Financial Sense Blog

F.D. Roosevelt’s, President of the USA, confiscation of gold and silver in the USA in 1933 is a relatively well known historical event. Partially banished from the history books, however, but well known to many Gold Bugs, through articles on the internet and historical texts, is the story of gold and silver confiscation in France in 1720 by the legendary John Law. (baptised 21 April 1671 – died 21 March 1729)

From a sealed train in 1910 to an unreported conference in 2010. Jekyll Island has been pretty muh ignored for 100 years. The tradition continues today when QE2 is hyped and rolled out there. I mean: We only "know" what they tell US/ us.

During the past 10 trading days gold has risen 5%, while silver rose 15%. During the past 72 trading days (going back to July 27/10), gold rose 20%, while silver added on 53%. On July 30th I wrote an article titled: “Meet someone who is 90% invested in gold and silver.” Gold was trading at $1181 on that day along with silver at 17.98. My advice to my subscribers was: “Hold onto core positions and add on during pullbacks.” The blue arrow points to the day the article was published.

The rush to nuclear power is on ! Worldwide, only in the 2010-2020 decade, as many as 200 new, large, high tech reactors could be built at a total cost of perhaps US$ 1000 to 1250 billion. This excludes the fuel, waste handling, and related downstream costs such as the basically ineffective, but expensive measures for reducing the risks of weapons proliferation. The bad news is that proliferating numbers of reactors and construction projects will be expensive - very expensive - in their collateral economic and financial damage, let alone any damage related to risks of reactor meltdowns, dirty bombs or Depleted Uranium weapons.

The legend and romance surrounding the famed stock plunger Jessie Livermore has long held a fascination among traders. Livermore has become somewhat of a cult in recent years and there are several books that purport to reveal his secrets for making a fortune in the stock market. None of them can hold a candle to the book which Livermore himself commissioned (written by journalist Edwin LeFevre) entitled Reminiscences of a Stock Operator.

While the long-term fundamentals related to the U.S. dollar remain bearish, Friday’s significant rally in the greenback leaves the door open for a possible countertrend rally.

There is hardly a person who does not want to know what the future holds. In the financial markets, predictions are not hard to find because everyone has an opinion. In summary form, this is what constitutes total market supply and demand.

The financial markets continue to climb the wall of worry on the back of more Fed Quantitative Easing. Those trying to pick a top in this choppy bull market may prove to be correct for a couple hours but over time the shorts continue to get clobbered. Quantitative easing was enough to turn gold back up and gave oil just enough of a nudge to breakout of its cup and handle pattern explained later.

I know that many people focused on the elections this past week, as well as on the Fed decision for "quantitative easing." But I would like to focus on another big event, namely, the price move in silver above 25 dollars. This is a move which I believe is a significant vote for honest money, and should not be feared by investors.

Due to high growth and easy money, Hong Kong is ripe for some serious economic turbulence, namely, inflation. Calls will intensify for the HK dollar to be decoupled from the U.S. dollar.