gold-catalinarobayo: October 2009

Obama administration again validates gay and lesbian parents

The US Justice Department filed a memorandum in support of a motion to dismiss today in Commonwealth of Massachusetts v. United States, the lawsuit brought by Massachusetts arguing that the Defense of Marriage Act is unconstitutional. This lawsuit complements the one brought by GLAD on behalf of several named plaintiffs.

The Justice Department memorandum reiterates that the administration supports repeal of DOMA but must nonetheless defend its constitutionality. It makes no explicit argument that sexual orientation is not a suspect classification entitled to heightened Equal Protection scrutiny; rather it says that the court is bound by a First Circuit US Court of Appeals ruling to that effect. I confess that my aggravation with the memorandum was tempered, as I read it, with the knowledge that any such document filed by a Republican administration would say vile and offensive things about us. By that measure, this is surely an improvement.

And the administration once again took the opportunity to distant itself from assertions that we are bad parents. Here's the footnote in full (check out how the government says the Scalia dissent in Lawrence, meant to scare everyone into thinking that decriminalizing sodomy would lead to same-sex marriage, is essentially correct!):

In this case, the government does not rely on certain purported interests set forth in the legislative history of DOMA, including the purported interests in “responsible procreation and child-rearing” -- that is, the assertions that (1) the government’s interest in “responsible procreation” justifies limiting marriage to a union between one man and one woman, and (2) that the government has an interest in promoting the raising of children by both of their biological parents. See H.R. Rep. No. 104-664, at 12-13, reprinted in 1996 U.S.C.C.A.N. at 2916-17. Since the enactment of DOMA, many leading medical, psychological, and social welfare organizations have issued policies opposing restrictions on lesbian and gay parenting upon concluding, based on numerous studies, that children raised by gay and lesbian parents are as likely to be well-adjusted as children raised by heterosexual parents. See American Academy of Pediatrics, http://aappolicy.aappublications.org/cgi/content/full/pediatrics;109/2/339 (February 2002 policy statement); American Psychological Association, http://www.apa.org/pi/lgbc/policy/parents.html (July 2004 policy statement); American Academy of Child and Adolescent Psychiatry, http://www.aacap.org/cs/root/policystatements/gaylesbiantransgenderandbisexualparentspolicystatement (June 1999 policy statement); American Medical Association, http://www.ama-assn.org/ama/pub/about-ama/our-people/member-groups-sections/glbt-advisory-committee/ama-policy-regarding-sexual-orientation.shtml (AMA Policy Regarding Sexual Orientation); Child Welfare League of America, http://www.cwla.org/programs/culture/glbtqposition.htm (Position Statement on Parenting of Children by Lesbian, Gay, and Bisexual Adults).
Furthermore, in Lawrence v. Texas, 539 U.S. 558, 605 (2003), Justice Scalia acknowledged in his dissent that encouraging procreation would not be a rational basis for limiting marriage to opposite-sex couples under the reasoning of the Lawrence majority opinion -- which, of course, is the prevailing law -- because “the sterile and the elderly are allowed to marry.” Thus, the government does not believe that DOMA can be justified by interests in “responsible procreation” or “child-rearing.”

Agnico Eagle - Another Gold Miner on Sale

Panic spike-like sell-offs are occurring in larger Gold stocks right now. This is what I have been waiting for since last spring and it never came - until now. I highlighted Kinross Gold (ticker: KGC) the other day. Here's another one: Agnico Eagle (ticker: AEM) a solid, blue chip producer with good growth potential.

Panic spikes lower are a great time to buy in the volatile Gold stock sector. I am looking to start buying Gold miners next week (need my paycheck to clear first...).

Poetry Friday - Be still. The thing that I have made is silent ...

Be still. The thing that I have made is silent
and unmoving on the slab. Now cold
and unimpressive, it will by the violent
play of forces fearful to behold
shortly be animate, and beautiful.
They called me mad, and my experiments
obscene -- the fools! Is it so terrible
to seek perfection? With the instruments
of life, see now, I'll stimulate the heart
and soon, if all proceeds without a hitch,
my mother couldn't tell the two apart,
the thing and me. Now, throw the master switch:
only a moment more and you should see --
Oh, shit. It didn't work again. Why me?

--
Sometime around 1980.

Poetry Friday - Be still. The thing that I have made is silent ...

GOLD 011: PENGUIN PRISON

We've shown our main man Penguin Prison no shortage of love in these pages over the past few months, and now it's time to bring his masterful debut single into the world on Neon Gold. Another stellar double A-side release, we already unveiled the sterling lead track "Animal Animal" in September, and now we've got the equally brilliant AA-side "A Funny Thing" for your downloading pleasure. "Animal Animal" shined in the late summer sun as a bubbly cut of carefree pop effervescence, but "Funny Thing" doesn't waste any time giving you the business, all driving, churning synths and a huge chorus that stands out as his finest pop moment yet. Big stuff, people.

MP3: "A Funny Thing" - Penguin Prison [expired]

It's been amazing to see the reception Penguin's already gotten on UK radio, with fervent support coming from Radio 1, XFM and NME Radio for both tracks. The single's out November 23rd and comes sporting another beautiful round of cover artwork from the lovely and amazing FRAU GRAU, and will be available as usual from the Neon Gold Shop in the US and at Puregroove for our international customers. With remixes for both tracks coming in from The Sound of Arrows, Monarchy, Jakwob and more, this is sure to be an immensely popular release, so drop down and get your order on before it's too late.

Gold: Cause For Alarm

The paperbugs need to fear the future. It is coming. It is inevitable. It is not gloom and doom, it is not guns and food in a wilderness cabin, it is not the end of the world, and it is not the inflation or deflation debate. It is simply a Gold bubble.

Of course, when I say that it is a Gold bubble, what I mean is that the Gold bubble has just begun. This occurred when Gold broke out above $1000 strongly, to create $1000/oz as a floor for Gold rather than a ceiling. This clears the way for much higher Gold prices. I don't mean to misrepresent myself as a prognosticator, as we are all just bozos on the speculation bus, but I think the path is now clear for Gold to go much higher. I believe that $2000/oz. is a conservative target for Gold, but $3000-$10,000/oz. wouldn't shock me. In any case, I use the Dow to Gold ratio to guide my thoughts and decisions. I believe the Dow to Gold ratio will reach 2 at a minimum and less than 1 this cycle wouldn't be surprising.

