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September 2, 2005
Amid the darkness, gold shines, Fri., Sept. 2, 2005, 1:01 PM
I have been asked to continue to write about gold and goldminer stocks, but I have to say I have written a lot about the topic this past month. In addition to extensive notes in the Week in Reviews, here is a list of other articles. And there are probably others.
ﾃつｷ More on the Gold break-out, Thurs., September 1, 2005, 11:57 AM
ﾃつｷ Katrina aglitter? Wed., August 31, 2005, 1:43 PM
ﾃつｷ Excellent gold review, Wed., August 24, 2005, 6:47 AM
ﾃつｷ Goldcorp has ten-fold increase in results, Tues., August 16, 2005, 8:07 AM
ﾃつｷ Gold aglitter this morning, Thurs, August 11, 2005, 10:11 AM
ﾃつｷ Four nines fine, Wed., August 3, 2005, 2:28 PM
ﾃつｷ Goldminer stocks in rally mode, Wed., August 3, 2005, 1:28 PM
There is talk that Greenspan will possibly drop the central bank rate. Readers know my feelings on this. If there is even a hint of no longer tightening, the USD will fall, and gold will rise. The Fed, and foreign central banks, will then step in to sell gold reserves in an effort to protect the USD.
No matter. Eventually, the free market trader will aggregate orders that will overwhelm the central bank opposition. There is little that central banks can do, other than for a very short period.
What the free market trader is looking to do is, not to speculate, but simply to recognize the economic situation today for what it is: in crisis. Debts are skyrocketing; governments are printing money faster than ever. With respect to the latter, the President and the Senate Majority Leader told us last evening that $10.5 billion alone would be printed for FEMA. That is a kick in the bucket, much like the Administration's initial estimates of the cost of the War on Terrorism.
The economic slowdown, and possible recession, caused by Katrina, will simultaneously burden the government by substantially decreasing tax revenues. Double whammy. Extra bounce for gold.
There is not a single reason for gold traders to hold back from applying their pedal to the metal, as I see it.
So, I have written a lot; what else can I say?
Today, gold is up a further +$2.00 to $448.50. Yesterday, it was up +$8.40. One of these days, it will go up $25 or more.
Posted by Posted by Bill Cara on September 2, 2005 01:02:52 PM | Category: Gold , Goldminer Producers
Discourse
Dear Bill,
I am providing the link for everyone to get the latest perspective from STRATFOR as regards New Orleans. It is recommended reading and I believe the markets have not fully discounted the impact.
It can be accessed at http://www.safehaven.com/forums-13615.htm
I believe that as you stated Bill, the USD is going much lower. It will get even more interesting on September 11th, if the Japanese elections are won by Prime Minister Junichiro Koizumi, who is vowing to privatize the country's postal system, which will then result in a stronger economy there and a stronger yen.
First, we saw the huge spikes in BLACK GOLD, and perhaps it is now the turn of the real GOLD.
Posted by: Tifosi at September 2, 2005 4:28 PM [link]
The US is a 12 trillion Dollar economy - the impact from "Katrina" will be minor and short lived - Do I have to remind you that GDP counts
capital improvements (building boom).
I can understand your point of view for being bearish on the US stock market - I think you are wrong amd obviously I have been buying equities
the last 2 days.
Posted by: peter at September 2, 2005 2:22 PM [link]