Financial Sense Blog

This brings us to the present and begs the question of what rules should we be using now? On the chart below, we can see that the last 50/200-EMA crossover generated a long-term buy signal on 8/11/2009, so in the broadest context bull market rules apply.

The latest and most flaccid argument against Gold is the idea that the increase in advertisements for buying and selling Gold are an indication of a crowded market or public involvement. As I explained in an editorial last year, sentiment follows the trend most of the time. As a bull market matures, more and more people come on-board. Sentiment has to be bullish for a bull market to persist and this is most true in the later stages when the crowd arrives.

The “Age of Austerity” is upon us. If the cuts promised by many European countries actually take place, investors fear it will lead to another recession in several of those countries. The age of austerity is what has worried the markets in the last month causing anxiety as volatility ruled the days. A closer look shows these cuts might not be as severe as originally thought. With the right approach, the austerity programs might achieve some of the government’s goals and contribute to economic growth. If true, the sell off in the market is an over reaction.

On April 20th the Deepwater Horizon oil rig had just finished drilling a well on the Gulf of Mexico. The drilling was done and the cement casing was in place. Suddenly, a leak was noticed in a blowout prevention control pod, and the leak could not be plugged. Total failure was close at hand.

Global stock markets are fluctuating overnight ahead of this weekend’s meeting of G-20 leaders. Leaders are expected to discuss the prospects for weak global economic growth, sovereign debt issues in Europe and financial regulation reform. The conclusion is that nothing too concrete should come out of this conference.

While a few mainstream outlets are coming around to at least acknowledging gold’s stellar run, most remain skeptical or outright bearish. And the blasphemy they purport is that gold is in a bubble.

Gold and Silver Bull Market has only just begun, but Precious Metals Prices are still subject to periodic Cartel Price Suppression Attacks. Guidelines for Minimizing the Damaging effects of these Attacks and Enhance Profits.

This week's article from Mr. Treece argues that the long-term trend of production flowing out of the US may be beginning to reverse course. This argument is broadened to show that just as economics cycle, so do investments; and that investors need to apply this knowledge to the management of their portfolios.

History will remember this day. Whether or not the equity market cracks tomorrow or the next day or in a few weeks time, today is the day that it gave off a critically important signal.

What else has averaged "gains" of 16.4% over the past 10 years?