Thursday, June 25, 2009

Wall Street Journal June 25, 2009

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Has Gold Found A Bottom?

David Morgan: We Could See Silver Outperform Gold 2:1

The Gold Report: Last month saw the biggest single gain in silver since the 1980s. Why did this happen when it did? And what should we expect in the months to come?

David Morgan: I don't know if anyone can really answer why it happened in May. This sounds trite, but it's true: Any market, commodity or stock, is based on buying or selling pressure. A lot of buying pressure in silver from all angles—the exchange traded funds, the mining equities, and the physical market itself—combined to really push the market higher.

Normally you see good seasonality in precious metals, with peaks sometime in the first quarter every year. We've seen the May peak a couple of times before, the big peak in 2008 also came in May. Here we are again actually in early June and we're still near a peak. I do believe, unfortunately, that we will see the top of this on an intermediate-term basis. (more)

David McAlvany in London: One Nation Under the Fed

June 24th, 2009

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Long Term Buy And Hold Is Still Bad Advice

In spite of what you hear from main stream media and self-serving advice from Wall Street, an investment philosophy of long term buy and hold is not what it's cracked up to be.

Unfortunately, many boomers headed into retirement are finding that out now, at the worst possible time. Moreover, looking ahead, I doubt the next decade is not going to be much better than the last.

Please consider the following analysis from my friend "TC" (more)

Defusing the Dollar Bomb

Already lost is the fact that by the time Obama took office in early 2009, the Fed had already fired every monetary bullet fighting the early stages of the FIRE economy depression. Only fiscal stimulus remained to pull the nation out of a spin dive. But can we afford it?

Buried far deeper in the bottomless abyss of America’s forgotten past are the darkest days of the Carter administration when US deficits spiraled out of control. Gold prices doubled and doubled again as one hundred articles pronounced the dollar doomed. (more)