Pundit's Perspectives – Thu 13 Dec, 2012

David McAlvany’s Weekly Report

David McAlvany

  1. On December 13, 2012 at 12:55 pm,
    JJ says:

    Big Al I’ve been reading your blog for sometime now and have been posting my opinion just recently.

    Al this is a MUST listen audio for your followers…. finally someone who understands currency and why the US feds do NOT have an “Exit” available to their toxic portfolio in a burning theatre!!

    The Central banks around the world have figured out the end results as they buy more and more GOLD…we must stop asking on days like today why isn’t gold higher, ask why isn’t it LOWER!!…the forex traders are buying todays sh!t the US$ is not up 1-2cents…ask if you were mega short gold and silver what would you do to take the wind out of the sails of we who do understand the value of gold vs US$’s and what would you do to prevent an obvious spike on the radar for all to see…QE4 = 1 TRILLION in newly printed $ over the next year!….so the shorts create the opposite of waht common sense suggests……….play their game!!…be the buyer beside the shorts who are creating stop loss selling.

    The whole global financial system is broken as the pricing mechanics are flawed thanks to complete bullsh!t in any government data points.

    The US$ has become monopoly money….and the example today is perfect!!!…imo

    Walmart shoppers are going to be in sticker price shock as they think they’ve walked into Neiman Marcus………………..pm’s preserves YOUR buying power vs paper currency devaluation from printing and insane debt levels

    Great find AL, well done!


    • On December 13, 2012 at 2:03 pm,
      Dennis M. O'Neil says:

      I agree JJ. I hope this Big Al hub to common sense reality economics continues.
      I am impressed by the both the quanity and quality of the information in these pieces.
      I would put this link follow down as brain candy.
      Thanks Al!!!!!!!!!!!!!!!!!!!

      • On December 13, 2012 at 2:39 pm,
        JerryOOTB says:


    • On December 13, 2012 at 2:44 pm,
      richard says:

      JJ, I agree. I get a kick out of folks that keep talking down the prices of the PMs especially for this coming year. It’s not going to happen. Also, I’ve read countless and heard countless remarks about how the dollar is going to be crushed as far as a certain price. The price of the dollar doesn’t have to be “crushed” in order to lose value. If most other countries are racing to the bottom with their currencies, it doesn’t really matter the “price” of the dollar or other currencies when it’s all relative. The dollar’s price ultimately doesn’t have to decrease considerably in order for the PMs to appreciate considerably. Also, I don’t necessarily buy into the sudden price spike of gold. I believe the PMs will inexorably climb over many weeks, months, and years since the currency debacles will probably occur over weeks, months, and years.

      • On December 13, 2012 at 3:08 pm,
        Dennis M. O'Neil says:

        Those talking down PMs in this environment can be sourced to large armies and navies. They have armored vehicles with faithful troops and large cannons able to project whatever violence is loaded. They possess big ships with airstrips and accompanying jets which have pilots who have tendencies to obey orders. The PMs will continue to be talked down as long as those who wish them to be talked down desire the same to be true.

        • On December 13, 2012 at 3:39 pm,
          Dick Tracy says:

          I haven’t bought any silver for 2 years but I am looking for an entry point and sub $30 would suit me fine. Be careful of what you wish for it just might happen. DT

          • On December 13, 2012 at 4:06 pm,
            JerryOOTB says:

            Hope all your wishes come true…..MERRY CHRISTMAS….by the way, Santa sends his regards….says you have been a naughty boy,,,but, all is forgiven…., there was something funny about that guy, who said you were naughty,,, he had a red nose, was wearing a red hat,,,,but he was wearing a kilt…..

          • On December 14, 2012 at 9:19 am,
            Matthew says:

            Merry Christmas to you Jerry, and stay on Santa’s good side…

          • On December 14, 2012 at 11:09 am,
            JerryOOTB says:

            Merry Christmas to you also….Matthew…glad to hear from you…..always a pleasure…

  2. On December 13, 2012 at 1:35 pm,
    benb says:

    Hi JJ, I am sure you know but a great book is Jim Rickards “currency wars”.
    Couple things, devaluing the currency only harms savers of that currency, real simple solution as we know, save PMs.
    As for employment, Apple is considering useing prison labor in the U.S. Why not? its only 26 cents an hour, time to buy apple shares? Manufacturing should come back to the U.S.

    • On December 13, 2012 at 2:25 pm,
      JJ says:

      Hi benb, Rickards is followed by many forward currency traders as he holds a great long term trend outlook towards global currencies…..the day to day action is very much corporate driven.

      There are many issues that we understand need fixing, ie US manu but hope has no place in my portfolio I learned that a long time ago and paid dearly to do so

      Anyone who actually thinks the US feds can deleverage their holdings has no clue, the fuse is interest rates, they shoot higher and the BANG the derivatives will create will be herd in Hell

  3. On December 13, 2012 at 3:22 pm,
    benb says:

    I bet you got that right JJ.

  4. On December 13, 2012 at 3:26 pm,
    Dick Tracy says:

    I hope silver sells off more I want to buy some for Kris Kringle, scrooge and the shorters need to make this a Happy Holiday for me, bring the ponies in I want to see another $2 drop. OH YEAH! DT

    • On December 13, 2012 at 3:35 pm,
      JerryOOTB says:

      oh,,HUMBUG….. ok..count me in …..,but, if it does drop down, you will have to wait your turn, as Irish will have all his elves dialing with all their fingers and toes….

      • On December 13, 2012 at 3:46 pm,
        Dick Tracy says:

        Those tricky elves if you tie their hands and feet Irish has taught them how to touch dial with their tongues. DT

    • On December 13, 2012 at 4:29 pm,
      richard says:

      If the fiscal cliff response goes the way I think it will, IMO the lowest silver will go will be $29.00. I personally think purchase at $30-$31 is appropriate since in 2 years when it’s much higher why would you have wqnted to miss out on these prices.

