The Golden Truth: Pending Home Sales Index Tanks

Monday, May 30, 2011

Pending Home Sales Index Tanks - Economy Is In Peril

The Pending Home Sales index tanked over 11% from March. Although no one in the media pointed this out, March's number was revised downward so the drop in April was probably even uglier. Here's the LINK in case you want to read the retarded gibberish of Larry Yun, the National Association of Realtor's mentally debilitated chief economist about why the weakness is temporary.

The fact of the matter is that all phases of the economy that have been benefitting from the trillions in Government/Fed support, including substantially relaxed credit standards, are starting to fade quickly and now we're looking at GDP contraction on a "real" basis, or measured nominal "growth" less an adjustment for "actual" inflation, where "actual inflation" is defined as the cost of living for most Americans based on what Americans spend money on everyday, including food and energy. Let's not forget that there seems to be a determined effort to cut spending and raise taxes, which will further hammer growth if either of those two goals are accomplished (I doubt they will be).

Precious metals analysts who I think are worth paying attention to (there's only a few) are now thinking - as am I - that we could see a surprise, counter-seasonal move in gold that will take us quite a bit higher by the time the seasonal Indian buying kicks back in at the end of August. I suspect more and more Americans are beginning to understand why gold and silver are necessities and I don't expect that the Chinese demand will subside. In fact, as I was mentioning to someone yesterday, I believe the Chinese are getting closer to "pulling the plug" on the dollar and they need to buy a lot more gold to make it worth their while.

Could be an interesting week ahead, especially if tomorrow's Comex gold report shows more than 10,000 open June gold contracts still standing for delivery...

7 comments:

AnonymousMonday, 30 May, 2011
...about that supply...?lol...exact opposite of housing...and every shill on tv won't admit it!

Jim Sinclair’s Commentary

Any way they can get it. The more gold mining entities the Chinese
own, the less gold that will come to market.

China National Gold Seeks Africa Investment as Bullion Trades Near Record
By Bloomberg News – May 29, 2011 8:02 PM MT
http://www.bloomberg.com/news/2011-05-30/china-national-gold-seeks-africa-investment-as-bullion-trades-near-record.html
ReplyDelete
Replies
Hal (GT)Monday, 30 May, 2011
It certainly feels like we are headed for a "counter-seasonal move" in gold. The economic global rot is moving faster and faster through global veins like poison.
ReplyDelete
Replies
AnonymousMonday, 30 May, 2011
You think this might start changing how people think and feel about coinage?..

Utah Law Makes Coins Worth Their Weight in Gold (or Silver)

Now, however, Utah has passed a law intended to encourage residents to use gold [GCCV1 1539.10 2.80 (+0.18%) ] or silver [XAG Unavailable () ] coins made by the Mint as cash, but with their value based on the weight of the precious metals in them, not the face value - if, that is, they can find a merchant willing to accept the coins on that basis.

The legislation, called the Legal Tender Act of 2011, was inspired in part by Tea Party supporters, some of whom believe that the dollar should be backed by gold or silver and that Obama administration policies could cause a currency collapse. The law is the first of its kind in the United States. Several other states, including Minnesota, Idaho and Georgia, have considered similar laws.

http://www.cnbc.com/id/43214726
ReplyDelete
Replies
AnonymousMonday, 30 May, 2011
Maybe we should buy gold brick houses...?

Egon von Greyerz and James Turk discuss how gold can preserve your wealth

James asks Egon what his target for the future gold price is. Egon thinks that gold will reach $8,000 per ounce by 2013-15. His original target was 6-12 thousand $/oz, however, he thinks that in view of current developments, this previous estimates is likely too conservative. They discuss the coming monetary crisis and the importance of holding gold outside the banking system. They remark that the gold price is rising despite the fact that only 1% of world financial assets are in precious metals and that when fund managers rush to buy gold, the price will experience a parabolic rise.

http://www.goldmoney.com/video/greyerz-interview.html
ReplyDelete
Replies
AnonymousMonday, 30 May, 2011
I think that more and more people are starting to understand the fix we are in. Here were are at the start of summer. I doubt that it will be remember as The Summer of Love 2. Hope that you had a good weekend.

