Is James Turk the new Chief bell-ringer and bottle-washer?

King World News: James Turk - Silver in Backwardation, Set to Explode

"What this backwardation shows is that there is a disconnect between the physical and the paper markets in silver. As I said previously, the silver shorts simply cannot hold the paper price down here any longer without seriously discrediting the paper silver market as a price discovery mechanism.

Gold is not in backwardation, nevertheless the demand for physical gold is extremely intense. With the sentiment indicators at very low levels, it suggests we are about to see a stunning short covering rally in gold.”

(Bold emphasis above is mine, highlighting phrases of particular special interest to those Freegolder among the audience.)

It will be interesting to see if Turk is now the sell signal for metals, in particular silver. Or if he is once again right in this call. I do, however, note (prior to reading this KWN article) that the silver price is breaking down today and gold is following. It'll be interesting to see how this progresses, methinks...



For my part, I am simply looking forward to yet another good opportunity to buy in at better prices in the short term. In the longer term, Turk is almost certainly going to be correct here IMO.

Another face steps out of the shadows to endorse retail/investment banking split

Anyone around here for a while will probably recall I have called for the reinstatement of a "Glass-Steagall Act" (instated as a result of the Great Depression and taken down in 1999 at banker request) to prevent Too Big To Fail retail deposit-taking banks from being rescued in future by governments (taxpayers).

So far we've had a few names step out to suggest this is what's necessary: Vince Cable, Mervyn King, Barak Obama, Paul Volker, to name just a few.
(Oh, and me of course... :-> )

Today we can add Nick Clegg, the Deputy Prime Minister of the UK coalition government. BBC News: Bank reform needed, says Deputy Prime Minister Clegg

So... when will it happen? (IMO it will happen, it's just a case of when...)

On using debt to get rich today

To those with whom I have recently discussed the wisdom of taking on significant debt in order to buy income-producing rental properties (partly for tax reasons, although I would imagine that in truth it is also because they don't have the resources to do it otherwise), in spite of the fact they too believe the world is heading into very choppy economic waters (a large part of why they are looking for income-producing assets in the first place), here is just one small piece of evidence to support my case that you had better pick and choose your properties and tenants very carefully, and make sure you have a good relationship with your banker. Perhaps being just a little bit lucky will help too...

BBC:Rent arrears rise again say letting agents

This is before the... choppiness... starts. The world has changed, and it's going to change a lot more IMO. We can no longer get rich the way our fathers did, unfortunately. Tread carefully my friends, I wish you good luck!