Housing Prices, Consumer Confidence and Rents

In addition to the foreclosure burden, unemployment is over 9% and the lending guidelines are stricter than they have been in years, which mean fewer buyers in the market.  All of these factors are going to continue to push prices lower. Paul Dales a senior U.S. economist at Capital Economics Ltd. in Toronto said, “With the foreclosure pipeline still full to bursting, it’s hard to see this downward pressure on prices abating,” and “I wouldn’t be surprised to see prices … Read More »

Jeff Nichols Predicts $2,000 Gold in 2012

Jeff Nichols is the Managing Director of American Precious Metals Advisers Inc, and he was recently interviewed on Bloomberg.com.  He had a lot of good things to say about the fundamentals of gold which contributes to a strong bull market moving forward.  Fed policy, overseas central bank policy, demand increases in India and China are all contributing factors. The gold market is a very small market compared with capital markets therefore small levels of demand shifts can dramatically affect prices.  … Read More »

What happens if we don’t raise the Debt Ceiling?

As the government has maxed out its credit card a question must be raised, if we don’t raise the debt ceiling what could happen?  It seems as though most experts agree that a failure to raise the debt ceiling would be disastrous. The main reason it would be disastrous is this, one thing we do know for sure is that if the ceiling isn’t raised, eventually a default on the debt will occur as we will not have the money … Read More »

Greece Downgraded Again

Fitch ratings agency cut Greece’s credit rating three notches to B+ today forcing it deeper into junk status.  They further warned of more cuts if no credible plan by the IMF and EU is created to pull the debt ridden country out of its hole. Still struggling with poor revenues and a deep recession one year into its bailout by the IMF and the EU, it is looking like Greece will need to restructure its debt.  Restructuring of debt is … Read More »

Gold Coins Strong amidst Commodities Decline

According to an article published on Bloomberg.com on May 16, 2011, “Sales of gold coins are on track for the best month in a year amid the worst commodities rout since 2008, a sign that bullion’s longest bull market in nine decades has further to run, if history is a guide.” Since May 1st the US Mint has sold 85,000 ounces of American Eagle gold coins while the spot price of gold fell 5.62%.  According to Bloomberg.com the last time … Read More »

Hedge Fund Managers Sell their Gold

Last week a lot of chatter and concern occurred after a few large hedge fund managers decided to sell gold in their fund’s portfolio.  John Burbank, who runs George Soros’s big hedge fund – Passport Capital, sold its gold and silver along with some other leading firms in order lock in profits.  During that time we saw gold pullback over 5% and silver pullback about 30%.  When this kind of action occurs it make investors question if gold and silver … Read More »

Consolidations/Pullbacks are Good

Consolidations are Good By: Lynette Zang I am thankful for consolidations (pullbacks). Most people, once they’ve moved into a position, only want it to go one way, up, and they are far more comfortable if everyone else is doing the same thing and buying along with them. Personally, I’m a contrarian and when everyone is doing the same thing, I expect a consolidation. A rapid price run up, also referred to as over bought, does not mean over valued, it … Read More »

Not Much Talk about the Dollar Approaching an All-Time Low

It seems wild to me that the dollar is approaching its all-time closing low of 71.33 and there is virtually no talk of it anywhere.  It makes me think that the same will be the case even after the dollar breaks below the 71.33 figure.  Should the dollar break below 71.33 it will be in uncharted territory, meaning that there is no telling where it will end up.  Some technical analysis can give indications but no one knows for sure. … Read More »