Monthly Archives: October 2008

31
Oct
2008

Rollover: Essential Movie Viewing in these Unprecedented Financial and Economic Times

Rollover is the story of faded Hollywood siren Jane Fonda who inherits a multi-million dollar company after her powerful bank president husband is murdered. While trying to find her dead love’s killer, she runs his corporation with the help of charming banker Kris Kristofferson in the weeks before a worldwide currency and financial collapse.

 

It was the 1981 movie Jane Fonda "got made" after her exploration of the dangers of nuclear power in the "China Syndrome" back in 1979. She was driving to tell the story of real money – gold and how people throughout the world value gold as real money while most Americans and people in western societies don’t understand gold and have forgotten its importance and value.

 

The plot line is about wealthy Arab investors not rolling over their certificates of deposits (CDs) in American banks and buying gold in order to hedge themselves against a fall in the dollar and paper currencies … and what the loss of those foreign investments means to the financial establishment in New York and the international financial and monetary system.

 

Rollover: Financial Apocalypse

 

This movie was a "financial thriller" and there are not many of these movies made. Movies need bank financing, and banks usually won’t finance anything that makes them look bad or stupid. They show "It’s a Wonderful Life" with Jimmy Stewart on TV only once a year now because it shows "run on the bank" at the Bailey Savings and Loan – not something the financial establishment wants Americans to even think about.

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31
Oct
2008

Happy Halloween!

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31
Oct
2008

Gold Investments Market Update – Gold is Up 12% while S&P is Down 37% Since Credit Crisis Began

Gold continues to surprise to the downside on the COMEX and the futures markets in spite of huge physical demand, increasing supply issues and surging premiums on bullion products.

Speculative paper players using huge leverage continue to exit positions for the relative safety of cash due to margin calls on other bets and some investment banks continue to short gold despite the incredibly strong fundamentals for bullion itself.

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30
Oct
2008

Gold Investments Market Update – Central Banks Trapped Between Scylla and Charybdis

Gold rose nearly 2% yesterday as the Federal Reserve decreased the fed funds rate by 50 basis points to 1.00%. Other central banks internationally are also slashing interest rates and there is increasing speculation that the Bank of England and the ECB may cut interest rates aggressively as early as this week and possibly even today in an effort to prevent international financial contagion causing a sharp global recession.

NB Please note that our Performance Table is in euros (EUR) today.

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30
Oct
2008

Silver Bullion Premiums Foretell a Price Surge

Seeking Alpha has an interesting article regarding Silver Bullion premiums, though this is at the moment somewhat irrelevant since the market for 100oz bars is nearly non-existent.

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29
Oct
2008

Gold Investments Market Update – Rising Premiums for all Bullion Products and Delays; Shortages Deepening

Gold continues to tread water after its recent sharp falls and there are very determined sellers in the futures market at the $740 to $750/oz level.

The Gartman Letter, expressing some respect for gold’s relative performance, points out that there “…

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28
Oct
2008

Gold Investments Market Update – Gold Supply/Demand Fundamentals Remain as Sound as Ever

After rising yesterday, gold is up some 1.5% again today and has continued to consolidate in the $700/oz to $760/oz range. Further consolidation is likely necessary after the sharp fall in recent days.

Bearish sentiment towards gold remains at extremely high levels with the usual uninformed suspects calling for further falls in the gold price.

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24
Oct
2008

Gold Investments Market Update – Market Panic Increases as Markets Plunge

It was déjà vu in the Comex gold market yesterday as the recent sharp selloff continued. Bearish sentiment remains at extreme levels and all notions of fundamental value are being thrown out the window as the financial crisis morphs into a global economic crisis. Stock, commodity and many currency markets internationally are in meltdown on panic selling.

Both gold and silver are off another 4.3% and 8% today on massive deleveraging and wholesale panic selling in financial markets.

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23
Oct
2008

Gold Investments Market Update – Astute Contrarians Buy Physical Bullion at Firesale Prices

COMEX gold’s recent sharp selloff has continued and even the most ardent gold bulls are getting nervous. Bearish sentiment is very prominent and the level of fear in the precious metal markets suggests that a low is likely in the coming days.

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22
Oct
2008

Gold Investments Market Update – COMEX Gold Very Oversold; Dollar Very Overbought

COMEX gold continues to stink up the room after sharp falls in recent days as the dollar has strengthened considerably and oil prices fallen sharply.

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