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  • The Labor Market Is Gaining Momentum And Stronger Than You Think [View article]
    Obama has come through for 'folks'. They are either getting rich off the stock market or thriving on food stamps with brand new jobs the service industry. Soon folks will be stealing watermelon and strawberry picking jobs from the illegal immigrants and the official participation rate will soar. Best President, ever.
    Nov 17 09:39 AM | 1 Like Like |Link to Comment
  • Is Deflation Coming To America? [View article]
    Leo : Wage cuts and unemployment in Greece are the result of out of control government spending and the same has occurred in the US as a result of nearly three decades of the outsourcing of good paying American jobs. Neither situation is the result of deflation a neither will be the cause of deflation.

    The facts are that no one has seen anything actually going down in price, with the exception of the recent decline in gasoline. The truth is that anything you can name , be it rents, taxes, health care. dental care, clothing, tuition, food, transportation, etc, have all gone up, some SUBSTANTIALLY! You are welcome to name something where the cost has actually declined on a sustained basis. Anything?

    I am sick of authors who issue warnings of some imaginary deflation 'threat' when it is so obvious that inflation is the true threat to the middle class. What you are doing is assisting the government in it's quest to con the population into believing that money printing is necessary to stave off some non-existent deflation 'problem'. It is that money printing that has enriched only the wealthy. Perhaps that has been the plan right from the beginning.

    The American consumer will never see any real deflation but will continue to experience the rapid erosion of the purchasing power of their pay checks. What a sad state of affairs.
    Nov 15 07:06 PM | 1 Like Like |Link to Comment
  • Is Deflation Coming To America? [View article]
    There is no deflation at the retail level except for the price of gasoline which was over inflated to begin with. As it always does, gas will eventually climb back up to new highs. This nonsense talk of deflation is a smoke screen that attempts to hide the truth of rapidly inflating prices for goods that people buy on a regular basis, such as food and dry goods. In America, the packaging is getting smaller while the price goes up and the government tells the masses that inflation is 'too low'. Unbelievable.

    The only thing that is really going down is the quality of goods made available to the dumbed down American consumer. WalMart has become a junk store. Most Chinese made crap sold in the US is not even available in Europe because they won't buy it! Europeans (notably, Germany) have much higher standards for quality are willing to pay more for well made merchandise.
    Nov 15 11:01 AM | 2 Likes Like |Link to Comment
  • The Myth Of El Nino And Natural Gas [View article]
    The article was well written, about the weather. However, I still can't get on board with the author's premise that NG should be shorted at this time. To lessen the risk, why not wait for a clearer picture as to what the storage levels will be in February-March?

    His method of shorting UGAZ rather than buying DGAZ, has some logic to it given the built in decay of UGAZ and DGAZ due to contango issues of the underlying futures. That said, I have been long both and made a ton of cash just because NG tends to be very volatile and I seldom find it necessary to hold a position for more than a few months, thereby keeping any time decay to a minimum.
    Nov 12 09:48 AM | Likes Like |Link to Comment
  • The Myth Of El Nino And Natural Gas [View article]
    I would not be shorting at these levels. ($4.20 as of this writing). That would make no sense. The next couple of withdrawals should be bullish for NG. Even with mild winter, I doubt we will see a price much below $3.80. If shorting is desired, why now? Why not wait for a spike before shorting something as risky as UGAZ?
    Nov 12 01:48 AM | 2 Likes Like |Link to Comment
  • Silver: What Goes Down Must Come Back Up [View article]
    I agree with the author and would add that sliver is looking more promising than gold right now. The weekly chart is looking like we have seen a bottom, at least for the short term. If silver were to climb to $18, that would be good indication that we may have seen the final bottom. I am buying.
    Nov 11 10:38 AM | 2 Likes Like |Link to Comment
  • There Are Strange Things Happening With The Gold Held At The Gold ETFs [View article]
    David: You just confirmed what I had said : GLD does NOT warehouse gold itself. Yes, it does have a 'claim' on gold stored in a bank's vault that has been hypothecated god knows how many times. We will probably find out someday when the whole ponzi scheme falls apart. That's why ETF's like GLD make very difficult for someone to redeem for actual gold. That's not part of the plan.
    Nov 10 01:45 PM | 1 Like Like |Link to Comment
  • After The Squeeze, What's Next For Coal? [View article]
    The author believes that the market works only on fundamentals and will therefore stay out of the coals stocks while they climb a wall of worry. His statement told the real story: "Only three weeks ago, most people thought that even the stronger coal companies had a chance of going bankrupt." The fact that extreme negative sentiment with lots of volume, has been followed by a rather dramatic surge upward for the coal stocks, is a good sign that bottom is in.

