Market Focus: Metals, Minerals, & Mining
- May 17 When Central Banks Buy Stocks by Clif Droke
- May 17 Gold at Major Inflection Point by Lee Adler
- May 16 Theory of Interest and Prices in Paper Currency Part II (Mechanics) by Keith Weiner
- May 15 Precious Metals Hit 3-Week Lows, ETFs “Could Sell Another 250 Tonnes of Gold” by Ben Traynor
- May 14 Clues to Watch for the End of QE “Infinity” by Lance Roberts
- May 13 The Big Falacy: Silver Trading More Like a Base Metal by Steve St. Angelo
- May 10 Margin Debt and the Next Stock Market Crash by Clif Droke
- May 10 It's Still Fool’s Gold for a While Yet by Sy Harding
- May 10 Steve Forbes: Fed Sinking Real Economy; Calls QE's "Titanics" by FS Staff
- May 10 Gold Could Retest $1322 Low by Ben Traynor
Jim Puplava’s Big Picture: Game of Thrones - The Dollar vs. Gold
The first Big Picture topic this week is “Game of Thrones - the Dollar vs. Gold”. Jim looks at the massive global currency debasement among central banks, and in that current game the dollar is king. Gold is in the background and not a major player. Jim believes this will not last, but for now the dollar is winning the game. The next topic, “Forget a QE Exit Plan, Serial Money Printing is the Wave of the Future”, Jim notes that 14 central banks around the world have cut interest rates, and are printing money with no exit strategy in sight. He notes that the next Fed Chairperson, widely assumed to be Janet Yellen, will make Ben Bernanke look conservative when it comes to money printing.
Ronald Stoeferle: We Were Really Close To A Default In The Leveraged Paper Gold System
Jim welcomes Ronald Stoeferle, publisher of the respected annual report, “In Gold We Trust”, and a gold fund manager in Vienna, Austria. Ronald tells Jim that we were close to a run on the bullion banks during the recent chaotic drop in gold. He also sees a growing movement to remove gold from the financial system, as paper gold is creating too much counterparty risk, as witnessed by the Dutch bank ABN Amro’s recent gold default. Ronald sees the divergence between paper gold plunging in price and record demand for physical gold as a loss of confidence in the banking system by the public. The next issue of “In Gold We Trust” will be published in June.
Technician Stan Weinstein: Still A Bullish Outlook For Stocks
Jim is pleased to welcome back technician Stan Weinstein, editor and publisher of the "Global Trend Alert," a financial advisory service for institutional investors. Stan sees the possibility of a short-term correction, but believes the current rally has more legs, given that the S&P closed above 1600 on Friday. Stan is still clearly bullish in his outlook, and also notes the rapid sector rotations. If we get a correction, he believes it will be a controlled correction. Stan is neutral on bonds, and negative on gold, at least for the next few months. Also in this segment, Chris Puplava gives his macro outlook for the second half of this year, Erik Townsend looks at commodities, and Rob Bernard has the Fixed Income Report.
Frank Holmes of U.S. Global Investors: Paper Gold Is Short-Term and Leveraged - Physical Gold Is Long-Term and Cash
Jim welcomes Frank Holmes, CEO and chief investment officer of U.S. Global Investors, Inc., which manages a diversified family of mutual funds and hedge funds specializing in gold, natural resources and emerging markets. Frank believes the two main factors determining gold demand are the Fear Trade (of inflation or economic crisis) and the Love Trade (gold jewelry demand- primarily from India and China). Frank also discussed why gold stocks have underperformed the metal; the old model of acquisition and production is broken. Frank sees a new model emerging, one that is more shareholder-friendly. After the recent hard landing, Frank sees the price of gold likely to remain in a consolidation period, until demand overwhelms supply.