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BORNAGAIN2007

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  • A Golden Cross To Bear [View article]
    Uncle Pie,

    My vote is "c". Below are the reasons gold miners will rise along with gold:

    1. Make no mistake, our leaders soiled their shorts as the Cyprus event unfolded. The leaders are scared and they are running around putting their fingers in holes as they appear in the financial dam. They will eventually have no more fingers left to plug the holes.

    2. Lack of understanding about the magnitude and seriousness of the debt situation continues to amaze me daily. There was a recent article in Barrons that made the case that raising taxed by 50% on the top 1% of wealthy would do nothing to solve the US "debt" problem.

    3. Gold and Silver are going a lot higher not because of Cyprus or other event, but Gold and Silver will go higher because of fiscal imbalances and debt. No government on the planet will be able to do anything about the rise in price once the train leaves the station. At that time, the "BLACK SWAN" will arrive.

    4. Most miners are now sporting a single digit forward P/E, projected production growth rates that are double digit and gold valued at or near $0/oz in the ground after by-product credits.
    Mar 29, 2013. 03:48 PM | 1 Like Like |Link to Comment
  • Country Risk For Mining Jurisdictions - March Edition [View article]
    dreadloednaf,

    I understand your point even if Itinerant does not get it.

    Itinerant ... You have been writing about this subject for years now and no where in your "RISK ASSESSMENT" do you address debt as a major risk. If debt were included as a risk, the debt risk would turn your list upside down with the USA being the 2ND biggest risk of any nation on the planet after Japan. US debt to GDP ratio now greater than 1 and expected to grow to over 1.3 in the months/years ahead. Any nation with a debt to GDP ratio over 1 has NEVER recovered without a major reset (revolution). It would be great to see your risk assessment analysis include debt-to-GDP ratio as a major RISK. As far as the AAA, AA, etc., ratings go, that is nothing more than manipulated assessment data published to achieve a political position and is not credible.

    One additional point: Russia is a country that has not embarked on TAX, BORROW and SPEND policy like the west. While we may not agree with their methods, philosophies and ideology, they have one of the best looking government balance sheets on the planet and your list has them rated 12th!
    Mar 28, 2013. 02:47 PM | 1 Like Like |Link to Comment
  • Why Debt Destruction Is Bad For Silver And Gold But Neutral For Equities [View article]
    Gold going up or down had nothing to do with CYPRUS ... it is a real leap of faith to make this assumption using SLV and GLD as a measurement.

    What is more interesting is what happened with the dollar during this event ... the volatility was huge and based on the volume, it appears that the government leaders intervened to save the day.

    Make no mistake, our leaders soiled their shorts as the Cyprus event unfolded. The leaders are scared and they are running around putting their fingers in holes as they appear in the financial dam. They will eventually have no more fingers left to plug the holes.

    Lack of understanding about the magnitude and seriousness of the debt situation continues to amaze me daily. There was a recent article in Barrons that made the case that raising taxed by 50% on the top 1% of wealthy would do nothing to solve the problem.

    Gold and Silver are going a lot higher not because of Cyprus, but Gold and Silver will go higher because of fiscal imbalances and debt. No government on the planet will be able to do anything about the rise in price once the train leaves the station. At that time, the "BLACK SWAN" will arrive.
    Mar 27, 2013. 12:05 PM | 3 Likes Like |Link to Comment
  • Cisco: The Pullback You Wanted [View article]
    I agee .. Cisco is best value.
    Mar 27, 2013. 02:37 AM | Likes Like |Link to Comment
  • Forget Gold $4,990: We Seem To Be Heading Towards $1,450 [View article]
    fafatooey,

    Not sure Gold will get to $1,450 ... I could give a 100+ reasons why, but will not do so in this blog note.

    Looks like the battle is between Jim Sinclair (focused on fundamentals) vs Avi (Focused on technicals and one of many view points using Elliot-Wave Theory).

