Here are the latest reports and audios I’ve been listening to over the past week on the gold, silver and world markets.

What is somewhat ironic is the strength of this summer’s gold market. Typically, the motto is sell in May and go away and come back another day (September) However, we find ourselves on the heels of one of the strongest (ok, probably THE strongest gold summer market ever.) This was just what Jim Sinclair of JS Mineset warned about back in June.  As the saying goes, the market is always right.

Hopefully you’ve had a good summer.  As we head into the 4th quarter of 2011, there are a number of things to be on the look out for. Now is the time when all the traders and money managers are back from vacation and attempt to close out their year on a positive note. It’s the 100 day push.

Simply put, trading volume increases and you have a “full market.” So, game on and I wish you a successful and profitable 4th quarter. If you’re investing in gold or investing in silver, the following information should be helpful. It is taken from some of the brightest and well known in the capital markets.

The other day, someone asked me if I was a gold bug. I had to stop for a second and I said, No. Then, they asked how come you’re always writing about gold and silver? My answer, because it has been one of the biggest money making trends over the last 10 years. You either have to adapt or risk getting left behind.

Report of the Week

Gold and The Future by Martin Armstrong

Audio Broadcasts

King World News

King World News Weekly Metals Wrap – Another good discussion on this week’s gold and silver markets from Dan Norcini and Bill Haynes. If you want to hear it from one of the best traders and well known precious metals dealers, here you go!

Jim Rickards on King Worlds News – If I had to pick 1 analyst who understands the world monetary system and how things work in politics, Jim Rickards would most likely be it. For things to happen you have to have not just the economics but political and social factors in place.

Robin Griffiths on King Worlds News – Robin is one of the most well known advisors to the wealthy. His grasp on the world markets is always interesting to listen to. And, this interview is no exception.

Financial Sense

Silver Stocks Fraud or Manipulation – In this round table discussion Jim Puplava discusses recent allegations surrounding the manipulation of the silver stocks.  True or not, a most interesting discussion if you’re investing in silver, silver stocks or a silver etf

Howe Street

Bob Hoye on Howe Street – Bob Hoye discusses what he sees happening in the 4th quarter along with his latest technical work. Bob is a true student and historian of the markets and I always find him most objective which is crucial to successful investing.

There you have it. I hope you find these helpful in your investing decisions. Remember this information is not investment advice, but for informational purposes only.

Until next time, MOS

The key to making money in the markets is to find the biggest trend, paddle out ahead of the crowd, take your position and sit there. Then, you have to be so careful as to not confuse brains with a bull market, meaning know when to sell. If only it were that easy! It is, kind of. But we have these things called corrections along the way that we have to deal with.

Yes, the Gold Correction is Here
Gold is taking a much needed breather. And, this comes after having advanced so strongly during the usually quiet summer months. This correction should be considered extremely constructive in the long term context of this bull market.  Saying that doesn’t make a correction easy to live through, now does it? Corrections have been known to keep investors out of the market.  This is because int he back of your mind, that little voice is asking: “Is this it? Will gold be able to push itself back through the previous high?”

The Collective Conscious
Investing is at least 50% psychological. I’d even say it’s as high as 80%.

What happens prior to a correction is that we have this really big advance in price. This gets people’s attention. Then, they begin to think about buying gold. Eventually, when they get around to it, gold has made it’s move for that time period and is about to enter into a correction.

What A Correction Looks Like
When you look at any market trend for a given time period, you are seeing the collective decision of the market (buyers) aggregated into a trend line. The following is a chart of the gold price the last 30 days. Look attractive?  Not really. This is what an correction looks like. But we can’t be so short sighted or we will let our emotions jerk us around and we simply can’t have that!

Next we’ll look at 2 additional charts to gain a better perspective on things, say the 1 year and 5 year price of gold.

If you look closely enough, you’ll see that gold corrects periodically, that it doesn’t go straight up. It will enter a blow off phase one day.

No Risk – No Reward, What To Do Now
You have to have a system in place when investing in gold or investing in silver. Well, any market applies to that statement. Dollar cost averaging works well in a bull market. This is because it allows you to define a set amount of monthly savings within a plan. Then, when the correction comes, you’re so “in the money” it doesn’t even phase you.

The one trick ponies who expect to dance into the gold market when it’s peaking and get a fortune for their money are fooling themselves. This is the way people blow themselves up financially. Don’t be a one-trick pony. Have plan and stick with it.

Don’t kid yourself. Successful investing requires a plan, discipline & recognizing you’re going to take some heat (losses) from time to time. These losses are what we refer to as a correction. It’s the foundation that must be laid for a market to advance to the next stage higher. Most will wait to get on after it’s taken off once again. This is how liquidity is made in a market and it’s perfectly normal. You just have to decide what side you’re on.

