Blanchard Gold Investing News Blog

Gold Breaks $1,100. Can Gold Hit $1500?

Fri, 06 Nov 2009 08:27:30 PST

The precious metal rallies after the U.S. government says the nation's unemployment rate surged to 10.2% in October.

The Buzz: What Others Are Saying About Gold

Wed, 04 Nov 2009 09:23:27 PST

"The fall in the U.S. dollar seems to be pushing all the central banks to strengthen their portfolio with gold," said N.R. Bhanumurthy, professor at the National Institute of Public Finance and Policy in New Delhi. "Gold is a safe store of value compared to the U.S. dollar."

Gold Climbs to Record as India's Central Bank Buys IMF Bullion

Tue, 03 Nov 2009 14:20:47 PST

Gold jumped to a record after India's central bank bought 200 metric tons of the metal from the International Monetary Fund, heightening speculation that there may be more official purchases.

Odd Couple: Stocks, Gold Share Same Ride Higher

Thu, 29 Oct 2009 16:06:41 PDT

David Einhorn, who oversees about $6 billion at New York hedge fund Greenlight Capital, last week told a New York investment conference that, before the financial crisis began in earnest last year, he shared the skeptics' view of gold as a metal of little intrinsic value outside dentistry, jewelry and some specialized electronics uses.  "The recent crisis has changed my view," he said.

Bank closures, dollar 14-month low

Mon, 26 Oct 2009 07:54:40 PDT

The FDIC closed 7 banks on Friday and rescued them from absolute failure. This now puts the total number of bank failures during 2009 past the 100 mark with 106 being the official number.  One of these banks had to write down assets as much as 43%.  You have to ask: What is the actual value of assets in our nation's banks - including the really big ones like Bank of America, Citibank, JP Morgan and Wells Fargo?

Treasury and U.S. deficit news

Mon, 26 Oct 2009 07:50:06 PDT

The Treasury announced $123 billion in issuance slated for this week, which would mark a new weekly record.  This amount of supply hitting the market is bound to cause more dollar concerns.

Today on CNBC - Should We Return to the Gold Standard?

Wed, 21 Oct 2009 11:54:13 PDT

...

Blanchard discusses gold market on ForexTV

Tue, 20 Oct 2009 14:56:18 PDT

Forex TV - The dow stays above 10,000 and S&P heads towards 1100. Investors still think the market is over priced. Apple beats expectations. Blanchard & Company, Inc.’s Beahm comments.

Gold continues to move upwards and consolidate at near record levels

Tue, 20 Oct 2009 14:39:39 PDT

Gold is trading around $1.066 an ounce this morning and traded between $1,048 and $1,069 an ounce over the last 24 hrs. Gold continues to move upwards and consolidate at near record levels on continuing oil strength and dollar weakness. Buying of physical gold remains robust on all price dips and this bodes well for further record highs in the short term.

Gold is trading near $1,060, oil reaches new high

Mon, 19 Oct 2009 11:38:13 PDT

Gold is trading near $1,060 an ounce today as oil reached a new high for the year, U.S. government debt reaches record levels and confirmation that the Federal Reserve is planning to keep interest rates near zero percent for some time.

Bank Credit Analyst retains that year-end price of gold will hit $1,200 to $1,300

Mon, 19 Oct 2009 07:06:59 PDT

An analysis done by the Bank Credit Analyst shows gold and silver markets to be fairly overbought, but BCA expects that any correction should prove short-lived in the absence of a reversal in the dollar and/or a deterioration in liquidity conditions. Thus, the commodity strategists at BCA are reluctant to take profits on their overweight position in precious metals and retain their target for the price of gold in the $1,200 to $1,300 range by year-end.

Blanchard comments on commodities

Thu, 08 Oct 2009 06:56:49 PDT

Forex TV's Equities & Commodities - ...

Current upward trend in gold is sustainable and will continue long-term

Wed, 07 Oct 2009 11:44:57 PDT

The investment world has seen the price of gold achieve a new record high of $1,049.50 hit earlier today, and Blanchard and Company is saying that the current upward trend is sustainable and will continue long-term.  Bullion has jumped 18 percent this year and demand for gold is increasing as U.S. government debt reaches record levels and the Federal Reserve keeps interest rates near zero percent.