      • On December 13, 2012 at 5:12 pm,
        JJ says:

        Words of a trader Richard, far too many try and pick the bottoms and tops who cares being long at $32 or $30 when silver is $60 plus….the best currency trader I knew was all about getting filled and not price, many will bid $29.00 and not get filled as he would bid $29.29 or at resistance levels many orders were left at the exact level instead of making sure your sell order gets filled selling ahead of the herd.

        The FX traders never spoke about what levels they bought or sold as brag points, its all about how much money you make thats the bottom line.

        But this isn’t about trading its about preserving our wealth keeping our purchasing power vs the inflation continued US$ devaluation is going to create.

        I have no idea what the road map (chart) is going to look like as the US$ eventually falls below 70, gold $2500+ and silver $75+ but I’m sure events will paint some craaaazy looking uptic gaps along the way. Unless the thin ice breaks and a confidence crack unfolds in the bond markets….that will be like trying to pass Niagra Falls through a garden hose!!…..reminds me of when we would create a buying or selling panic quoting cuurency, its funny how much excitement you can create buy yelling Paid!! at the top of your lungs as the next offer is sure to get taken out….human panic especially regarding money is a sight to behold.

        The Bearnank and daboyz are whistling as they walk past the US$ graveyard….all it will take is a mere Booo from the bond markets sniffing INflation to turn this circus into a horror movie………..popcorn anyone…I like liquid gold on mine!

        • On December 13, 2012 at 6:36 pm,
          marc says:

          Doc and JJ,
          Very much agreed on all your comments.

  5. On December 13, 2012 at 6:18 pm,
    Paul L says:

    Good pmi data just came out from China and the market futures have moved up significantly and should be a good day on Friday for the general market. Silver is moving up a bit.

  6. On December 13, 2012 at 6:43 pm,
    Dan, calgary says:

    And silver lease rates appear a month later again on Kitco at an upward incline from -.5%. That is a sign of a decline. IMHO the hammer on the starting gun is beginning its slow trip back before it is released to start the overrun the shorts deserve.


  7. On December 13, 2012 at 9:09 pm,
    Dennis M. O'Neil says:

    A diamond in Charlie Rose’s ruff:


  8. On December 14, 2012 at 7:31 am,
    Dick Tracy says:

    Bernanke was on the news last night, I caught a snippet of his interview, it wasn’t about what he said but how he looked, he should get out of Dodge before he has a nervous breakdown. He looked sunken and withdrawn and he kept uming and awing like a lost sheep.

    He is now solidly in the gold camp although he can’t admit to it, I’m sure he has been buying precious metals and storing them in his backyard, I always told my wife he was a backyard boy.

    When you see him on TV or on you tube they make him look immaculate to fool the sheeple into thinking that he speaks from a higher authority but to me he has the look of a man with two feet in the grave, sunken and ashen. DT

  9. On December 14, 2012 at 8:59 am,
    roger wiegand says:

    The die is cast and the bond markets are doomed. The FOMC crowd will continue to print and digitze at the rate of $45 billinon to infinity. They can last longer than you can trade it short so buy PM coins, invest in other hard assets and wait for the cycles to play out- Conservatism will win in all aspects of your life- Traderrog

    • On December 14, 2012 at 10:48 am,
      Jerry(Gator) M says:

      My mother-in-law is making 10-12% on junk california bonds and I’m setting here with loads of silver bullion and mining stocks making -2% this year. How do I convince her with a straight face that she needs to put at least 30% of her portfolio in pm”s. ????? Her broker chuckled at the idea.

      • On December 14, 2012 at 11:00 am,
        Matthew says:

        You should ask chuckles if he outperformed silver over the last decade. I would bet not a chance.

        • On December 14, 2012 at 11:38 am,
          impeachemall says:

          That broker is a jerk, period. Not because he doesn’t recommend putting 30% into pm’s now, but because if he had thought about recommending it one or half a decade ago, he would now seriously explain his changed view to his rich client.

      • On December 14, 2012 at 11:22 am,
        JerryOOTB says:

        Jerry GATOR…..you will have a hard time trying to convence your mother in law, anything…..First , you must remember, you broke up the happy family when you married her daughter….., plus, most older people always know more than the youth….
        Thirdly,,,,does she like junk food….if so,,,then junk bonds are not so bad….
        BTW……MERRY CHRISTMAS….just a reminder,,,kick the snakes off the boat, it is getting close to my ventures south, and I am looking for a fishing trip…..best oooootb

        • On December 14, 2012 at 1:37 pm,
          Jerry(Gator) M says:

          OOTB, you’ve got it my friend. Snakes will be gone, pontoons pumped up and the frig full of Jack Daniels. Merry Christmas to you and have a prosperous new Year (in spite of bo).

          • On December 15, 2012 at 3:09 pm,
            Big Al says:

            Have you tried the new Honey Jack Daniels. Not the same at all, but really great! As, by the way, is Crown Royal Maple!

  10. On December 14, 2012 at 12:39 pm,
    Dick Tracy says:

    Hey Jerry, Merry Christmas to you, remember to fill up on Moosehead beer so you can tell your fishing buddies about the one that got away! DT

    • On December 14, 2012 at 3:32 pm,
      JerryOOTB says:

      DT…MERRY Christmas………Jerry Gators,,,says we are having JACK DANIELS….and when we have JACK…NONE OF THEM GET AWAY….Best to You and yours…ootb

    • On December 15, 2012 at 3:12 pm,
      Big Al says:

      Moosehead? I like the other comments about Jack Daniels!