Precious Metals
The more things change...
18/January/2008 05:21 PM
Good Friday metal bugs. This past week we saw Gold
hit a record high, the stock market hit fresh new
lows, and the economy continue to spiral downward.
The Federal Reserve has hinted that they will lower
interest rates at their next meeting and the
President is promising “a chicken in every pot”.
The housing market continues to set new records of deterioration and the credit card crises is just starting to peek its head around the corner. Meanwhile, the major money center banks are one step away from insolvency as the credit crunch continues to worsen.
The only “glimmer” of hope on this bleak landscape is Gold. Gold climbed to a record high this week trading above $900/oz before pulling back and closing around $880/oz. Look for consolidation in the short term with Gold trading in a range of $870 to $900 an ounce. In the long term our next target for Gold is $1000/oz.
Spot Silver traded higher today closing at $16.14/oz. Palladium was down to $372/oz while Platinum was up at $1,560/oz.
The Dow fell to a 10 month low while the S&P 500 ended at a 15 month low. The Nasdaq fell to its lowest point in over a year.
Recession (maybe even stagflation) is here folks. We urge you to protect yourself and your portfolio while you can. Until next time. Trade safe.
Disclaimer: The above is a matter of opinion and is not intended as investment advice. Information and analysis above are derived from sources and utilizing methods believed reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Comments within the text should not be construed as specific recommendations to buy or sell securities. Individuals should consult with their broker and personal financial advisors before engaging in any trading activities. Please do your own due diligence.
The housing market continues to set new records of deterioration and the credit card crises is just starting to peek its head around the corner. Meanwhile, the major money center banks are one step away from insolvency as the credit crunch continues to worsen.
The only “glimmer” of hope on this bleak landscape is Gold. Gold climbed to a record high this week trading above $900/oz before pulling back and closing around $880/oz. Look for consolidation in the short term with Gold trading in a range of $870 to $900 an ounce. In the long term our next target for Gold is $1000/oz.
Spot Silver traded higher today closing at $16.14/oz. Palladium was down to $372/oz while Platinum was up at $1,560/oz.
The Dow fell to a 10 month low while the S&P 500 ended at a 15 month low. The Nasdaq fell to its lowest point in over a year.
Recession (maybe even stagflation) is here folks. We urge you to protect yourself and your portfolio while you can. Until next time. Trade safe.
Disclaimer: The above is a matter of opinion and is not intended as investment advice. Information and analysis above are derived from sources and utilizing methods believed reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Comments within the text should not be construed as specific recommendations to buy or sell securities. Individuals should consult with their broker and personal financial advisors before engaging in any trading activities. Please do your own due diligence.
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New Year, Same Problems
04/January/2008 05:18 PM
Good Friday metal bugs. We are back from our
holiday hiatus and hope yours was enjoyable.
As we predicted Gold (and the other metals) have charged forward. Spot Gold hit a record high Thursday of $869.05/oz. and is speeding ahead toward its next target of $900. In the short term though, look for profit taking to push Gold back down. Spot Silver closed a bit lower today at $15.35/oz. Platinum has been making all time highs due to supply disruptions in South Africa. At one point today spot Platinum hit an all time high of $1,553.00/oz. Spot Palladium was down to $374.00/oz.
Today's December jobs report sent the equity markets tumbling. Employers added 18,000 jobs to their payrolls last month, well short of the forecasts for 70,000 jobs. This was the weakest monthly job growth since August of 2003. The unemployment rate rose to a 2 year high of 5 percent. This sent the dollar lower versus other major currencies.
Folks as each day passes the picture becomes clearer and clearer. The real estate crash is spreading like a virus. . The next domino to fall will be the credit card market as consumers are stretched to the limit. Foreclosures are at all time highs. Inflation and unemployment are increasing by the day The credit markets are still in danger of collapse.
The Federal Reserve is two steps behind the music. They can only exacerbate the problems. Central economic planning/intervention does not work and never will. We have no doubt that the next stage is recession, if not worse. Protect yourself now while you still can.
Until next week. Trade safe.
As we predicted Gold (and the other metals) have charged forward. Spot Gold hit a record high Thursday of $869.05/oz. and is speeding ahead toward its next target of $900. In the short term though, look for profit taking to push Gold back down. Spot Silver closed a bit lower today at $15.35/oz. Platinum has been making all time highs due to supply disruptions in South Africa. At one point today spot Platinum hit an all time high of $1,553.00/oz. Spot Palladium was down to $374.00/oz.
