Silver Editorials & Commentary

It’s been several months since we took an indepth look at some of the more important currencies in the world. In this Weekend Report I would like to show you some important developments that have taken place that could be signalling a stronger US dollar maybe in the...

The table below puts some context around the impact of the Fed’s bond buying program. It tells us several billion dollars of freshly printed money will be pumped into the global financial system this week. The Fed’s actions greatly reduce the odds of an imminent...

The market makes most of its gains each year in its favorable season of approximately October to May. A separate positive influence is the Federal Reserve when it’s providing easy money and low interest rates in an effort to revive a flagging economy.

The good news is: The small cap indices led the way up last week. The negatives: There are not any serious negatives. New highs have not been great, but, they have not been terrible. The secondaries have been lagging, but, they picked up last week. The market is...

A subscriber writes: Hello Carl. As a long-time subscriber (going back more than 10 years), I have a lot of respect for your historical P/E charts. However, when you recently wrote that stocks are high but not in a bubble, I'm wondering if perhaps you are not...

Gold and silver have a 6000 year history for their use as a currency, and until the last century, the price of gold and silver maintained a healthy valuation ratio of 1 ounce of gold to every 15 ounces of silver.

In our previous essay on silver, we examined long- and short-term charts of silver to find out what the outlook for the white metal was. Back then, we wrote the following: (…) an initial downside target – something that silver is likely to reach (and pause / bounce...

With some better than expected economic news to digest, the S&P 500 was up 5 points early in the pre-holiday session, which added to the bullish list of things to be thankful for.

In recent weeks, we have covered numerous misconceptions relative to rally killers: Stocks cannot continue to rise with PE ratios elevated. Rallies not led by financials are doomed. Investors have reached a euphoric state. Bubbles end when bubble talk is rampant....

The fundamental backdrop behind the ramp higher in equity prices in 2013 is far from inspiring. However, fundamentals do not matter when the Federal Reserve is flooding U.S. financial markets with an ocean of freshly printed fiat dollars.

If you have been around the financial markets for any length of time, you are familiar with the expressiondon’t fight the Fed. The corollary is don’t fight global central banks when they are injecting new cash into the global financial system. As we noted on October...

The money supply as measured by M2 is now rising at a 12.1% annualized rate, which is causing the fickle Fed to renew its threats about ending QE. The minutes released from the latest FOMC meeting indicate the tapering of asset purchases could once again begin...

The good news is: The NASDAQ composite (OTC) closed at a multi year high on Friday and the rest of the major indices closed at all time highs. The negatives: New highs picked up at the end of last week, but remain well below levels seen earlier in the year when the...

In all periods silver is giving sell signals.

The minutes of the Fed’s last FOMC meeting, released this week, confirm that the Fed believes it must begin to taper back its stimulus soon. At this point, the longer QE continues the greater the risk of asset bubbles forming, the bursting of which would destabilize...

As usual we are hearing many claims regarding market valuation, mostly that stocks are undervalued based upon future earnings projections. We are also seeing a lot of headlines about stocks being in a bubble. Using twelve-month trailing earnings for the S&P 500...

Ben Bernanke provided some clarity to the recent confusion surrounding the Fed’s QE stimulus program. He indicated on Tuesday that the near-zero Fed Funds rate will likely remain at that level long after ending asset purchases under quantitative easing (QE). This...

When we say markets are manipulated, we do not mean in an Area 51/government conspiracy manner. Any government intervention into any market distorts asset prices. For example, a tax credit for new home buyers impacts (distorts/manipulates) the price of housing. From...

Silver and other precious metals just can’t seem to get a break. There are several reasons one can think of for their lackluster performance: 1) the supposed Fed taper 2) a skyrocketing stock market seemingly indicating all is well with the world, and 3) a sense...

Many regard the risk of inflation as low, since the Fed’s money distribution or credit mechanism is limited by how the banks decide to lend. While credit worthy businesses and consumers are still de-leveraging, the transmission mechanism will eventually come. This...

