You’d be in the top 1 percent of U.S. households if your income in 2010 was at least $516,633; your net worth in 2007 was $8,232,000 or more, and your average income this year is $1,530,773. Where did the top 1 percent make its money? [Take a look at the following charts for the answers.] Words: 1048
Read More »Yearly Archives: 2011
It’s Silver’s Time: Sales of Silver Coins Soaring; Price of Silver About to Soar! (+2K Views)
If sales for November and December match the levels of 2010, total sales of American Silver Eagle coins for 2011 should... [be] more than 20% above the record breaking sales level of 2010. [Not only that but] with physical demand remaining robust and investors seeking safe-haven investments in the face of the Eurozone debt crisis, I believe we could still see silver break above $50 by year-end or during Q1 of 2012 at the very latest. [Let me explain.] Words: 402
Read More »Hubbert: Peak Oil and the Coming Cultural Crisis
In 1956 Hubbert predicted that US oil peak [production] would be sometime between 1969 and 1971 for [which] he was ridiculed...[but it did precisely that - ] in 1970... Then, in 1974, he predicted [that] the world ] production of crude] oil [would] peak [around] 1998 [qualifying that projection by saying] that if OPEC were to restrict the supply, then the peak would be delayed by 10-15 years which would put it at 2008-2013, or exactly right. OK, now is anyone willing to make a bet that Hubbert's THIRD prophecy about the cultural crisis he expected is wrong? Didn't think so. Here it is [- and I include in the article several suggestions on how Hubbert's 3rd forecast might actually be averted were the powers to be agree to take drastic action, which is unlikely]. Words: 1369
Read More »What Happens to Oil Prices if Israel Bombs Iranian Nuclear Facilities? (+2K Views)
We now believe that there is at least a 50% probability of Israeli airstrikes against Iranian nuclear sites... Iran has multiple retaliatory options at its disposal...[and it begs the question:] Which options would most adversely affect the price of oil? [Let's take a look at what those options would be.] Words: 544
Read More »The Implications of Coming "Peak Copper" for America – and the World! (+3K Views)
About two years ago, I looked through a BHP Billiton presentation which listed the number of years remaining for particular commodities. It was not an analysis of “peak” commodities as such, just a report on when various commodities would be completely, 100% depleted based on current usage rates and reserve assumptions. Copper in that report was determined to be scarcer than oil! [What does that mean for the future well-being of the U.S. - and the world?] Words: 1380
Read More »These 5 Charts Clearly Show Just How Major – and Depressing – the Current Unemployment Situation REALLY Is
The unemployment rate declined [slightly in October] from 9.1% to 9.0%...[but a close look, in chart form, at the pattern of unemployment compared to the S&P 500, the extent of unemployment over 27 weeks duration, the ratio of employed people to those aged 16 and over, the average length of unemployment and how extensive unemployment has been in this most recent recession compared to each of the others over the past 60+ years, is very revealing as to how serious the situation is. It is very depressing, indeed.] Words: 601
Read More »What Do the Presidential and Decennial Cycles Infer Will Happen in 2012?
Should we jump into the market now? [Let's take a look at the 178 year history of the 4-year Presidential Cycles and the Decennial (10-year) Cycles and see what they suggest might well unfold in 2012.] Words: 1174
Read More »Yes, the Debit Crisis Could Spread To The U.S.! Here's Why
[Unfortunately,] for the U.S....its budget deficit is growing in spite of the fact revenues into the treasury continue to grow...Given the low level of interest rates on the Treasury's debt it would not take much of an interest rate spike in the U.S. to negatively impact the government's budget. [So, in reply to the unspoken question on everyone's mind, "Yes, the debit crisis could most definitely spread to the U.S." Let me explain further.] Words: 633
Read More »Continuing High Unemployment = More Money Printing = Higher Gold & Silver Prices
The Federal Reserve has a dual mandate set by Congress of maximum employment and stable prices. During Chairman Bernanke’s most recent press conference he indicated that the Federal Reserve has done a better job of maintaining price stability while falling short of fostering maximum employment. [As such,] we believe the Federal Reserve will continue to increase the monetary base and weaken the dollar as long as unemployment remains elevated. While the economy (measured by real GDP) and the unemployment rate have not benefited from a substantial increase in the monetary base, the price of gold and silver have benefited from money printing. We believe this statement is quite important for monetary policy and for investors. [Let us explain further.] Words: 388
Read More »Nothing Has Changed: The Smart Money is STILL Bullish on Gold
With continued strong investment demand for physical gold in the face of heightened macro uncertainty and unprecedented, globally-coordinated monetary stimulus and a US dollar that will continue its path lower, the best performing assets at present are gold, emerging market equities denominated in local currencies, and commodity related stocks. [Let me explain why that is the case.] Words: 560
Read More »