Today's December jobs report sent the equity markets tumbling. Employers added 18,000 jobs to their payrolls last month, well short of the forecasts for 70,000 jobs. This was the weakest monthly job growth since August of 2003. The unemployment rate rose to a 2 year high of 5 percent. This sent the dollar lower versus other major currencies.
Folks as each day passes the picture becomes clearer and clearer. The real estate crash is spreading like a virus. . The next domino to fall will be the credit card market as consumers are stretched to the limit. Foreclosures are at all time highs. Inflation and unemployment are increasing by the day The credit markets are still in danger of collapse.
The Federal Reserve is two steps behind the music. They can only exacerbate the problems. Central economic planning/intervention does not work and never will. We have no doubt that the next stage is recession, if not worse. Protect yourself now while you still can.
Until next week. Trade safe.
I am inflation
14/December/2007 04:04 PM
Good Friday metal bugs. Welcome back to the official
Carolina Bullion blog. Lets look at the state of the
financial markets.
Volatility is still the name of the game on all fronts. The equity markets were down today on the latest CPI numbers. The Consumer Price Index (CPI) jumped 0.8 percent in November. This was the biggest monthly jump in over two years. Add to this the fact that the previous day's PPI report showed a 3.2 percent increase in prices and you have inflation starting to show up on the radar. Not even the skewed government reports on the economy can hide this fact.
We ask ourselves, when will people understand that you cannot lower interest rates (create money out of thin air) and not expect prices to rise? The more money that is created the less each individual unit is worth. As each unit loses value prices have to rise to make up the difference. Nothing in this world is free, not even buckets of dollars dropped by helicopter Ben.
The CPI and PPI reports have lowered expectations that the Federal Reserve will continue aggressive rate cuts. This helped push the dollar up to a seven week high against a basket of currencies, which in turn pushed down spot Gold to a one week low. The price of gold fell as low as $787.60/ounce. Silver followed the decline in gold. Spot silver closed down at $13.86/ounce.
Earlier in the week the Federal Reserve disappointed Wall Street when it only lowered interest rates by 25 basis points, rather than the 50 they were hoping for. The next day they announced a plan in which they, in conjunction with other central banks in Canada, and Europe would conduct four auctions in the next month that would allow banks to bid for loans. Most of the pundits hailed this move an unique and creative. We believe the Federal Reserve is running out of ideas to repair the liquidity crisis in the credit markets.
We are not surprised at this. History tells us that central economic planning does not work. So we ponder, why do the masses think that
having a central bank that controls the price of money (interest rate) is any different? Its not. It does not matter how many advanced computer models they have at their disposal. The Federal Reserve always has been, and always will be behind the eight ball when it comes to setting the correct price of money. In the end they always do more harm than good. So protect the value of your assets while you can. Until next week. Trade safe.
Disclaimer: The above is a matter of opinion and is not intended as investment advice. Information and analysis above are derived from sources and utilizing methods believed reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Comments within the text should not be construed as specific recommendations to buy or sell securities. Individuals should consult with their broker and personal financial advisors before engaging in any trading activities. Please do your own due diligence.
Volatility is still the name of the game on all fronts. The equity markets were down today on the latest CPI numbers. The Consumer Price Index (CPI) jumped 0.8 percent in November. This was the biggest monthly jump in over two years. Add to this the fact that the previous day's PPI report showed a 3.2 percent increase in prices and you have inflation starting to show up on the radar. Not even the skewed government reports on the economy can hide this fact.
We ask ourselves, when will people understand that you cannot lower interest rates (create money out of thin air) and not expect prices to rise? The more money that is created the less each individual unit is worth. As each unit loses value prices have to rise to make up the difference. Nothing in this world is free, not even buckets of dollars dropped by helicopter Ben.
The CPI and PPI reports have lowered expectations that the Federal Reserve will continue aggressive rate cuts. This helped push the dollar up to a seven week high against a basket of currencies, which in turn pushed down spot Gold to a one week low. The price of gold fell as low as $787.60/ounce. Silver followed the decline in gold. Spot silver closed down at $13.86/ounce.
Earlier in the week the Federal Reserve disappointed Wall Street when it only lowered interest rates by 25 basis points, rather than the 50 they were hoping for. The next day they announced a plan in which they, in conjunction with other central banks in Canada, and Europe would conduct four auctions in the next month that would allow banks to bid for loans. Most of the pundits hailed this move an unique and creative. We believe the Federal Reserve is running out of ideas to repair the liquidity crisis in the credit markets.