Here is a crash course on how to invest in gold. Read this first.

Until Next Time, MOS

Gold continued it’s strength, closing close to $1900 last week. As I am writing this on Monday evening Gold is now trading just over $1896, after reaching as high as $1913 per ounce in the US markets today. This has been one of the biggest moves we’ve seen and it’s hard to say when gold will correct. But sooner or later we will get a correction. For now the trend is your friend.

Silver started showing signs of life making more than a $2 advance last Friday and closing today in the US markets just over $43 per ounce. Silver has not followed gold on this move but that is most likely because it is still consolidating from it recent move over $50. However, it appears like silver may be getting ready to play catch up with gold once again.

If you’re investing in silver, remember that silver is somewhat more volatile than gold as it still trades as an industrial commodity and a precious metal. If you’re looking to invest in the precious metals markets. It is best to do so with a well thought plan. You may want to check out this primer on how to invest in gold. The steps and due diligence apply to silver as well.

Here are the latest gold and silver broadcasts that I have been listening to over the last week.

Ben Davies on King World News – Ben talks about gold’s recent strength and what to expect from the precious metals market going forward.

Eric Sprott on King World News – Eric is one of the largest investors in silver. In this interview Eric talks about the silver price and also what to look out for in certain silver etf s

King World News Weekly Metals Wrap – the most current gold and silver news – In this broadcast Eric King interviews precious metals dealer Bill Haynes and trader Dan Norcini regarding their thoughts on the precious metals action over the last week.

We’ve just experienced one of the most explosive bursts in the gold price.  Then,  just like that….we get a breather.  Lights out? Confusion. What’s next?…Will the price hold?

For many people, this pause in the gold price makes them wonder what to do. And so it goes; the usual questions:

“Do I buy now before a possible major downward correction?” There is always a correction in any market.

“If I wait, I may be left at the station like so many times before. Then what?”  It sounds like you don’t have a plan. Nothing goes according to plan if you don’t have one. See the link below…on how to invest in gold.

These are the thoughts and questions that run through countless people’s minds during what is called a secular bull market.  These markets are as volatile as any market created and they will test you all the way. If you can’t stomach that, don’t jump in (It’ll just drive you nuts and I wouldn’t recommend that)

Just a little refresher on market psychology…….but before I get into that…remember gold has simply done exactly what it always does…has an explosive move when you least expect it…and then leaves you hanging on a limb…for we know the following is true.

Rule #1 of Bull Markets (If you’re a professional or aspiring investor pin this to your wall, seriously)
“A Bull Market’s Objective is to move as high and as far as possible with as few people as possible. Once everyone has hopped on the bull it dies but not beforehand.  It does this by climbing a Wall of Worry Keeping people second guessing)….”

This is what you have now. Just wait a few days after this correction starts….the usual questions will begin to surface.

and then, once again…the price will take off. So, how do you play this? Let me suggest this little piece I put together several years ago (Don’t worry, it’s not dated and works in any market) this is how to invest in gold or any other market.

And now the following from Uncle Jim JS Mineset (thank you, once again)
Until next time….MOS

My Dear Extended Family,

We have to admit $1764 is a significant level for gold. Above that level and the $1800 plus recent high comes into focus. Above that level the hyperbolic potential of the gold price comes into focus.

Some of the finest minds in gold anticipate a very short but brutal reaction in price. The dollar market seems to not agree with a gold correction here.

Market wise, the Fed has thrown the US dollar into the wind. Under .7400 the dollar denies a reaction in gold at these levels.

When gold broke out above $524.90 I asked you to please cease trading as gold had moved from phase 1 into a runaway price phase 2. It is this phase that has given you prices in excess of $1650. $1764 has the same significance as $524.90 because it represents phase 3, the point when a runaway price market for gold would gain exponential properties. Because $1764 is such a significant number, you can expect one of the more serious price battles before the price departs to Alf Fields’ and Armstrong’s predictions.

To sum up the situation, you haven’t seen anything yet.

Regards,

The following are a list of articles and radio broadcasts regarding gold and silver news from last week. If you’re investing in gold or learning how to invest in gold, I’d recommend reading the articles and listening to the broadcasts. Gold, like any other market, requires you to do your own due diligence before investing. Whatever you do, do not be lured into gold or silver after a big run up. The gold and silver markets can have their largest upward moves just before a big correction.

After an explosive move upward, gold cooled it’s jets closing the week just below $1750 per ounce.  Silver’s price didn’t change too much this week, closing the week at just over $39 per ounce.  What can be said for gold and silver now is that $50 price moves for gold and $2 moves for silver can be considered normal going forward. Simply put, volatility has increased in all markets across the board.