While I place no faith in the government to do anything correctly or in "the people's" best interest (I am not a paperbug that believes in magic government powers, after all), I do recognize the bureaucratic power to destroy a currency. Will they succeed or will we have a Prechterite crash that causes the U.S. Dollar to rise to heights unimagined? These are interesting academic exercises to me, but I am no longer interested in the academic.

What I know is this. The US Dollar provides unacceptable risk and doesn't compensate its holders to take that risk. Period. Cash is king, but one had better hold the correct form of cash! The US and UK are on a crash course with reality and I doubt, if history serves as a reliable guide, that the outcome will be pretty.

Stocks, real estate and corporate bonds are toast, and everyone knows it. In fact, those who invest in such assets are relying on governments to bail out the system many times more. When's the last time that relying on governments to do the right thing made for a wise investment decision over the longer term?

That leaves us with commodities. But the ironic thing is that commodities don't usually do well when the economy is moribund. Sure, they can do well if inflation is rampant and out-of-control, but this is a wish and not a guarantee.

I have cast my lot with Gold. It is an international currency and reflects a cash holding that cannot be debased by government decree or apparatchik stupidity. Is Gold money? Some say it cannot be spent at a Wal-Mart and thus is not money and yet go on to recommend government bonds or Swiss Francs in the same article! When's the last time you used Treasury Bills, foreign currency or stocks to pay for groceries in the United States? If Gold wasn't money, governments wouldn't hoard it and list it on their balance sheet as money.

Anyhoo, Gold is on the threshold of a MAJOR move higher in my opinion. This is not inflation or deflation or anti-Dollar, this is a secular bull market set to enter its mania phase. Gold has been on the rise steadily for ten years. Did I mention that it has trounced stocks, cash, and T-Bonds over the last decade? That's right, over a 10 year period, a piece of "worthless" metal has outperformed stocks. How can Bloomberg and other Wall Street mouthpieces take themselves seriously since this is the case?

Really think about the implications of this fact: Gold has outperformed stocks for 10 years (actually more, but let's stick with an indisputable fact to keep randy paperbugs from trying to argue on a technicality). A piece of metal is a better investment than a bunch of really smart guys with ties and computers. What does this mean?

Don't underestimate Gold here. Don't underestimate the cyclical and secular bull market that continues to astound the critics while remaining a hated and much-maligned asset class. You want love? Go watch CNBC. You want acceptance? Buy what Cramer tells you to buy. You want to make money? Buy an asset class that has gone up only 4 fold in the last decade, is at all time highs, and is hated by mainstream media sources. Every time Gold drops $10/oz., some clown from "traderbank" or some other unknown or even a known outfit has a sound reason why the Gold bull market is over.

From your experience, whatever it may be, does this sound like the way bull markets end? Does anyone remember the dot.com boom? Does anyone remember the oil and real estate bubbles? By the way, watching those who are still touting the oil and real estate bubbles is actually a good exercise. Listen to their wonderful arguments that are based on "sound" fundamental principles and then spook the reality: every asset class has its time under the sun. It is simply Gold's turn.

Gold is not a religion to me, though it is my passion to spread the word of where to put your money. Oil goes up 14 fold over ten years and then collapses. Gold only goes up 4 fold in 10 years, but now it is supposed to collapse without the final mania phase? Yeah, right. And I should buy stocks right now at the top for the long haul, right?

Here's a current 6.5 year daily chart to show you where I think we are in this current intermediate-term Gold bull market thrust, which is not over in my opinion. This ain't mainstream, people. This is calling for a bubble in a freakin' piece of metal. And believe me, investing in Gold is the optimistic scenario. I in no way would invest in Gold if I thought society was about to collapse. In the 1970s, Gold went up 24 fold and society didn't collapse. Investing to me is all about accepting that various asset classes fall in and out of favor. This is what the Dow to Gold ratio is all about. I am not advocating trying to eat Gold, oil, stocks or paper currency instead of food! Without further rambling, here's the Gold chart with my thoughts:

I think we hit $1200-$1600 before spring is over. Could I be wrong? Of course! Could the Gold bull market be over? No. Not possible. An asset class bull market does not end with an absence of public participation and mainstream media scoffing. We are just getting warmed up. The herd still wants to buy Apple, not Gold. Have you purchased any physical Gold yet?

The End of the Recession

Mainstream articles like this one are announcing the end of the recession due to a rise in Gross Domestic Product (GDP). This the folly of modern mainstream economics and why it fails to predict much of anything when it comes to investing or the actual economy. You see, government spending is included in the GDP report.

So, if we put our children and grandchildren on the hook by borrowing even more money at the federal level that we don't have and then spend it on a mountain of consumer goods, our economy will continue to grow and we will never have to have a recession again because the GDP will continue to rise. In fact, if we just hand citizen in this country $100,000, we could have a GDP report of economists' dreams. Paul Krugman might even be happy about the levels of stimulus. Of course, the borrowing would have to accelerate every quarter in perpetuity until our currency was destroyed and our lines of credit cut off.

You cannot borrow your way out of a debt crisis. Yes, you may be able to destroy the value of the currency by being more reckless than a drunken sailor, but you cannot create prosperity by borrowing from Dick to pay Harry and then borrowing from Jane to pay Dick, etc. We are creating another tower of debt in the public sector to replace the collapsing tower of debt in the private sector. The non-federal, for-profit federal reserve corporation is happy to have a new debtor lined up and could care less if the debtor is private or public, as long as the bankstaz make their money.

This path of public borrowing has never worked in history and isn't going to work now. These things are not helpful to speculators, where timing is important. Those "in it for the long haul" need to recognize, however, that the general stock and real estate markets are not where you want to be for the next 5 years (10 years?). A few companies that are closer to the government money spigots (e.g., Goldmun Suchs) may do better than others, but companies are suffering and will continue to suffer because the "real" economy is in shambles right now.

Over the longer term (i.e. years, not months), the stock and real estate markets will continue to reflect this reality. The paperbugs don't want to hear it, but a shiny piece of metal called Gold will continue to outperform the stock market for some time to come (as it has for the past decade). Until the Dow to Gold ratio hits 2 (and possibly below 1 this cycle), general stocks are to be avoided other than as a trade. Gold is not about to collapse, but stocks are. This is the big picture that continues to expose the folly of apparatchiks and their court economists.

For when it is all said and done, the real economy is going to continue to contract and all that will be left at the end is mountains of unnecessary public debt for the next generation. The "stimulus" will help a few in the short term at the expense of the country's economic long-term future. At least we know the for-profit, non-federal, private federal reserve corporation will have enough interest payments coming in from the public kitty to keep their counterfeiting franchise going for another few years.