We are not surprised at this. History tells us that central economic planning does not work. So we ponder, why do the masses think that
having a central bank that controls the price of money (interest rate) is any different? Its not. It does not matter how many advanced computer models they have at their disposal. The Federal Reserve always has been, and always will be behind the eight ball when it comes to setting the correct price of money. In the end they always do more harm than good. So protect the value of your assets while you can. Until next week. Trade safe.
Disclaimer: The above is a matter of opinion and is not intended as investment advice. Information and analysis above are derived from sources and utilizing methods believed reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Comments within the text should not be construed as specific recommendations to buy or sell securities. Individuals should consult with their broker and personal financial advisors before engaging in any trading activities. Please do your own due diligence.
Round and round we go
07/December/2007 04:16 PM
Good Friday metal bugs. Lets jump right in
and see how the financial markets fared today.
The equity markets ended mixed today after a mid-week rally. Wall Street bet (hoped and prayed) that the easy money from a rate cut next week and government intervention (bailout) via the Bush mortgage plan, would prevent the economy from slipping into recession. Too bad eliminating moral hazard and inflating the currency hurts more than helps in the long run. Oil is trading below $90/barrel due to uncertainty with OPEC, and overall demand. Spot gold is down trading below $800/ounce due to the dollar bounce and the tumble of crude oil prices. Spot silver followed gold by closing down at $14.39/ounce. As the precious metals continue to consolidate in preparation of their next run up NOW is the time to protect your assets from devaluation and hedge yourself against the turmoil that is upon us.
The real estate market continues to deteriorate as national home prices showed the biggest quarterly drop in 25 years during the third quarter.
According to mortgage lenders' trade group, the rate of homeowners going into foreclosure hit a record high in the third quarter, while those late with their payments rose to the highest level since 1986.
U.S. retail sales fell 4.4% last week, the most since March. The biggest driver of our DEBTOR nation, consumption, is slowly evaporating. Our guess is that as Americans continue to lose their homes, Christmas shopping becomes less of a priority.
The non-farm payrolls report for November showed strong job growth, higher than analysts estimates. That is, of course if you believe the numbers. Our opinion is that government economic reporting is just as reliable/accurate as anything else the government is involved with. If you want a thorough analysis and understanding on how the government reports on the state of the economy we highly recommend subscribing to John Williams' monthly newsletter, "Shadow Government Statistics". John also provides alternate data sources to assist you in making more accurate financial decisions with relation to the economic outlook. You can find more information at his website, http://www.shadowstats.com .
As we approach next week the big question on everyone's mind is how much of a rate cut is helicopter Ben going to provide to his friends on Wall Street. We believe the financial markets (including the metals) have priced in a 25 basis point rate cut. If Bernanke decides to provide his friends with an early Christmas present, and cut by 50 basis points then look for the dollar to weaken and Gold to take off again.
Until next week. Trade safe.
Disclaimer: The above is a matter of opinion and is not intended as investment advice. Information and analysis above are derived from sources and utilizing methods believed reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Comments within the text should not be construed as specific recommendations to buy or sell securities. Individuals should consult with their broker and personal financial advisors before engaging in any trading activities. Please do your own due diligence.
The equity markets ended mixed today after a mid-week rally. Wall Street bet (hoped and prayed) that the easy money from a rate cut next week and government intervention (bailout) via the Bush mortgage plan, would prevent the economy from slipping into recession. Too bad eliminating moral hazard and inflating the currency hurts more than helps in the long run. Oil is trading below $90/barrel due to uncertainty with OPEC, and overall demand. Spot gold is down trading below $800/ounce due to the dollar bounce and the tumble of crude oil prices. Spot silver followed gold by closing down at $14.39/ounce. As the precious metals continue to consolidate in preparation of their next run up NOW is the time to protect your assets from devaluation and hedge yourself against the turmoil that is upon us.
The real estate market continues to deteriorate as national home prices showed the biggest quarterly drop in 25 years during the third quarter.
According to mortgage lenders' trade group, the rate of homeowners going into foreclosure hit a record high in the third quarter, while those late with their payments rose to the highest level since 1986.
U.S. retail sales fell 4.4% last week, the most since March. The biggest driver of our DEBTOR nation, consumption, is slowly evaporating. Our guess is that as Americans continue to lose their homes, Christmas shopping becomes less of a priority.
