Archive for category Newsletters

To be sure, late spring and the summer to date, has certainly been interesting. Like multiple fingers running into a larger body of water, there are many significant things on the financial horizon that will no doubt shake and potentially seize the markets. Regardless, the reaction by the economic central planners will be the same – more monetary easing and stimulus to solve all.

As The Financial Panner has been writing for some time, this reaction to continually paper over our economic problems, will simply push up the price of commodities – namely gold and silver – while increasing the cost of living. Get ready for some pain.

Quantitative Easing 2 formally ended on June 30, 2011 (whether it really did is of course another question). This expectation certainly [...]

The recent tsunami in Japan was certainly an event of epic proportions and an amazing reminder of mother nature’s power. As horrible of a tragedy as this was, it is difficult to begin to move past the death and devastation due to the critical nuclear situation in Fukushima.

The Financial Panner certainly had early impressions as to the level of impact this situation would have on the current macro-economic environment. We took a pause, however, to fully assess the situation and ensure it was as dire as our initial gut check related. We believe the situation at Fukushima is similar to experiencing an accident in slow motion, and unless a true miracle occurs – for which we will be hoping – the end result could well be a significant portion of uninhabitable land mass in Japan.

Additionally, it is possible, as time grinds on without the problem solved cumulative radiation could cause food contamination concerns here in the US. Finally, the overall financial impact of all of this could be dramatic on world financial markets which we believe would result in “All Systems Go” for Quantitative Easing 3. [...]

2010 Recap

Through the short term noise, The Financial Panner was able to successfully predict key macroeconomic events that shaped 2010.

Our target for gold in 2010 was USD $1,420, and while we believed it would happen sooner than it did – we ended the year at USD $1,421.60.

This has the potential to catapult the 1 troy oz. spot price of gold to $1420 USD by April 2010.

For those who need reminding, gold started 2010 at USD $1,096.50 – this represents an approximate 29% YoY gain in the precious metal for 2010. Silver, on the other hand, had a blowout year up 83% YoY from USD $16.85 to USD $30.91. We did not put out a price target for silver for 2010, however we intend to do so for 2011.

Additionally, in our 2010 outlook [...]

The Federal Reserve will continue to administer Quantitative Beatings, (aka Quantitative Easing, buying US Treasuries, printing money, inflation, etc.), of this there is no doubt. This is the only way that the financial system as we know it can continue. The “toxic assets” (aka worthless liabilities) that created the financial crisis of late 2008 have not gone away, they have simply been moved to the balance sheet of the Federal Reserve. In order to maintain the status quo, both the toxic instruments on the books of the Fed and others which remain within the system must be inflated away.

The large financial institutions control the Federal Reserve [...]

Today, after a 2 year plus investigation, Commissioner Bart Chilton of the CFTC (US Commodities Futures Trading Commission) – the body that regulates the futures and options markets – released some extremely powerful statements to the public regarding “Anti-Manipulation and Disruptive Trading Practices”.

Here are the highlights:

I take this opportunity to comment on the precious metals markets and in particular the silver markets. More than two years ago, the agency began an investigation into silver markets. I have been urging the agency to say something on the matter for months. The public deserves some answers to their concerns that silver markets are being, and have been, manipulated. [...]