It is Time for Inflation

In the coming years, inflation will appear in a big way in America- the market is making this very clear. Take a step back and observe what is happening. Commodities, gold, silver, and the stock market are all flying. Yet amazingly, deflationists continue to spew their nonsense. They cling to the flawed argument that falling bond yields evidence deflation. This is just the wrong way to build an argument. Wasn’t there  inflation the…

Gold Revealing Cracks in Economy

Investing is not only about understanding the fundamentals behind your investments, but timing. I suspect most of the regular readers of this blog are gold bugs who expect higher prices. But at the same time, we are all looking for ideal levels to buy on the dip.  I was expecting the correction that arrived, but as you know, my target was about $1250. As an investor, you should always have a general idea…

QE2 is Here, Now What?

Well the Fed has finally made QE2 official. The preliminary plans are for $600 billion in Treasury purchases by the end of next June. The Fed has maintained its stance of keeping rates low for an “extended period” and it is now becoming pretty clear that quantitative easing is no temporary measure. Volatility in stocks and gold have, not surprisingly, risen following the announcement. Today’s close should be very interesting…

What Does the Future Hold?

Markets operate in strange ways. The average person has missed the majority of this rally in stocks and is just starting to get bullish. All the talk of QE2 is getting them even more bullish. But realize that QE2 was being priced into the market long ago based on weakness in the economy. The smart money was buying stocks while the deflationists were calling for new lows. The smart money did not…

Prepare for Volatility this Week

This is going to be a very critical week for the markets. Not only do we have midterm elections, which will tell us a lot about public sentiment, but the Fed will officially announce the magnitude of QE2. Considering the significance of both the election and QE2, it is not surprising that the markets are stuck in a range. It is hard to be committed on either the long or short side…

Is the Gold Correction Over?

I’ve said that I am expecting a major move in gold soon. Well based on gold’s price action today, it may be on the verge of rallying to new highs. But first I want to see a push to $1365-$1370; it will be very hard for me to get bearish at this point since gold has already worked off its overbought conditions. In other words, the minimum expectations for a correction…

The Fed Dilemma and Gold

I am starting to get bored tracking gold on a day to day basis. Not to oversimplify the gold market, but this usually means a major move is approaching. I expect gold to make a major move once the Fed clarifies its position on QE2. If the Fed matches quantitative easing expectations or less, I expect a brief sell-off. If the Fed opens up the spigots above and beyond expectations,…

Gold, Corporate Cash, and Government Bonds

Just when people start to think gold is set to rally, it gets shellacked on supposed concerns about the size of QE2. To me this is utter nonsense. If Bernanke doesn’t ease enough in QE2, he will make up for it in QE3 and QE4. I am positive we will eventually get the inflation he desires.  Anyway, the good news is that gold is finding support at about $1320. Capital is…

Gold and Precious Metals

Gold: Hello $1,000!

In the overnight markets, gold just breached the psychologically critical $1,000 level. We have already seen 3 failed attempts at $1,000; can this finally be it for gold bugs? The consolidation pattern in gold tells me that we should test $1050 conservatively. We’ve been consolidating at $900 for such a long time that it’s hard for me to believe this move won’t be quite powerful. That said, I may consider…

The Outlook for Gold

Over the past couple of months, I’ve been saying over and over and over again that gold was consolidating to make a huge move. The bona fide eruption in gold and silver prices over the past couple of days has caught people by surprise. However, I’ve been reiterating that dullness in the gold markets always precedes big price movements. That’s why I was buying aggressively when gold was being sold…

Martin Armstrong: Cycles & Pattern Projections

The latest from Martin Armstrong. “It appears gold is building a base from which a rally up to $2,500-$3,000 area is very likely. There is even a possible rise up to the $5,000 level. But that is the most extreme projection. This is suggesting that confidence in the dollar is declining. This is not the classic “inflation” nonsense, but the collapse in currency value consequence.” Cycles&PatternProjections809 Follow

Short-Term Strength in Dollar

As anyone who reads this blog knows, I’m about as big of a dollar bear there is. However yesterday I perceived potential strength in the dollar, and therefore, scaled out of some precious metals positions. My expectations have been met so far, as the dollar has regained the critical 78 level on the dollar index. Gold and silver shares have had a very nice 3-4 week run, and I expect…