Nov 2007
First time for everything
30/November/2007 02:19 PM Filed in: Precious
Metals
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.
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