Gold Stronger So Far This Trading Session - Message From Eric King of King World News

Gold Stronger So Far This Trading Session

After a huge move to the downside yesterday, gold seems to have steadied so far this trading session. Many people like to write about what news item moved the price of a particular market one way or another in a given trading day. I find that commentary worthless. Looking at longer-term charts of secular bull markets, one day news items are like a blip on a chart and not worth noting. Have steady nerves and keep your eye on the big prize.

July 2, 2010
Bloomberg: “People are still considering gold as a safe haven,” said Bernard Sin, the head of currency and metal trading at bullion refiner MKS Finance SA in Geneva. “Europe is still not in a good shape, and the U.S. is still not in a good shape.”

The metal is “a good hedge against further problems in the financial field and further potential inflationary trends that will be coming,” Barry James, who manages $2 billion as chief executive officer at James Investment Research Inc. in Xenia, Ohio, said yesterday.

Remember in a bull market never give up your position. You will have pullbacks from time to time, that is just how they are. Also, as Richard Russell says, bull markets are designed to take as few riders as possible. Don’t be one of the people not taking the ride.

Buy and hold during secular bull markets and stop worrying about gyrations in price.

For the entire Bloomberg article CLICK HERE

Boeing Shares Tumble 44% Before Exchanges Cancel Trades

http://www.bloomberg.com/news/2010-06-28/boeing-shares-tumble-as-much-as-44-before-rebounding-toward-friday-close.html
NYSE Euronext and Nasdaq OMX Group Inc. canceled trades that briefly sent shares of Boeing Co., the aircraft maker that’s one of thirty Dow Jones Industrial Average stocks, down 44 percent this morning.

Gold & S&P 500 Futures Daily Charts from Jesse's Café Américain - Joe Saluzzi "We Are One Headline Away From S&P 900" - Bloomberg

http://jessescrossroadscafe.blogspot.com/2010/06/gold-and-sp-500-futures-daily-charts.html

Gold is in a reverse head & shoulders and is looking for a break out if it can stay and hold above $1250.

Yesterday on Bloomberg - Joe Saluzzi said "We Are One Headline Away From S&P 900"

Higher Taxes Guarantee A Depression Via Eric King's Blog on King World News

Eric King: Higher taxes are a trend around the globe in developed countries. The west is mired in an extremely harsh economic cycle, but politicians never learn. They love to tax, and when coffers run dry the solution is to tax more. When you are faced with this type of cycle, coupled with increased taxes you are guaranteed a depression.

By Andrew Atkinson

June 22 (Bloomberg) -- British Chancellor of the Exchequer George Osborne increased the value-added tax rate to 20 percent from 17.5 percent in the first permanent change to the levy on sales of goods and services in almost two decades.

“The years of debt and spending make this unavoidable,” Osborne told Parliament in London in his emergency budget today as he announced a package of spending cuts and tax increases to cut the U.K.’s record deficit.

The rate will increase from January and produce more than 13 billion pounds ($19 billion) a year of extra revenue by the end of this Parliament in 2015, Osborne said. “That is 13 billion pounds we don’t have to find from extra spending cuts or income-tax rises,” he said.

The VAT increase dwarfed other revenue-raising measures in a budget that sought to all but eliminate a deficit that reached 11 percent of gross domestic product last fiscal year.

The tax generates about 15 percent of total government revenue and retailers say the rise may dampen consumer spending as the economy emerges from its worst slump since World War II. CLICK HERE to continue reading this article from Bloomberg.

Gold To Be Best Performing Asset For the Rest of The Year UBS Poll Finds - Bloomberg

http://www.bloomberg.com/news/2010-06-22/gold-to-be-best-performing-asset-for-the-rest-of-the-year-ubs-poll-finds.html
Gold will be the best-performing asset for the rest of the year as investors seek to protect wealth from sovereign debt risks and economic turbulence, according to about 30 percent of respondents in a UBS AG survey.

The survey was conducted last week at a UBS seminar in Wolfsberg, Switzerland, of central bank reserve managers, multilateral institutions and sovereign wealth funds, the bank said in a report dated June 18. More than 25 percent said global equities would be the best performer, followed by U.S. Treasuries. Gold was the most popular response. Representatives of some 80 institutions attended.

Bullion reached a record $1,265.30 an ounce yesterday and has climbed 13 percent this year as investors bought the metal to protect wealth amid Europe’s sovereign debt crisis. Gold has outperformed other commodities as global equities declined, and holdings in exchange-traded funds backed by the metal reached all-time highs, while coin sales from mints accelerated.

“So long as fears about global debt sustainability and sovereign risk remain heightened, gold will continue to rise,” London-based UBS analyst Edel Tully said today in a separate report. “Against this backdrop, it is little wonder that nearly a quarter of respondents expect gold will be the most important reserve currency in 25 years’ time.”

Almost 50 percent of respondents said the dollar would be the most important reserve currency in 25 years. In third place, about 15 percent said an Asian currency will fulfill the role, UBS said. The euro came last at 6 percent.

CLICK HERE to continue reading this article. To contact the reporter on this story: Nicholas Larkin in London at nlarkin1@bloomberg.net. June 22,2010

Sir Alan Greenspan "US May Soon Reach It's Borrowing Limit"

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aga_wkgMEfDo
By Jacob Greber

June 18 (Bloomberg) -- Former Federal Reserve Chairman Alan Greenspan said the U.S. may soon face higher borrowing costs on its swelling debt and called for a “tectonic shift” in fiscal policy to contain borrowing.

“Perceptions of a large U.S. borrowing capacity are misleading,” and current long-term bond yields are masking America’s debt challenge, Greenspan wrote in an opinion piece posted on the Wall Street Journal’s website Click Here. “Long-term rate increases can emerge with unexpected suddenness,” such as the 4 percentage point surge over four months in 1979-80, he said.

Greenspan rebutted “misplaced” concern that reducing the deficit would put the economic recovery in danger, entering a debate among global policy makers about how quickly to exit from stimulus measures adopted during the financial crisis. U.S. Treasury Secretary Timothy F. Geithner said this month that while fiscal tightening is needed over the “medium term,” governments must reinforce the recovery in private demand.

“The United States, and most of the rest of the developed world, is in need of a tectonic shift in fiscal policy,” said Greenspan, 84, who served at the Fed’s helm from 1987 to 2006. “Incremental change will not be adequate.”


click here to finish reading the whole article on Bloomberg

click here for Greenspan's recent Op-Ed piece in the Wall Street Journal