When to take profits in silver

Thanks to Kitty for submitting this article.  It looks like my partial exit last week was early--and not wrong after all.  Long-term holders should take comfort that the secular bull market in precious metals is still intact, as the support levels of the 50- and 200-moving day averages have not been violated.

http://www.marketwatch.com/story/when-to-take-profits-in-silver-2011-05-02

Looking for a re-entry point.

The Age Of Silver

Thanks to Dick for finding this gem of a blog.

http://equedia.com/blog/view.php/The-Age-of-Silver

Bernanke Starts Talking, Gold Surges Past $1,558

http://www.zerohedge.com/article/bernanke-starts-talking-gold-surges-past-1558

Remember when every appearance of Obama and Geithner would send the market plunging before the institution of central planning? Well, we now have a new phenomenon: every time the Chairsatan opens his mouth gold surges.

Doug Casey: Precious Metals vs. the USD

http://www.theaureport.com/pub/na/9420

Guess Who Just Got Invited To The Printer Party...

Check out the comments from bullish readers who are selecting elements from the periodic table...hilarious.  Half of them probably flunked bonehead chemistry, but they're dead on with this basic economy law of supply and demand.  Too much supply of paper currencies = devaluation of said paper currencies.

http://www.zerohedge.com/article/guess-who-just-got-invited-printer-party#comment-1223850

St. Louis Fed Stunner: Admits QE May Lead To Rise Rather Than Drop In Unemployment

Perhaps Bernanke should have listened to this Fed economist.  Wow. 

http://www.zerohedge.com/article/st-louis-fed-stunner-admits-qe-may-lead-rise-rather-drop-unemployment

The Royal Treatment

Click on image to enlarge Your Royal Highness.

Wesley Legrand on gold

http://www.switzer.com.au/video/legrand-april28/

Federal Reserve For Dummies

http://www.youtube.com/watch?v=T64Loi2FJT8&feature=player_embedded

More Americans Believe The Country Is In A Depression Than Growing

http://www.zerohedge.com/article/more-americans-think-america-depression-growing

And this was Treasury Secretary Tim Geithner's proclamation that the economy was recovering back in 2010:
http://www.nytimes.com/2010/08/03/opinion/03geithner.html?_r=1

But then again, the government declared the recession ended in June 2009.

When do the pitchforks emerge?

Why the experts missed the crash

http://longnow.org/seminars/02007/jan/26/why-foxes-are-better-forecasters-than-hedgehogs/

Why are so many experts so wrong, yet people keep listening to them? Who really is worth listening to about the future? The author of Expert Political Judgement builds on Isaah Berlin's characterization of judgment modes into Hedgehogs (who know one big thing) and Foxes (who know many things). Hedgehogs don't notice and don't care when they're wrong; that's why they're so compelling. Foxes learn.

http://money.cnn.com/2009/02/17/pf/experts_Tetlock.moneymag/index.htm

I agree with Tetlock, but he completely misses the mark when he says Lawrence Summers has good predictive ability.  Summers was instrumental in levering up the US banking system under Clinton, which subsequently crashed a decade later.  On the other hand, Summers resigned from Obama's cabinet last year, a possible precursor to another financial crisis.

Bernanke's Press Conference, August 1, 2012 (April 28, 2011)

This is a parody on a parrot--or Fed Chairman Ben Bernanke, take your pick. 

http://www.oftwominds.com/blogapril11/bernanke-2012-4-11.html

James Turk - The Waterfall Decline in the US Dollar Has Begun

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/4/28_James_Turk_-_The_Waterfall_Decline_in_the_US_Dollar_Has_Begun.html

Backwardation

http://en.wikipedia.org/wiki/Normal_backwardation

Backwardation refers to the market condition wherein the price of a forward or futures contract is trading below the present spot price. The resulting futures or forward curve would typically be downward sloping (i.e. "inverted"), since contracts for farther dates would typically trade at even lower prices. (The curves in question plot market prices for various contracts at different maturities—cf. term structure of interest rates) 

Normal backwardation refers to the market condition wherein the price of a forward or futures contract is less than the expected future spot price (i.e. theoretical forward or futures price form the cost-of-carry model).

The opposite market condition to backwardation is known as contango.

A backwardation starts when the difference between the forward price and the spot price is less than the cost of carry, or when there can be no delivery arbitrage because the asset is not currently available for purchase.

 Hi-ho silver.