    One thought: Jim Sinclair's information is based on substantiated facts that can be validated from other sources and Avi's information based on technical theories and conjecture. While calling a bottom in this "manipulated, rigged" market has rarely worked in recent years, the fact that the government is so deeply entrenched in the support of global economies makes any technical prediction such as gold going to $1,450 subject to an "abrupt" change without notice.

    It will be interesting to see if the central banks are working together or if there is division and general concern with the west and their irresponsible government fiscal policies and debt. I look at this as a battle between the west and east. The west cannot TAX, BORROW and SPEND forever as evidenced by the Cyprus event.
    Mar 24, 2013. 11:38 PM | 1 Like Like |Link to Comment
  • Almaden Minerals: This Stock Is A Leveraged Buy On A Gold Rebound [View article]
    A lot of the miners look to be primed for large gains once they get the green light from gold. Below is an example of some data for one of the many companies that I follow that, by all measures, is selling at a deep discount. I am not going to disclose the company and let everyone guess.

    __ __ __ __ __ __ __ __ __ __Gold __ __ __Silver __ __ __Copper
    __ __ __ __ __ __ __ __ __ __(000's Oz) _ (000's Oz) __ (Millions of lbs)
    Total P&P Mineral Reserves ____ 17,676 __ 89,191 ____ 2,687
    Total M&I Mineral Resources ___ 14,095 __ 78,846 ____ 1,097
    Total Inferred Mineral Resources _10,068 __ 67,703 _____ 565

    Forward P/E for this firm in the single digits. Growth rate is double digit. Debt/Equity Ratio < 0.10. Additional reserves from property currently being developed that would add as much as 35% to existing reserve base once project is completed.

    For next 20 years, if this company mined everything in the ground, it would average 1.375 Billion dollars in profit per year if gold, silver and copper prices just stayed at current levels.
    Mar 23, 2013. 04:04 PM | Likes Like |Link to Comment
  • Gold Ratios - An Update [View article]
    garbage_can ...

    Nice analysis ... I agree with you in that both USD and mining look like they want to reverse. Accumulation of mining stocks was significant on 22Mar13 at the close of the market. Volumes for many mining stocks jumped just before the close. Someone did some serious buying on the miners into the close. $DXY was weak today as well.
    Mar 22, 2013. 11:19 PM | 1 Like Like |Link to Comment
  • Gold Ratios - An Update [View article]
    Gary ...

    Some of your H-S pattern assumptions are a little bit of a stretch. I know everyone tries to make sense of the market, but with so much government intervention, not sure patterns are valid. While I would consider the $GOLD:$WTIC pattern assumption to be valid, the $GOLD:$SPX pattern looks to fail a couple of rules for H-S patterns.

    Sometimes these ratios may or may not apply. Information is painting a very confusing picture which can be explained by human (government) intervention. We no longer have a free market situation driven by demand/supply fundamentals.

    US in particular resembles a addict in a drug store with a CREDIT CARD. These markets look irrational and nonsensical.
    Mar 22, 2013. 11:02 PM | 2 Likes Like |Link to Comment
  • The Case For A Strong U.S. Dollar [View article]
    John,

    I would agree with the premise of your article (The Case For A Strong U.S. Dollar) provided the following thres challenges get resolved:

    1. America has a spiritual revival "2Chronicles 7:14" style which would be similar to the birth of America. ("First Great Awakening" during 1,730-1,740 time period.)
    2. American leaders get a handle on the US fiscal spending problem. We cannot TAX, BORROW and SPEND forever. US debt will eclipse $17 Trillion this year with no end to debt growth in sight.
    3. Lazy Americans get out of their recliners and vote!! For example, during the most recent primary elections for Supreme Court of Wisconsin, less than 20% of Wisconsinites voted. That type of behavior is despicable!!

    If we continue down the path we are on, the dollar will keep trending down until it gets to 0!
    Mar 22, 2013. 04:55 PM | Likes Like |Link to Comment
  • The Return Of King Dollar [View article]
    Steve,

    Good work on the charts.

