LIVE Gold Prices $  | E-Mail Subscriptions | Update GoldSeek | GoldSeek Radio 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

GoldSeek.com to Launch New Website
By: GoldSeek.com

Is Gold Price Action Warning Of Imminent Monetary Collapse Part 2?
By: Hubert Moolman

Gold and Silver Are Just Getting Started
By: Frank Holmes, US Funds

Silver Makes High Wave Candle at Target – Here’s What to Expect…
By: Clive Maund

Gold Blows Through Upside Resistance - The Chase Is On
By: Avi Gilburt

U.S. Mint To Reduce Gold & Silver Eagle Production Over The Next 12-18 Months
By: Steve St. Angelo, SRSrocco Report

Gold's sharp rise throws Financial Times into an erroneous sulk
By: Chris Powell, GATA

Precious Metals Update Video: Gold's unusual strength
By: Ira Epstein

Asian Metals Market Update: July-29-2020
By: Chintan Karnani, Insignia Consultants

Gold's rise is a 'mystery' because journalism always fails to pursue it
By: Chris Powell, GATA

 
Search

GoldSeek Web

 
Market Wrap Week Ending 10/31/08



-- Posted Sunday, 2 November 2008 | Digg This ArticleDigg It! | Source: GoldSeek.com

 

Honest Money Gold & Silver Report

 

 

 

 

 

Currency

One of the driving forces behind the various asset bubbles around the world has been the yen carry trade. Traders borrowed the yen at 0.5% and invested in higher-yielding assets around the world. There has also been a carry trade prevalent in the U.S. dollar and Swiss Franc.

 

Presently, the Yen has been the strongest currency worldwide; with the dollar close behind. Traders that borrowed yen and dollars to “invest” in higher yielding instruments are now scrambling to settle their trades. The demand for dollars and yen has been huge. Hence the quick and violent moves the currency markets have been experiencing.

The yen/euro cross has been in a parabolic blow-off. When the yen is strong stock markets are weak, as traders are resistant to take on risk. When the yen falls traders are more willing to take on risk and markets go up.

Look for the gaps to be filled and stocks to rally. A MA crossover appears to slowly be developing, which would result in the yen up and stocks down.

 

Gold

Gold was down -12.10 to close at $718.20 (continuous contract) for a weekly loss of -1.66%. Year to date gold is down approximately 16%.

Since making its all-time high back in March gold has lost about 30%. Gold’s five year rate of return is just shy of 90%.

As long as gold holds the bottom trend line the long term trend remains intact.

 

Gold priced in Euros is doing much better than gold priced in U.S. dollars. 

 

  

Summary

The global financial system remains in shambles. It can be no other way, as all world currencies are paper fiat debt-money. Until a sound monetary system of gold and silver money is restored, the system will remain unstable and prone to mishap.

The monetary base in the U.S. is exploding upwards, guaranteeing monetary inflation. Currency debasement (loss of purchasing power) is assured. Rising debt levels are a given. All this is gold positive.

Volatility reigns supreme within the markets. Cash and gold are best in times of uncertainty such as these. The stock market is in a bear market and strength is to be sold into.

Gold and silver should be held as insurance – insurance against further currency debasement (loss of purchasing power). For thousands of years gold has been accepted as money anytime, anyplace. All central banks hold gold in their reserve deposits.

In a paper fiat money system such as ours, Treasury bonds secure the circulating currency known as dollar bills or Federal Reserve Notes. This means that interest paying debt (Treasury bonds) secure non-interest paying debt (Federal Reserve Notes or dollar bills), which in turn are used to purchase the self-same Treasury bonds with. A most interesting scheme is it not?

All the bailout plans call for more and more debt to be issued, which in turn secures more and more money supply, which in turn can buy more and more debt: and around she goes – where she stops – nobody knows. 

Paper fiat debt-money is on self-destruct, it carries within a deadly seed. The 21st century will go down in history as the age when paper fiat money died and gold and other tangible assets became dear once again – when value was no longer measured by promises to pay, but by payment itself – using honest weights and measures. 

The latest full-length version of this week’s market wrap is available only on our web site: Honest Money Gold & Silver Report. Most major markets are included with the emphasis on the precious metals market. Two dozen charts with commentary are available, including our stocks watch list. See why we believe gold is in a secular bull market. Stop by and check it out: Honest Money Gold & Silver Report.

 

Good luck. Good trading. Good health, and that’s a wrap.

 

 

 

Come visit our website: Honest Money Gold & Silver Report

 

New Book Available - Honest Money

The Powerful Story of Constitutional Gold & Silver Money

 

 

Douglas V. Gnazzo © 2005 – 2008
Honest Money Gold & Silver Report

About the author: Douglas V. Gnazzo writes for numerous websites and his work appears both here and abroad. Just recently he was honored by being chosen as a Foundation Scholar for the Foundation for the Advancement of Monetary Education (FAME).

Disclaimer: The contents of this article represent the opinions of Douglas V. Gnazzo. Nothing contained herein is intended as investment advice or recommendations for specific investment decisions, and you should not rely on it as such. Douglas V. Gnazzo is not a registered investment advisor. Information and analysis above are derived from sources and using methods believed to be reliable, but Douglas. V. Gnazzo cannot accept responsibility for any trading losses you may incur as a result of your reliance on this analysis and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Individuals should consult with their broker and personal financial advisors before engaging in any trading activities. Do your own due diligence regarding personal investment decisions. This article may contain information that is confidential and/or protected by law. The purpose of this article is intended to be used as an educational discussion of the issues involved. Douglas V. Gnazzo is not a lawyer or a legal scholar. Information and analysis derived from the quoted sources are believed to be reliable and are offered in good faith. Only a highly trained and certified and registered legal professional should be regarded as an authority on the issues involved; and all those seeking such an authoritative opinion should do their own due diligence and seek out the advice of a legal professional. Lastly Douglas V. Gnazzo believes that The United States of America is the greatest country on Earth, but that it can yet become greater. This article is written to help facilitate that greater becoming. God Bless America.

Douglas V. Gnazzo © 2005 – 2008 All Rights Reserved


-- Posted Sunday, 2 November 2008 | Digg This Article | Source: GoldSeek.com




 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2019



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer


Map

The views contained here may not represent the views of GoldSeek.com, Gold Seek LLC, its affiliates or advertisers. GoldSeek.com, Gold Seek LLC makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, Gold Seek LLC, is strictly prohibited. In no event shall GoldSeek.com, Gold Seek LLC or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.