Frank Holmes commentary: What’s the Game Changer for Gold?
In this week’s commentary, Frank Holmes asks what the game changer for gold will be. As we watch Janet Yellen take over as chairman of the Federal Reserve, we note how much higher the Fed’s balance sheet is today compared with when Ben Bernanke became chairman in 2006. Even with the tapering of the bond purchases that began in late 2013, the Fed’s balance sheet remains on an upward trajectory and much higher than the price of gold. This suggests we should see much higher prices in the yellow metal.
DT…….HOW is the MASS TRANSIT SYSTEM in Toronto?
Jerry, We have a good subway system that is now under a major expansion, our light rail system is integrated with it and as well as we have dedicated streetcar lines on major streets downtown. In the burbs buses connect to the system so you can get anywhere without a car. DT
DT……..Thanks for the reply……….
More cities should follow that example.
Try getting around in Seattle and Vancouver, BC sometime. It is an experience in frustration.
Interesting comment Machine Gun.
By the way, I will be giving a presentation at PDAC on Sunday morning, March 2nd. Hope to be able to meet you.
Al, I have already made plans for being at PDAC on Sunday March 2nd so it would be nice to say hello. DT
Count on it, Machine Gun!
Sorry but the actual city of Toronto is not the second largest city north of the Mexican border. From Wikipedia:
“According to the 2011 Census, the city has 2.6 million residents, making it the fifth-most populous city in North America. In 2012, the municipal government published a population estimate of 2,791,140, which led to media reports claiming Toronto as the fourth most populous city in North America and the most populous Great Lakes city, surpassing Chicago”
I just had to double check about Toronto’s size. According to Wikipedia Toronto is the third largest city north of the Mexican border.
Snips from
http://business.financialpost.com/2014/02/13/what-you-need-to-know-before-markets-open-694/
Barrick Gold Corp reported a big fourth-quarter loss on Thursday as it took another impairment charge, cut its gold reserve estimate by 26 % and said a key cost measure might rise this year.
Kinross Gold Corp : The miner said on Wednesday that a “rigorous” review of its mine plans led to slashing its gold reserves by a third, even as it reported a narrower fourth-quarter net loss compared to the same period last year.
Agnico-Eagle Mines Ltd : The miner slashed its quarterly dividend to 8 cents per share from 22 cents, saying the reduction reflects current market conditions as gold is trading about $100 per ounce lower than its realized price in 2013.
“Instead of long soup lines as during the Great Depression, we have food stamps”, says Erick King during an interview of David Stockman who comments on the manipulations of the market by the Fed.
Interesting analogy by Erick King. …And why not go hi tech with the food lines?!
http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2014/2/13_David_A._Stockman.html
Nowadays you won’t see bread or bank lines, ATM’s and food stamps have destroyed a good part of the visual the public needs to see. DT
I know, we sometimes overlook the obvious, and the corporate media is about to connect the dots or draw the inference.
The soup lines are there, just dispersed to the grocery stores as are the runs on the banks where the crowds run to their ATMs to face withdrawal limits. Interesting times indeed.
Change ‘….media is about to….’ to read “….isn’t about to….”
It would be fascinating to be able to see just how this period in history is eventually taught in schools!
I really think teachers are not tested enough on their capabilities and if there not careful robots which can be programmed might be the next tool used by the state to control the populace. This might sound off the wall to some but from what I’ve seen in the educational system with the increasing use of electronic aids it could easily be a reality. DT
The teacher’s unions won’t be able to undercut any initiative the government wants to take because these days they just cut backroom deals. Instead of an educational union you will get a government run union. DT
Dave Stockman’s BIO……interesting he attended HARVARD DIVINITY ,,,never completed, but, went on to politics………..
Yes, and he was the Director of the Office of Management and Budget under Reagan, thus a Republican. Arguably the father of ‘trickle down economics’ which in retrospect amounted to the middle class getting pissed on by the top 2%. Anyway, I thought his latest comments about the Fed were good. In an imperfect world even the wrong get it right sometimes, and vise versa.
That is a very good point that he made Bj. I find it fascinating that every person does not realize just what is going on!
I feel Mark Levin’s show of yesterday is worth listening to:
http://podbay.fm/show/209377688/e/1392257772?autostart=1
Thanks Professor, I will listen to it this morning.
Levin’s commentary above is about how to re-establish constitutional principles and remove power from a dictatorial president, using the 5th amendment powers.
Listening to founding father’s Mason’s speech, at 23 minutes in, is enlightening.
I meant Article 5 of the Constitution, not 5th amendment.
A picture perhaps of the U.S. economy?
That state is home to Mammoth cave, with over 20 miles of passages and chambers.
http://www.politico.com/story/2014/02/debt-ceiling-vote-mitch-mcconnell-john-cornyn-103469.html?ml=po_r
The Obamacare law has now been unilaterally amended by the Dictator 36 times!
So much for rule of law!
Please elaborate on this one Professor.
Do you want me to dig out every change? I can do it, but it will take time.
Here’s a place to start:
http://www.weeklystandard.com/blogs/when-obama-rewrites-obamacare-why-doesnt-anyone-sue-him_781480.html
Over the last year I have been roughly keeping track of the Big Zero’s dictatorial actions, but have not kept all the citations.
It is incredible that three major gold producers cut their reserves on the same day!
(hmmm. It’s the 13th today…..coincidence…..or not?)
http://www.kitco.com/news/2014-02-13/Barrick-Sees-Loss-Cuts-Reserves.html
http://www.kitco.com/news/2014-02-13/Goldcorp-Posts-4QLoss-Cuts-Gold-Reserves.html
It is possible this could effect GDX and similar ETFs.
A good analogy to the price of gold verses The Fed’s balance sheet, Toronto is now the second largest city north of The Mexican border but we haven’t abandoned the automobile in our inner city core although grid lock is killing people who still persist in driving. Take New York where they have realized for a long time that owning a car for the inner city resident just doesn’t make financial sense so 90% of the core people in New York city don’t own a car and make do with public transit. Perception here has not caught up with reality but it will and soon. DT