Vote for me!

It's been a while since I've posted here. But, just in case you haven't heard about this in my previous post, please vote for me on Interactive Male! Here's the link:

Gay Comic Geek's Kiss

Vote for me!

It's been a while since I've posted here. But, just in case you haven't heard about this in my previous post, please vote for me on Interactive Male! Here's the link:

Gay Comic Geek's Kiss

I WANT YOU ENDLESSLY.

This is big news. Fyfe Dangerfield, ringleader of one of our favorite bands of all time, Guillemots, is back and better than ever with his first ever solo album, Fly Yellow Moon, due in early 2010. We were lucky enough to receive an advance copy a few months back and it's really all we've been spinning since - it's quite literally nothing short of amazing. "When You Walk In The Room" is the first track on the record and it's an absolute belter, exactly the kind of thing you'd hope for from a Fyfe Dangerfield solo record. Fyfe's in rare form here, his off-the-wall vocals riding a spastic beat and cacophonous guitars for 3 minutes and 28 seconds of leftfield pop perfection.

Fly Yellow Moon is a streamlined pop masterpiece with a number of tracks on par with anything off of Through The Windowpane (truly one of our most cherished records of all time), and anyone seeking more evidence needn't look further than Fyfe's beautiful new website, where you can stream some of the other album highlights. Tracks on the streaming player include "She Needs Me" - which comes off like a number one hit from a bygone era, complete with disco strings and immense brass sections - and "Livewire", a sparse acoustic number that's genuinely one of the most beautiful songs we've ever heard. To say we're excited about this record would be a vast, vast understatement. Here's your exclusive first taste.

MP3: "When You Walk In The Room" - Fyfe Dangerfield [exclusive]

Kinross Gold Buy Alert

For those seeking a blue chip producing Gold miner. Gold stocks are getting hit right now, creating buying opportunities. I think Kinross Gold (ticker: KGC) has hit a level that has been a successful buy point in the past and it is a good company for the longer term investor. Here's a 30 month daily chart:

Nothing is guaranteed when investing, but investing in a blue chip Gold miner with good growth potential when it is oversold and near its 200 day moving average is as safe as it gets in the Gold sector. I differ from most of the herd in that I think Gold stocks are going to shake of the stock market weakness, hold their ground, and move higher along with the price of Gold. I could be wrong, of course (it wouldn't be the first time...).

It's looking good for removing the domestic partner "sunset" provision from the DC marriage equality bill

If I were a betting woman, I'd say there will be no mention of ending domestic partnership in the marriage equality bill that goes through the DC City Council.

The first panel of witnesses at yesterday's hearing on marriage equality in DC included Bob Summersgill and Rick Rosendall, the two people most responsible for strengthening the domestic partnership laws in DC during this decade. Both testified that domestic partnerships should not be eliminated in this bill. In response to a question from Council Member Muriel Bowser about whether domestic partnership should be ended, Bob Summersgill said "not now" and also that we should think carefully about taking a status away from people who can’t marry even after this bill. Rick Rosendall made a point of saying that there was no rift between his position and that of Council Member Catania, that the two of them had chatted, and that both support equality for all DC families.

The issue came up later in the questioning of Michele Zavos, a long-time practicing attorney in DC who probably has had more gay and lesbian clients in family law matters than anyone in the city. (Hey, she was my lawyer when I adopted my daughter 26 years ago!) Michele testified passionately about the desire of her clients to marry where they live rather than in distant states and about the lesser legitimacy many attach to domestic partnership. She also expressed her own outrage that her 24 year old daughter could marry her boyfriend but she (Michele) could not marry the partner who had cared for her through two bouts of cancer. When CM Bowser asked her about domestic partnership, Michele also said the Council should wait on this, and she noted the history of marriage as an institution that oppressed women and the importance of providing a alternative choice.

At this point, the bill's chief sponsor, Council Member David Catania, did express his willingness to wait on the domestic partnership issue, but he also put on the record some statistics about the tiny number of different-sex couples who have registered in the places he stated were the three jurisdictions permitting such registration -- DC, Maine, and Hawaii. I'm thrilled to hear that he's willing to address domestic partnership at a later time, and hopefully I'll have a chance to discuss with him the numbers he put on the record. First, Hawaii doesn't allow different-sex couples to register at all, so I truly don't know how he could have statistics about how many different-sex couples have registered! Hawaii extends its reciprocal beneficiary status only to those who cannot marry. So the only different-sex persons who can register are relatives prohibited by incest laws from marrying each other. But neither CM Catania nor CM Bowser seemed to know that our DP law extends to "non-couples," including relatives. I mean maybe they do know it, but all either of them referred to was same-sex and different-sex couples. (CM Catania also missed a number of other places that allow registration beyond same-sex couples, all of which I listed in my testimony).

Committee chair Phil Mendelson suggested to Michele Zavos that he sees domestic partnership as like a contractual relationship and that the question for him was whether we wanted to have a relationship defined in that way. For me, it was an interesting window into what he might be thinking. Colorado's designated beneficiary relationship is more akin to a contract than a typical domestic partnership, so maybe DC will move in that direction once we have marriage equality. In any event it seemed unlikely that CM Mendelson would want to address domestic partnership in this bill.

Which gets me to my testimony. CM Bowser left in the middle of the panel before mine. I popped up as I saw her gather her things and handed her a copy of my testimony with a quick comment that it was about the DP issue. I'll try to follow up with her. CM Catania was there while I testified but asked nothing; neither did CM Mendelson. It was well passed 7 pm and they were only halfway through the witness list, so I certainly didn't take it personally.

Plus I'm thrilled to see that the AP report on the hearing notes the opposition to ending domestic partnership at this time and CM Catania's willingness to reconsider this issue.

The First Indices to Crack

The Russell 2000 small cap index ($RUT) has clearly broken its multi-month trend line as of the time of this post. Here's a 1 year daily index thru part of today's action:

The Dow Jones Transportation Average ($TRAN) is right there with the Russell 2000 (daily 1 year chart):

The first major cracks in this general stock bear market rally have occurred. Other indices are soon to follow. The decline may or may not be orderly and may or may not be fast, but it will be devastating to investor psychology. This cyclical-within-a-secular general stock bear market has a long ways to go. Gold and Gold stocks will weather the storm this time, unlike last year, but will still have corrections. This cyclical-within-a-secular Gold and Gold stock bull market has a long ways to go. Today is actually a good buying opportunity in Gold and Gold miners. The Dow to Gold ratio will get to 2 and may very well go below 1 this cycle. Nothing has changed, but investor sentiment is about to turn majorly negative on the stock market. The US Dollar may rally, but the Gold price will hold firm and I believe will rise significantly over the next several months.