On Wednesday, the Fed minutes hinted at tapering in the months ahead. The stock market sold off on the news. Less than 24 hours later, a tame report on inflation pushed the markets back into “taper later” mode.

Professional historian, author and college professor, Ryan Jordan, Ph.D. sees silver fundamentals from the perspective of a historian and as an astute observer of present conditions. He studies the drivers of the silver market, supply, demand, mining, inflation,...

Looking at the chart of silver from today’s point of view, we see that at the end of the previous week, the white metal (similarly to gold) moved higher after Federal Reserve Chair Nominee Janet Yellen told that monetary stimulus tools shouldn't be removed too soon...

The big news that has somehow shocked the media is that the BLS was caught fudging the jobs numbers going into the 2012 election.

The central banks of Japan and the U.S. are killing the private market for government debt. The massive and unprecedented bon-buying programs for Japanese Government Bonds (JGBs) and Treasuries have driven yields so low that investors are now simply stepping aside...

Healthy and sustainable bull markets tend to lift all equity boats around the globe. As shown in the chart of the China ETF below (FXI), Chinese stocks struggled for the first six months of 2013. Last week’s major announcement from Chinese leaders helped FXI push to...

Based on the monthly figures to 1st October recently released by the St Louis Fed, FMQ jumped $227bn in September to $12,176bn. This puts it $4,819bn and 65% over the long-term exponential trend established between 1960 and July 2008, the month before the Lehman...

Senator Dean Heller: “A quick question about quantitative easing: Do you see it causing an equity bubble in today’s stock market?” Yellen: “I mean, stock prices have risen pretty robustly. But I think that if you look at traditional valuation measures, the kind of...

In 1999 Warren Buffett famously warned that “The next 17 years will be quite unlike the last 17 years. It might not look much better than the dismal 1965-1982 period.” He was referring to the market’s history of cycling between long-term ‘secular’ bull and ‘secular...

The good news is: The blue chip indices closed at all time highs on Friday. The negatives: New lows declined a little last week, but, their levels remained above recent averages.

In all periods silver is giving sell signals.

Using simple principles of human nature, we can conclude the Fed, and central banks around the world, will continue to print money longer than most market participants believe. Therefore, a bullish tailwind may remain behind stock prices longer than most market...

One of our proprietary indicators is the Percent Buy Index (PBI), which shows the percentage of stocks in the S&P 500 Index that are on intermediate-term buy signals.

Last month, Americans were transfixed by the amateur theatrics undertaken by the Washington political establishment in connection with the debt ceiling crisis. The bad faith, poor tactics and wholesale avoidance of reality were offered by all players in very large...

The incredible rally in equities in 2013 has begun to stir concern among many that the stock market is now in a bubble. We have entered the euphoric stage of this bull market and equity prices cannot and will not go lower according to some talking heads in the...

Technical analysis will always have a place in the speculative marketplace. Its function may not be reading tea leaves, but its connection to fundamentals is about as useful as the modern day consumer price index.

There will be few readers who are not at least partially familiar with the stylish, thought-provoking film classic, The Matrix. For those readers not among that group; The Matrix is a sci-fi drama which postulates a future where intelligent machines have seized...

The longer you are involved with the financial markets, the more you respect the market’s obsession with the Fed. The quantitative easing process (QE) pumps money into the global financial system. The money can find a home in stocks, real estate, gold, etc....

As we outlined using an example with Facebook on October 25, the value of the ETFs in your portfolio are determined by the aggregate opinion of millions of investors around the globe. If the aggregate opinion sets asset prices, then keeping an eye on aggregate...

We are not big fans of quantitative easing (QE), but a fair question is where would the markets, economy, and employment be if the Fed had never printed money? The obsession with the Fed says QE matters to the markets; and what matters to the markets impacts the...