Thursday, December 15, 2011

They don't want you to have gold.

Funny but true video and the attitudes about the utility of gold. Gold is not for spending, it's for not losing value at one's total personal wealth level. Cash it ain't. Gold is all about wanting to be able to keep your head when all about others are losing theirs.


"I love gold"

YouTube video cartoon.

Wednesday, December 14, 2011

Gartman calls gold bull dead—BUT is it really?

Apologies to the Great Dennis Gartman

- Market trading technicals have been severely tested across all financial instruments

-Marauding trader groups (hedge funds, investment banks, deep pockets of the world's ruling-owner elite) are pushing for capitulation in every corner seeking to unhinge and unseat what remains of independent and weaker investors and traders.

-Short attacks are common place with the dark pools doing much of the 'painting' and Miss&Dis-information distribution masters manipulating the markets and media. IMO
BUT after all is said and done today what has actually changed fundamentally with the picture:

1. The world's finances are an utter disaster
2. Fiat currency valuations are purely fear driven
3. Banks have been adding gold at fast rate

To underscore the point—here is the three year weekly chart for gold... notice anything?

I see no trend breakage do you? Maybe Gartman is a trader so his short hairs might be in the grasp of today's great market painters— =\

So IMO Dennis wrong period. Unless you want to trade this market. This is big mistake IMO. What do you think?


Death of Gold Bull Market Seen by Gartman

By Nicholas Larkin


“Since the early autumn here in the Northern Hemisphere gold has failed to make a new high. . . . Each high has been progressively lower than the previous high, and now we’ve confirmation that the new interim low is lower than the previous low. We have the beginnings of a real bear market, and the death of a bull.”

believing that "...
wholesale liquidation, and perhaps forced liquidation, shall be the outcome.”

Read the full article here

Wednesday, December 7, 2011

Why Does Jay Taylor see DEFLATION as GOOD for GOLD?

Interesting view from Jay as always.
There are a number of intellectual gems in this article that warrant a little due diligence by us all, All the chatter about what will happen around money and gold has all centered on inflation as the loss of value.
Jay, in saying deflation will increase gold's value, adds to our understanding of what's going on. There is no real conflict with the prevailing view of gold being a protection against inflation.
The real view, implicit in gold's aura is that the problem is money itself—and its governance, hence trustworthiness, of the whole 'class of bankers' and there relation to their actual utility and true place in our emerging world.
Gold is EVERYONE'S Standard

'Deflation in US to create boom in junior gold stocks'—Jay Taylor

Jay Taylor believes the biggest challenge facing the U.S.—deflation—could mean a better year, or even decade, for junior Gold stocks. Taylor, editor of Jay Taylor's Gold, Energy & Tech Stocks, has ridden some equities to the bottom of this punishing market and is ready to pile more cash into small gold companies. In this exclusive interview he explains why market sentiment hasn't shaken his faith.

Companies Mentioned: American Bonanza Gold Corp. - Aurvista Gold Corp. - Calico Resources Corp. - Crocodile Gold Corp. - Great Panther Silver Ltd. - IAMGOLD Corporation - Meadow Bay Gold Corp. - Merrex Gold Inc. - Metanor Resources Inc. - Nautilus Minerals Inc. - Pretium Resources Inc. - Prodigy Gold Inc. - Rye Patch Gold Corp. - Sandstorm Gold Ltd. - Silver Wheaton Corp.

The Gold Report: In the Nov. 4 edition of Hotline, you note that America's ratio of debt to gross domestic product (GDP) is north of 350%. Our total debt as a society is somewhere around $57 trillion (T). That's worse than Greece. Is deflation America's biggest economic threat?

Jay Taylor: I believe it is, however, most of my goldbug friends wouldn't agree. It is important to realize that the U.S. is not a third-world country. It still has the world's reserve currency. The central bank, the Federal Reserve, doesn't put money into the hands of the masses. It puts money in banks. It's all about credit extension. That is very difficult to do now. With the debt-to-GDP ratio as it is, it's unsustainable. The markets are telling us that—not only in the U.S., but clearly in Europe as well. We are undergoing one of the largest debt-deleveraging periods in a long time, which may be much larger than what we went through in the 1930s.

TGR: You believe there should be no more bailouts, let this debt wrench itself out of the system and let bankruptcies occur.

JT: Absolutely. Most people don't understand the reason we're in trouble is because the good times that we had were false. They weren't based on savings and investment. They were based on money creation through credit extension. The nice homes, the big office buildings, fancy cars, everything—it wasn't earned, it was based on debt. Now that the debt cannot be repaid, the expansion goes into a contraction. That process has a long way to go.

Read more here

Extracted: Jay's list of junior gold stocks.


The Real Goldbggr