Gold has reached a new all time high

Tue, 06 Oct 2009 13:06:11 PDT

Gold has reached a new all time high of $1,045, surpassing the previous all-time high of $1,033.90 achieved on March 17, 2008

Bank news, the latest on Saturn/GM, more layoffs...

Tue, 06 Oct 2009 11:15:25 PDT

Leaving the board and its new chairman Walter Massey three months to find a replacement with no heir apparent, Ken Lewis will be retiring from Bank of America before the end of the year after failing to maintain control of the bank.  Bank of America has yet to pick a successor, fueling speculation that Lewis’ departure was not one of choice and suggesting major turmoil within the bank.

Money market safety net expires

Wed, 30 Sep 2009 14:17:29 PDT

Last September, after the granddaddy of all money market funds (the Reserve Primary Fund) "broke the buck" (or fell below $1 a share) for only the second time in history, the government set a yearlong guarantee in place for those funds.

Third Party Views on Gold Bullion

Tue, 29 Sep 2009 09:44:03 PDT

"Gold is proving exactly what we all would have expected, that in almost any environment, it's a go-to asset."

Peter Schiff's view of the current market

Fri, 25 Sep 2009 09:39:05 PDT

Unlike the "legitimate bull markets" of many foreign markets, Peter Schiff believes the U.S. is merely experiencing a "rally in a bear market," and is lagging the rest of the world "for a reason."

Interest rate for central bank remains low

Fri, 25 Sep 2009 06:44:19 PDT

The interest rate for the central bank remains at 0-0.25%, and the feds fund target can be expected to stay low "for an extended period," while consumer spending "remains constrained by ongoing job losses, sluggish income growth, lower housing wealth and tight credit," according to a report from yesterday.  In an attempt to keep mortgage rates at record lows, which will also please homebuilders, the Fed also extended its $1.25 trillion program to buy mortgage-backed securities.

Role Reversal? FDIC May Borrow From Healthy Banks

Wed, 23 Sep 2009 13:52:35 PDT

In a true role reversal, officials may ask banks to bail out the government.  Regarding the FDIC's dwindling bank insurance fund that is evaporating amidst a flurry of bank failures, regulators are seriously considering a plan to have healthy banks lend billions of dollars to the fund.  Banks may take a liking to this plan due to the fact that it puts off another across-the-board emergency assessment on them, which can eat away at $5-10B of their profits.

Quantitative Easing Continues

Wed, 23 Sep 2009 13:34:49 PDT

The FOMC has released its interest rate decision and corresponding statement.  Here are some excerpts:

Wells Fargo potential losses, bank failure toll, various government aid initiatives expire

Mon, 21 Sep 2009 17:54:26 PDT

Wells Fargo's books indicating the possibility of the bank's massive potential losses due to its contact with derivatives trades it gained when it acquired Wachovia are shocking outside experts hired to examine the bank's records.  The outside hires are certain that Wells Fargo is downplaying its loan troubles in commercial real estate, home equity and credit cards, with the most alarming discovery being the bank's "questionable" loans and securities.

Obama open to newspaper bailout

Mon, 21 Sep 2009 17:39:20 PDT

In another governmental effort to save an outdated industry that has refused to incorporate new technology, President Obama claims he will consider a newspaper bailout in response to the industry's diminishing business.  According to the Hill, if the crisis is left unaddressed, blogs will threaten democracy by dominating world communication.   

Inflation's Early Indicator? Gold

Tue, 15 Sep 2009 07:25:45 PDT

Bloomberg reported that Greenspan said in a speech that gold's rally to $1,000 an ounce is "an indication of a very early stage of an endeavor to move away from paper currencies." Another way of saying the same thing is: inflation. When investors "move away" from currencies, it's because they fear those currencies will lose their purchasing power. They fear inflation.

Job cuts at Eli Lilly, more bank closures, Chinese trade clash

Mon, 14 Sep 2009 10:37:37 PDT

In an attempt to facilitate the advancement of new medicines and minimize costs by $1 billion, Eli Lilly will decrease its global work force to 35,000 by cutting 5,500 jobs, or 14%, by 2011.

U.S. foreclosures up, Tavern on the Green files for bankruptcy...

