Gold investors often fail to watch the Federal Reserve with enough attention to detail and can miss buying opportunities like the present one, as a result. The case for gold is as strong as ever and I outline in this article why with details you're unlikely to see anywhere else. Words: 775; Charts: 6
Read More »Who Is Responsible for Current Weakness in Gold? (+2K Views)
Just as US investors are advised not to fight the Federal Reserve, gold investors worldwide would be well advised not to fight the Government of India. India is the world's largest gold consumer [and their intent on curbing gold imports by any means necessary could have a negative effect] on world gold demand [and, as such, most likely, on gold prices. IMO,] at best, we will see a sideways market in the price of gold in 2013, and at worst, this will be the year when gold prices start the inexorable drop.
Read More »Here Are THE Facts: Less Gov’t = Less Gov’t Spending = Less Taxes + Less Unemployment & a Stronger Economy (+2K Views)
The mainstream media wants us to believe that government spending is good for employment [but my analysis shows exactly the opposite. As outlined below, it clearly demonstrates that]....countries with higher government involvement have higher government spending, higher personal income taxes, higher unemployment and a weaker economy as a consequence. [Below are the facts to back up those claims.] Words: 525; Charts: 4
Read More »The USD & U.S. Dollar Index – What Affect Are They Having On the Price of Gold?
The U.S. Dollar Index is made up of a basket of [6] currencies that are, themselves, not static and, indeed, are involved in various forms of debasement as nations have taken the view that a weaker currency will boost their exports. As each nation enacts such policies, the result is gridlock, as every action taken to weaken one's currency is neutralized by a similar action taken by the competing currencies. That is currently what is happening with the constituents of the U.S. Dollar Index and why, as such, the U.S. dollar has not weakened. [Given the fact that] gold tends to have an inverse relationship with the dollar, and has increased when the value of the dollar has declined, we could, as a result, continue to see a capping in the advance of gold prices, at least in dollar terms. [Let me explain in further detail.] Words: 804; Charts: 1
Read More »Buffett’s Measure of Stock Market Health, the TMC-to-GNP Ratio, Conveys Concerns (+4K Views)
Buffett's measure - the percentage of total market cap (TMC) relative to the U.S. GNP crossed 100% last week into stretched territory for the first time since 2007 which implies a mere return of around 3.3% annualized (including dividends) over the following years. [This post presents the components of the ratio and the conclusions drawn.]
Read More »It Soon Will Be Decision Time for the U.S. Dollar Index – Which Way Will It Go?
The U.S. Dollar has lost over a third of its value inside a 10-year falling channel as it continues to create a series of lower highs while holding on to a small rising support line. The question now is whether the U.S. Dollar Index will gain enough strength to break out to the upside or continue to trend lower and lower over the ensuing weeks and months.
Read More »Russia & China Have Power to Collapse U.S. Economy! Is Hoarding of Gold Their First Step In Doing So? (+4K Views)
Most Americans simply don't understand that Russia and China have the power to collapse the U.S. economy by going to a gold for oil system. All they have to do is pull the trigger. Let me explain. Words: 1515
Read More »Can Photos of 35 Swimsuit Models Be Wrong? Latest “Swimsuit Issue Indicator” Suggests An UP Year for S&P 500! (+2K Views)
The Swimsuit Issue Indicator says that U.S. equity markets perform better in years when an American appears on the cover of Sports Illustrated's annual issue as opposed to years when a non-American appears on the cover. [What is the nationality of this year's cover model? Can we expect returns above the norm or will we see a year of underperformance for the S&P 500 this year? Read on.] Words: 323 ; Table: 1
Read More »I Will Not Turn Bullish On Gold Until 1 of 2 Things Happen
My forecast — despite all the hate mail and pressure I get to change it — has not changed. Based on my systems and models, I will not turn bullish on gold until either spot gold has closed above $1,823 an ounce on a weekly and monthly basis - or gold cracks the $1,527 level and plunges to the $1,400 level or a tad lower. I know that’s not what you want to hear. I know that you are as eager as I am to see the next leg of gold’s bull market begin....[but its] time to shine is not here yet. It will come again so stay the course, build up your ammo, and be ready to pull the trigger when I issue a headline like “Back Up the Truck, NOW!”
Read More »Hopes of a Gold Spike In Dollar-denominated Terms Are Just That – Hopes! Here’s Why
[We read over and over again that] because of the massive amounts of money the Feds are injecting into the USA economy through quantitative easing, inflation is going to spike any day now, and the dollar is going to crash and, with that, gold will go to the moon - but it is not happening. It must be frustrating for gold investors. It is likely also puzzling to them. In this article I will try to explain why the U.S. dollar is not likely to crash anytime soon, and hopes of a gold spike in dollar-denominated terms are just that, hopes. Words: 730
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