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July 12, 2010 / Hal (GT)

Tracking Gold this Monday.

Hey folks. Well if you were watching the precious metals (silver, platinum, and gold) with the free real time application ExactPrice then you was the slow decline of gold in the graph along with the sell off early this morning that sent it down over $10. I suppose there’s a bit of speculation over that being because of that whole bank swap thing which some want us to interpret as being bearish (in my opinion it’s just the opposite). But don’t forget that this time of the year is typically the doldrums.

That said here are the top links that I came across today. No particular order.

China’s Rating Agency Grades USA Only With AA – This rating is interesting to men only in the aspect that it gives a little insight into China’s mind games with the West. And yeah, since they hold all the cards here since they hold so much of our debt.

Seasonal impact means recent pull backs in gold could be short lived – Definitely an item to check out because David Levenstein has what I think is a good view of the BIS gold swap. Here’s a snippet:

Despite signs of a recovery, the problem of huge budget deficits and massive sovereign debt will continue to plague the currency market. Deficit reduction alone is not going to solve the debt issue.  Even as the U.S. economy seems to be improving — gross domestic product has climbed three straight quarters, more than forty states face budget deficits.

Jim Sinclair’s In The News Today – follows up the BIS Swap and says it all:

This event increased the use of gold in inter-central bank use and is therefore BULLISH.

Sale of gold ‘biscuits’ shining in Mumbai – Could it be another factor in a short lived gold pullback? Could be.

India’s population to double in next 50 years: report – That’ll be great for gold long term.

Article: “Markets Make Fools of Us All” – you decide! – Short and sweet.

Lear Capital on Fed Fear of Deflation – Must read from David Engstrom at Lear Capital:

We’re $14.3 trillion in debt and rising.  “The Office of Management and Budget forecasts that, by the end of fiscal year 2012, gross federal debt will total $16.3 trillion. Thus, the debt will equal 101% of gross domestic product, which represents a milestone in the U.S. economy.”

How do you think the farmer feels about deflation?  How about the markets?  How well will Apple profits post when IPads are half price?  If cash is king and the dollar is strong, what will that do to profitability of our international companies?

Crisis Awaits World’s Banks as Trillions Come Due – Didn’t someone say that we needed to spend more debt to save the world? How’s that supposed to work again?

IRS starts mopping up Congress’s tax-reporting mess – Oh, yeah. This will be just wonderful stimulus for the economy. The kind that will send even more businesses over seas.


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