President of Brasil explaned that his country holds US$ to settle accounts with countries who sell goods to Brasil.

The US$ is widely accsepted.

Why not hold yen from Japan and buy US$ as you nead or buy the currency needed? Payola perhaps?

More Support for Gold's Bullish Outlook

What if repeating USA history goes somewhat this way?

The year 2000 is a repeat of 1930 as the stock markets collapses and stays down.

The 1930's depression is due to start in 2000.

The USA starts a war in the sand to buy USA made assets and blow them up in a distant land. This new version of the WPA adds to the endless WPA in place and running in 2000 in the USA.

Depression is postponed by exploding the USA credit supply for 10 years leading to a mad dash to borrow and buy real estate at ever higher prices. Credit explosion leads to 5 or 6 year asset price gains in real estate and house flipping and happy days.

Other (non USA) countries sell goods to the USA, buy little in return, and take credit instruments (not USA dollars) in return. That holds the value of the US dollar up.

Factory labor ends in the USA as it's factories close. Factory workers get a new suit and a smile and sell real estate or mutual funds. Spending by all local, state, and federal governments in the USA explodes as do their employee counts. USA bank employment also explodes with the explosion of credit in the 2000 to 2007 period.

The USA sponsored multinational USA dollar credit bubble pops at the end of 2007 and the layoffs start to explode as do the wealth write offs by USA citizens and companies. The financial crash comes in 2008 and is still going in 2009 and will go into 20 future years.

Look at the good news. The oil wars are over and the oil cartel is now run out of the middle east. The world is awash in energy sources, cheap energy sources.

And the bad news. Nobody trusts anyone's currency and the economy is falling apart in the USA. Business corporations in the USA form into cartels not competitors. USA governments sanction cartels. Asset prices and wages are falling while food and consumable and commodity prices are rising in US $'s. Investors would rather hold the commoditt than the US dollar because every one wants out of it.

What bet would you make on the USA dollar price on gold?