Posts Tagged KWN
If The World Is Ending, Here Is What Smart Money Is Doing
Posted by TheRedPillGuide in Economy, Finance, News, Silver & Gold on August 8, 2012
via: KingWorldNews
August 8, 2012
Today 40 year veteran, Robert Fitzwilson, wrote the following piece exclusively for King World News. Fitzwilson, who is founder of The Portola Group, put together a fascinating piece which takes covers everything from Art Cashin, the 70s, and what the smart money is doing right now. Below is Fitzwilson’s piece.
“The great Art Cashin once said that he was counseled as a young man “not to plan for the end of the world as it is a one-off event”. As we try to divine our investment future, it is helpful to keep that sage advice in mind.
When I started my career in the early ‘70s, my singular goal was to graduate from a certain business school. It was the crowning achievement of my young life. Graduating in 1973, I took a job with an investment firm, eager to learn the business. Unfortunately, I parachuted right into one of the worst bear markets in history. It was so bad that we were forced to retreat to libraries to read books about how to invest.
The answer, though, was simple. Everything was going down. It did not matter what theory one employed. The Dow Jones had peaked in January of 1973 at 1067, and dropped like a stone to finally bottom out at 570 at the end of 1974. Needless to say, my eagerness and budding love of the business was greatly diminished.
I thought it was cruel that I had achieved the crowning achievement of my young life only to find out that the world was going to end. This was the age of the long gas lines. To even get gas, one had to have a friend who knew a friend. You then had to get in line, usually when nobody was looking….
Eveillard – Gold & The Brutal Reality Of The Current Cycle
Posted by TheRedPillGuide in Economy, Finance, News, Silver & Gold on August 7, 2012
via: KingWorldNews
August 7, 2012
With global stock markets trading higher, today legendary value investor Jean-Marie Eveillard, who oversees $50 billion, told KWN, “In a way one should not confuse fluctuations in financial markets or commodity markets with the end of the world. However, I think there continues to be considerable hope on the part of many investors that the Neo-Keynesian remedies which have been in place will result in a sustainable economic recovery.”
Jean-Marie Eveillard continues:
“There does have to be the realization that the hope of an economic recovery in the Western world will end up being a delusion. Investors and authorities who believe there will be a recovery are deluding themselves. But hey, hope springs eternal.
There is the continued stimulus being provided by the Federal Reserve, and of course some of that newly printed money ends up in the equity markets….
This Is Why Gold & Oil May Explode Higher In August
Posted by TheRedPillGuide in Economy, Finance, News, Silver & Gold on August 7, 2012
via: KingWorldNews
August 7, 2012
Today acclaimed commodity trader Dan Norcini told KWN, “One spark for gold may be at some point in August we begin to have rumors about what is going to happen at the Jackson Hole meeting. The first round of QE was announced during that Jackson Hole Summit in late 2008. So the upcoming meeting may wind up being very significant when it comes to which direction central planners are going to take.”
Dan Norcini continues:
“You may very well get a lift in gold based on the type of monetary response that may come out of Jackson Hole. The other situation which could escalate and have a huge impact in the key markets, particularly crude oil and gold, is the disintegration that is taking place in Syria.
If the war begins to engulf a broader scope of the Middle-East, bringing Israel and Iran into conflict, that powder keg could create an explosion higher in the price of both crude oil and gold….
Embry: Expect Squeeze In Gold, Price Headed Multiples Higher
Posted by TheRedPillGuide in Economy, Finance, News, Silver & Gold on August 6, 2012
via: KingWorldNews
August 6, 2012
Today John Embry told King World News, “I have been a long time proponent of the idea that we may very well be at peak gold production in the world.” He warned, “We may have seen the peak.” Embry also stated that he believes we are headed towards a, “… classic supply/demand squeeze.” This will send gold, “… to multiples of the current price.”
Embry, who is Chief Investment Strategist of the $10 billion strong Sprott Asset Management, discussed both gold and silver, but first, here is what Embry had to say about the ongoing crisis in Europe: “Over the weekend they accepted more collateral at the Greek Central Bank so they could make their payment to the ECB. So I think they will do what they have to, to keep this thing moving forward.”
