Gold Closes At All Time High Of $1,435 As Stocks Break 7 Month "First Day Up" Winning Streak

Submitted by Tyler Durden on 03/01/2011 16:13 -0500

Even as gold closed at all time highs, and silver surged to a fresh 31 year closing high, the most important observation is that the market snapped the critical 7 month winning streak of major surges on the first day of the month (we will provide an update on this shortly). This means that all lemming momentum chasers are now blind deaf and mute, with no orientation in a suddenly very unfriendly stock market. In the meantime, all those who continue to believe that with oil over $100 the biggest winners will be gold and silver, are, for the time being correct. The attached charts confirm it. 

 

 

 

As Gold Hits An All Time High $1,432.57, Doug Kass May Need To Revise His "25% Lower" Call

Submitted by Tyler Durden on 03/01/2011 14:44 -0500

Just in time for silver to catch a breather, gold steps in, and hits a fresh all time high of $1,432.57. Alas since this price action is merely stragglers loading up as a semi-mute Cramer, who suddenly has no 100x fwd P/E momentum stocks to pitch, goes back to pushing gold. As such the spike is likely rather temporary (for now). 

 

 

 

 

Guggenheim's Scott Minerd On The Surprising Winner From The Upcoming Domino Collapse

Submitted by Tyler Durden on 03/01/2011 14:08 -0500

Guggenheim's Scott Minerd has released a somewhat controversial piece looking at several steps forward in case the MENA crisis escalates to the point where dominoes start toppling each other. His conclusion: "After all these dominoes fall, global investors will likely find themselves in a world that looks like this: the Middle East is highly unstable, emerging market economies are slowing, and the crisis in Europe has been exasperated by shrinking exports, leading to a decline in the value of the euro. Against this landscape, the U.S. economy and dollar-denominated financial assets will look increasingly attractive on a relative value basis." Needless to say we disagree with this rather simplistic assessment, or rather, with a very large caveat: in nominal terms, Minerd may well be right, but the resultant surge in oil to well over $200 (should his thesis pan out) will cripple the US economy, force the Treasury to turn on the afterburner on debt issuance, and ultimately result in the biggest bout of monetization ever, resulting in the death of the US dollar (and thus, the resurgence of the gold standard). That said, it is a good piece, if one takes the conclusion with a big piece of salt. In our opinion, the only clear winners from the domino collapse will be oil as we have claimed since early January... and the PM complex of course.

There Is No Inflation...

 

Guest Post: The Counterfeit Economy

Submitted by Tyler Durden on 03/01/2011 12:21 -0500

Counterfeit money exploits trust by presenting a facsimile of authenticity. A high-quality counterfeit bill (for example, the $100 bills exported by North Korea) are facsimiles of authentic paper notes which then gain the trust of users. A counterfeit gold bar is a piece of lead coated with a layer of authentic gold. The mechanism is the same: a veneer of integrity tricks the buyer into trusting the validity of the entire bar. The U.S. has a deeply counterfeit economy.

 

 

 

Insiders Sell $5.4 Billion, Buy $128 Million In Stock In Month Of February