TRICK OF THE LIGHT.

Wolf Gang first made waves with their brilliant Pieces of You 7" (of which we still have a few final copies remaining in the Neon Gold Shop) last June, and now they're stepping out with an immense follow up on newly-minted Manchester imprint Hit Club next month. "The King and All of His Men" was the first track we ever heard out of the Wolf Gang camp and it remains one of the very best, with London up-and-comer Blue May turning in an top class production job that manages retain the rough charm of "Pieces of You" while simultaneously elevating their sound to new levels of pop perfection. Wolf Gang ringleader Max McElligott absolutely kills it on the track (look no further than those infectious "ooh-ooh-ooh-oohs") and with their forthcoming debut album in the pipeline and a seemingly endless repertoire of choice tunes to draw from, you can rest assured that this is an act that's going to go very, very far in 2010. Exclusive first listen below.

MP3: "The King and All of His Men" - Wolf Gang [exclusive]

Junior Gold Miner Stock List Feedback

has been fantastic. The internet is a wonderful tool. I have saved and stored every one's feedback and will be updating the list soon. Several more companies will be added to the list.

I also hope to get info on float, market cap, and price into the spreadsheet soon. Eventually, I would like to be able to chart this list as a quasi index on a weekly basis. Please keep the suggestions coming and anyone interested in improving the spreadsheet I posted and sending it back to me for re-posting here is more than welcome!

Again, I am no mining expert but I am looking to play the junior Gold sector and it's fraught with peril. I appreciate every one's help and comments very much. I didn't know so many interested people were out there.

Cheers!

Volver Volver Volver Volver

I've been distracted (bewitched? bothered? bewildered?) and disorganized recently, so I have nothing all that serious to post. Until I get my act together, here is some music.

First, a neat video of Chavela Vargas singing a song on Spanish TV about a decade ago. I love tough old ladies like her, and am moved both by her performance and by the love the audience and her fellow singers send her.

This is the version of "Volver" (different song, similar title) used in Almodóvar's film Volver. Penelope Cruz lip-synched it, but it was sung by Estrella Morente. There's a music video of Cruz' performance (not exactly as it appears in the movie, but a promotional clip), but this video lets you concentrate on the song.

Here's Morente herself performing.

Finally, here's the original tango version of "Volver" by Carlos Gardel. And here Gardel sings it in a movie, with Spanish subtitles.

Volver Volver Volver Volver

Here's Morente herself performing.

Finally, here's the original tango version of "Volver" by Carlos Gardel. And here Gardel sings it in a movie, with Spanish subtitles.

Several witnesses will urge DC to retain domestic partnerships

Hearings on the bill to grant marriage equality in the District of Columbia begin today. So many people signed up to testify that the Committee on Public Safety and the Judiciary, chaired by Councilmember Phil Mendelson, has already announced that it will hear the first 100 today and the remaining ones next Monday.

I am number 49 on the list and so I will be testifying today. Naturally, I support marriage equality, but the bulk of my testimony urges the committee to remove the section of the bill that would end new domestic partnerships in DC effective January 1, 2011. You can read my entire testimony, but here is an excerpt:

From its inception in 1992, the status of domestic partnership in DC was about recognizing family relationships other than marriage. Unlike some jurisdictions, it was not a status granted only to same-sex couples and only because of their exclusion from marriage. Not only can different-sex unmarried couples register, but two people not in a romantic couple, including relatives, can register if they live together in a “committed, familial relationship.” Availability of marriage for same-sex couples, as a statement of the equal value of gay and straight relationships, does not diminish the appropriateness of providing a legal status to those who do not marry...

Once DC authorizes marriage for same-sex couples, it will be appropriate to reevaluate DC relationship recognition law. That work must include considering the needs of the wide range of family relationships that exist in this city – the very motivation for instituting domestic partnership in 1992. This is a critical undertaking, and we have numerous models to consider.

Let me give you just one example. The first substantial benefit granted to domestic partners in this city was the ability of a DC government employee to include a domestic partner on his or her employee benefits, including health insurance. Today, Salt Lake City, Utah public employees can cover on their benefits an “adult designee” and that person’s children. The employee and the adult designee must have lived together for more than year, must intend to continue living together, and must be economically dependent or interdependent, according to specific criteria. The City Council members who enacted this law articulated that they were recognizing nontraditional families and support systems, that they were allowing unmarried employees to provide for a primary family member, and that true equality recognizes the needs and living situations of all employees.

This Council could embark on such a reevaluation now, as part of this legislation. I believe the better course of action, however, is to leave our domestic partnership scheme intact until marriage equality is in place. At that point, I will wholeheartedly support, and gladly participate in, the Council’s careful determination of the needs of the wide range of relationships that make up the families of the District of Columbia.

I am in good company. Bob Summersgill and the vice president of the DC Gay and Lesbian Activists Alliance, Rick Rosendall, both oppose ending domestic partnerships. They are the number 1 and number 2 witnesses today, so this position will be articulated early on in the hearings. Bob and Rick have worked with Councilmember Mendelson over many years to create the domestic partnership regime we have in place. The New York-based Alternatives to Marriage Project has already submitted testimony opposing the end of domestic partnership here, and they are urging supporters to email the Councilmembers.

I'll be posting about today's hearing later.

Inflation, Deflation or Just Gold?

The whole inflation versus deflation debate is actually much less important to me now that I understand the role of Gold. Gold protects against financial and fiat currency instability and a loss of confidence in "the powers that be." It is Gold's time to shine as an asset class during this Kondratieff Winter, whether the Dollar does a Prechter deflationary death dance higher first or a straight Sinclair inflationary flop down to the 52 U.S. Dollar Index level (from the 75 close on Friday). People who only see "Dollar Up, Gold Down" and vice versa are missing the bigger picture. All global fiat currencies are sinking together, just at different rates. It is simply Gold's turn as an asset class. Cycles. Greed. Fear. Gold will be a lousy investment again in 5-10 years, but it's WAY TOO EARLY in the cycle to be worried about "the" top in Gold. Wake me when we get to $1500/oz. and I'll be happy to revisit the issue (with another bullish commentary about how the next stop is $2,000).

