Dear Friends,
Gold traded above $1100 this morning.
The US dollar is not a safe haven regardless of what F-TV tells you.
Gold is headed to $1224, $1650 and then on to Alf’s numbers. Shorts still attempting to hold down juniors will fail. Majors with huge short of gold derivative losses have endangered their balance sheets, and will [...]

Dear CIGAs,
GDP Analysis:
PCE
Unbelievably, PCE/GDP continues to expand despite the evolving financial crisis.  What this suggests is that the stimulus/bailouts have done little to shift the U.S. away from a consumption-centric economy.  As long as excessive consumption relative to investment exists, the U.S. structural deficits will worsen in the future.
GDPI
Consumption up and investment down equals greater [...]

Dear CIGAs,
The so called quick surgical bankruptcy of CIT will result in a company that will only be able to provide 20% of its previous level of financial services to Middle America according to Friday’s Wall Street Journal.
Any institutions replacing these services will have:
1. Higher levels of credit worthiness to be met by small business.
2. [...]

Jim Sinclair’s Commentary
My former partner Yra Harris, a man married to no singular market, speaks of the proceedings in the euro today and it implications across the board. Read Yra not for the penchant of minute to minute madness, but for his enlightened outlook on what this all means to the US dollar and Gold. [...]

Dear CIGAs,
October 30th the Fed is planning to curtail QE regarding Treasury auctions.
November 4th is the FOMC meeting most likely to contain discussions of timing for the exit from economic stimulation.
November 7th is the G20 meeting at which BRIC nations will anticipate a cessation of QE and a commitment to establish a currency alternative to [...]

Dear CIGAs,
1. California moves east as New York nears a zero cash level. Think about this when you hear anything to do with stopping or curtailing QE.
2. Think about CIT’s major executive resignation before you become too happy about a $6 billion dollar loan from the private sector that would take the most senior debt [...]

Dear CIGAs,
I shared the matrix of categories of gold shares with you because if you understand this concept you will understand the thinking strategies of company management that wish to grow as well as the mind of the short that wishes to profit.
At lunch today with a professional investor we discussed the use of the [...]

Dear CIGAs,
Then mindset of the market today viewing the Euro trading at the 1.50 level in consideration of Oral Intervention by Euroland officials yesterday is anticipating concerted intervention to prevent the Euro from rising above that level.
The spin on the Euro at 1.50 is the strength of the world economies coming out of the recession, [...]

Dear Friends,
There are various categories of gold shares.
1. The most popular are the majors.
The least understood part about them is their serious short of gold derivative problem, and the balance sheet and price of cover implications thereof. No one will deny that they get the most attention because they have the capitalization required and the [...]

Dear CIGAs,
What some say the Fed should do and what the Fed will do are two different things.
A well-read weekly publication featured an article with authoritative quotations suggesting the Federal Reserve will raise interest rates to 2%.
If government statistics are to be taken at face value and the financial banking system really is in a [...]