The worst silver trade you could make right now

From Resource Investor:

The pressure on silver shorts has been relentlessly increasing on a daily basis. On the heels of CFTC's statement of intention to actually enforce antitrust regulations in the silver market, two lawsuits were filed against JPMorgan and HSBC for manipulating the silver price. With the testimony of whistleblower Andrew Maguire and admission that there has been fraudulent activity in the silver market by CFTC Commissioner Bart Chilton, these lawsuits have a much larger chance of success than just a year ago.

One of those lawsuits is seeking group or class action status if enough investors sign up. Silver investors who suffered from losses…

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More on silver:

JPMorgan and HSBC now being sued over silver manipulation

Top resource investor Berry: Silver could triple in the next five years

Three new reasons to buy silver that many investors aren't aware of

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Trader alert: These are the most overbought ETFs in the world right now

From Bespoke Investment Group:

Below is a list of the 30 most overbought ETFs that we track in our daily ETF Trends report.

As shown, the Germany ETF (EWG) is the most overbought, followed by the Technology ETF (HHH), India (INP), Italy (EWI), and Austria (EWO). Eight of the nine most overbought ETFs on our list are made up of...

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More trading ideas:

Another big sign the dollar is ready to rally

This is one of the safest income opportunities in the world right now

Go here to get one of the great all-time trading books, absolutely free

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Is This the Right Time to Be Investing in Gold?

I can tell you right now that this article is going to be very different from any other articles that you have read so far. And the difference is dear reader, that I'm not trying to sell you anything.

You see, most of the articles on investing in gold is simply horribly written or way out of touch. I have to question the credibility and whats-in-it-for-them of most information on gold articles on the Net.

Simply, gold is a medium of exchange that has been used by humans for 1000s of years. So what is so valuable about a lump of yellow metal that doesn't pay dividends or interest?

The answer of course is that gold is a scarce commodity that cannot be multiplied by the printing presses 24/7. As Jim Rogers was telling us about the upcoming commodity bull market back in 1998, most commodities including Gold and Silver, are not that easy to mine anymore. All the easy stuff has already been dug up. Some Gold mines consider it good if they can get 20-30 grams per ton!

And not only that, many times the kind of rock that the gold is found in can determine the cost of mining. There are also many other variables for new mines to face, such as huge start up costs, transportation distance, anti-mining stances of governments and so on.

In short, precious metals such as Gold and Silver isn't easy to dig up anymore. And besides, one of the biggest paradoxes I've heard of is this, that "We go deep into the dirt to dig up the Gold. And then we bury the Gold in safe deposit boxes."

So if Gold and Silver are pretty scarce and the governments all around the world are cranking up their printing presses to get their country out of the fiscal and economic messes, then Gold and Silver is going to keep on going up. This is the major reason why investing in gold and Silver in inflationary periods is a very good idea.

And that is because there will be more paper or fiat money chasing after the real stuff, commodities. I hope that makes a little more sense to you.

But I am getting a little ahead of myself here. Why is it different this time? Well, in 2008 the housing lottery finally went kaput because of the owners that defaulted on their Subprime mortgages. And that is deflationary (declining home prices), which the politicians will never... EVER! Allow to happen.

And why not you ask? Well, if the housing market is allowed to continue in a downward spiral, then everyone is going to drop their keys in the mailbox and walk away from their homes because they have negative equity in the home and can't afford to keep paying the mortgage on a money loser.

And if THAT happens, banks start to go bankrupt and then the economy goes straight to hell in a hand-basket. And then more and more people lose their jobs and it just keeps getting worst. This is what happened during the Great Depression.

So ask anyone over the age of 75 what it was like back then and they will tell you that everyone lived on their wits alone. It was a horrible, horrible time.

And if the depression is allowed to happen, people are going to blame the politicians that are currently in power for that predicament. And THAT is why politicians will never allow a depression to happen. They will want to inflate the housing market. And the way to do that is to "Crank Up" the printing presses. And that is what most of the governments all around the world is doing today. Massive inflation is preferable to the pain of a depression.

Go figure.

Eventually, Gold and Silver is going to go higher and further than anybody expects. Some of you may still remember the late 1970s and early 1980s of hyperinflation. Interest rates were up as high as 20% annually. Foods and gasoline prices changed every week and sometimes every day.

This is going to be a very uncomfortable period of time for those who didn't prepare for the coming massive inflation. But those that do their homework and study the various ways to invest in commodities and investing in gold and silver are going to come out OK.