So, whether its deflation or inflation or both, Gold is going higher. This a confidence issue and a secular cyclical phenomenon. "Gold good, stocks bad" is a trend set to continue.

Having said this, I still enjoy the inflation versus deflation debate. From a practical standpoint, as Martin Armstrong has said (see below), big money that moves currency markets can flow almost anywhere in the world to find a safe haven. In the early 1930s, capital flowed into the United States once the major economies like Britain and Switzerland abandoned the Gold standard, causing a crisis in confidence in these previously "good as Gold" currencies. This global flow of capital into the U.S. Dollar caused our Dollar to rise in relative value, aggravating the natural state of deflation we were experiencing at the time.

Naturally, Europeans sought the safety of a foreign currency backed by Gold once their own currencies were aggressively devalued by discontinuing their respective Gold pegs. In fact, if the United States stuck to its guns, it probably would have lost all its Gold to the hoards of paper note-bearing European souls looking for real money. American citizens followed suit and traded their notes for Gold (benefit of a true Gold standard: no commissions or premiums!) - these evil Gold hoarders of course had to be stopped and/or punished. Gold was thus confiscated from American citizens (with safety deposit boxes at times watched by officials to prevent clandestine Gold ownership) and the American Gold standard was finally weakened to help break the cycle of Gold loss and deflation. An overnight 69% currency devaluation ($20.67/oz. to $35/oz.) and the criminalization of private Gold ownership in the United States (ending a "true" Gold standard period in this country) was all it took. As destructive as they were to confidence and people's savings, these Roosevelt mandates helped fuel a weak reflationary cyclical general stock bull market (1933-1937 was not a weak cyclical bull market for Gold miners, by the way).

Will we repeat a 1930s deflationary "collapse" scenario? Will we have a major currency event? Though deflationary forces are strong due to real estate and banking/credit/debt fiascos, confidence in the Dollar is low. The world's greatest debtor nation has not inspired much confidence in global market participants seeking a safe haven. And I am not talking about bear market currency rallies here, I am talking about the dominant long-term trend.

Will Bernanke and his U.S. Treasury lackeys finally destroy the last shred of confidence in Uncle Buck with their idiocracy? Will capital flow into or out of the United States when the next wave of the global crisis occurs? Again, not talking about dead cat bounces here, talking about the dominant long-term trend. Global capital flows have more control over the fate of the Dollar (and every international currency) than Ber-spank-me, but Benny's actions can certainly cause some of our creditors to figure out sooner that it may be better to walk away and simply write off their bad debts. Whether you've chosen sides on the inflation/deflation debate or not, this debate does allow you to recognize the nasty war of fundamental forces that is sure to cause further economic chaos in any scenario.

Me, I see further capital flight away from many financial casinos/markets around the world coming. I see a further loss of confidence in bankstas, Wall Street hustlers and paper magic notes designed to explode. I think some of this global money will be seeking a safe haven in Gold. I am not talking massive amounts of money, as Gold is a small market. I am talking about a few more "elephant" investors (i.e. governments, large private institutional funds) around the world deciding to up their physical Gold insurance from 1% to 5% of their portfolio. That's all it would take to start/continue a big move higher in the Gold price from current levels.

Gold is safe, it is reliable, it requires no government assurances or bail-outs to stay in business, it does well when there is little confidence in the system and it is not debt-based. These are all things you want during a contractionary secular bear market in general stocks and real estate. Sure, governments can try to further tax or even confiscate Gold (again), but the government historically gets too tyrannical in trying to tax or confiscate all kinds of personal property at this stage of the economic cycle (including stocks and real estate). This is hardly a unique problem for those who take the plunge with Gold, despite paperbug concerns. At least Gold can be held quietly "off-ledger" until more rational minds prevail (this is not as easy with stocks and real estate).

In fact, if the government does "ban" Gold or tax it more excessively than it already does, nothing could be more patriotic than to completely ignore such a decree as a moral act of civil disobedience. By the way, if anyone in officialdom is reading, I sold all my Gold last year and this is just an academic intellectual exercise designed to make sure Americans follow everything their mama guvmint sez by pointing out the insanity of messing with Big Brother, who is all-knowing, all-powerful, and should never be disobeyed. I am a paperbug after all, I swear.

I believe the global paper fiat system is breaking down. I believe people will increasingly trade their paper for Gold regardless of whether we undergo deflation or inflation. After a 20 year bear market from 1980-2000, Gold ain't done after a 4 fold gain. Has everyone forgotten how paper fiat market bubbles and Gold manias work?

I suppose that the economic events of the 1930s or 1970s, both inducing Gold and Gold stock manias, could not possibly happen again. Ever. 40 year intervals (if this is, perhaps, say a normal repetitive cycle) would put us at the 2010s for a new Gold mania, but Gold is dead as an asset class forever. Gold will never again have a serious bull market. Oil can go up 14 fold in 10 years but Gold couldn't possibly go up even 10 fold in the same rough period (which would put us at $2500/ounce). The last bull market in Gold on a fiat paper system took Gold prices up 24 fold in 9 years ($35 to $850). The S&P 500 went up 16 fold from 1980 to 2000. This time, a 4 fold gain over a decade in a hated asset still considered worthless by the mainstream crowd is a bubble mania waiting to pop any second and take the Gold price back to Prechterite levels?! No sale, sorry...

I believe $2,000/oz is a minimum conservative upside target for Gold and it wouldn't shock me to get to $10,000/oz. Until the Dow to Gold ratio gets below 2, I wouldn't even consider that the Gold bull market might be over. We've got a long ways to go. Ignore the short-term noise and the paperbugs. Forget the $25-50 swings. Sit tight and be right.

Below is a Martin Armstrong essay that inspired this post, courtesy of Scribd:

Deflation or Inflation--Which is More Likely? 9/29/09

Junior Gold Mining Stock List

I have created a junior Gold Miner stock list/index for my own use and thought I would share it for those who may be interested. I was hoping that by sharing this list, I may get some feedback and suggestions for improving this list. This list is very important to me for one reason: I plan to use it to make money.

I believe the Gold mania phase of this secular Gold bull market is fast approaching, which means that junior Gold stocks are going to start flying higher, as many already have since the terrifying fall of 2008 lows. Those lows were the buying opportunity of a lifetime for those brave enough to take the plunge. However, in my opinion, the party in junior Gold miners is just getting started. Getting back to last year's highs is just the first step for this sector.

