The Yen Approaches 100, The Euro Stabilizes - April 8, 2013 21:33

We have not seen the end of the Yen debasement by any stretch of one’s imagination.  The Japanese monetary dumping ground has been in free fall since markets opened Sunday night and the USDJPY pair is now comfortably over 99 and headed to 100 easily this week.  The U.S. bond market has given back more […]

Bank of Japan Goes to Infinity and Beyond - April 5, 2013 0:57

The new head of the Bank of Japan made his mark on the markets with his first pronouncement last night.  Skipping the particulars, which if you are truly interested you can read them here, the BoJ is committed to doubling the size of its balance sheet over the next 20 months adding Â¥7 trillion per […]

Gold Holds Serve Against Cyprus Deal and Options Expiration - March 25, 2013 20:21

The bears will never learn, because they are bearish for what amounts to irrational reasons, no matter how rational they sound.  Gold is not going to be blown out back to $1400 per ounce because of debt deflation.  If today’s price action did not tell them that it never will and they will continue to […]

Cyprus Risk-Off Trade Pulls Equities Lower - March 18, 2013 22:21

The S&P 500 and the Dow Jones Industrials both closed off slightly today as this was a risk-off kind of day in most every way.  Following up Friday’s weakness into the close with today’s drop is creating a pause in equities as fresh fears over the stability of the European banking system have been raised […]

Gold Closes Over $1600 on Cyprus Fiasco - March 18, 2013 21:34

The more I think about what the Troika and the Cypriot government have done in Cyprus the more I’m convinced that this is a watershed moment in this phase of monetary history.  Period.  People who should frankly know better should have seen what lay on the other side of what they were doing, namely hacking […]

Except the Euro to Strengthen After Cyprus Dust Settles - March 18, 2013 8:33

The monstrous proposal of stealing from the depositors in Cyprian banks by the Troika will ultimately be bullish for the Euro.  Cyprus is really a very small problem and, while, this is a bad precedent for the Troika to have set it will have both short and long term positive connotations for the Euro.  One […]

Cyprus Bailout Sparks Spike in Gold - March 18, 2013 2:24

With the unprecedented — and frankly brazen — attack on property rights that is at the core of the bailout of the Cyprus banking system there should be little surprise in the response by the gold market which saw it open $15 dollars higher in Sydney trading.  The capping began right after that as the […]

Gold and Silver Survive Latest Labor Report Beat - March 15, 2013 0:53

The initial jobless claims number came out this morning and right on cue the precious metals were both attacked after being weak all through European trading.  Gold was pushed back below the former Maginot line at $1585 only to recover with a vengeance and see the hedge fund shorts come in to keep the price […]

Gold Knocks on $1600 Again, Thwarted by Euro Weakness - March 13, 2013 20:47

As I’ve been saying, the tenor of the Gold market has changed in the past couple of weeks.  We are seeing more buying during the illiquid COMEX pre-market than we did before the bottom at $1550. This tells me that whoever is still trying to cap the price of gold it isn’t the same group […]