Is Gold Being Manipulated?

Gold, as a commodity, is one of the world’s oldest standards of value. Values rise and fall; however one of the most compelling arguments right now, is whether or not its price is being manipulated — in a downward way. I’ve read a number of articles over the recent months and years that suggest that there indeed are bodies that manipulate the price. But this one below, is one...

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QE2, Will it work?

QE2, Will it work?

The recent FED decision to implement Quantitative Easing 2 (QE2) is controversial. The obvious question is, “Will it work?” Issues concerning national and global economies are complex, I make no bones about that. The hardest course I ever took as an Economics major was “Money, Credit & Banking.” But also the most illuminating. But to the point? Will this $600 billion...

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Breaking news: Senate bill passes, loosening money.

Breaking news: Senate bill passes, loosening money.

In what is breaking news for the Finance world, the Senate yesterday passed a bill that will be very advantageous for the lending environment: A raising of the limits on SBA loans, and some other things. This is significant, as it increases the amount with which the government is willing to guarantee certain loans. It is these specific guarantees that will now incent the banks to lend again...

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Breakout coming soon. Direction?

Breakout coming soon. Direction?

For the past month, bonds have been trading in a relatively narrow range: between 3.13 and 3.42%, with the average being 3.26%. In technical trading, this is known as a convergence: In short, when any investment trades in a narrower and narrower range, it will shortly break out significantly to either one side or the other — kind of like a trigger mechanism that gets more and more fragile...

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Sale today; Euro affect on US expected to be mild.

Rates are slightly up on the opening on the two news items in the header. Yesterday, Bernanke said in testimony at a House Budget Committee hearing that the impact of the European debt crisis on U.S. growth is “likely to be modest” if financial markets “continue to stabilize”. This “positive-US” news worked to raise rates slightly. Secondly, we are in the middle of a $70 billion bond...

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Still with downward trend.

News is largely what it was: The European zone continues to experience challenges, the latest being a Fitch discussion of downgrade to UK. It is largely believed that Greece will sooner or later default, and the whole sustainability of the Euro is somewhat believed to be limited. On the domestic front, the US economic signs are not as “hot” as were first portrayed: We’re still...

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Sideways to down

Bias is still toward “flight to quality” as things are still very shaky in the Euro zone. In addition, China’s economic reports are coming out pointing to an economic slowdown in that country. Our own reports are showing increasing positive economic news, one item of which is factory orders, which have gone up now ten months straight. All of this moves sentiment (and money)...

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