Silver Versus Debt, Delusions And Devaluation

By GE Christenson – Re-Blogged From Silver Phoenix

Part One: THE ECONOMY – AND DEBT, DELUSIONS AND DEVALUATION

  • Global retail sales are weak. “Redbook Retail Index confirms Commerce Department December Retail Collapse.”
  • Falling Imports into the U.S.
  • Industrial Production dives lower
  • Housing sales are weak.
  • Auto (U.S. and China) sales are down and auto loan defaults are rising.
  • Tariff war with China. Does a tariff war benefit anyone?
  • From Charles Hugh Smith: “Credit Exhaustion Is global.”

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Gold-Bull Breakout Potential

By Adam Hamilton – Re-Blogged From Gold Eagle

Gold has faded from interest in the past couple months, overshadowed by the monster stock-market rally.  But gold has been consolidating high, quietly basing before its next challenge to major $1350 bull-market resistance.  A decisive breakout above will really catch investors’ attention, greatly improving sentiment and driving major capital inflows.  With gold-futures speculators not very long yet, plenty of buying power exists.

Last August gold was pummeled to a 19.3-month low near $1174 by extreme all-time-record short selling in gold futures.  The speculators trading these derivatives command a wildly-disproportional influence on short-term gold price action, especially when investors aren’t buying.  Gold-futures trading bullies gold’s price around considerably to majorly, which can really distort psychology surrounding the gold market.

The main reason is the incredible leverage inherent in gold futures.  This week the maintenance margin required to trade a single 100-troy-ounce gold-futures contract is just $3400.  That’s the minimum cash traders have to keep in their accounts.  Yet at the recent $1300 gold price, each contract controls gold worth $130,000.  So gold-futures speculators are legally allowed to run extreme leverage up to 38.2x!

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Boeing Is About To Sink The Dow Index

By Rick Ackerman – Re-Blogged From Silver Phoenix

Are these guys good, or what! On Wednesday, with Boeing shares getting clobbered, DaBoyz somehow managed to close the Dow six points higher on the day.  That may not sound impressive, but considering that Boeing is by far the most heavily weighted stock in the Industrial Average, the feat was akin to getting a 747 Dreamlifter airborne with two engines out and a half-dozen Abrams battle tanks in its belly.  The effort was rewarded with exactly the kind of headline Wall Street needed to distract the herd from the urgent distribution that has been occurring daily: Dow Tacks on a Modest Gain in Quiet Trading. This innocuous report belies the increasing likelihood that the steep recovery begun on December 26 is about to breathe its last.

 

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Russia Dumps U.S. Dollars

By Mark O’Byrne – Re-Blogged From Gold Eagle

(Bloomberg) — Vladimir Putin’s quest to break Russia’s reliance on the U.S. dollar has set off a literal gold rush. Within the span of a decade, the country quadrupled its bullion reserves, and 2018 marked the most ambitious year yet.

And the pace is keeping up so far this year. Data from the central bank show that holdings rose by 1 million ounces in February, the most since November.

The data shows that Russia is making rapid progress in its effort to diversify away from American assets. Analysts, who have coined the term de-dollarization, speculate about the global economic impacts if more countries adopt a similar philosophy and what it could mean for the dollar’s desirability compared with other assets, such as gold or the Chinese yuan.

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What Ballooning Corporate Debt Means for Investors

By Frank Holmes – Re-Blogged From Gold Eagle

Few people know the risks in today’s economy and marketplace as much as David Rosenberg, chief economist and strategist at Canadian wealth management firm Gluskin Sheff & Associates. For years he’s educated investors with his popular “Breakfast with Dave” newsletter, which you can subscribe to here. He’s also a regular contributor to the Globe and Mail and the Financial Post.

Considered by many to be a Wall Street permabear, Rosenberg successfully predicted the 2007-2008 financial crisis.

Now he’s predicting another recession to make landfall as soon as the second half of this year. Why? In short, the Fed has been too aggressive tightening liquidity at a time when corporate debt is at an all-time high. What’s more, the Trump administration has already enacted fiscal stimulus in the form of tax reform, which has historically been reserved for times of economic turmoil, not expansion.

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Dow Jones Bear’s Eye View

By Mark J Lundeen – Re-Blogged From Gold Eagle

The Dow Jones saw some selling pressure this past week, closing down 4.94% from its last all-time high of October 3rd of last year.

Time to press the panic button?  Not as far as I’m concerned, but then I also have no exposure to the broad stock market.  But speaking as a spectator sitting in the peanut gallery, my key indicator of when the people who do have market exposure to the NYSE and NASDAQ should exit the market was, and still is when the Dow Jones Industrial Average once again begins experiencing days of extreme volatility, (+/-) 2% daily moves from a previous day’s closing price.  Until the Dow Jones once again begins seeing those dreaded 2% days, I’ll be sitting in the cheap seats eating peanuts and cheering on the bulls.

This week I thought I’d use my Bear’s Eye View (BEV) chart of the Dow Jones going back to February 1885, with an in-depth analysis.  It’s an amazing view of the daily ups and downs for the past 134 years in the Dow Jones.  So what are we actually looking at?  We’re looking at each daily close of the Dow Jones since 16 February 1885, Any Dow Jones closing price that IS NOT a new all-time high registers as a negative percentage from the Dow Jones’ last all-time high.  For example, today’s Dow Jones BEV value indicates it has closed -4.94% from its last all-time high of October 3rd 2018.

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Silver Miners’ Q4’18 Fundamentals

By Adam Hamilton – Re-Blogged From Silver Phoenix

The major silver miners have rallied higher on balance in recent months, enjoying a young upleg. That’s a welcome change after they suffered a miserable 2018. Times are tough for silver miners, since silver’s prices have languished near extreme lows relative to gold. That has forced many traditional silver miners to increasingly diversify into gold. The major silver miners’ recently-released Q4’18 results illuminate their struggles.

Four times a year publicly-traded companies release treasure troves of valuable information in the form of quarterly reports. Required by the US Securities and Exchange Commission, these 10-Qs and 10-Ks contain the best fundamental data available to traders. They dispel all the sentiment distortions inevitably surrounding prevailing stock-price levels, revealing corporations’ underlying hard fundamental realities.

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