One more detail about investing in Gold, It is a very good investment vehicle during inflationary times such as now or even back in the 1980s. But a horrible investment during deflationary times such as the Great Depression during the 1929-1944.

You can read more resources at http://www.squidoo.com/Investing-Gold to protect yourself and your family's financial future.

Which Market has it Right; <b>Gold</b> and the Dollar or Treasuries?

The U.S. 10 year Treasury yield is setting new lows on a daily basis, but the dollar has fallen over 12% since June and the price of Gold continues to hit all time highs. These dramatically unbalanced market conditions are completely antithetical, as Bonds are flashing a warning sign of deflation, while gold and the dollar presage hyperinflation.

But back in the late 70's and the beginning of 1980 those same markets were much more aligned and did not display different signals. During the country's last major battle with rapidly rising inflation due to the Fed's massive manipulation of interest rates and currency, gold advanced higher while the value of the U.S. dollar fell and yields on Treasuries soared. In other words, everything made sense.

In January of 1977 the dollar price of gold began an epic bull market, which ended just prior to February of 1980. Gold soared from $135 dollars per ounce to just under $860 per ounce during those three years. And the Dollar Index lost about 20% of its value in that same time frame. Not surprisingly, the yield on the Ten Year Treasury soared from 7.2% in January of 1977 to 12.4% in February of 1980. So all markets were in accord and reacted appropriately during an environment where the Federal Reserve-- under Arthur Burns--pursued an inflationary monetary policy. During his tenure the monetary base jumped from $62 billion to $114 billion in just eight years.

The situation for the dollar, gold and the Fed's monetary base are similar today with that of 30 years ago, except for the fact that bond yields are plummeting instead of soaring. Since the year 2000, the dollar price of gold has increased from $280 per ounce to over $1,300 today. And the dollar has lost 35% of its value as measured against a basket of our 6 largest trading partners since the beginning of this millennium. But despite the fact that the monetary base has jumped from $621 billion in the year 2000 to over $2 trillion today, the 10 year Treasury note has collapsed in yield from 6.6% to fewer than 2.4%.

However, a country should only enjoy a 10 year note with yields sub 2.4% if it has a significantly high savings rate, a stable monetary policy-along with the low inflation and steady currency that it brings--and very low levels of debt. The U.S. savings rate, which had been range bound from 7.5% to nearly 15% during the 60's and 70's, now stands at just 5.8% today. And that savings rate has only increased recently due to this great recession. The personal savings rate had been negligible and sometimes negative from 1998 thru 2008. Our current annual budget deficit is 9% of GDP and our National Debt is 93% of GDP. And, of course, the Fed-in their own words--has undertaken "unconventional measures" to destabilize the dollar. Therefore, none of those situations that would engender low interest rates currency exists.

So given all this data, which market has it correct; gold and currencies or Treasuries? Clearly, both gold and the U.S. dollar agree that Ben Bernanke will be victorious in his quest to foment a robust rate of inflation. But this time around Treasury investors have been duped into believing that the Fed can force down interest rates for an extended period of time by creating more inflation. To think that Treasuries have it correct one must believe not only that the FX and gold market have it wrong but that the Fed's printing press will lose its power to depreciate the currency.

Remember this; Bernanke believes the Fed was to blame for causing the Great Depression by allowing the money supply to shrink by 30%. And eight years into the Great Depression there was a relapse into economic devastation. A relapse by the way that Bernanke believes stemmed from an attempt to balance the budget and raise interest rates. Therefore, he won't desist until inflation has taken a firm and unbreakable grip over the nation.

Be sure you don't believe the hype you hear about all of Helicopter Ben's money being stuck in the trees and laying fallow at the Fed. M1 is up 6.2% YOY and in the last two months the compounded annual rate of change in M2 is 7.4%. The growth in the money supply has sent the CRB Index up over 13% in the last 12 months. That's certainly not evidence of soaring prices and the increase in those monetary aggregates does not indicate runaway inflation is here yet, but given the Fed's pursuit of an endless series of QE, intractable inflation can't be too far off. And since the Chairman has an unlimited supply of dollars and an infinite will to print them, it would be a perilous mistake to bet against him.

Michael Pento
Euro Pacific Capital
Senior Economist/Vice President Managed Products
mpento@europac.net
www.europac.net
800-727-7922 ext. 235
732-203-1333

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Gold and Silver Markets Are Hot Right Now!

