- Created on Monday, 20 May 2013 00:00
- Written by Chris Hunter, Editorial Director, Bonner & Partners
- Hits: 15
I think that one of the things you have to look at in the gold market is that we are changing the nature of ownership, from institutional momentum holders who are leveraged, which is a long way of saying "weak hands," to physical individual buyers on a global basis, which is a different way of saying "strong hands." So one of the things that happened in the gold smackdown is that gold did what many things do in bear markets: It went from weak hands to strong hands.
– Resource investor Rick Rule, Sprott Group
Here's a chart you should be aware of. It signals lower, not higher, gold prices in the near future.
What you're looking at is a six-month chart of daily price movements of spot gold. After regaining about half of its losses following the mid-April "mini crash," the gold price is rolling over.
- Created on Friday, 17 May 2013 00:00
- Written by Aaron Gentzler, Editor, Unconventional Wealth
- Hits: 89
Imagine you need money, but the banks are closed and the ATMs are empty. Your credit card is frozen. You need gas for your car, but all the gas stations are shuttered.
Imagine you need food too, but the grocery store shelves are bare and the doors are barred.
Now imagine someone in your family has a medical emergency, but all the police, firefighters and EMTs are hunkered down in their own homes… protecting their own families.
How far away are we from this scenario? Ask victims of Hurricane Katrina or Superstorm Sandy. The answer is 72 hours. Three days. That's all that stands between you and chaos.
What I want you to do now is imagine the scale of Katrina spread across your entire time zone or even the whole country. Now imagine it lasting a week, two weeks or more. Are you prepared?
- Created on Thursday, 16 May 2013 00:00
- Written by Bill Bonner, Chairman, Bonner & Partners
- Hits: 216
Whoa! Investors are acting as if it were 2007 all over again.
Emboldened by soaring stock prices and record-low borrowing costs, stock investors are taking out loans against their portfolios at the fastest pace since before the Great Recession hit.
So-called margin debt hit $379.5 billion in March, the highest level since July 2007 when such debt hit an all-time record of $381.4 billion, according to the most recent data available compiled by the New York Stock Exchange.
The trend signals that investors are more comfortable with stocks and are more willing to use borrowed money to buy more securities in hopes of garnering fatter returns in a hot market that has pushed the Dow Jones industrials up more than 15% in 2013.
- Created on Wednesday, 15 May 2013 00:00
- Written by Justice Litle, Editor, Strategic Wealth Report
- Hits: 105
There is a common view – shared by smart analysts and investors – that the US Treasury bond market is headed for a crash.
At some point, say the bond bears, there will be a massive exodus from Treasurys.
Major carnage will ensue. And "bag holders" (those still holding large bond positions) will suffer debilitating losses.
In my paid-for newsletter Strategic Wealth Report, we're very happy to take the other side of that wager. A full-blown bond crash? There are better odds of Rand Paul being elected president.
I am NOT recommending you rush out and buy US Treasurys. They are a lousy value at current levels... and there are much better things to invest in. But please don't get suckered into believing in a bond market crash.
To understand why bonds will not crash, you need to first understand the following: