Gold in 2011

Now that 2010 is coming to a close, it’s time to start thinking about how various assets will fare in 2011. Considering that gold has consistently risen for a decade, it makes sense that more and more eyes are fixed on gold. It will eventually be gold’s time to absolutely dominate the headlines, but in my opinion, we’re not quite there yet. In my view, 2011 will be the year in…

The Intelligent Forecaster

One of the hardest things to do as a grown, “educated” adult is to learn from others. The inability to learn from others is what guarantees you will have a very childish perspective of the world. If the only books you’ve read were forced on you by the public education system, then your perspective is skewed. It was only when I expanded my realm of knowledge that I saw the…

All Bears Are Not Created Equal

One of the things that truly peeves me is when I am grouped together with other bears who are forever predicting deflation, hyperinflation, or a stock market collapse. Sure I predicted a crash in stocks, but that was 2 years ago before it actually happened. Let me make myself clear: I am not predicting a stock market collapse or hyperinflation. I am not predicting a collapse in real estate. However, I am predicting new highs…

Is the Crisis in States Near?

The perilous condition of states doesn’t get enough media coverage, although I believe it soon will. People will be forced to consider whether our current system makes economic sense. Pensions are severely underfunded on a national level (~$1 trillion) and this will create a huge clash between unions and the government. The average person who has been living under a rock this whole time will finally wake up and ask, “what happened to my…

Gold’s Unstoppable Rise

The fundamentals behind the gold trade are generally understood on a very superficial level. $3000 gold will have very little to do with inflation. It will have little to do with the economy being “bad”- we have had recessions with collapsing gold prices. In many ways we are talking about something far more menacing. We are talking about capital running for cover. We are talking about unprecedented skepticism towards government….

Gold and Stocks Consolidate for Major Move

Most markets continue to be a playground for short-term oriented investors. After months of clear trending action, which prudent investors profited from, we are now in consolidation mode. Most of these markets are going to break eventually; to which direction is anyone’s guess. This is not the time to get overconfident trading in either direction. Stocks Stocks remain elevated and are surprising a lot of people with their continued buoyancy. I…

Has the U.S. Treasury Implosion Begun?

I’ve been consistently warning that U.S. government bonds will eventually implode. Using history as a guide, I know that when the sell-off in bonds begins, it will be very swift. The magnitude of panics are inversely correlated to the degree in which investors are deluded. Some of the most ignorant comments I’ve ever heard have been on the bearish side for gold; hence panic buying in gold should be pretty substantial….

Economic Recovery Nonsense Continues

For the duration of what I estimate to be a 10 year economic slowdown (we are entering year 4), you will hear countless experts proclaim that the economy has recovered. Economic recovery evangelists were temporarily silenced earlier in the year, but they have now come out in force.In today’s FOMC statement, the Fed actually had the chutzpah to say: “The economic recovery is continuing, though at a rate that has…

Gold and Precious Metals

Precious Metals Miners Still Flying

There’s nothing I love more as someone who is heavily long in precious metal miners than the mass skepticism over the latest push in gold and silver. As most people know, gold and silver are inversely related to the value of the dollar. Everyone is bearish on the dollar right now, which suggests that a rally in the dollar is the “contrarian” play here. However, so many people are expecting…

Peter Schiff: Gold going to $5,000

Peter Schiff is right. $5,000 is inconceivable right now, but in the next 5 years or so, it will be a fact. “In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. … This is the shabby secret of the welfare statists‘ tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of…

More Thoughts on the Gold Bull

My projections for gold have remained the same throughout this whole bull market: $2,000, $3,000, and then $5,000. Skeptical? Think gold is “expensive”? Good. I’ll keep on buying on every single dip. I have already given a fairly comprehensive explanation of why I think gold will go to at least $2,000 an ounce. Our monetary system virtually guarantees that gold will appreciate against the dollar. Dollars are debt instruments whose…

Gold and Silver: What Lies Ahead?

The long awaited breakout for gold has arrived, bringing varying viewpoints on what lies ahead for the yellow metal. Silver has also busted out in a big way, and looks poised to test recent highs from 2008. Now that everyone is eyeing the sector, what lies ahead for precious metals? Lets start with silver. Silver has outperformed gold by over 3 times in 2009, but is nowhere near its all-time…