    The phrase 'short covering" is an over used term that is almost always used when any asset begins to surge upward and its causes hesitation in the public to dive in. Pullbacks should be bought aggressively.
    Nov 10 01:32 PM | 1 Like Like |Link to Comment
  • The Trampled Silver Investor Remains Undaunted [View article]
    I am becoming bullish on silver. It's time to buy and will continue to buy if it moves down some more. Some big players have been stockpiling silver for quite some time, as evidenced by the rising inventories in the various warehousing facilities. I think someone 'knows' something that we don't.
    Nov 10 10:13 AM | 2 Likes Like |Link to Comment
  • There Are Strange Things Happening With The Gold Held At The Gold ETFs [View article]
    Fish: very well put!
    Nov 10 09:53 AM | 1 Like Like |Link to Comment
  • There Are Strange Things Happening With The Gold Held At The Gold ETFs [View article]
    You also might want to read from Sprott's website on "reasons to own gold". Nine through 11 are interesting:
    Nov 9 03:57 PM | 3 Likes Like |Link to Comment
  • There Are Strange Things Happening With The Gold Held At The Gold ETFs [View article]
    Ksoze: The Sprott gold ETF is 100% backed by physical gold, according their website and is not held in the vaults of a bank but rather in the care of the Canadian Mint (which carries appropriate loss insurance). Redemption carries storage and shipping costs. The prospectus is not totally clear on the redemption issue. Read it for your self at
    Nov 9 03:21 PM | 3 Likes Like |Link to Comment
  • There Are Strange Things Happening With The Gold Held At The Gold ETFs [View article]
    leo: Thanks for the link..."oversupply"... right off the lips of the CEO of Rangold. I guess he should know!
    Nov 9 03:05 PM | Likes Like |Link to Comment
  • There Are Strange Things Happening With The Gold Held At The Gold ETFs [View article]
    This has to the most convoluted theory I have ever read that attempts. among other things, to explain the glaring contradiction between a gold demand that is supposedly booming (Chinese) while at the same time, price has been tanking for the past three years. The logic presented in the article is tough to follow. I think I will go with the simpler explanation that the Chinese demand isn't what it is trumped up to be or, if it is, demand has fallen elsewhere to such a degree that Chinese consumption is not sufficient to keep the price up.

    The implication that the gold miners are having 'trouble' supplying the gold market is highly questionable when one looks at how much already mined inventory is on the balance sheets of some producers. Many of the gold miners, such as Barrick, Eldorado, Kinross, Newmont, just to name a few and according to their latest financial statements, have plenty of inventory on hand and in some some cases, much higher than that of a year ago. Incidentally, high inventories, of anything, is usually not a good thing for future pricing. So, is there 'trouble' supplying the market? How so?

    It should also be noted that GLD does not produce gold nor warehouse it to any significant degree (unlike the Sprott ETF which does have it's gold on hand, and is redeemable to anyone). Also, what evidence is there that large holders of ETF paper, are actually taking delivery? And please note that conjecture is not evidence.
    Nov 9 12:37 PM | 11 Likes Like |Link to Comment
  • Gold Bug Psychology Must Be Neutered [View article]
    I have come to the conclusion that it is next to impossible to play the gold market successfully, for two main reasons.

    A) The price of gold is not set by the normal commodity supply/demand equation. In fact, it is set by a paper market that consists directly of the commodity gold exchanges (such as the COMEX) , and by the allegedly gold backed ETFs. I say "allegedly" because the source of much of their gold 'holdings' are by way of leasing agreements with banks and other entities that allow for the same gold to leased to multiple clients. In most cases, no actual gold leaves their vaults. It's all electronic transfers. This arrangement does nothing for the miners and does not change real gold consumption one bit.

    B) Naked short selling of gold is not only allowed by the CME group (COMEX) but actively encouraged by way of special discounted fees to it's most revered clients, the FED, it's banking agents and other central banks, notably, that of the UK. This cosy arrangement allows the FED to keep gold prices on a leash and it is they that decide what the price will be, not the physical market.

    In my opinion, any kind of chart analysis is useless when the price is so aggressively controlled by just a few entities. Fundamentals are meaningless as is evidenced by the fact that gold goes down even while demand is robust. The Fed and other Central banks have unlimited dollars to carry on with business as usual and what have we got? Charts with resistance and support zones that seem to be anything but, and Fibonacci targets that are supposedly based on some sort of herd mentality. Really? It's laughable to suggest that the charts could possibly predict when and where the FED will intervene in order to preserve confidence in the US dollar. They will even allow gold to rally, on occasion, but are there to smack it down when they feel it's warranted.

    Yes, it is true the the fledgling physical gold exchanges of Asia may ultimately over throw the West's stranglehold on the gold's price, but when? That may not occur for years and even if it were to happen tomorrow, that doesn't mean gold would necessarily go to the moon. China is the big player in this scenario and it is not in their immediate interests to see gold shoot up while the American dollar collapses. They still have plenty invested in the health of the American economy and dollar.

    So, in conclusion, is there any point of trying to beat the FED at a game in which they have, by far, the best hand? Playing gold and it's miners is okay if one is very conservative with their cash but to go all in, based on the belief that eventually the dollar will crash and burn, would be just nuts.
    Nov 8 03:02 PM | 12 Likes Like |Link to Comment