Thu, 10 Sep 2009 10:44:02 PDT

According to RealtyTrac Inc, U.S. foreclosures totaled to 358,471 in August, surpassing the 300,000 mark for the sixth month in a row.

China pushes silver and gold investment to the masses

Thu, 03 Sep 2009 13:38:08 PDT

We are indebted again to Paul Mylchreest's  Thunder Road Report  for news that will bring big smiles to gold and silver investors everywhere.  Apparently China is pushing the idea of buying gold and silver for investment purposes to the general population in the way that Western television sells soap powder.  If 1.3 billion Chinese citizens start buying gold and silver, even in tiny quantities, imagine what that will do to the market!

Cash for Appliances program, 1,000 banks to fail over the next two years...

Fri, 28 Aug 2009 12:34:16 PDT

The government is applying the same rebate program enacted to bail out car makers with Cash for Clunkers to jumpstart the appliance maker industry.  However, appliance  makers and retailers are having reservations about the program's success because they believe that with a budget of $300M, the program is seen as too small to provide significant gains to appliance makers like General Electric and Whirlpool. 

USPS scaling back, stimulus money falling into wrong hands, beef and beer prices impacted by inflation...

Thu, 27 Aug 2009 11:49:19 PDT

In response to the decrease in mail volume and increase in calls for automation, the U.S. Postal Service is offering buyouts to as many as 30,000 of its employees.  The Postal Service, the nation's second-largest employer, is aiming to scale back this fiscal year's costs by $6B.

A second term for Bernanke would equal great news for gold

Tue, 25 Aug 2009 11:48:32 PDT

This morning President Obama announced Federal Reserve Chairman Helicopter Ben Bernanke's re-nomination for a second four-year term.  Bernanke, whose current four-year term concludes on January 31, 2010, must be approved by the Senate following his re-nomination, and if reinstated, will mean great news for gold.

Trend shows gold to "break higher" in September

Tue, 25 Aug 2009 11:26:29 PDT

According to Barclays' Jordan Kotick, gold's annual trading pattern has followed that of previous years, demonstrating the precious metal's trend to "break higher" in September, and the 200-week moving average indicates that gold will continue to enjoy this uptrend.

Spanish bank buys failed U.S. bank, latest blows to the FDIC, deficit projections...

Mon, 24 Aug 2009 18:49:07 PDT

Spain's second-largest bank, BBV became the first foreign company in the current economic crisis to buy a failed U.S. bank when it took on Guaranty Bank's deposits on Friday as expected. ...

Increased demand for investment gold, China has cut its U.S. government debt holdings...

Mon, 24 Aug 2009 18:43:57 PDT

In a year-over-year increase of 46%, express demand for investment gold reached a second quarter total of 222.4 metric tons, according to the World Gold Council's most recent report.

Companies continue to trim costs

Thu, 20 Aug 2009 12:58:28 PDT

It appears that despite the steadying out of the economy, companies are continuing to trim costs, as indicated by the rise in jobless benefits claims filed by Americans last week.  Government recovery effort spurred hirings may not gain momentum until 2010, and companies may continue laying off staff in the upcoming months, although at a slower rate.  Despite last month's decrease in the unemployment rate, economists predict that it will climb to 10% by early next year, which will cut into consumer spending.

Pimco Says Dollar to Weaken

Wed, 19 Aug 2009 10:06:45 PDT

A new report by the world’s largest bond fund’s portfolio manager that forecasts the dollar’s ousting from its top seat as the unchallenged reserve currency, and even its potential long-term collapse, is garnering considerable interest.  PIMCO’s Curtis Mewbourne’s report’s argument centers around the rapid development of up and coming economies such as China that are starting to engage in direct trade with other nations and eliminating the need to deal in dollar currency.

CIT Group Q2 results, China reduces stake in U.S. Treasuries, Capital One delinquencies

Tue, 18 Aug 2009 19:31:28 PDT

CIT Group reported Q2 results, posting its ninth straight quarterly loss as reserves for bad loans more than tripled. The losses pushed the ratio of total capital to risk-weighted assets to 'slightly below' the 13% required by regulators, which CIT said could potentially cause the Federal Reserve or FDIC to take enforcement actions, such as bankruptcy.