The non-farm payrolls report for November showed strong job growth, higher than analysts estimates. That is, of course if you believe the numbers. Our opinion is that government economic reporting is just as reliable/accurate as anything else the government is involved with. If you want a thorough analysis and understanding on how the government reports on the state of the economy we highly recommend subscribing to John Williams' monthly newsletter, "Shadow Government Statistics". John also provides alternate data sources to assist you in making more accurate financial decisions with relation to the economic outlook. You can find more information at his website, http://www.shadowstats.com .
As we approach next week the big question on everyone's mind is how much of a rate cut is helicopter Ben going to provide to his friends on Wall Street. We believe the financial markets (including the metals) have priced in a 25 basis point rate cut. If Bernanke decides to provide his friends with an early Christmas present, and cut by 50 basis points then look for the dollar to weaken and Gold to take off again.
Until next week. Trade safe.
Disclaimer: The above is a matter of opinion and is not intended as investment advice. Information and analysis above are derived from sources and utilizing methods believed reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Comments within the text should not be construed as specific recommendations to buy or sell securities. Individuals should consult with their broker and personal financial advisors before engaging in any trading activities. Please do your own due diligence.
First time for everything
30/November/2007 02:19 PM
Welcome metal bugs to the first ever Carolina Bullion
blog entry. We are new to the world of blogging so
bear with us while we climb this virtual learning
curve. Our goal here is to offer a summary of "goings
on" in the precious metals/financial markets mixed
with some in your face, no holds barred, no punches
pulled, commentary. Now that we have all those
adjectives out of the way, lets get started.
Today we saw the price of gold tumble and trade below $800/ounce while silver fell to $14.03/ounce. The pullback in gold is expected as gold needs to consolidate prior to its next run at $850/ounce in the medium term. The price of oil fell below $90/barrel for the first time in a month and the dollar was on track for its biggest weekly gain in over a year. The equity markets were moving higher for the third straight day fueled by an expectation that the Federal Reserve will lower interest rates (create more "money" out of thin air) by 50 basis points at their next meeting on 12/11.
Welcome to the "bizarro" economy where fundamentals do not matter. The talking heads on Wall Street continue to play sleight of hand with the true state of the economy while trying to maintain the biggest credit expansion of all time.
Dear reader do NOT be fooled by them. The economy is still on track for a deep recession and most probably is already in one. The real estate market is years from bottoming out . The subprime mess is not going away and we still do not know the full extent of it. Americans have record levels of credit card debt and mortgage defaults are at all time highs. The debtor nation of the world, America, continues to crumble from within. As the Fed continues to inflate, all assets denominated in dollars, decline in value.
The safest way to protect yourself and plan for the future is and will continue to be investing in precious metals. Until next time, trade safe.
Disclaimer: The above is a matter of opinion and is not intended as investment advice. Information and analysis above are derived from sources and utilizing methods believed reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Comments within the text should not be construed as specific recommendations to buy or sell securities. Individuals should consult with their broker and personal financial advisors before engaging in any trading activities. Please do your own due diligence.
Today we saw the price of gold tumble and trade below $800/ounce while silver fell to $14.03/ounce. The pullback in gold is expected as gold needs to consolidate prior to its next run at $850/ounce in the medium term. The price of oil fell below $90/barrel for the first time in a month and the dollar was on track for its biggest weekly gain in over a year. The equity markets were moving higher for the third straight day fueled by an expectation that the Federal Reserve will lower interest rates (create more "money" out of thin air) by 50 basis points at their next meeting on 12/11.
Welcome to the "bizarro" economy where fundamentals do not matter. The talking heads on Wall Street continue to play sleight of hand with the true state of the economy while trying to maintain the biggest credit expansion of all time.
Dear reader do NOT be fooled by them. The economy is still on track for a deep recession and most probably is already in one. The real estate market is years from bottoming out . The subprime mess is not going away and we still do not know the full extent of it. Americans have record levels of credit card debt and mortgage defaults are at all time highs. The debtor nation of the world, America, continues to crumble from within. As the Fed continues to inflate, all assets denominated in dollars, decline in value.
The safest way to protect yourself and plan for the future is and will continue to be investing in precious metals. Until next time, trade safe.
Disclaimer: The above is a matter of opinion and is not intended as investment advice. Information and analysis above are derived from sources and utilizing methods believed reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Comments within the text should not be construed as specific recommendations to buy or sell securities. Individuals should consult with their broker and personal financial advisors before engaging in any trading activities. Please do your own due diligence.