Gold

Record Job Cuts in States

In further evidence that our economy is in the process of slowing, states are projected to make record job cuts in the 3rd quarter. As I’ve said before, states in the U.S. are indistinguishable from Greece. The arguments that the U.S. won’t suffer a huge crisis since we own the reserve currency and can print our way out of this just do not apply to the states. States need to balance…

Disagreeing With Deflationists

The ability to change your position at the blink of an eye is very important in investing. While you all know I am a gold bug, I would turn bearish on gold if we found a mounumental gold mine that quintupled the supply of gold. Yes gold will still be an anti-government trade. Yes gold will still be a currency. However, the massive supply spike in gold will probably counteract…

Extremes in Assets Developing

If you haven’t noticed, I love trading in extremes. It really doesn’t matter what the asset is or if we are talking about extreme bearishness or extreme bullishness. Extremes are when you can buy or sell assets at favorable levels because people lose their senses. Extremes are great because you can see them developing from a mile away. Usually extreme asset moves culminate in either a spike low or a…

Gold Legal Currency in Utah

I’ve written before about how gold, and perhaps silver, will play a role in a new global currency arrangement. I’m a little hesitant to call it a gold standard though; gold will probably just be one of the currencies that backs a new global currency. This may seem a little hard to believe right now, but remember, the economy always evolves. Just think back to the creation of the floating…

Rising Volatility Ahead

I think we’re entering a period where it will be very hard to make a return. This is not necessarily because asset prices won’t go up, because they will. It’s just that volatility is going to be substantial as the big money unloads their inventory of government bonds. Just as in the recent spike rally in silver, a lot of people will find themselves buying when they should be selling,…