Vuke

Is the Local Top in Precious Metals Stocks Already Behind Us?

As gold production has been decliing for the last few years the rush is on to bring new production to market to capitalize on higher prices.

Year end figures for gold producers will be very interesting. Expect some substantials gains if gold holds well above $1000.

Gold Bullion Is Rising in All Currencies

Gold has been a secure store of value throughout recorded history with the exception of the last two decades of the 20th century. During this period central bankers successfully persuaded the saving public to hold their wealth in paper.

Their arguments are now seen to be hollow as CB's are being forced to create more and more paper to prevent natural reactions to misallocation of capital. These efforts, alone, will be sufficient to drive gold even higher but more significantly, return gold to its natural role, that being the ultimate assurance of payment in honest money.

How Long Can Public Pensions Continue?

Chief Nowicki's are everywhere today. They lurk, like hordes of rats, in banks, brokerage houses, mortgage brokers and are pervasive through every level of government.

Pyschologically, they could be described as sociopaths having little regard for any situation but their own. How this came to be will someday be described by someone like Tom Wolfe but how to get rid of them today is the problem. Riddled throughout, as they are, with like minds governments cannot do it by themselves, nor can many corporate organizations.

The answer, I suppose, in what happens when recessions don't do the job. That is, a depression, deep, dark and devouring.

Chief Nowicki, thank you and all others of your ilk. You've created your dream world at the cost of nightmares for others. May your accomplishments be your epitaph.

Charlie Gasparino: Another Crash 'Has to Happen Again'

Some day there must come a shock sufficient to flush out the rot from Wall St. and the massive piles of waste within every level of government. So much self interest has become engendered in the entire system that it cannot go on without collapsing of its own accord.

That day will engender a new economy and a new approach to public service entirely supported by the population, for they will then clearly see the few crumbs thrown them were no more than stale crusts.

Charlie is right.

Japanese Investors Saying 'No Thanks' to Government Bonds

Donald: It's clear. Do you mean the U.S. or Japan?

On Nov 05 12:24 PM Donald Ingram wrote:

> Other factors are to be considered besides low returns;
> 1/ An aging work force.
> 2/ A much lower savings rate.
> 3/ High unemployment.
> 4/ Collapsing export market.
> 5/ Diminished tax returns.
> 6/ Crushing social obligations.
> 7/ New, inexperienced government.

Gold: Something Powerful Is Building

That something is recognition. Recognition by investors, Central Banks, Funds and others that gold is not just another commodity like lead, zinc or iron. And that paper is just that, paper.

As that recognition builds more and more people will want gold. Because of its extreme scarcity (1/2 oz/available per capita) the last buyers may have to wave huge piles of paper to secure any.

Gold and Oil - The New Mecca

It's unlikely most gold buyers are awaiting an apocalypse. Very simply, they've accumulated some wealth and would just like to hang onto it through some very troubled times.

Throwing accumulated wealth at puts and calls or buying deserted famland is far more stressful than tucking a few bars under the pillow and sleeping soundly.

Canadian Oil Sands Trust Is Now the Single Most Attractive Oil Acquisition Target

Any acquisition of COSWF may run into some determined opposition from shareholders and political considerations. Its distribution feeds a lot of retiree pensions and strategic control of energy is an important consideration in a bitter winter climate.

An interesting stock to hold to be sure.

In Search of Elephants: Purchase or Perish in the Gold Mining Industry

The Detour deposit is still growing and while the stated grade is not high small high grade zones are plentiful within it as a sweetener. It's size and even larger potential are becoming too large to ignore.

With a market cap of $650 million $17 billion in gold Detour is an obvious candidate for acquisition.

The Intrinsic Value of Nothing, Part 2

Not only is government creating dollars from thin air but so too are financial institutions by the creation of "innovative financial instruments". The fundamental idea of fiat money has grown into an out of control nightmare.

Printing more money and giving it to banks is equivalent to throwing grain to rats. They'll just gobble it up and produce more rats.

A sound and solid foundation to money, such as gold, has to come. Who, in their right mind, would buy much of this derivative nonsense and pay for it in real gold?

Gold Is Not in a Bull Market

Jon Nadler has been doggedly flogging this tired horse for years. He does make a case for volatility as hedge funds and speculators will pile out when they're told the dollar is once again solid. Unfortunately for them there'll be a lot of false announcements in the process of building new currency values.

Nadler's empoyer must need setbacks in gold to cover the exposure in their gold pool. Without that their exposure keeps getting deeper and deeper underwater.

Gold, as always, will remain a secure store of value. It's difficult to imagine the same being said of any other currency in the world .

Federal Pay Continues to Skyrocket: Both Parties Are Out of Control

Governments everywhere are out of control. Internal inertia makes this unfixable until an economic collapse arouses an angry reaction.

That will come. Make ready.

Commercial Bank Derivatives: A Disaster Waiting to Happen

Mind boggling. All those traders profiting on this stuff.

And who are the losers? No answer as yet.

David Einhorn on That Barbarous Relic, Gold

Dave:

If it was behaving like a commodity it would react in exactly the opposite way than its recent performance. The huge overhang, lack of real usage and threats of economic collapse would drive its price down to silver, or even copper. Copper is a much handier metal.


On Oct 22 09:27 AM Dave Wrixon wrote:

> Whether Gold is money or a commodity depends on how people think
> of it. There is no doubt a vocal group still see it as money, but
> I tend to think it is behaving more like a commodity than it ever
> used to.

Real Cause of This Financial Crisis? Global Hunger for Savings Instruments

Mr. Goldman makes a very good argument. The global hunger for savings has long been fueled by the global rush to print paper. All that paper is now looking for a return.

Sadly, the mountains of "profits" booked on smoke and mirror economies have nothing immediate to rush into except more of the same.