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  • Even The Council On Foreign Relations Is Saying It: Time To Rain Money On Main Street [View article]
    This idea is just as stupid as the QE program but it sure would keep the Democrats in the White House. Free money to the masses would invoke lots of "Praise the Lord" for dem good hearted folk in Washington.
    Sep 2, 2014. 10:48 AM | 11 Likes Like |Link to Comment
  • 3 Reasons This Correction Doesn't Resemble A Crash [View article]
    Is this article meant to address the NEXT correction? The last correction ended a few weeks ago.
    Aug 25, 2014. 10:43 AM | 4 Likes Like |Link to Comment
  • Gold - Support At $1275 Standing Firm [View article]
    Over the years I have noted how frequently markets blow through so called support and resistance levels and while I haven't kept a tally, it would be a at least a 50% frequency. It would seem that the more analysts that mention a support/resistance level, the less likely those levels hold.
    Aug 25, 2014. 10:25 AM | Likes Like |Link to Comment
  • Debunking The Theory That The U.S. Dollar And Gold Have An Inverse Relationship [View article]
    An excellent article and one that should be read several times by those that think the dollar index (DXY) is telling us something about the value of a US dollar as it pertains to it's purchasing power. However, I would not completely dismiss the inverse correlation of DXY to the price of gold.

    The price of a commodity (traded on a global basis), as quoted in any local currency, is going to be affected by that's currency's relationship to other currencies. Just ask the Japanese or an Indian how quickly gold rose as quoted in their currencies when the Yen and Rupee experienced rapid declines during the past few years. At the same time, Americans saw gold fall, as quoted in their currency, during those same periods.

    Currency fluctuations can be expected to cause a commodity's price to be adjusted accordingly but correlation occurs only when there has been no change in the underlying supply demand equation of that commodity. Put simply, a 1% decline in a currency index, such as the US dollar (DXY), would be over ridden by a 2% increase in gold demand (price) with the result that gold would appear to be increasing in price even while DXY is declining. On a daily basis, this anomaly occurs quite frequently. Over the long term, supply/demand rules and correlations between a currency's index and gold tend to be erratic, if not non existent.
    Aug 24, 2014. 01:12 PM | Likes Like |Link to Comment
  • GLD: Market Teetering On A Breakdown [View article]
    Gold is going to go up but may go down first, or vice-versa. There, I said it. I will be ready for interview when I am proven correct.
    Aug 24, 2014. 11:40 AM | 4 Likes Like |Link to Comment
  • Maximize Your Gold Exposure, Part 2: 4 Gold Stocks With Substantial Leverage [View article]
    Nice picks but some have issues that could keep their stocks prices in check.

    International Tower Hill has tremendous potential if gold soars to 2000+ but in the mean time, they are burning through cash at an unsustainable pace. If gold doesn't turn up soon, shareholder value is going to take a another hit. That said, a dramatic rise in gold in the near future would make this one a big winner.

    Pretium is attractive at current prices and is not loaded up with debt. Rising interest rates will not drag this one down and they seem to have expenses under control.

    Lexam is a bit player and with little cash on hand, will be constantly going back to shareholders for funds. Thumbs down on this one.

    I agree that Chaparral, with it's nice cash war chest, looks somewhat undervalued. It may eventually get swallowed by a bigger fish. I intend to add it to my collection of gold juniors.
    Aug 23, 2014. 07:15 PM | 1 Like Like |Link to Comment
  • Gold Actually Thrives In Rising-Rate Environments [View article]
    Very good article. Rising interest rates are no threat to gold but will not necessarily cause gold to rise either.

    Baby boomers are becoming increasing conscience of the need to protect their wealth from the clutches of desperate governments looking for a means of dealing with massive debt. I see punitive estate taxes as being a favored solution by the politicians. After all, dead people don't vote. Gold, in the form of coins or bars, would be a means of hiding one's wealth from the tax man. Baby boomers tend to think alike and wildly inflate anything they focus on. Gold's future may be in for a big boost.
    Aug 23, 2014. 01:18 PM | 1 Like Like |Link to Comment
  • Nobel Prize Winner Shiller Is Damaging His Reputation With CAPE Ratio Talk [View article]
    Today's markets are not fueled by something as rational and fundamental as the CAPE ratio. Instead, we have a global collection of banks that determine what stock prices should be and who are actively interfering in the everyday trading of stocks. Corporations are encouraged to forego investment in the equipment in favor of buying back their own stock with dirt cheap credit. Neither they nor the banks need fundamentals to justify bidding up stock to nose bleed levels because that have a financial backer with an unlimited supply of money. That backer is a privately owned entity known as a 'Central Bank'.

