Commodities

Gold, Silver and Stocks: What does the New Year Hold?

Do precious metal prices reflect economic fundamentals or perceptions of price trend prospects? Silver sells around $30 an ounce and is near a 30-year high. Gold sells for more than $1,400 an ounce. Can gold and silver double from here, with silver already selling for more than five times typical producer costs? (Yes, the prices can double, but not likely.) Just what were J.P. Morgan analysts thinking in June 2010 when, with silver around $18 an ounce, they gave a long-term silver price forecast of $13 an ounce? Were they trying to turn the market?

Are We Our Own Worst Enemy?

No.: 
24

Irwin Kellner declares, "We have met the enemy and he is us" (Oct. 27, 2008). How so? Kellner, MarketWatch's chief economist, says we wanted to kiss a frog and turn it into a prince. Like children in a fantasy world we demonstrated credulity. We bought into the Wall Street lie that high risk securities made from subprime loans (sows' ears) could be spun into silk purses. We wanted money to grow on trees! Well, Wall Street showed us it could grow money on trees and eat our free lunch, too! Now we have to pay for ‘sweet little lies’ made viable by ignorance and greed.

Wildly Changing Dow Reveals Injustice Of Markets

No.: 
23

Today's massive stock market rally testifies that democratic capitalism has become a bizarre way of organizing a society. We're not a democratic republic in the sense we once were, since leveraged speculation now explains our hopes and challenges more than any system of political representation. Let's be honest about it: Anytime the fate of a nation, or perhaps the world, rides on the overwhelming influence of bets made on paper assets with merely discretionary value, the system has passed the tipping point and has become irrational and unjust.

Is Oil Artificially Priced in the "Free" Market?

No.: 
16

David Callaway draws a timely comparison between Wall Street’s springtime predictions of $200 crude oil and key policy makers’ autumn predictions of a pending global economic meltdown. He points out that oil’s failure to reach $200 a barrel — it is now sitting in the low 70s after collapsing from $145 — is suggestive that the current economic gloom will not reach apocalyptic proportions. There is a good probability that Callaway is right — in the short term.

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