Gold is off $10 an ounce to $1,628 as of 5:00 am Pacific…Silver is 35 cents lower at $29.74…Copper is off a nickel at $3.72…Crude Oil has declined 84 cents $97.10 while the U.S. Dollar Index is up slightly at 79.68…
Berkshire’s Charles Munger, Warren Buffett’s right-hand man, gets our vote for The Stupidest Comment Of The Year after telling CNBC’s Rebecca Quick, “Gold is a great thing to sew into your garments if you’re a Jewish family in Vienna in 1939, but I think civilized people don’t buy Gold, they invest in productive businesses”…
Perhaps China and India haven’t quite reached “civilized” status yet in Munger’s distorted view of reality…
Not to be outdone, “Tax Me More” Buffett chipped in yesterday with his own shot at Gold bugs…”They want everybody to be so scared they run to a cave with Gold…caves might be a better investment than Gold…at least they’re not producing new caves all the time”…
Buffett obviously hasn’t done his homework on Gold or he would understand that production of the yellow metal is actually barely ahead of where it was a decade ago – “new caves” are being found, though this is a much more difficult process than ever before, but “old caves” are being filled in…with new demand dynamics, the Gold price is up six-fold over the last decade which is a far better return than the share performance of Berkshire Hathaway…
“Absolutely I would take the other side of that trade,” stated Michael Pento, founder of Pento Portfolio Strategies in Holmdel, New Jersey…”The stock market has gone nowhere in nominal terms in 12 years…it makes sense as a default under the current conditions of negative real interest rates to own something that keeps you afloat, that preserves your purchasing power”…
Pento is the former senior economist at Euro Pacific Capital, the firm run by noted Gold enthusiast Peter Schiff…Pento has nailed the trajectory of Gold’s price for the past three years running…
Primarily because of the Federal Reserve‘s weak-dollar policies, Pento expects Gold to continue to hold its place as an inflation hedge, as well as a safe-haven asset to buffer against global debt contagion…for 2012, he thinks Gold should be able to hit $1,900 an ounce…
“I would ask Mr. Buffett if he could own a lone share of a representative of the S&P 500, or would he rather have the equivalent of an ounce of Gold?” Pento says…”Which investment has done better over the last dozen years? The answer is clear: Gold“…
Major Bank Bailout By Spain
The Financial Times reports that Spain is planning a state bail-out of Bankia, the country’s third biggest bank by assets, in a move likely to involve the injection of billions of euros of public money into the troubled lender…in an abrupt reversal of policy, the Spanish government, which had previously insisted that no additional state money would be needed to clean up the country’s banking sector, confirmed that an intervention was being prepared…
Today’s Markets
Asian markets were mixed overnight with Japan gaining 63 points or 0.7% to close at 9182, just below the 50% retracement of its rally from November to March…China’s 4-session winning streak was snapped as it dropped 3 points to 2449…
European shares are lower this morning with with concerns growing about Greece’s political future as the country’s parties struggle to form a new government…new elections next month could be necessary…the combined weight of Greece and Portugal in the euro area is less than 5%…the best way to strengthen a chain is to remove the weakest link, so a bankrupt Greece booted out of the euro zone might be the wisest strategy of all…politicians have been wasting their time repeatedly kicking this can down the road over the last year in particular…
U.S. stock index futures as of 5:00 am Pacific are pointing toward a slightly lower open on Wall Street…
The TSX and the Venture Exchange will be attempting to snap out of a 4-session losing skid that has sent the TSX down 472 points or 4%, and the Venture down a more modest 34 points or 2%…
CRB Index
Below is John’s 10-year monthly chart on the important CRB Index which shows that a support band is holding, while the Slow Stochastics Oscillator – in a steady decline for more than a year – is at its lowest level since the early 2009 bottom…this has to be considered bullish going into the second half of 2012…
Newstrike Capital (NES, TSX-V)
Newstrike Capital Inc. (NES, TSX), which completed a $25 million bought-deal financing in March, has recently been trading below its still-rising 300-day moving average (SMA) for the first time since late 2009…the company has been reporting stellar results from its Ana Paula Gold Project in Mexico which it acquired from Goldcorp a couple of years ago…Newstrike has a market cap of $250 million and has been closely mirroring the CDNX which is why this chart from John is so important…a strong case can be made that Newstrike found a bottom in late April around $2.10 with RSI now forming a bullish “W” at the 40% level…this is an important stock to watch for signs of a definitive turnaround in the CDNX…
Note: John, Jon and Terry do not hold positions in NES.
Richmont Intercepts 6.40 g/t Au Over 52.8 Metres in Wasamac Main Zone, and Announces Five Focus Areas to Improve Project Economics
Comment by Andrew — May 8, 2012 @ 5:05 am
My Buddy Jon – “I would ask Mr. Buffett if he could own a lone share of a representative of the S&P 500, or would he rather have the equivalent of an ounce of Gold?” Pento says…”Which investment has done better over the last dozen years? The answer is clear: Gold“…
Bert – Ask me the same question, my answer would be, Berkshire Hathaway Inc. Del. last, $123,676.00.. Of
all the folks you had to pick from, surely you could have picked someone less successful. Anyway, have a
good day. R !