    I have never seen a market move in such a methodical manner. Sell offs are incredibly brief and shallow. Ultimately, the market will crash but it is impossible to determine when. I strongly suspect that the players who are going to be the big losers when this fiasco unravels are those retail investors who have their money tied up in slow moving entities known as 'Pension Funds'.
    Aug 22, 2014. 12:57 PM | 1 Like Like |Link to Comment
  • Gold And Deficits - The Connection Might Surprise You [View article]
    So, the consumers of India and China and the Middle East are watching the US deficit and are collectively adjusting their gold purchases accordingly? Not bloody likely.

    The author may have presented a good case for a link between the US dollar and deficits. Of course, Americans 'see' gold price in terms of their dollar and not in terms of actual demand for gold which, in my opinion, has very little to do with US budget deficits.
    Aug 22, 2014. 12:25 PM | 1 Like Like |Link to Comment
  • Gold Numbers Are In, How To Read The WGC Report [View article]
    David, thanks for the briefing on the latest WGC report. The report provides clarity in that it doesn't deal with the price of gold in any particular currency. It only presents the facts regarding supply and demand.

    It should be no surprise that gold's price would appear to be a function of the old supply/demand equation. The combined demand for gold by the consumers of India and China versus the total available supply is all that really matters. US gold bar and coin demand is just fluff and of little consequence. Furthermore, do the consumers of India and China give a rat's ass about the Ukraine crisis or what Yellen has to say? Not likely.

    It is hilarious when SA contributors (and commentators) try so hard to make a case that some 'made in America' event will be the cause of a long term shift in the price of gold. Of course, a collapse of the dollar would cause Americans to believe that gold was 'strong' just like the Japanese did when the YEN collapsed. In fact, a weakening dollar would do little to change the supply/demand relationship.
    Aug 22, 2014. 11:57 AM | Likes Like |Link to Comment
  • Why The Federal Reserve Will Never Be Able To Get Out Of QE [View article]
    convoluted: You have nailed it. The TV industry is only giving the average American viewer what they want. There is no necessity to think and it helps to pass the time while munching on garbage food. You are absolutely correct about the vast majority having no interest in the stock market. That would require some thinking and that is just way too hard for some "folk" (as Obama might put it).

    "Taking to the streets" as a protest against inflation and a rapidly declining living standard will be seen by some as an excuse to steal what food stamps can't buy.
    Aug 15, 2014. 02:30 PM | 1 Like Like |Link to Comment
  • The Looming Black Swan [View article]
    When reviewing a a financial report, a professional doesn't spend any time looking at EPS. Cash flow and the balance sheet are far more telling of a Company's health than the massaged EPS number. Using debt to by back shares just to save a little bit on the dividend payout is not going to make the balance sheet look any more attractive and when interest rates rise, the additional debt is going to make the balance sheets look downright ugly.
    Aug 15, 2014. 10:23 AM | 1 Like Like |Link to Comment
  • The Oil Market QE Premium Is Coming Out Of Price [View article]
    How, exactly, has the FED interfering in the oil market when they are buying bonds?
    Aug 14, 2014. 02:06 AM | 2 Likes Like |Link to Comment
  • Is It Time To Buy Stocks? [View article]
    Let's look at the bigger picture. Many of Europe's stock markets have hit record highs this year with some, like the German DAX, showing a strong correlation to the S&P. (and without a central bank QE program). Please explain how that is possible in terms of the US 'presidential' cycles?
    Aug 13, 2014. 10:45 AM | Likes Like |Link to Comment
  • The Bottom Is In For Treasuries [View article]
    This author's crystal ball must be one of those high end models.
    Aug 10, 2014. 11:05 AM | 1 Like Like |Link to Comment