‘Market Volatility’ Archives
Flash Crashes
We have seen "flash crashes" from time to time. We first saw the entire market flash crash 1,000 points 2 years ago and since then we have seen it many times in individual stock issues. The latest was yesterday with two utilities (you know, the widow and orphan stocks) NEE and American Electric Power. These dropped over 50% in less than 1 [...]
A Good Old Fashioned Bank Run
In the old days when money and banks were "real", people would deposit gold or "notes" in their bank for safekeeping. Theoretically banks would only issue an amount of notes equal to but not exceeding the amount of gold that they held. Then along came fractional reserve banking and of course "fiat banking" where gold was taken entirely out of [...]
Hand Holding 101
READ THE FULL NEWSLETTER For the sake of simplicity, let’s classify the people who own gold into three groups. There are the true believers, and they are in the minority. I classify myself in this camp. Then there are the people who start to lose faith as the price falls and they look for someone to blame for their (paper) losses. [...]
The Current Drop of 31% is Not Out of Line
READ THE FULL NEWSLETTER Susan and I are on the way back to Minnesota today. I will not be publishing the newsletter on Thursday or Friday, but will be back in your mailbox on Monday. Here is what my friend Trader David R has to say about the gold market yesterday: It was a major unexpected ‘Black Swan like’ move in Gold the past two [...]
Technical Analysis or Fundamentals? Which Will Rule Gold’s Next Move?
READ THE FULL NEWSLETTER We head back to Minneapolis tomorrow morning, and will stay there until October. Today we are pretty busy packing up and getting ready for the move. I will publish the newsletter on Tuesday and Wednesday, but will not be publishing on Thursday and Friday. Our regular schedule to resume next Monday. Regarding the [...]
All Bull Markets Go Through Major Corrections
READ THE FULL NEWSLETTER I want you to think about this comment from Jim Sinclair: As time passes everything is about the dollar and not about any paper game. The games played to separate us from our money by Goldman and Merrill are but a temporary evil. Hot wars have been fought recently over this chart in which people have died. Libya is [...]
Time to Back Up the Truck?
READ THE FULL NEWSLETTER This morning looks like the final blow-off. Before you panic, check out the latest KWN interview with Sinclair. I know he didn’t expect this follow-up “MANUFACTURED SELLING,” but perhaps this is the bottom he was talking about. Right now the big money is securing physical gold, and using the cover of the [...]
What more do you need to know?
So many different signs that something huge is coming for the metals have lined up all at once and in an almost cosmic manner! Let me list what I'm seeing and there are more that I've either forgotten or don't even know about but just over the last month these have come to light: 1. 12 US States are considering making gold and silver [...]
My Latest Conversation With Trader David R
READ THE FULL NEWSLETTER I called Trader David R this morning. I was thinking of him. Susan and I watched 60 Minutes last night, and sat through the segment on the tragedy that took place at Sandy Hook Elementary School. David R lives in Newtown CT. He knows families who lost a child. His daughter went to school with these kids. He [...]
“Official Policy”
The last nearly 6 months has seen a constant barrage on the pricing of the precious metals. This process coincided with the last US quantitative easing and of course was completely counterintuitive. How, one would (should) ask, can a dollar increase in value versus another (any) real, fixed asset if dollars are more plentiful? If we did not [...]
