If you have to travel to Toronto I would strongly recommend using Porter Airlines, which lands almost literally downtown. What an incredible experience flying in here yesterday from Newark. First off, the Porter employees actually spoke to you and didn’t treat you like cattle in a cattle car. Spanking new planes and actual room in coach given the size of the plane. You land in a little airport literally just yards off the mainland. You zip through immigration and customs and your bag is waiting for you. A short ferry ride of 3 minutes or so and bang, you’re downtown. May I never have to see Pearson again (no offense).
Gold Bears in Big Trouble -The biggest ever commercials short and speculative longs positions, bears and weak-knee bulls all calling for another top again at $1,000 and a fall to follow, and all they can get is less than 24 hours worth of hard selling? The fundamentals for gold remain the strongest in the 25 years I’ve been in the business. This morning the German Central Bank announced it will not be using its full allotment of sales of gold per the Washington Accord agreement. The IMF sales did zilch to the bullish picture for gold (and it shouldn’t, since gold rallied from $126 to $512 while the IMF last sold gold in the late 1970s). I strongly recommend using any further weakness to add to gold and silver positions.
U.S. stock market melt-up still possible – I continue to believe that we can see a melt-up in the U.S. stock market up to the DJIA 10,500 area. Yes, the economy basically sucks and we’re in deeper do-do than ever before, but you have to understand how the ‘Don’t Worry, Be Happy” crowd works on Wall Street. You could throw one of them off the top of the Empire State Building and all the way down they would say the same thing – “So far, so good!”
Like it or not, more and more money managers and the general public are being swept into this “Once in a lifetime mega bear market rally” and we’re very close when almost everyone will be forced in or fear being looked at as a fool by continuing to miss the rally. Such a condition is what I’ve been looking for and believe it would be the best selling opportunity since October, 2007. Stay tuned.
porter is absolutely awesome.
great service, great culture & great customer experience.
big thumbs down to mayor miller who seems to have a personal vendetta against this enterprising company & the residents of toronto island who seem to think the island is their own personal shangrala, exclusive for their usage only…they’ve been preventing a bridge connecting the island to the mainland for years…
I’m interested in Peter’s expectation of what will happen to gold producer stocks (in terms of P/E multiples) when this bear market rally (in the entire stock market) tops out, and the bear market inevitably resumes. My concern is that some of the majors are already trading at very high multiples, so even with a stable or slightly rising gold price, the gold producers’ stocks could drop significantly if there were a major correction in the multiples investors were willing to pay.
While this question is intended for Peter, I welcome others’ comments. My apologies if this has been previously addressed on this blog.
Love your updates, packed with lots of info and good humour.
Thanks, much appreciated.
http://www.mineweb.com/mineweb/view/mineweb/en/page33?oid=89833&sn=Detail
Interesting!!
http://www.miningmx.com/news/markets/Australia-rules-risk-China-mining-investment.htm
This is off the subject but “IMHO” it bears reading as there is going to be a lot of this in the future. China is a valuable trading partner but they are a bully if they get the chance. Probably it could be said about more than them but they are scary.
Unexpected….?? I guess they don’t read Peter’s blog….
http://www.bloomberg.com/apps/news?pid=20601087&sid=aYGMAc5cVt5Y
Gary, I found your article interesting on the Australians being concerned about China. Maybe now China not feeling really welcome there will look to Canada resources. Anyhow why I found it particularly interesting is that Don Coxe’s weekly conference call (he is BMO’s global strategist and has a large following), he indicated that the Chinese are not selling their US bonds (Treasuries) when they mature but instead are shifting them into T Bills. He said there is no precedent for this and no one is really sure what this means other than the fact that China is giving up yield on a huge scale in order to have much shorter term overnight rights to US $. He actually called this move “bizarre.” He also said it certainly makes questionable those supposidly reassuring statistics about the Chinese still buying US debt.
One other interesting point….he said that the Chinese are investing in Africa and in order to avoid the inherant political risks when they invest heavily in mines, they also send along Chinese troops to protect their investments.
Susan,
Where do you get the Don Coxe conference call info? I’ve heard you mention it before. Thanks
Susan
Never doubt the brilliance of the Chinese, but most of all the patiemce. The FED is a giant fraud. Do you really think any foreign gov’t is buying US Treasury debt right now? Many seem to be ignoring the fact that the FED is buying $1.25 trillion of US Agency debt (ie toxic mortgages)and they are buying them mainly from Asia with the understanding that they will use the proceeds to buy short term Treasuries.
For Europe they have the same deal working through currency swaps, where the FED prints money and exchanges it for foreign central bank printed money and so they buy our bonds with funny money too.
The FED could never stand an audit.
A friend that travels regularly to China says everything has changed in the last 30 days. No one would take his AMEX card any more and it was very difficult to exchange US $100 bills that were always in huge demand before.
Meanwhile the Chinese are telling their citizens to buy gold and silver and of course their miltary goes in to protect their investments, while we send our militay to protect our elaborate embassies.
Susan
Did you also note that the first producing oil well drilled in Iraq since the war just started producing. It is Chinese and protected by their military
joe blow
Here the link for public access to Don Coxe weekly conference call:
http://events.startcast.com/events6/122/C0018/Default.aspx#
Norm,
Here is Don Coxe weekly public access link .
http://events.startcast.com/events6/122/C0018/Default.aspx#
Somehow, I am unconvinced by the argument (as much as I’d like to believe it), that precious metals are poised to rally to new all-time highs, when the commercial short positions have continued to rise to record levels. This lopsided commitment of traders positioning presages an imminent, steep drop in gold and silver prices, and few but GATA & Ted Butler seem to be taking this seriously.
Steve Cone….
Doesn’t the record high short positioning suggest that an accelerating pop in the gold price is more likely as the less committed shorts end up changing their position?
The fact that the gold price is holding as firm as it is despite the short interest suggests real underlying strength, IMO.
I’m sort of late to reply to Susan but I thought about this “sending troops along to protect their investments”, I wonder what Canada’s reaction to this would be. Maybe this is for third world countries, I can’t imagen the reaction Australia would give. I can see China getting a little more braver from year to year, I am not suprised tho.
http://www.thehindubusinessline.com/iw/2009/09/27/stories/2009092750691300.htm
this link shows that India’s population may have thought gold was
getting to expensive, but are starting to change their mind about
that.
Gary, I think the Coxe reference to Chinese troops related to mining in Africa. No troops needed in Canada…..I am even thinking of moving there!