Men and women like to wear gold necklaces and rings. Gold is considered to be a precious commodity.But have you ever thought of trading gold? Read this article to know why this might the best time to trade gold.

Gold prices recently breached the historical barrier of $1200 per ounce. For the last many years,the gold market is in a secular uptrend. Why gold is becoming hot? In times of financial crisis like the present global recession and during times of political uncertainty, wealthy people try to invest in safe haven assets like gold. During these times, gold is considered to be the safest investment.

Many countries have their international reserves in US Dollar. US Dollar is considered to be the international reserve currency. But the recent economic and financial turmoil in the US financial system has weakened the reserve status of US Dollar. People have started to have doubts about the strength of US Dollar. Countries like China that has more than a trillion dollar of reserves, India, Brazil and Russia want to hedge their international reserves by purchasing gold. Gold is still considered to be the ultimate currency. From time immemorial, gold has held this status and it will continue to do so in the 21st century.

So their are many big buyers of gold in the market but the supply of gold is limited. There are only a few gold mines in the world that cannot keep pace with the rising demand.China will purchase more than a hundred tons of gold in 2010. So will India, Russia and Brazil. They are big buyers. They need tons of gold. By just investing in something like 10-20 ounces of gold, you can reap the benefits when gold prices are going to rise further.

US Dollar and gold prices are negatively correlated. What this means is that when US Dollar depreciates, gold prices appreciate and vice versa. Gold trading and forex trading combined can be highly lucrative as both hedge against each other.

Commodity trading is going to make many people rich in the first few decades of 21st century. Just like gold, supply of silver is limited. Silver is used in the electronics industry. It is even used in your washing machines. So imagine the global economy coming out of its recession in the near future with the demand for silver skyrocketing. Prices of silver are expected to go higher than gold!

What can be the best method of investing in gold and silver? You can invest in gold stocks, meaning stocks of companies that mine gold. You can also invest in Gold ETFs or some commodity ETF that includes gold in its basket of commodities. You can even trade gold futures. Futures trading is risky for those who haven't traded them before but once you learn how to trade futures the profit potential is immense. Combine gold trading with forex trading and reap a windfall!

Mr. Ahmad Hassam is a Harvard University graduate. If you want to make a fortune in 2010 than take a look at Chris Rowe's Internal Strength System - the ultimate investing system that made him a millionaire while still in his 20s. If you can read an email, you can start printing cash with these 1500 pips a day Strignano's Forex Signals. One new member made $15000 in just 24 hours with these signals. Forex trading can never become more easier than this!

A Silver ETF Worth Investing Right Now!

Gold prices reached an amazing high of $1200 per ounce in the last few months. Although after that there was a retracement but it is expected that this bull run in the gold market will continue. But there is a metal that has even better prospects as an investment right now as compared to gold.

I am talking about silver. You see, silver like gold has always been considered a precious metal in human history. Kings used to hoard both gold and silver as a measure of their wealth in ancient times. In modern times, gold is still being used as the ultimate store of wealth with silver being the second best.

However, silver has far more industrial applications as compared to gold. Silver is being used extensivley in the electronic industry, batteries,solar panels, TV, water, medical applications plus a host of other industries. With the global economy finally out of the recession this year, demand for silver in these industries will skyrocket.

Now the supply of silver is limited. What this means is that silver price is going to rocket when the demand is going to increase. There is a limit to oil price increase. When the oil price becomes too high, consumers stop using private transport and switch to public transport. Gold has not many industrial applications. So high gold prices don't have much impact on the global economy.

On the other hand, silver has a large industrial demand. Now an important question that comes to our mind is that is this rise in silver prices speculative or due to the real fundamentals. As said before, high silver demand is going to drive this price rise.

This is the best time to invest in silver stocks and silver ETFs. Right now most of them are underpriced but as soon as the word gets out that silver is about to make a rally, the situaltion is going to change.

One of the best Silver ETFs is the ETF with the NYSE ticker symbol SLV. There might be others too. You do the research, pick the best ones and invest in them as the silver bull market is about to start.

There are a few silver mining companies that focus exclusively on the mining and refining of silver. Investing in the stocks of these silver mining companies can also be one of the options. Whatever, you decide this is the best time to invest in silver that you shouldn't miss!

Mr. Ahmad Hassam has done Masters from Harvard. Read this 40 page Gold and Silver Investing FREE Report! Get these three Swing Trading Reports FOREX-4 PACK, Quantum Swing Trading and the Profit Button FREE!