The Van Eck Global junior Gold mining ETF should be out before the end of the year and for many, this is a much easier way to play the sector. I will certainly be participating in this ETF once it becomes available (pending ticker: GDXJ and see my previous post on this index here). However, this ETF has some flaws that include leaving out some good junior Gold miners and having a strange position in some larger silver miners that will at least initially make up the ETF's highest percentage holdings.

This list I created is a way for me to track the junior Gold stock sector. It is comprised of multiple sources, as I am not a geologist and do not have a mining background. I used the opinions and leg work of others to create this list. The various sources are included in the list and some stocks came from more than one source. Some of these sources may be more informed than others. Some of these companies are riskier than others (e.g. explorers versus early producers). All of these companies are listed on Canadian and/or American exchanges.

The charting opinions are mine alone and you can take them or leave them. I am approaching this sector from a broad diversification strategy standpoint and leaving the fundamental analysis to those who have more mining experience than I. My goal is to have a readily available list to consult from so that when I have more capital to invest, I immediately have a very short list of candidates to choose from without spending a lot of time doing research.

I have made the decision that from this point forward in the Gold and Gold stock secular bull market, I will be putting a larger portion of my speculative funds into junior Gold miners and a smaller portion into my favored larger cap Gold miners (I currently like Royal Gold [RGLD], Kinross Gold [KGC], Agnico Eagle [AEM], Yamana Gold [AUY] and Goldcorp [GG] as larger cap stocks). I had previously only put my speculative money into larger cap Gold stocks. Physical Gold bullion is the anchor of my portfolio but I don't trade it, whereas I plan to buy Gold miners on corrections and sell them when I think they are significantly overbought on an intermediate-term basis.

There is greater leverage in junior Gold stocks once the mania begins, but there is also greater risk. The sector is certainly not for everyone and provides little to no dividends/income. Higher risk = higher reward for those inclined to speculate. Once Gold fever hits (we're getting close but we're not there yet), small cap Gold stocks will outperform large cap Gold stocks. However, some of the firms in my list will likely go bankrupt and/or be de-listed, creating complete loss of capital. This is why diversification is so important in this sector for anyone who is not an expert investor/analyst.

I would really appreciate anyone who gets any benefit from this list or who has interest in this sector passing on any relevant information, which I will add if appropriate. Perhaps you know of the next "big" junior Gold miner not on this list or know additional information about a stock already in this list. I do not and have not ever subscribed to any letters, etc. from any of the analysts listed as references for the list.

If there is sufficient interest, I will be happy to post an updated list periodically with updates on my "charting"/technical analysis take on these firms, as I will be doing it anyway for my own benefit/use. I will only buy those firms ranked as a "1" in the charting column, will hold those marked as a "2", and will consider taking some profits or even completely exiting positions in those stocks ranked as a "3" on this list. I own some of the stocks in this list currently, but I do not currently own a majority of the stocks on this list.

Also please note that I am not interested in putting silver stocks into this list. Though I know silver stocks will have their day in the sun and I will be interested in them later in this economic cycle, my focus is on Gold stocks right now, not silver stocks.

I also currently am not including stocks that are not listed on American or Canadian exchanges for selfish reasons: the charting site I use (stockcharts.com) doesn't provide me a way to chart issues from other countries (it also doesn't seem to allow me to chart five letter pink sheet ticker symbols). There is enough global geographic representation in this list where I don't feel I'm missing out too much, but this is a another weakness in the roster creation process to be aware of. I also have NOT done my fundamental homework on these firms and you are thus left to do your own diligence on any stock you are thinking of investing in - some of these stocks may end up being "dogs" and may wallow near their lows or go out of business even as Gold rockets higher.

Without further ado, here is the list of 124 junior Gold mining stocks, courtesy of Scribd:

Junior Gold Mining Investment Spreadsheet

I have this list as an Excel spreadsheet, which is how I created it and use it so that I can do data sorts and other manipulation. It seems easier to use and review to me. If anyone is interested in obtaining a copy of this Excel file, drop me a line via my blog in the comments section or email me at abrochert@yahoo.com (no charge for this list and please put "junior Gold stock list request" in the email subject line if you email me so I know it's not spam). I would be happy to post the Excel spreadsheet file, but I don't know how to do this currently.

[EDIT: A reader more tech savvy than I pointed out that if you download this list from Scribd, you can just select ".xls/Excel" as the file type and voila! I am still happy to email those who don't want a Scribd account or have any trouble getting this is Excel format]

Happy speculating!

Gold - Ultra-short term

Gold looks great right now. Another day comfortably above $1000/ounce, further establishing this psychological price level as a floor instead of as a ceiling. Once you're into 4 digits, changing the first number in the four digit sequence no longer seems impossible. Currently, we are in a short-term consolidation pattern that looks very healthy.

Here's a 1 year daily chart of the GLD ETF, used instead of the Gold price because it shows volume patterns:

Next stop for Gold is $1100 and there's only psychological resistance at this level (i.e. may not actually stop at $1100 for any length of time). The GDX ETF looks like it is about to head for its all time highs:

The opposite volume pattern is happening in the Dow Jones Industrial Average. Volume has fallen off a cliff over the past 6 months as the Dow moves higher while GDX volume has expanded to new impressive highs over this time.

Gold often corrects towards the end of October (a seasonal pattern) as it is doing now. This is healthy and normal. I don't think we'll have to wait more than a week or so for another move higher. If the consolidation lasts longer, that would actually be even more bullish, as this means it is a major correction in this intermediate-term bull trend rather than a minor correction. A major correction that moves sideways without a significant price retracement lower suggests that the upside move that follows it will be extremely strong, so another 2-3 weeks of sideways action would not upset me at all, I just think it's less likely.

Today's commitment of traders report continues to show expanding open interest (i.e. greater number of open contracts), which is bullish. People focusing on the "high" short position don't get it. They should be focusing on the fact that every short needs a long to go with it, so why aren't they calling it a high "long" position? The Gold bears are scared right now, not the bulls. Expanding open interest in the futures market is a healthy sign during a bull run, not a bearish sign.

The institutional investors are starting to herd into Gold and Gold stocks (articles like this are becoming more and more frequent). This is pre-mania type of fundamental news. The big money moves in and the price starts to rise strongly and inexorably for a while. After this occurs for several more months to a few years, retail investors will finally show up in droves and grab the bull by its horns for the final zany rush higher. We are currently a long way away from this point. For now, Gold bulls should just relax, stay the course and enjoy the ride higher.