In the following interview, James Turk of Gold Money Interviews Jim Sinclair of JS Mineset about the gold price, how to ride this trend and the problems facing the U.S. Dollar

In the following broadcast, Eric King of King World News interviews Rick Rule about the increased volatility in the gold and silver markets, what to expect next and where Rick is finding value these days in the mining shares.

Weekly Metals Wrap from King World News – In this broadcast, Eric King of King World News interviews trader Dan Norcini about his thoughts on the price of gold and silver.  Bill Hayes provides his perspective from the dealer’s side on what he has noticed in the last week.

Indians Celebrate Holiday With Offerings of Gold – If you’re watching the gold rate in India or India in general you know that gold is almost a religion in India. This article talks about the seasonality of gold especially in India.

Run Buy or Hide? What Should Investors Do? – This is a very timely article by Frank Holmes.

Gold has broken out to the upside.  This latest move has taken place in what is usually a slow period for gold. If you’re investing in gold, I’d recommend following Jim’s blog JS Mineset

Dear CIGAs,

Now that we have reached $1752.20 gold, what should you do?

Stay firm in your disciplines. During this entire market chasing strength in gold has proven dangerous more often than not. Angels should be looked at for the mad trader as areas to lighten, not double up. You can win this game with a ruler, but you will have to stay up 24 hours a day. We have not had a blow off top in gold but there has been epic short covering in world markets. That type of action weakens short term markets. The best buys now are identified by a simple ruler with more complex firming internals.

The holder of the right position that shows the patience of Seligman and Livermore always take the greatest prize. Gold has made no meaningful top, but volatility has only one way to go and that is up. Our respected colleague Alf Fields would agree that traders better have karma on their side, but the gold market is nowhere near full valuation. Be careful traders but stand strong those of us who have hedged against the insolvable problems of the entire Western World. Your successful protection is my reward greater than money, greater than matter. See you in the morning.

1. Those holding gold to hedge the systemic risks of the Western Financial world simply stay in your position.
2. Traders lighten up your positions as gold approaches the next two Angels.
3. No market fails to have reactions at some point.
4. Reactions in this market will be deep, but brief when they occur.
5. The undervaluation of good gold shares has passed manic.
6. Utilization of some of your gold profits into good gold shares is pure logic.

Respectfully,

Jim

This Weeks Gold News

If you have been investing in gold for any length of time, then this was surely one of the most exciting weeks for you.  Gold closed this week over $1663 per ounce in US Dollars. The last 30 days has seen gold increase over 125 points as shown in the chart below.

Much of the positive action in gold this week can be attributed to the political drama that unfolded surrounding the  debt ceiling. Politicians believe they can wait until the 11th hour to raise the debt ceiling with no consequences. What these politicians forget is that the U.S. economy is still extremely fragile. Unfortunately, most politicians are more concerned with their careers than the greater good of society. Either way gold has been performing as a currency and as a hedge against government mismanagement.

If you’re trying to learn how to invest in gold or, if you’re looking for the latest news driving he precious metals markets, I’d recommend the following audio broadcasts for this week.

Bob Hoye on Howestreet – In this interview, Bob discusses the gold and silver markets, the global economy and more. Bob provides a great historical perspective to the markets. Bob believes that most markets are heading into a cyclical bear market.  Just a note: Bob has been calling for a “summer bear” for a couple weeks so his timing seems to be right on.

Jim Rickards on King World News - In this interview with Eric King, Jim Rickards explains who actually owns the United States gold, how it was originally acquired and the possible future outcomes of the global financial system.

Doug Casey on King World News – Doug Casey is known in the investment world as one of the most successful contrarian investors. He’s been actively investing since the 70s. In this interview Doug explains his outlook for the U.S. economy and what he sees happening in the precious metals markets.

Gold continued it’s record breaking trend this week, closing out just over $1627 per ounce in US Dollars. What seems apparent is that investors are no longer comfortable using currencies as stores of value.  So, gold has become the default currency of choice.  This can be seen in the chart below by looking at gold’s value versus the 3 major currencies (Dollar, Euro and Yen – Australian dollar included)

The following chart(s) is courtesy of The Privateer

Many people overlook gold because they have simply never stopped to look how it has performed the last 10 years or it’s relationship to other currencies the last 5 years. It is easier to say, “Gold is just a rock.” Or, “gold!!! Are you kidding me?” Yet, there are relationships (clues if you will) that reveal what become successful or winning trades and trends.

Trading or investing is a lot like playing cards. It’s a mix of intuition and logic. Like a hand of poker, you are never spoon fed or handed your answers. You try to read the other player (the market) You notice things (relationships) and capitalize on them.

Most people are too afraid to play/risk. Yet, they are okay just sitting in their respective currency as their politicians devalue it. Then, they will complain that everything is too damned expensive. Who is really to blame here?