Wal-Mart: Our shoppers are 'running out of money'

http://money.cnn.com/2011/04/27/news/companies/walmart_ceo_consumers_under_pressure/index.htm

Wal-Mart's core shoppers are running out of money much faster than a year ago due to rising gasoline prices, and the retail giant is worried, CEO Mike Duke said Wednesday.

"We're seeing core consumers under a lot of pressure," Duke said at an event in New York. "There's no doubt that rising fuel prices are having an impact."

Wal-Mart shoppers, many of whom live paycheck to paycheck, typically shop in bulk at the beginning of the month when their paychecks come in.

Lately, they're "running out of money" at a faster clip, he said.

"Purchases are really dropping off by the end of the month even more than last year," Duke said. "This end-of-month [purchases] cycle is growing to be a concern.

Fight of the Century: Keynes vs. Hayek Round Two

http://youtu.be/GTQnarzmTOc

Everything’s OK with Economy, Go Back to Sleep

http://usawatchdog.com/everything%E2%80%99s-ok-with-economy-go-back-to-sleep/

Paul Krugman = idiot Nobel Laureate in Economics.

Ron Paul says Bernanke ducks the issue

http://www.marketwatch.com/story/ron-paul-says-bernanke-ducks-the-issue-2011-04-27?dist=afterbell

Auerbach Says Fed's Bernanke in `Very Bad, Deep Hole'

The Fed corrupts and lies.  Skip to the four-minute mark of this video. 

http://youtu.be/yqyR4roQWY4

The Dog That Didn’t Bark

http://www.nysun.com/editorials/the-dog-that-didnt-bark/87324/

Dollar CRASHING: Gold and silver explode to new highs after today's Fed conference

http://www.thedailycrux.com/content/7537/Gold/eml

Americans are Preparing at Unprecedented Levels

http://www.shtfplan.com/emergency-preparedness/americans-are-preparing-for-the-worst-at-unprecedented-levels_04272011

Jim Rogers says the US will certainly lose its AAA credit rating

http://www.bi-me.com/main.php?id=52342&t=1&cg=4

Peter Schiff - Fed’s Actions Cause Massive Gold & Silver Buying

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/4/27_Peter_Schiff_-_Feds_Actions_Cause_Massive_Gold_%26_Silver_Buying.html

“Ben Bernanke may deny that there is a causal relationship between his monetary policy and rising prices but the market knows differently.  In fact when Ben Bernanke denies the relationship, then the expectation is that he is going to continue on his current monetary policy course which is the green light to buy gold, buy silver, buy oil, buy commodities, sell the dollar and that’s exactly what’s happening.  That’s why the dollar is hitting new lows today.”

You could see the dollar begin to fall as soon as the statement was released, and then the fall intensified when he (Bernanke) began opening up his mouth.  He’s either lying or he’s incompetent or a combination of both, but neither inspires confidence in our country, our currency or our economy.  I mean whenever Ben Bernanke opens his mouth you want to sell anything that is related to the United States.

They said they are going to continue to reinvest their maturing principle back into treasuries, so the Fed said they are basically not going to shrink their balance sheet and that’s inflationary on its own.  Who are they kidding?  The Fed is going to keep buying bonds because if the Fed doesn’t who else is going to do it?  There is nobody who is going to buy them because the rates are too low.  So the Fed is just talking, but anybody who understands reality can see through it.   And obviously with the gold price soaring and the dollar plunging, a lot of people can see through it.”

“I think as early as this fall we could be in a dollar crisis because I expect the dollar to weaken throughout the summer.  And if we don’t get a big bounce during the summer when they end QE2, which I don’t think they are going to end it but they might pretend they are ending it, if the market senses that the Fed is still printing money which they will be doing, the dollar I think could go into free fall.  That is going to force the Fed’s hand and you are going to have really high interest rates and this economy is going to implode...but we have a phony economy that needs to implode.”

“I think gold is going to have a big move.  I think gold is underpriced right now.  I don’t think this is going to be the move that wakes them (the public) up out of their coma, I think that move is coming.  It’s going to be a much more spectacular move down the line.”

“When this market senses that this gold rally is real.  The gold bull market is 10 years old, you would think they would figure it out by now but there is more fear than greed in the gold market and you can see that in the mining stocks.  So I think we are still early in the gold bull market.”

Statement on Federal Reserve's Press Conference - Ron Paul

http://paul.house.gov/index.php?option=com_content&view=article&id=1854%3Astatement-on-federal-reserves-press-conference&catid=63%3A