Friday, September 28, 2012

Coxe – Gold Now Trading At All-Time Highs As A Global Asset

from King World News
Today 40 year veteran Don Coxe told King World News, “Gold is a global asset, and as a global asset it’s trading at an all-time high.” He noted that it is only, “… the dollar price of gold where it isn’t at an all-time high.” Coxe, who is Global Strategy Advisor to BMO ($538 billion in assets), also spoke about “… an extremely rare event for equity markets,” which was directly related to the mining shares.
Here is what Coxe had to say: “We’ve had a period of consolidation (in gold) for the last two weeks. Almost every other day we trade the ‘Independence’ level, which is $1,776. Well, we traded above that, then we went below it, and now we’re back up to $1,768, and maybe we are going to finish the day at $1,776.”
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Two no-brainer ways to play rising food prices / by Simon Black /
Last summer, two researchers from the New England Complex Systems Institute published a short paper examining the correlation between rising food prices and civil unrest. It was a timely analysis, to say the least. A number of food riots were occurring throughout the world, not to mention waves of revolution sparked by the high cost of food.
This is nothing new; throughout history whenever people have struggled to put food on the table for their families, social unrest has been a common consequence.
The French Revolution is a classic example; after decades of unsustainable fiscal and monetary practices that wrecked the French economy, the harvest season and subsequent winter of 1788 were particularly harsh. People went hungry, and it ultimately started the revolution.
The researchers’ analysis went a step further, though; they modeled the relationship between food prices and social unrest to reach a simple conclusion– whenever the UN Food and Agricultural Organization (FAO)’s global food price index climbs above 210, conditions ripen for social unrest.
screen capture 11 Two no brainer ways to play rising food prices
Today, the FAO’s food index is at 213… and rising. Netherlands-based Rabobank recently published its own analysis, forecasting further rises in food prices well into the 3rd quarter of 2013.

Home prices may not return to peak until 2023

by Les Christie
CNN Money

NEW YORK (CNNMoney) — Home prices are showing signs of life, but have a long way to go to make up for losses from the housing bust.
U.S. home prices dropped by a third from the start of 2007 to the start of 2012, according to Fiserv, an analytics firm.
Fiserv forecasts prices will bounce back an average of 3.7% a year for the next five years — a rate that would still leave prices 20% below the peak. At that forecasted growth rate, the national average high of $238,000 would not be hit again until 2023.
It could take even longer in some areas. “In some hard-hit markets, prices could take decades to recover,” said Fiserv economist David Stiff.
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Pierre Lassonde – Gold & Central Banks Fearful Of A Depression / September 26, 2012
Today legendary Pierre Lassonde startled King World News by warning, “When you talk about the worldwide slowdown, the central banks are worried about a depression, and that’s why they are printing all of that money.”  KWN has been reporting for some time now that the global economy has been rolling over, but Lassonde took it a step further.
Lassonde is arguably the greatest company builder in the history of the mining sector.  He is past President of Newmont Mining, past Chairman of the World Gold Council and current Chairman of Franco Nevada.  Lassonde is one of the wealthiest, most respected individuals in the resource world, so we take his warning very seriously.
But first, Lassonde had a great deal to say about the gold market:  “I was very surprised in the summer that gold didn’t break the $1,500 level.  I say that because Europe is really going into a recession, and I felt the lows were going to be breaking the $1,500 (level).  But you know what saved the gold market?  The central banks.”
“The central banks came in and bought almost 150 tons of gold in June and July, and the gold market never looked back.  It was very stable, and it built from there.  From here on in it’s very simple, when you look at the Federal Reserve, with QE3, when you look at the ECB with their OMT, which is really the way I look at it, OMG, ‘Oh My Gold,’ because they are essentially going to be monetizing Spanish and Italian debts.
When you look at the Japanese Central Bank, they just announced their own QE3 program.  It’s essentially all of the central banks around the world printing money.  So what do you think gold is going to do?….

This 100% Gainer is an Immediate Sell or Short: TSO

If tax rates rise and government spending slows next year, the economy is expected to fall into a recession, according to the nonpartisan Congressional Budget Office. Some political pundits insist that Congress and the president will do all they can to avoid a recession, but economic growth is determined by a number of factors and political will alone has never avoided a recession.
Rather that watching Washington for clues about economic growth, traders can watch oil prices. In the past, recessions have been associated with oil price spikes. In the chart below, created at the Federal Reserve's website, the 12-month rate of change (ROC) is shown for oil prices. The gray bars highlight recessions, a standard feature on all charts created with the Fed's data.

Oil Chart
The annual ROC of oil prices has spiked above 80% five times since 1970, and a recession followed four of those spikes. In 2010, however, oil prices rose as the global economy recovered from a deep recession and growth followed the price spike.  (more)

Hedge Funds Bullish on Silver as Hoard Nears Record: Commodities

by Nicholas Larkin and Debarati Roy

Hedge funds are the most bullish on silver in seven months and investors’ holdings are expanding toward a record on speculation the metal will outperform gold as central banks seek to boost growth.
Wagers on rising prices jumped 10-fold since June, U.S. Commodity Futures Trading Commission data show. Investors bought 717.2 metric tons valued at $797 million through exchange-traded products this quarter, the most in a year, according to data compiled by Bloomberg. Prices will increase for at least the next three quarters and average $38 an ounce in the three months through June, or 9.9 percent more than now, based on the median of 14 analyst estimates compiled by Bloomberg.
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