John Embry continues:
“But the thing that’s the big problem, and question is, are the funders, Germany, Finland, the Netherlands, etc., do they have the balance sheets and the economic strength to bailout these peripherals in the South that are in horrific condition?
And even if they do, do they have the appetite to do it? All I can tell you is that it’s an enormously serious problem….
Turk – Gold Is In Backwardation & About To Rocket Higher
Posted by TheRedPillGuide in Economy, Finance, News, Silver & Gold on August 3, 2012
via: KingWorldNews
August 3, 2012
Today James Turk told King World News that gold is now in backwardation and about to rocket higher. Turk also warned, “The bottom line is we are in a fiat currency bubble. Eventually this bubble is going to pop because we are using this fiat currency, backed by nothing, not just in one country, but throughout the world.”
Here is what Turk had to say: “This is exactly the kind of action I had been hoping for, Eric. When had the KWN blog interview on Wednesday, I had mentioned that we probably missed the last chance to buy gold at $1,580, and silver under $27.”
James Turk continues:
“The way the metals traded yesterday and today illustrates the important point I was making when we did that interview. There’s a ton of money on the sidelines waiting to buy the dips. This is exactly the type of thing you see at the beginning of a bull market.
I’ve been talking about a summer rally, and here we are at the beginning of August, and I think the summer rally is actually beginning now, Eric. I think it’s becoming increasingly clear that the central planners are bluffing. They are holding a losing hand….
Gold & Why We Are Facing A Real Catastrophe Going Forward
Posted by TheRedPillGuide in Economy, Finance, News, Silver & Gold on August 3, 2012
via: KingWorldNews
August 2, 2012
Today Stephen Leeb, who is Chairman of Leeb Capital Management, spoke with King World News about the dreadful warning legendary value investor Jeremy Grantham’s recently issued: “This is a guy that has come to the view of resource shortages over the last 2 or 3 years. He’s becoming much more vehement about it, saying we could have real catastrophes in the food market, in water, etc., and energy could be right behind.”
The acclaimed money manager also discussed gold, but first, when asked about the dire situation the ECB faces, Leeb responded, “They’ve got to start buying bonds, period. It’s very simple, Spain cannot survive with bond yields over 7%. I doubt they can survive with bond yields much over 5%, when you’ve got no growth and 25% unemployment.”
Stephen Leeb continues:
“25% unemployment is the kind of unemployment we had during the (Great) Depression. It surprised me (that the ECB did not take significant action), and it makes me think, what is going on behind the scenes? My guess is we are putting tremendous pressure on Germany.
Every other country in Europe, including Great Britain, is ready to ease and buy bonds….
Going For The Gold As Governments Destroy Currencies
Posted by TheRedPillGuide in Economy, Finance, News, Silver & Gold on July 31, 2012
via: KingWorldNews
July 31, 2012
Today Michael Pento warned, “It is now becoming blatantly apparent that the central banks of the developed world are becoming desperate in their pursuit to fight deflation.” Pento also clarified, “… a central bank can always create inflation when they so choose. All they need is a firm commitment to destroy the value of the currency, and a government that is compliant towards that goal.”
Pento also stated that key governments are on board with that agenda: “That situation is quickly coming into fruition in Japan, Europe and the United States.” Today Michael Pento, of Pento Portfolio Strategies, writes exclusively for King World News to put global readers ahead of the curve, once again, on what is unfolding as a result of the major, and unprecedented moves by central banks.
Here is Pento’s piece: “It is obvious to me that the world of economics has now fully entered the Twilight Zone. As evidence, last week European Central Bank Head Mario Draghi pledged to, ‘Do whatever it takes preserve the Euro. And believe me, it will be enough.’ In this upside down world of phony Keynesian Economics, apparently doing ‘whatever it takes to preserve the Euro’ now means promising to dilute the purchasing power of the currency into oblivion.”
