Gold Shares Are Attractive

As I expected from an oversold market, there was a sharp rally today, especially in gold and silver shares. I believe most sell-offs should be bought, especially because it is easier to buy and lighten up at perceived tops than to go short. This continues to be my strategy in this market environment. Gold shares have essentially traded sideways the past year while gold has risen and oil prices have…

Stocks Enter Bear Market Territory

The doom and gloom is really getting excessive as stocks enter bear market territory. There will be more and more calls for stocks to break through to new lows, which is just not reasonable to me. The dollar and Treasuries are rising during this crisis because central banks need them as reserves. It is like a game of musical chairs where practically every single bond/currency gets sold until just gold…

Is the Recession Here?

I believe we are just about in recession. U.S. personal income in August fell for the first time in 2 years, as did wages. The unemployment rate refuses to budge downward, and problems in the banking sector are developing. The Occupy Wall Street Movement is gathering steam, and you can bet if the economy were expanding, we would not be seeing this level of civil unrest. Think about it: if deficits run at…

Riots and Protests Impossible in America?

This is going to be a quick post, but I just wanted to share something. I’ve been consistently warning of the threat of riots and protests in America. I’m back in New York City for vacation, and this is what’s happening here. If you didn’t hear about this in the mainstream media, I’m not surprised. I didn’t either.     Note that there isn’t a specific event that people are…

A Replay of 2008?

The current environment most resembles that of late 2008, but with one key difference: our leaders are now somewhat aware of the scale of this crisis and they are prepared to support markets. Heck even the Swiss are devaluing, which means a retest of new lows in stocks is unlikely in most markets. Competitive currency valuations are just one reason why I am just itching to be positioned long when…

Gold’s Future Will Be Questioned

If you fancy yourself an objective investor, you should be very excited right now. I’ve been going against the grain repeatedly amidst this volatility because I don’t get overcome with emotion. Months ago I said I was long the dollar because when 95% of people are bearish on an asset, that’s an automatic fade. I keep on telling you that the markets aren’t going to move the way you think….

Gold’s Collapse Continues

As I write this, gold is trading at $1591 in the overnight markets, after trading as low as $1531. Surprised? You shouldn’t be. Gold was overstretched and needed a breather. I am actually starting to think we will see gold in the $1400 range. Gold has monster corrections all the time, yet people are surprised when they come. Every time gold rallies, gold bugs say the world is ending and…

Gold Crashes, What’s Next?

As I’ve been warning for some time now, gold was lining up for a big correction. One of the hardest things to do in investing is to reconcile current events with market movements. The average investor sees that economic news is going from bad to worse and just assumes that gold should rise and stocks should fall. If investing were this easy, the average third grader would be profitable. I…

Gold and Precious Metals

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,…

Market Boredom and QE3

The markets are officially boring me to death. Gold and silver have stemmed their dramatic declines to an extent, and this is giving people the courage to buy. I still think it’s a little early, but buying here is not the worst thing in the world. I personally would love to see another month or so of consolidation. I get the sense that the next important period for the markets will…