    One question: I have been following the $DXY for last several days and the pattern looks to be in the middle of completing a top formation process. Note that UUPT was down today at 1.3%+. With US debt continuing to grow at almost a double digit rate with no end in sight, do we really think that recent move in the dollar is the beginning of something or is it just a rally in an overall bear market?
    Mar 22, 2013. 04:24 PM | Likes Like |Link to Comment
  • Are The Markets Rigged? [View article]
    Eric,

    Well written article. Over the past several weeks, divergences were identified by both yourself and many others that make no sense in a free market. One example is the COPPER to SPY chart that shows COPPER in decline while SPY increasing. While I could site 100s of other examples, it suffices to say that these kinds of things do not happen statistically without a little help (manipulation, rigging, etc.). What is really interesting is that everyone (media, investment firms, banks, analysts, etc..) are in on the fix and the fix is worldwide.

    The real troubling issue about all of this behavior is that there is no accountability. The US in particular reminds me of an addict in a drug store with a CREDIT CARD. All one can see is TAX, BORROW and SPEND within every government around the world. CYPRUS is a prime example of what happens when the end of TAX, BORROW and SPEND is reached.

    In the end, the answer to the question "Are the markets rigged?",my answer is YES with no end in sight.
    Mar 22, 2013. 08:48 AM | 9 Likes Like |Link to Comment
  • The Biggest Threat To The Stock Market Rally [View article]
    Derrik,

    Inflation is already out of control. John Williams data from shadowstats.com (http://bit.ly/nyzRiF) has correct data. Sorry to say this, but your blue plotted line is wrong. Below is previous comment that I am going to repeat here regarding the FED. The quotation below always comes to mind when the word "FED" is mentioned:

    "Figures can lie and liars can figure."

    To see this principle applied, just look at the perversion that has occurred in the calculation of the CPI index over the last four (4) decades. In every case, the index components were adjusted to produce a desired outcome and deceive citizens.

    We need a divine miracle to undo with minimal damage the financial mess that has been created.
    Mar 21, 2013. 05:53 PM | Likes Like |Link to Comment
  • Gold: The Bottom Is In And We're Going Much Higher From Here [View article]
    John,

    Great comment about the bear!! I absolutely love it. You are a gentleman and a scholar.

    I bet they were surprised.

    The battle cry for the day was .... RUN!!!!!!!!!!!!!!!!!!
    Mar 21, 2013. 03:11 PM | Likes Like |Link to Comment
  • The Fed's Math Just Doesn't Add Up [View article]
    Markos

    I agree with you 110%!!! You my friend are right on the mark!!

    Per the title of your article "The Fed's Math Just Doesn't Add Up", I would add that the Fed's Math hasn't added up for last couple of decades. The quotation below always comes to mind when the word "FED" and "POLITICIAN" are mentioned:

    "Figures can lie and liars can figure."

    To see this principle applied, just look at the perversion that has occurred in the calculation of the CPI index over the last four (4) decades. In every case, the index components were adjusted to produce a desired outcome and deceive citizens.

    We need a divine miracle to undo with minimal damage the financial mess that has been created.
    Mar 21, 2013. 02:54 PM | 1 Like Like |Link to Comment
  • 2 Myths About Gold Propagated By The Bears (And Why They Are Wrong) [View article]
    Well done with technical analysis. While specific technical analysis is supportive of commodities in general, fundamental analysis shows that the elephant in the room is debt. We just continue to push the can down the road. It is unacceptable that the US Senate could actually make the claim that they are fiscally responsible when they did not produce a budget for 1,415 days! All historical data is suggesting that debt will become the real reason for gold meteoric rise in price when (not if) it occurs. America and the world are in absolute denial when it comes to debt.

    I agree completely with your conclusions below:

    The myth that gold has no exchange value reflects a misunderstanding of gold's role in the economy, and given its function as a medium of exchange, it should be a cornerstone of any portfolio.

    The myth that gold is a poor investment because it doesn't pay a dividend fails to state the risks in owning dividend-paying assets, and instead considers only the benefits. Gold ownership is most attractive precisely when these risks are highest."
    Mar 21, 2013. 11:21 AM | 4 Likes Like |Link to Comment
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