Thursday, December 2, 2010

Jim Sinclair - Gold is Poised to Explode

With the gold and silver markets heating up once again, King World News interviewed legendary trader Jim Sinclair. When asked about repeated top calls being made in the gold market Sinclair responded, “This is not what a top is made of. I’ve been around long enough, I’ve seen many, many markets, so many I don’t even want to count anymore, and this is not what tops are made out of. Tops are made out of outrageous exuberance.”

Sinclair continues:

“What most people look at, no what almost everyone looks at is a picture in time, something like looking at a still. Up comes the chart, it’s a picture in time. Very few people will focus on motion, direction over time. And you can’t predict the future unless you can see things in motion. So, to the static thinker the picture in time has to have an excuse of why the market did this or why the market did that or what technical thing happened to make it happen. While in truth, you and I know we are watching something unfold.”

You nailed ahead of time the fact that gold would be strong despite strength in the US dollar. (more)

David Skarica: US Inflation Could Spark Global Unrest

Investors should put their money in gold or companies that do well amid higher gold prices, says David Skarica, editor of the Gold Stock Adviser newsletter and author of "The Great Super Cycle." Debt and equity markets also are full of hurdles, and mounting global criticism of U.S. fiscal and monetary policies might eventually lead to higher borrowing costs and soaring inflation, ultimately sparking unrest around the world, he warns.

Gold stocks normally trade between 40 percent and 60 percent of the price of gold, meaning that if gold is worth $1,000 an ounce, a stock index tied to the precious metal is ripe with buying opportunities when at or less than 40 percent or is too expensive when breaking 60 percent of the per-ounce price.

"Right now the ratio is only about 38 percent, and that's despite this huge run we've had in gold and gold stocks, telling us that gold equities are still cheap compared to the metal," Skarica tells Newsmax.TV.

"Gold stocks are extremely cheap," especially considering that gold is trading near $1,390 an ounce and should soon rise to around $1,700. (more)

4 Uranium Penny Stocks to Buy


If you’re looking for penny stock investments, chances are you focus on biotech stocks or technology picks. But don’t overlook the energy industry. While the oil majors like Exxon Mobil (NYSE: XOM) and Dow component Chevron (NYSE: CVX) are indeed some of the biggest corporations in the world by market cap, there are plenty of tiny energy penny stocks out there worth your while.

In fact, if you look outside of conventional crude oil stocks there are a number of penny stocks with big profit potential – including some with a focus on nuclear energy and uranium.

Here are four of my favorite energy penny stocks to buy right now that all focus on uranium and the nuclear power industry.

Denison Mines Corp. (DNN)

Denison Mines Corp. (AMEX: DNN) is engaged in the acquisition, exploration and development of uranium bearing properties. The company also extracts, processes, sells and reclaims uranium. Year-to-date, this penny stock has jumped an incredible +145.7%, compared to a gain of +5.6% for the Dow Jones Industrial Average. Last quarter, DNN posted a difference of six cents from its actual quarterly earnings to its original earnings estimate. Trading at $3.08, DNN has a yearly stock range of $1.08 to $3.31. (more)

30 Weeks Of Consecutive Equity Fund Outflows

No matter the amount of propaganda, the amount of manipulation, and Fed intervention, retail refuses to come back to the market. America's love affair with stocks is over, has bypassed the marriage stage and gone straight to the bitter divorce. Per ICI, the week ended November 24 saw $2.6 billion in outflows from domestic equity funds, and a total of over $91 billion year to date.

McAlvany Weekly Commentary

2010: Our Listeners Questions Answered, Part I

Announcement! You are cordially invited to join David McAlvany at the Orlando Money Show and the Bahamas Seminar with the World Economic Summit. For more information, please visit: www.mcalvanyica.com/seminars

Nigel Farage: Europe Is Becoming An Orwelian Police State, Ruled By Unelectable Madmen, Which May Soon Be Overrun With Violence

Nigel Farage made waves recently when he told the Europarliament the truth about the sad fate of the euro experiment. Obviously, it was not taken too lightly by the career politicians who, just like our own, have made it their life mission to lead a failed economic experiment to its sad end, no matter the social cost and public suffering. Today, Farage made a repeat appearance on King World News continuing with his warning that the one most likely outcome of Europe continuing on its autopilot course will be one the culminates with "violence and extremism." To wit: “Nobody dares to admit that they got this whole thing wrong...Once people realize that who they vote for in general elections has become no more than a charade, then if they want to change things, all they are left with is civil disobedience and violence, and we’re beginning to see this already. In Greece we are seeing small terrorist style attacks that are taking place on EU buildings that are taking place against EU officials...So what happens if you rob people of their rights is they will turn to violence and they will turn to extremism, and that is why I believe these people to be so dangerous."

And some other choice quotes: (more)

Disappearing Bank Accounts

If you don't have money outside the computerized banking system, you should do so now. You just never know when the system is going to go down. At such a time, the person, who does have cash, will be calling the tune. Remember, "He who has the gold makes the rules." Below, Simon Black reports on the major malfunction at one of Australia's largest banks-RW

By Simon Black

It all started a week ago. National Australia Bank, one of the largest in the country, had a technical malfunction in its core system. Within hours, a simple problem had practically brought a large part of Australia's banking system to its knees. It was a crazy turn of events.

You see, banks don't use regular operating systems or database applications; they run specialty software that is intended to synchronize complex operations like cash deposits, overnight interbank drafts, central bank facilities, electronic transfers, credit card monitoring, and a host of sensitive data.

When something goes wrong, it can throw the entire system into disarray, and customers end up getting hurt. (more)