Michael Pento continues:
“The ECB plans to use their hoard of freshly-minted counterfeit money to purchase the insolvent debt of bankrupt nations. Incredibly, the ECB’s dedication to create unlimited inflation actually served to send bond yields much lower. The Italian 10 year note plunged 77 bps and the Spanish 10 year note dropped by 88 bps just days following the announcement. What’s more, the Euro, unbelievably, rallied to a three-week high.
Sane individuals realize that the ebullient reaction from Southern European currency and bond markets can only be temporary at best….
Embry – Gold To Explode, But Europe Is In Terminal Condition
Posted by TheRedPillGuide in Economy, Finance, News, Silver & Gold on July 30, 2012
via: KingWorldNews
July 30, 2012
Today John Embry told King World News, “… the sentiment backdrop is perfect for an explosion in both the gold and silver price.” Embry also cautioned, “… the economy is eroding everywhere in the world, but particularly in the United States … (and) there is only one solution to keep the game going, and that is to create as much money as is necessary to keep the system afloat.”
Embry, who is Chief Investment Strategist of the $10 billion strong Sprott Asset Management, discussed gold, silver and the mining shares, but first, here is what Embry had to say about the ongoing crisis in Europe: “This European situation is in some sort of terminal condition. You have Draghi, head of the ECB, coming out late last week and essentially saying that the ECB will do anything to preserve the euro. But I don’t think the Germans are behind this move.”
John Embry continues:
“All of the sudden you hear that the Germans are not too happy with this idea that the ECB is going to purchase sovereign debt, in an effort to bring down the rates in Italy and Spain. At the same time some senior guy in the German establishment said, last week, ‘Greece cannot be saved. That it is simple mathematics.’ Now I happen to agree with that, so I think he’s telling the truth.
What you see, on the flip side of that, is there has been this constant misinformation coming out of key entities in Europe….
Gold & Silver To Surge As Money Pours Into These Markets
Posted by TheRedPillGuide in Economy, Finance, News, Silver & Gold on July 30, 2012
via: KingWorldNews
July 30, 2012
Today Stephen Leeb told King World News, “There is no plan for growth, and so in this type of environment people are going to remain very frightened.” Leeb, who is Chairman of Leeb Capital Management, alsopredicted, “This will lead to an ocean of paper money moving into the gold and silver markets.”
The acclaimed money manager also discussed Europe and the US, but first, here is what Leeb had to say about the ongoing crisis: “One thing that defines us today is fear, at least in this country. We are a very frightened people right now. For the first time that I’ve seen we’ve had a dramatic drop in median income. I’m not talking over the last 20 or 30 years, I’m talking about since this horrible recession began.”
Stephen Leeb continues:
“In the US as an example, median income in this country has fallen 10%. That’s unheard of and it’s enough to scare anybody to death. The US is a country that has been used to seeing its incomes rise. To find this double digit drop in median incomes is really horrifying.
How this relates to today is when people get scared, that means they become scared of their own currency….
Hathaway – We Are About To See $100+ Up Days In Gold
Posted by TheRedPillGuide in Economy, Finance, News, Silver & Gold on July 29, 2012
via: KingWorldNews
July 29, 2012
Today four-decade veteran John Hathaway shocked King World News by predicting that we are about to start seeing $100+ up-days in gold. The prolific manager of the Tocqueville Gold Fund also stated that the Fed is close to acting and they are most likely going to do something, “… on a very big scale.” He warned, “… there is nothing worse than having an activist Fed which is ineffectual. That would just destroy confidence.”
Here is what Hathaway had to say: “Hilsenranth, who everybody knows by now is basically a mouthpiece for the Fed, he went quite extensively into what the Fed is thinking about doing, including a round of quantitative easing, putting nominal interest rates to negative levels, and possibly cutting the interest rate on free reserves.”
John Hathaway continues:
(That last move) would force more of that slack money into the economic system. So generally a green light for more easing, which was well received by the bullion market. We still have to go through the meeting next week. We have to see what the FOMC actually decides to do, but it certainly did raise the expectation that there would be another cycle of easing.
The other thing which I forgot to mention in the first comment, is the Fed is thinking about raising the inflation target….
