Gold Cares Nothing About U.S. Elections

Source: Whiskey and Gunpowder, Charles Goyette (10/18/10)

"Gold doesn't seem to care about the Republican's prospects this fall."

Polls suggest Republicans are set to retake the House; and, while scattered tea party victories gave the GOP the thrashing it so richly deserved. . .none of it matters to our financial prospects. At least that's the message from the gold market.

Unless Republicans will go into the next election cycle having taken on healthcare, there's not much hope that they'll do anything meaningful about fiscal policy. Announced on September 23, the Republican Pledge to America promised to save "at least $100 billion in the first year alone."—$100 billion/year? One week later, the federal debt had already grown another $100B.

Some real money could be saved rolling back the American empire. Congressman Ron Paul and others calculate total war and foreign spending at about $1 trillion/year. In this context, a return of the Republicans reminds us of Talleyrand's comment on the Bourbon dynasty that returned to the throne of France after the abdication of Napoleon: They "had learned nothing and forgotten nothing." Republicans seemed to have learned nothing and forgotten everything. Betraying a hubris not seen since Bush set off to "rid the world of evil," the pledge from November's likely winners includes "bringing certainty to an uncertain world." Republicans do take their military Keynesianism seriously. On the monetary front, the Fed is counting on inflation to kick-start economic growth. Money printing is its religion—now with new names: liquidity operations, deficit accommodating and quantitative easing (QE).When Chairman Bernanke said something euphemistic last week about additional purchases, gold shot up again. The USD moved decisively lower; down 12% since June.

Where does one weather a currency crisis? . . .Gold. It keeps hitting new all-time highs and doesn't seem to care about the Republican's prospects this fall.

Announcing Streetwise Live! Events
Source: Streetwise Reports (07/13/2020)

Streetwise Reports is offering 100 investors—at no charge—the opportunity to meet via Zoom with executives of precious metals companies as they discuss recent developments at their companies and upcoming catalysts.

"China's export quota could be opportunity for Canadian miners"

Latin America: Six Gold Juniors Amass 100M+ Ounces
Source: Marc Davis, BNW News (05/25/2010)

Latin America, the world's last great mineral frontier for prolific gold discoveries, is proving a godsend for some lucky investors.

Mexico: Gold's Next Powerhouse Player
Source: Marc Davis, BNW News (11/03/2009)

As the world's key gold producing nations struggle mostly in vain to replenish dwindling below-ground supplies, Mexico is bucking the trend in a big way.

Where Have All the Gold Mines Gone?
Source: Brent Cook, Exploration Insights (04/14/2009)

Given the declining global gold production, mining companies’ demand for reserve replacement and the acute dearth of new gold discoveries, there is no doubt that real economic discoveries will be exceptionally valuable. . .the opportunity for stellar profits is the best it has probably ever been. Identifying the few successes, however, will require vigilant and constant technical assessment of geology and drill results, always with an eye to mine economics.

Congo Completes Mining Review, Says Majors Quit Talks
Source: Reuters (12/20/2008)

"Review process is extended an additional 45 days to allow six companies to return to the negotiating table for direct talks with government ministers."

I haven’t spoken to my old mining stock friend, noted and universally respected gold stock guru, Bob Bishop, about Rare Element in a year, but I hear he is still a supporter and very large shareholder. I don’t believe he will hold it against me to remind you that this was one of his favorite holdings when he left the newsletter writing business. . .

It's Only the Beginning for Uranium
Source: www.financialinsights.com (06/03/2005)

Dr. Richard S. Appel, author of Financial Insights, first became bullish on uranium in mid-2003, when it appeared obvious that its supply versus demand equation was fated to seriously drive higher its price. Since then, a series of events in the uranium industry has led Appel to believe that uranium prices will reach never before seen levels.

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