Blog

June 8, 2009 – We can now see with the benefit of hindsight how important support was in the 68-69 area for the gold/silver ratio. When this support level finally gave way, the ratio sliced right through it and continued to tumble lower, with silver outperforming gold. This outperformance is important. It means that moneyRead more

May 25, 2009 – Since March 23, 2001, we have been holding goldgrams as our Core Currency Position. On May 4th traders sold the US dollar by shorting the Dollar Index at 83.97. Stop out this trade if the Index closes above 82.80. Since establishing this short position, the dollar has dropped 4.8%, which isRead more

May 25, 2009 – I would like to get short again, but the T-note did not bounce up to the level I was looking for. It was a sign of weakness, and we have now seen that weakness play out as T-note prices have collapsed. It would not be unreasonable to sell short here, butRead more

May 25, 2009 – Our patience is finally being rewarded. The precious metals are on the move, and higher prices are likely in the weeks ahead. While for months there has been every reason to be bullish about the prospects for both precious metals from both a short-term and a long-term point of view, weRead more

A number of key factors have fallen into place over the past couple of weeks. Unfortunately, together they increase the probabilities that the US dollar is headed toward hyperinflation.

Occasionally the stock market gives important clues about its future direction. One way a clue can appear is through a divergence

I have explained in recent letters why I believe the US is on the road to hyperinflation. I think the writing is on the wall, but we will of course only know for certain in the weeks and months ahead.

May 4, 2009. Since March 23, 2001, we have been holding goldgrams as our Core Currency Position. The dollar remains within the same trading range that has confined it since last year, but importantly, its bear market rally is rapidly losing momentum. I have been expecting that the dollar will eventually break out of itsRead more

May 4, 2009 – On April 15th traders covered at 123-38/64 the Jun’09 T-note sold short at 125-20/64 on March 18th. The profit was 1-46/64. I would like to get short again. The contract has moved lower since we were stopped out, but is I think due for a bounce. The yield on the T-noteRead more

May 4, 2009 – The gold/silver ratio continues to hang on a precipice. I have written in the last two letters about the importance of the 68-69 area. So far the ratio has not broken below this key support level. I think it will. It just requires more time – more patience for it toRead more