More struggling banks, FDIC, how budget cuts affected Chicago

Mon, 17 Aug 2009 19:23:27 PDT

According to close sources, struggling Texas bank, Guaranty Financial, which has $14b in assets, has been asked by a prospective buyers group to submit bids by Monday.  Guaranty projected last month that it will join the doomed ranks of other bank failures this year and The Federal Deposit Insurance Corporation has assumed the role to aid in the bank’s sale.

CIT Group and the Fed, Bloomberg bank research

Fri, 14 Aug 2009 19:15:16 PDT

In a signed agreement promising a plan to raise capital and strengthen its administrative and operational management reins, CIT Group has agreed to concede strong operational oversight to the Federal Reserve.  CIT has been given 15 days to devise a plan for to payoff debts and generate new capital, 60 days to review credit risk management and must also get Fed approval before engaging in other transactions or paying dividends.

Home foreclosures up, retail sales down

Thu, 13 Aug 2009 15:46:09 PDT

As a new influx of cash flows into the "Cash for Clunkers" program, consumers are losing their "sense of urgency" and displaying waning interest.  Edmund.com asserts that after "Cash for Clunkers" hit its July 29th peak, it’s been downhill since, and we could find ourselves back at August 20th's pre-cash square one.  To initiate consumer interest, Congress wants to issue trade-in vouchers to consumers amidst dealerships' tight inventory.  Edmunds warns that if the program is not made more consumer-friendly, "quite possibly, some of the extra $2B will go untapped."

Smaller U.S. banks in trouble?

Tue, 11 Aug 2009 11:30:47 PDT

According to a report to be released by the Congressional Oversight Panel, smaller U.S. banks may need as much as $12-$14B in new capital to cover troubled loans.  The report advises that the Tre...

Gold bullion demand strong, more recession casualties

Mon, 10 Aug 2009 11:31:29 PDT

20 out 22 fund managers interviewed in the U.S. in a survey by London-based Moonraker claimed to have bought physical gold for personal investments out of concern for future inflation that may be caus...

Economic Notes for 8/7/09

Fri, 07 Aug 2009 13:44:38 PDT

Fannie Mae has asked the government for $10.7B in capital aid following a Q2 loss of $14.8B, the eighth consecutive quarterly loss.  In the last 2 years, the Fannie Mae's combined losses tota...

Economic Notes for 8/6/09

Thu, 06 Aug 2009 21:09:44 PDT

According to Deutsch Banks statement Wednesday statement, more trouble can be foreseen for the struggling house market as the percentage of U.S. homeowners who owe more than their house is worth will ...

Economic News for 8/5/09

Wed, 05 Aug 2009 15:38:54 PDT

Distressed lender GMAC recently reported that its revenues have plummeted 22% from the previous year, resulting in a Q2 loss increase to $3.9B.  GMAC and the Federal Reserve also have been in dis...

Economic Notes for 8/4/09

Tue, 04 Aug 2009 08:14:37 PDT

Bank of America has reached a settlement in regards to the $3.6 billion bonuses awarded to Merrill Lynch in 2008.  The comparatively smaller $33 million fine was set soon after charges were made ...

Open the Fed up

Wed, 22 Jul 2009 13:57:44 PDT

Bailout Commitments Reach $23 Trillion

Mon, 20 Jul 2009 16:59:37 PDT

From Politico:A series of bailouts, bank rescues and other economic lifelines could end up costing the federal government as much as $23 trillion, the U.S. government’s watchdog over...

Einhorn's Greenlight Hedge Fund Switches Gold ETF to Gold Bullion

Wed, 15 Jul 2009 09:51:08 PDT

July 14 (Bloomberg) -- Greenlight Capital Inc., the $5 billion hedge-fund firm run by David Einhorn, told investors it switched all of its holdings in a gold exchange-traded fund into bullion during t...

Dollar News from WSJ

Wed, 01 Jul 2009 07:52:26 PDT

The dollar's yearlong rally came to an end in the second quarter, as markets stabilized and investors moved dollars into commodities and emerging markets. There also was more fretting about the...

Gold News - Summer Outlook

Wed, 01 Jul 2009 07:33:12 PDT

By Shivvy AroraDespite a recent pullback, gold continues to give out a strong bullish message.Think about it in logical demand and supply terms. The total supply of gold doesn&rsq...