Most critics have probably taken very little time fine tuning their trading or investing skills or, ever studied monetary history. This is not because the field is too difficult. For it is not anything near rocket science. I can assure you of this.  Investing and trading are things you do in the trenches not in text books or chat rooms. Meaning it is something you gain a respect for and learn the “hang of.” You have to lose a few hands and get your ass kicked around before you realize that most people are too afraid to put their money at risk. So, they just stay on the sidelines and bark…(yap yap yap)

This is simply human nature’s way of struggling to deal with change or accepting things as they happen.  Whether we like it of not, gold has been one of the most consistent and positive bullish trends over the last decade.

Think of currencies like this: Sovereign currencies are like shares of their respective countries. Owning a US Dollar is like owning a share in the “Business of the US” It will rise and fall and is valued against other respective currencies (countries) Investing in gold is just another theme: works today and will not one day in the future.

You can not just continually add layer after layer of debt and expect the value of your respective currency to remain unchanged.  Gold is like a barometer versus all other currencies, warning of trouble when there is too much debt in the system. This is gold’s message today.

In the capital markets there are certain relationships that show highly correlated or non correlated trends. (like the gold versus US Dollar) You don’t have to become “married to” or a disciple of these trend or cycles. Yet, to ignore them, is to limit your chances of success in the market.

Until next time….MOS

If you’re trying to learn how to invest in gold, one of the questions you’re going to ask yourself is: What drives the gold price. Today’s debt talks provides us a great backdrop to explain the gold price.

One of the reasons for the uproar over the talks surrounding the debt ceiling is the fact that the debt from the US Treasury is not “backed” by anything except the full faith of the US government. Of course this includes the ability to pull from the tax base of the world’s largest economy. But we’re “at the ceiling”. There are always consequences to debt, regardless.

You can think of secured debt as your home or car. Your mortgage is secured by the underlying house you live in. If you miss enough mortgage payments, you’ll go into foreclosure and lose your house. Your car loan is secured by your car and so forth. Again, the debt of the US Treasury is not backed by any(thing.)  When we went off the gold standard in 1971, we changed to a “fiat based system.”  However gold has remained quietly in the system.

Central banks hold tons of gold in reserve. So, whether officially in the monetary system or not, central banks have become net buyers of gold recently. Do you think they know something?

What you’ll notice below in the chart is gold responding to the level of debt in the system, globally. That doesn’t mean that it would make sense to go back to a gold standard (whereby debts are settled in gold) It’s not that simple. This would throw us into a serious deflationary situation, almost choking international money flows. But gold is acting as a currency, to reflect the value of other currency debasement. Again, this is not a statement that we should go back to a traditional gold standard. It’s something that can be seen when looking at gold vs. the primary currencies of the world: US Dollar, Euro and Yen.

Yet, gold provides a hedge (an insurance policy if you will) for out of control government spending.  Think of it as an insurance policy (insurance against debt not being paid back and potentially more issuance of debt and currency debasement.)  The gold premium or price rises as the probability of the debt in the system becomes more unsustainable. This is what the following chart is telling you. Put yourself on a gold standard to protect yourself and your assets.

At some point the “premium” will drop, but we’re a long way from this, IMO.  If you disagree with that premise, it would be foolish for me to argue. But the negative correlation of the dollar and gold the last 10 years isn’t my opinion, it’s in the charts.

Until next time, MOS.

The following articles and broadcasts are what I’ve been keeping up with over the last week. If you’re investing in gold, I highly recommend taking the time to listen to these broadcasts as they will give you unique insights in the precious metals market from professionals who have years of experience.

Gold had another record week, breaking the $1600 barrier for the first time. Silver also had a productive week, closing out at over $40 per ounce.  All of the following gold charts are showing positive uptrends, making gold one of the strongest ongoing bull markets in the capital markets. Additionally, gold is rising against all major currencies as it has been a preference of investors as the global debt crisis plays out.  Gold Charts

Weekly Broadcasts for the week ending July 22nd

King World News Weekly Metals Wrap In this broadcast Eric King of King World News interviews Master Trader Dan Norcini and Bill Hayes of CMI Gold and Silver, Inc.

Pierre Lassonde – In this interview Eric King speaks with long time gold veteran Pierre Lassonde regarding where we are in this bull market in gold and silver, where Pierre sees the gold price going and how come gold stocks remain very undervalued.

Financial Sense – Why Gold Stocks Present A Better Value Than Gold Bullion – In this interview Jim Puplava of Financial Sense interviews gold mining veteran Brent Cook to find out why Brent considers gold stocks to be better investments that gold bullion at this phase of the ongoing bull market.

Gold is having one of it’s most productive (in terms of price appreciation) summers in recent years. This hasn’t been the “sell in may and go away” usual summer. Regardless, if you’re just learning how to invest in gold for the first time, be sure to conduct your due diligence before diving into the market.

Until next time….MOS