Best,
Bill O.
ReplyDelete
Replies
ConwayMonday, 30 May, 2011
Yeah - dealing in real estate is a bitch these days - I have undeveloped waterfront property that I can't give away to anyone.
ReplyDelete
Replies
AnonymousTuesday, 31 May, 2011
I'll say one thing..if there was a bubble in hard assets.... when this guy testified in front of ron paul 6 weeks ago it'd be sro... not an empty boycotted room!
You can bank on that!

Jim Grant and James Turk discuss gold, the Fed & the fiscal situation of the USA

http://maxkeiser.com/2011/05/31/jim-grant-and-james-turk-on-gold-the-fed-the-fiscal-situation-of-the-usa/
ReplyDelete
Replies

Add comment

Why Gold?

Gold is the world's oldest currency. You exchange your fiat currency (dollars, euros, yen, yuan) into gold as an insurance policy against catastrophic Central Bank and Government policies which serve to destroy the value of fiat currencies and destroy democracy.

Gold can ONLY be considered an investment to the extent that it remains significantly and historically undervalued in relation to the fiat currencies against which its value is measured. Otherwise it remains the world's oldest currency and is completely free from the counterparty risk associated with currency by Government fiat (i.e. fiat currencies rely on a Government's "full faith and credit.")

Quote Of The Month Courtesy of "Jesse"

Unfortunately for Larry Summers, Ben Bernanke, and their friends at the BIS, they have not yet figured out how to print physical gold, silver, and other essential commodities, and the world is reaching the point where it might simply start ignoring the New York based markets with respect to essential commodities such as basic materials, oil, foodstuffs, and the like, as they become increasingly irrelevant, fraudulent, and Orwellian. And then where will the financial engineers be, except with no more excuses and no place to hide?

Here is the link to his entire commentary, well worth a read:

http://jessescrossroadscafe.blogspot.com/2010/07/gold-daily-chart-shock-and-awe-for.html

Great Quote From Jim Rogers On Govt CPI Reporting

JR: I mean, we have inflation now. If you go to the shop, whether it’s groceries, or education or insurance or health care, prices are going up for everything. The government lies about it in the US. Some countries lie, many countries don’t: Australia, China, India and Norway. Many countries don’t lie about it and acknowledge that we have inflation. Others lie about it, the UK and the US, but if you go shopping you know prices are up.

Q: Are you saying that the American Consumer Price Index (CPI) published by the US Bureau of Labor Statistics is a lie?

JR: In my opinion, yes, of course it is. Have you looked at it? They’ve changed their accounting several times in the past few decades. When housing was 20% to 25% of the CPI and housing was going up, they didn’t count it, saying rents weren’t going up, and then when home prices started going down, they counted it. It’s the same with many things. It’s staggering some of the tortuous reasoning that the BLS has used over the past 25 or 30 years. When the price of gasoline goes up, they say it’s not really going up because it’s better gasoline, better quality, therefore you’re getting more for your money. I mean, it’s endless, the stuff that they say and for some reason people sit there, although more and more people are catching on, and accept what the government says.

source: www.clusterstock.com

Quote of the Week

"The primary function of a Central Bank is to engage in the massive transfer of wealth from the middle class to the wealthy elite. The Federal Reserve was set up to do this with the blessing and support of Congress." - Dave in Denver

If you refuse to believe the above, please read "The Creature From Jekyll Island: A Second Look at the Federal Reserve" by G. Edward Griffin and then explain to me why the Senate voted down the Vitter Amendment and Congress refuses to pass a law requiring a full audit of the Fed, even though the Fed is using taxpayer-backed money to bailout Wall Street and Europe.