Comment by Bert — May 8, 2012 @ 5:22 am
buffetts comments are worth reading and considering for a # of reasons. also remember that he just endorsed US banks and has a big stake in
GS and got in on thier lows via a shr + wt purchase. so is he talking up his own deal, which has probably done better than gold, since the PP ?
Comment by rdww — May 8, 2012 @ 5:45 am
maybe some capitulation this day/week … ATC down 13 cents on 10000 shares… some puking going on… idiots!!!:) unless ATC goes to 50 cents then they are really smart:)
Comment by Jeremy — May 8, 2012 @ 6:06 am
CDNX…JOHN, WE NEED AN INTERIM UPDATE TODAY’S CAPITULATION????
Comment by STEVEN — May 8, 2012 @ 6:10 am
Steven, you need to stop depending on John’s charts at this point because they are essentially useless. BMR’s calls are downright horrible for the most part. They are trying to make a bull market out of a bear market. These speculative/gambling indexes need growth and confidence to advance in a meaningful way. It is definitely a traders market at this point, not a buy and hold.
Comment by Joey — May 8, 2012 @ 7:45 am
Jon said last week the tsx.v was starting a seroius uptrend and May would not be the month to run away. Quick everybody, buy, buy, buy
Comment by dave — May 8, 2012 @ 8:21 am
Steven
1305 is the next chart support level
Comment by John - BMR — May 8, 2012 @ 8:34 am
Jon or whomever, are only as good as the circumstances we find ourselves in. It’s all
about fear now & often it’s overdone. Those in the know, the money pockets, who are
watching this as a golden opportunity, will turn it around late today, or maybe tomorrow.
But who am i, just a lowly investor, who very seldom do i get it right, but it feels good
when i do. R !
Comment by Bert — May 8, 2012 @ 9:13 am
Bert you must be (or should be) loading up on CEV today…
Comment by db — May 8, 2012 @ 9:16 am
GBB finally trades below 10 cents. As I predict, the 10 cents mark had been broken. Someone is waiting for the time to dump
a big lot . This has been happening for some time and dumping had not been finished.
Comment by Theodore — May 8, 2012 @ 9:31 am
DB
Warren (Bert) Buffett is only willing to gamble so far, but to be honest, i have low
bids in on CEV, SGC & IGO, which is a Yukon play. Mark my word, the Yukon will pull us
out of this eventually. They are all starting to prepare their stories about now. R !
Comment by Bert — May 8, 2012 @ 9:39 am
GBB – well it isnt roger – he just bot 3MM + shares in the last 15 cent FT PP
Comment by rdww — May 8, 2012 @ 9:58 am
Roger may want to backup this stock but too many loose shares and at this price – none of the private investors will have patience. Dump it when there is an accumulated buy lot. 8.5 cents will be seen – my sixth sense again. Do not touch it now. This is my personal view. Keep the cash!
Comment by Theodore — May 8, 2012 @ 10:20 am
CEV could see .48 before a rebound.
Comment by dave — May 8, 2012 @ 10:25 am
. Well..The story on Roger and GBB was false or a error. He only bought 200 000 shares for a total amount of 30 000 $ . Now in the Sedar report ..the same one For Stockwatch …there are no indications of insider buy from Roger. I wonder how this error came to be in Stockwacth report. On canadianinsider.com the real purchase and reported by Roger is 200 000 shares. We are going to see 8 cents soon
Comment by Marc — May 8, 2012 @ 1:02 pm
Jon and John, I think you should remove posts 15 & 16 and block the poster. Otherwise, I think we will lose our posters who make a board for relevant and informed conversation. Thanks.
Comment by Andrew — May 8, 2012 @ 2:55 pm
I agree with Andrew, # 17. Theodore, like most of us, has a certain style of writing
& we should accept him as a member, trying to be of assistance. As least, he is mannerly
& may have more SENSE(s) than most of us. We should show appreciation to him, or not respond
at all… Sorry Kent, but you have stepped over the line & hopefully have since regretted what
you wrote. Respectfully !
Comment by Bert — May 8, 2012 @ 4:11 pm
Dave your right, I didnt notice the gap till you got me really analyzing the CEV chart.Good place for a bid…
Comment by db — May 8, 2012 @ 4:48 pm
Correct, Andrew, they have been removed….they normally would have been removed immediately but people were in transit today…..our apologies.
Comment by Terry - BMR — May 8, 2012 @ 8:57 pm
It has been said that when markets were down and gold up, that folks were
buying gold for a safehaven. This morning everything is down, which leads
me to believe, that the only safehaven now is one’s mattress. I want to buy
100 K shares on a feather mattress please !
Comment by Bert — May 9, 2012 @ 2:35 am
Thank you, Terry
Comment by Andrew — May 9, 2012 @ 4:45 am
You’re welcome, Andrew. Two other posts have just been deleted. I know the markets have a lot of people but edge but please let’s keep things civil here, everyone. Thank u.
Comment by Terry - BMR — May 9, 2012 @ 5:08 am