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XMFSinchiruna (26.54)

Time For a Fresh Look at Gold and Silver



March 16, 2010 – Comments (12) | RELATED TICKERS: GOLD

With the USDX still battling to keep its head above the 80 waterline, the momentum of this countercyclical dollar rally appears to be waning fast. Increasingly, gold is seen not solely as protection from dollar devaluation alone... but more for what it really is: the only currency in the world that is immune to debt, derivatives, and sovereign malfeasance.

The clock is winding down on the ability to buy cheap gold and silver. If you think gold is expensive here, and are hoping for a pullback to $800 to create a position, I'm afraid you've long since missed that boat. The $1,000 floor beneath gold that I called all the way back in June before it had formed (and reiterated in November) is showing zero signs of being in jeopardy, although a quick dip to test that level would actually be a healthy development for gold investors before the price resumes its climb beyond $1,220 on its way toward $1,500 (and ultimately $2,000 and higher). As more detail is revealed to the investing public about the fiscal state of their towns, cities, states, and of course their federal government, the closer we come to having a public that actually understands what is going on here ... that quantitative easing will be pursued to infinity in an ineffectual attempt to sustain a broken financial system. There are two types of investors right now: you're either walking calmly downfield on a cloud made of MOPE (Management of Perception Economics) with the intention of catching that hail mary pass from the Treasury and the Federal Reserve, or you're removing yourself from the playing field before the crowd stampedes.

In case hail mary passes required to clear a $600 trillion mountain of derivatives piled upon the fifty yard line makes you just a little uneasy, I offer up my recent articles on gold and silver and some of their most promising stocks. Do with them what you will, but these might be your last best tickets to exit the stadium and climb your way to some true financial safety. As always, I am here only with the hope of helping a few fellow Fools along the way. Good luck to us all.

Grab a Slice of Goldcorp's Growing Fortune

Kinross Blazes Into the Yukon

Beyond the Sterling Standard in Silver

Yawanna Keep Yamana

13.6 Billion Reasons to Adore Silver Wheaton

Newmont Strikes Golden Cash Flow

Our Little Eaglet is All Grown Up

Your Moment to Go for the Gold and Silver

Silver Miners Strike Earnings Gold

News from the Top of the Gold Chain

Silver Wheaton Vies for Vancouver Gold

A Royal Flush for Royal Gold


Today's Best Bargain in Gold

The New Face of New Gold

Taseko's Road Map to Prosperity

Own the Purest Nugget of Gold

Better Know Tomorrow's Outperformers in Gold

Nouriel Roubini's Worst Cal Ever

12 Comments – Post Your Own

#1) On March 16, 2010 at 9:23 AM, XMFSinchiruna (26.54) wrote:

Here's a sign of the times: :)

Idaho lawmakers are backing a plan that would allow state tax bills to be paid down with silver medallions instead of cash.

Athol Republican Rep. Phil Hart told the House State Affairs Committee that consumers should rely less on money printed by the federal government because inflation will diminish its value. His bill reignites a long-standing debate about the value of paper money not backed by commodities.

Lawmakers in Georgia considered allowing citizens to pay taxes with gold and silver last year.

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#2) On March 16, 2010 at 9:26 AM, XMFSinchiruna (26.54) wrote:

Quote of the day:

"Washington is patting itself on the back for having orchestrated an amazing economic recovery. But Washington lawmakers are a delusional bunch of boneheads, say Marc Faber and Mike "Mish" Shedlock, editor of the Gloom, Boom, and Doom Report and investment advisor at SitkaPacific Capital Management, respectively."

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#3) On March 16, 2010 at 9:32 AM, XMFSinchiruna (26.54) wrote:

This is a fascinating story... I'm glad to see someone is pointing out the ridiculousness of that Supreme Court decision.

Murray Hill might be the perfect candidate for this political moment: young, bold, media-savvy, a Washington outsider eager to reshape the way things are done in the nation's capital. And if these are cynical times, well, then, it's safe to say Murray Hill is by far the most cynical.

That's because this little upstart is, in fact, a start-up. Murray Hill is actually Murray Hill Inc., a small, five-year-old Silver Spring public relations company that is seeking office to prove a point (and perhaps get a little attention).

After the Supreme Court declared that corporations have the same rights as individuals when it comes to funding political campaigns, the self-described progressive firm took what it considers the next logical step: declaring for office.

"Until now, corporate interests had to rely on campaign contributions and influence-peddling to achieve their goals in Washington," the candidate, who was unavailable for an interview, said in a statement. "But thanks to an enlightened Supreme Court, now we can eliminate the middle-man and run for office ourselves."


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#4) On March 16, 2010 at 9:33 AM, outoffocus (24.06) wrote:

Thanks Chris.  I agree with you about the dollar.  This may be our last chance to get precious metals "on the cheap".   I still have my automatic investments going into gold and silver miners (and southern copper).  Yamana looks extremely cheap right now. I think it's hit a solid floor at 9.95.  I was considering a gold or silver ETF but I can't seem to make up my mind which one.  Otherwise because the market has run up so much and I didnt get any extra cash until after the fact, I still have alot of cash on the sidelines. Because I don't know where the overall market is headed I'm afraid to put too much of my cash in atm (once bitten, twice shy).

