Swiss Money Printing ! The Race to the Bottom

Global banks around the world are engaged in both quantitative and qualitative easing.

Qualitatively they are lowering the standards for the collateral that they are willing to buy or lend for.

The race to the bottom is here. No one wants a strong currency. This should be apparent to everyone. This money printing will be positive for hard assets, especially precious metals.

http://www.iht.com/articles/ap/2009/03/12/business/EU-Swiss-Franc.php

JP Morgan Says Buy Goldmines

To which we say, we are already there, and they clearly missed the bottom call as most gold miners have doubled and tripled.

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aNHAoeICrVlE

Lets make this easy for everyone. The two largest inputs into mining are labor and energy.

Oil has collapsed from $147 into the 40s. Check.

Gold is sold for US dollars, the SA rand, Mexican peso, and Australian dollar have all collapsed. Check. This means that local lobor costs, denominated in those currencies have all fallen by at least a third.

Gold in USD and other currencies is stronfg, therefore the outlook for miners is excellent.

Everyone should well be aware by now, but even with a more than tripling of price of gold, gold supply is lower than in 2001.

There you go.

The Coming Gold Bubble

http://econompicdata.blogspot.com/2009/03/ready-to-ride-golden-bubble.html

The excellent post is listed above.

To which we say yes, that is why we own gold!

Actually gold performed quite well during the Great Depression and has held up very well during times of deflation vis a vis shares and real estate which collapse. Ditto 2008.

For those that remember Homestake Mining went from a peak of $90 in 1929 and fell to only $70 a share. And then rose to over $500 by the end of the Depression!

It has not performed well during disinflation which is a different matter.

The whole point about investing is to buy early in the trend and wait for the mania, remembering that at some price, every asset should be sold! I want the parabolic blow off, as should everyone that owns gold.



Silver also offers better upside than gold as a current speculation.

http://thecreativedestructionist.blogspot.com/2009/03/silver-from-heaven...

Russian Stocks Rally Over 10%

The Russian RTS which had been in the 500 to 550 range was a bargain.

http://www.bloomberg.com/apps/quote?ticker=RTSI$:IND

Again please see our prior post on Russian equities. We find the RTS under 600 tio be an excellent speculation.

http://thecreativedestructionist.blogspot.com/2009/02/speculative-long-russia.html

Stocks Stage Massive Global Rally

Selling pressure had gotten to multi-generational highs.

Citigroup with better news than expected.

http://www.bloomberg.com/apps/news?pid=20601087&sid=a0Ii37swxioo&refer=home

While the exact timing has been unknowable, we are not surprised by this.

Refer to our post from exactly one week ago. The post is below.

http://thecreativedestructionist.blogspot.com/2009/03/massive-selling-pressure-on-s-500.html