Poetry Friday - Great Oz

You are not, nor were meant to be, Great Oz.
On such a scale, of course, you count for nothing.
Still it must mean something that because
of you I've known such sorrow and self-loathing.
Years will pass, of course they will erase
the pain somewhat. Of course. No doubt
in time I'll lose the memory of your face.
It's not a thing I care to do without,
but time goes on. You'll dwindle till you're small,
then smaller, till you're lost to sight. I'm sure
I'll wonder why I wrote these lines at all --
how unimportant, actually, you were.
And when I write my memoirs, I will laugh,
and sum you all up in a paragraph.

-----
Memoirs? Hah. Not bloody likely.
I think it was about this poem that a friend, on reading it, asked me in surprise, "Duncan -- do you want me to tell you how ambivalent that poem is?" Which let me know that I'd achieved what I was trying to do in it. I still wonder sometimes about his reaction, though: Are poems not allowed to be this ambivalent?
Anyway, it dates from 1979 or 1980.

Poetry Friday - Great Oz

Human Rights for Me

A strange little column/post by Eyal Press at the Nation site, "Obama, Human Rights, and the Chutzpah of Conservatives." Oh, I guess it's not really strange, it's just typical liberal apologetics for U.S. human rights policy. Press begins by quoting Bret Stephens, a Wall Street Journal op-ed writer, who criticizes the Obama administration for not pushing other countries hard enough on human rights. Stephens enumerates the countries -- China, Sudan, Iran, and Burma -- he thinks need more pressure as opposed to "engagement." Not a word about Honduras, though, nor Israel. Well, Stephens has a lot of matters on his plate. He concludes:

It also takes a remarkable degree of cynicism—or perhaps cowardice—to treat human rights as something that "interferes" with America's purposes in the world, rather than as the very thing that ought to define them. Yet that is exactly the record of Mr. Obama's time thus far in office.

I can't remember a President before Obama who concerned himself with human rights, beyond talk. Generally this sort of complaint turns up during every administration, from whatever side happens to be out of power at the time. I recall Jimmy Carter being jeered at by conservatives for his professed concern with human rights: self-styled realists and pragmatists from Carter's right complained that a dogmatic concern with human rights would interfere with America's purposes in the world. Ronald Reagan, on taking office, "pushed to overturn an arms embargo imposed on Guatemala by Carter because of its ghastly human rights record." A writer in the liberal Washington Monthly allows that "Reagan's indifference to human rights abuses committed by the United States' erstwhile allies in Central America is an especially ugly stain on his presidency. Yet, as time progressed, there was one place where he did apply the logic of bringing human rights into public policy: the Soviet Union." Reagan was less concerned about human rights in China, though. And after the Tienanmen Square massacres of 1989, George H. W. Bush moved with indecent haste to restore most-favored nation trade status to China, "asserting that the U.S. must maintain a dispassionate view of world events when considering its own economic interests ... Industry reaction was predictably mixed, with textile lobbyists debunking the decision, apparel groups staying neutral and importers hailing it." Ongoing human rights violations in China didn't stop George W. Bush from personally attending the 2008 Beijing Olympics.

Carter himself had been equally selective in his concern for human rights, from Latin America to the Indonesian slaughter in East Timor, which Carter's administration funded and supplied. (As did all of his successors through Bill Clinton.)

The "chutzpah" about human rights, then, is a bipartisan affair, as Eyal Press shows. "In this as on other matters, [Obama] has made it clear that he is a cautious realist, not a crusading idealist." Besides,

As Stephen Walt usefully points out at the Politico, which invited various analysts to assess whether Obama is "punting" on human rights: "Of course he is. No U.S. President--not even Jimmy Carter--was ever willing to spend a lot of blood or treasure solely to advance human rights, and Obama isn't going to be the first. And given that the U.S. record on this issue looks has been tarnished by Abu Ghraib, Guantanamo, forced rendition, "enhanced interrogation" (aka torture), extra-judicial killings (aka "targeted assassinations"), our reaction to the Goldstone Report, and the thousands dead as a result of the invasion of Iraq, I'd say a bit of humility on this front was probably in order."

I'd agree that humility at least is in order, but notice that bit about being "willing to spend a lot of blood or treasure solely to advance human rights." It's such a typical evasion, used especially by liberals to defend their side's human rights violations, as if they'd like to do something about the madness but we can't be everywhere at once, and besides, don't you leftist pacifists always criticize the US for trying to be the cop of the world? (I believe that Obama himself used this trope to excuse his foot-dragging after the coup in Honduras.) The thing is that U.S. Presidents, including Jimmy Carter, have been quite willing to spend a lot of treasure and blood (primarily the blood of dusky foreigners) to violate human rights and suppress democracy around the world. The trouble isn't that we're reluctant to intervene in other countries' affairs, but that we very happily and consistently do so.

Human Rights for Me

It also takes a remarkable degree of cynicism—or perhaps cowardice—to treat human rights as something that "interferes" with America's purposes in the world, rather than as the very thing that ought to define them. Yet that is exactly the record of Mr. Obama's time thus far in office.

As Stephen Walt usefully points out at the Politico, which invited various analysts to assess whether Obama is "punting" on human rights: "Of course he is. No U.S. President--not even Jimmy Carter--was ever willing to spend a lot of blood or treasure solely to advance human rights, and Obama isn't going to be the first. And given that the U.S. record on this issue looks has been tarnished by Abu Ghraib, Guantanamo, forced rendition, "enhanced interrogation" (aka torture), extra-judicial killings (aka "targeted assassinations"), our reaction to the Goldstone Report, and the thousands dead as a result of the invasion of Iraq, I'd say a bit of humility on this front was probably in order."

Gold Against the Dow - The Forest

Those who have read my rants are probably tired of hearing about the Dow to Gold ratio, yet my realization of the significance of this ratio and my desire to spread its message began my blogging journey. Please excuse me if I continue the theme. If you are not familiar with the Dow to Gold ratio, start with this link for background information.

Ratio charts get into an important concept of relative value and relative gains. These things are extremely important in a paper currency world where the value of money itself is constantly changing. In 95% of cases, this is due to a loss of value in the currency, as all paper money (i.e. fiat) systems are abused until the currency becomes worthless and is replaced with a new currency. No historical exceptions actually.