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#5) On March 16, 2010 at 10:00 AM, XMFSinchiruna (26.54) wrote:


Same here ... after having been all in in March 2008 and having to watch helplessly with no cash to take advantage of the incredible bargains that followed, I will never let my cash balance dip that low again. I keep my cash holdings oscillating between 5 and 15%.

March 15 (Bloomberg) -- The U.S. and the U.K. have moved “substantially” closer to losing their AAA credit ratings as the cost of servicing their debt rose, according to Moody’s Investors Service. 

Under the ratings company’s so-called baseline scenario, the U.S. will spend more on debt service as a percentage of revenue this year than any other top-rated country except the U.K., and will be the biggest spender from 2011 to 2013, Moody’s said today in a report. 

“We expect the situation to further deteriorate in terms of the key ratings metrics before they start stabilizing,” Cailleteau said. “This story is not going to stop at the end of the year. There is inertia in the deterioration of credit metrics.”

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#6) On March 16, 2010 at 10:03 AM, XMFSinchiruna (26.54) wrote:

Still no money for Prichard pensioners
City given two months to figure out payments
Updated: Thursday, 11 Mar 2010, 3:12 PM CST
Published : Tuesday, 09 Mar 2010, 9:38 PM CST

PRICHARD, Ala. (WALA) – A bankruptcy court judge has given the City of Prichard two more months to figure out how they will pay retired city workers. Prichard pensioners have gone six months without a pension check.

Prichard is operating under the protection of Title IX Bankruptcy, and for many people, that means no promised pension payments.

After six months with no pay, Prichard pensioners put their faith into the courts. They hoped a judge would force the city to pay some, if not all, of the pension money it owes. However, the bankruptcy court judge said the city is not obligated to pay the retired workers just yet. The judge gave the city two more months to restructure the budget and present it to the courts.


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#7) On March 16, 2010 at 10:07 AM, XMFSinchiruna (26.54) wrote:

CAPS bogger rationalwalk already posted an article about the incredible smoking gun that the Lehman debacle has become:

Dylan Ratigan had a great discussion of this issue on his show with Elliot Spitzer along for analysis. It is a clearcut case of fraud and/or gross incompetence (or some combination thereof) at the highest levels of our banking system and our supposed banking regulators.

Truly disgusting. I agree with Spitzer ... handcuffs are needed to make the message clear that such direct crimes against the taxpayers of this country will not go unpunished.


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#8) On March 16, 2010 at 10:17 AM, XMFSinchiruna (26.54) wrote:

And if this headline doesn't place it all in a convenient nutshell or the complacent investor, I'm not entirely sure what will:

Whitney Bullish on V, MA; Everything Else’s “Rotten”


Meredith Whitney was on CNBC this morning, defending herself as not a bear on financials per se, given that she last week issued bullish notes about Visa (V) and Mastercard (MA). “I’m bullish on new prospects, I’m bullish on the modernization of the financial industry within the U.S. and globally, but I’m just bearish on what is the legacy bank model, which still sits on rotten assets.”

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#9) On March 16, 2010 at 10:18 AM, XMFSinchiruna (26.54) wrote:

FOR the complacent investor ... :)

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#10) On March 16, 2010 at 3:57 PM, silverminer (29.70) wrote:

When Moody's starts talking like this, you know we have a problem.

"Growth alone will not resolve an increasingly complicated debt equation. Preserving debt affordability at levels consistent with AAA ratings will invariably require fiscal adjustments of a magnitude that, in some cases, will test social cohesion," said Pierre Cailleteau, the chief author.

"We are not talking about revolution, but the severity of the crisis will force governments to make painful choices that expose weaknesses in society," he said.

The concern is what will happen as the Bank of England stops purchasing bonds. An IMF study said quantitative easing had lopped 40 to 100 basis points off debt costs. "The discontinuation of these purchases creates upside risk to yields," said Moody's.


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#11) On March 16, 2010 at 4:09 PM, silverminer (29.70) wrote:

And here is the face of your democracy in action. Our Founding Fathers continue to roll in their graves:

After laying the groundwork for a decisive vote this week on the Senate’s health-care bill, House Speaker Nancy Pelosi suggested Monday that she might attempt to pass the measure without having members vote on it.

Instead, Pelosi (D-Calif.) would rely on a procedural sleight of hand: The House would vote on a more popular package of fixes to the Senate bill; under the House rule for that vote, passage would signify that lawmakers "deem" the health-care bill to be passed.

The tactic — known as a "self-executing rule" or a "deem and pass" — has been commonly used, although never to pass legislation as momentous as the $875 billion health-care bill. It is one of three options that Pelosi said she is considering for a late-week House vote, but she added that she prefers it because it would politically protect lawmakers who are reluctant to publicly support the measure.

"It’s more insider and process-oriented than most people want to know," the speaker said in a roundtable discussion with bloggers Monday. "But I like it," she said, "because people don’t have to vote on the Senate bill."



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#12) On March 16, 2010 at 4:20 PM, lemoneater (58.46) wrote:

@ #11 'people don't have to vote on the Senate bill.' Excuse me, I thought voting was a privilege and a duty for our elected officials to exercise on our behalf!!!!

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