Financial Sense Blog

A leading analyst writes to tell me that we're seeing "the formation of the greatest top in stock market history." The "top" he's referring to is seen on the chart below. And sure enough, on the chart we can see the outline of a monster, multi-year head-and-shoulders pattern, with the head at the 2007 high and what appears to be a right shoulder now in the process of formation.

Be forewarned. Knowing what to avoid should a market correction take over can be just as important as knowing what to buy in a rally.

The latest issue of the NFIB Small Business Economic Trends is out today (see report). In recent months the closely watched Small Business Optimism Index has been trying to break above recessionary levels. Unfortunately the March reading reverses the recent trend.

Gold broke out of its 6 month consolidation and cup and handle pattern. The gold bulls are now in control and short covering should begin to cause an explosive move to my late January target of $1600 on gold and $40 on silver. In late January, gold and silver were in a sell-off and many were predicting lower prices as moving averages were broken. Now we are on our way to the January target in gold of $1600.

Imagine you invented a machine that revolutionized travel. You know your invention could cut local and long distance travel time substantially and vastly improve the ability for business to deliver freight efficiently. The invention would add trillions to global GDP. If released, your invention would no doubt be universally used and admired. However, based on the initial safety assessments, analysts predict that if used widely your invention would cause the deaths of 300,000 Americans per year and countless more around the globe. Would you still release it?

2012 is shaping up to be the blockbuster main event of the ongoing financial crisis. Massive amounts of new debt, vast quantities of additional digital dollars and the spark of higher interest rates will set off version 2.0 of the credit-driven financial implosion.

On April 6 last I sent an open letter Congressmen Ron Paul of Texas accusing the Chairman of the Board of Governors of the Federal Reserve, Dr. Ben Bernanke, that...

Today, both silver and gold are achieving record highs but silver’s accelerating price indicates silver may indeed be the canary in the gold mine, the leading indicator for gold’s long-awaited explosive move upwards, a move the Fed and major bullion banks have colluded since the 1980s to prevent.

Most investors get involved in the market to book profits on trades and to build wealth on core positions. A focus on both cash and physical gold is the best way to achieve your goal. Click here now to view the GDX daily chart.

Silver is breaking new records today at almost $40 and gold is touching new highs of $1,458. Looking back, over the last few years we have seen gold rise from around $312 to $1,458 a rise of 4.67 times and silver from around $6 to $40 a rise of 6.67 times. But this does not give a clear picture, so we went back over the last year and what did we see? Since early 2009, gold has moved from $900 to $1,458, a respectable 62%. Over the same period silver has moved from $10 to nearly $40 a remarkable 400%. Why?