In other words, breaking even when investing may mean you are losing money and potentially lots of it. An example of this concept can be found using a nominal versus an inflation-adjusted chart of the Dow Jones to show two very seemingly dissimilar bear markets - the 1930s and the 1970s. Deflation versus inflation. The worst bear market of the last century (the 1929-1932 bear, during which the Dow Jones lost 89% of its value) versus the choppy 1966-1982 bear market where the Dow Jones stayed in the 600-1000 range. First is a nominal (i.e. non-inflation adjusted) chart (courtesy of chartsrus.com) of these two bear markets:

Next, an inflation-adjusted chart of those same bear markets (courtesy of Steven J. Williams at CyclePro):

Once you understand the significance of these two different charts, you understand the reason for the significance of ratio charts. The Dow has been at 10,000 a few times over the past decade and each time it gets there, that 10,000 is worth less in purchasing power. Ultimately, money is a means to an end and its value must be determined by what it can purchase. An investment that gains 10% a year when inflation is 20% a year is a terrible investment. In other words, nominal gains must be put into context versus the value of the currency in which the gains are denominated.

Anyway, the reason the Dow to Gold ratio is important is because Wall Street is selling and marketing the wrong investment plan. Many working age people put the bulk of their savings in the stock market because it is what everyone else is doing and what conventional mainstream financial "analysts" preach over and over again. Dollar-cost-averaging, stocks for the long haul, etc., etc.

But what the ratio chart comparing the Dow Jones to Gold tells us is that there are actually multi-year periods where a piece of shiny metal is a better investment than the stock market! In fact, it has been resoundingly true over the past decade. How smart does Wall Street seem now?

We are in a long-term secular stock bear market in inflation-adjusted terms that is far from over and we are in a long-term Gold bull market in stock market terms that is far from over. In other words, forget the nominal prices of Gold and the Dow Jones (or S&P 500, etc.) for a minute. Concentrate on the ratio of Gold to the Dow Jones and take a peek at this tremendously bullish 29 year monthly chart of the Gold price divided by the "price" of the Dow Jones Industrial Average:

We are headed back towards parity in this ratio. If you don't believe this, ask yourself why history cannot repeat. It happened with inflation and it happened with deflation. Our financial system is now more out of control than ever and I personally don't think it is an unreasonable prediction that it may take even less than one ounce of Gold to buy the entire Dow Jones Industrial Average once this mess is over. Now if you'll indulge my premise that we are going to get back to a ratio of 2 (I think one or less, but I'll use the conservative figure of 2 for now), let's say that based on yesterday's closing prices you sold all your stocks and immediately bought Gold with the proceeds (ignoring the tax implications of doing so for now).

This means that within 5 years, which is as long as it should take for this ratio to reach its target range, you will be able to buy 5 times the number of stocks you can afford today. This is a relative increase in stock market wealth of 400% in 5 years or less. And if we get to 1 in this ratio, we are talking about a relative increase in stock market wealth of 900% from current levels. If I told you about an investment that would gain 400-900% within the next 5 years, wouldn't you be interested? This is a massive shift of relative wealth for those who hold physical Gold instead of general U.S. stocks (in aggregate). Cash is king during a bear market, but only if one holds the right form of cash (hint: it ain't the U.S. Dollar and it's yellow and shiny).

It is also important to remember that it is at the end of bull markets where things get frantic and crazy to the upside. We are not there yet in the Gold bull market, but we are now getting close. The break above $1000/ounce was important psychologically to this Gold bull market. Do not lose the forest through the trees in this long-term bull market. All real risk is to the upside in Gold. There will be corrections all along the way, but we are rapidly approaching the mania phase that will undoubtedly develop in the Gold sector.

When one thinks in terms of Gold versus Dow, the inflation versus deflation debate becomes much less meaningful in a practical sense. We have reached the stage where Gold is doing well because of loss of confidence in Wall Street and government policies. This loss of confidence, which will reach critical mass during the next leg down in the stock market, is what will continue to fuel the Gold bull market.

ONE DREAM ON REPEAT.

We've done our best to get Marina & The Diamonds ready for the worldwide superstardom that no doubt awaits her, but after two indie singles on Neon Gold it's time to watch homegirl step out into the world with her major label debut under the watchful eye of Atlantic. The single's a familiar favorite, "Mowgli's Road", which fans will remember as the thunderstealing B-side to last February's sold out Obsessions 7". The new and improved single version will be out November 16th, the first step on what will no doubt be a rapid ascent to fame for Ms. Diamond. We're mighty proud to have helped her along thus far, and we hope you'll continue to show your support as she takes the leap to the next level.

We've done our part, advising on the remix side of things on this release, with the fruits of our labor emerging as two rather brilliant (if we do say so ourselves) from Mille and Russ Chimes. Mille's remix is Marina's personal favorite she's ever received, while Russ' mix is just monstrously huge with a drop that is downright earthshattering. There's even a rave whistle, shit is FOR REAL. Seriously, they're both balls-out amazing. Enjoy.

MP3: "Mowgli's Road" (Mille Remix) - Marina & The Diamonds [exclusive]
MP3: "Mowgli's Road" (Russ Chimes Remix) - Marina & The Diamonds

Gold stocks - Overbought?!

Sometimes (often times, actually), it helps to step outside one's usual patterns of looking at markets to see things from a different perspective. I did this recently with a major "blue chip" global Gold mining index known as the "TSX Global Gold Index" ($SPTGD) from the Toronto exchange (here's a link to a list of the constituents in this index)

A chart of this index may help make things "clearer" for the bullish case on the current intermediate-term bull market move in the price of Gold and Gold stocks. Here's an 18 month daily chart of this index ($SPTGD) that is up thru Monday's close:

And how about this proprietary speculative junior mining index chart reprinted without permission from the Long Wave Group up thru about 9-10-09 (by the way, read their latest missive for a Gold price prediction during what they are calling a deflationary depression):

We've had an 8 month uneventful and healthy correction from a "global" perspective in the senior Gold mining sector as well as in the speculative small cap junior Gold exploration and mining sector. In fact, these charts suggests that many Gold miners have missed the ENTIRE party in global stock markets since March! That is about to change. The Gold bull is raging and the ongoing secular credit contraction is far from over. A nasty drop in the stock markets will add kerosene to the Gold bull as people dump stocks and scramble for safety at a time when T-Bill yields are essentially zero. A yield of zero means even paperbugs would have to admit there is no value in holding T-Bills and no real opportunity cost in holding Gold. Gold will fulfill its historic role in preserving wealth as the scramble for safety intensifies. Those who dig wealth out of the ground will be rewarded.

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