Gold Editorials & Commentary

Recovering from the deeply over-sold conditions of the past several weeks, the U.S.

What will result from the ensuing bust:

Southern Era just discovered what it's like to get worked over by elitists, namely De Beers. Southern Era has a high grade diamond-rich kimberlite pipe, with a two year life.

Proximity concerns . .

Gold stocks: the real leverage!

Part I

Market Plunges, Signals Change In Psychology

The U.S. equities market last week resumed its technical weakness but provided further clues as to where its intermediate-term trend may be pointing.

Chart Symmetry is designed around the observation that prices tend to change direction along certain preferred gradients. New readers are advised to read the first article in this series to discover how Chart Symmetry works. The link to this article is:

It was a bearish week on Wall Street. While the Dow did post a 59-point rise, and the Morgan Stanley Cyclical index and utilities gained more than 1%, most other averages were in decline. The S&P 500 was hit for about a 2% loss.

Gold only seems to have lost its luster because prices on gold have gone down for 18 years.

Why this time the resulting bust will be worse:

Persistent rumors have been coming out of London for three weeks that G-7 bankers have been bailing out hedge funds to the tune of $25 billion and at the same time making a coordinated effort to drive down the price of gold, so that as much gold as possible can

Looming economic reports . . . contributed to the "buyer's strike" atmosphere on Wall Street in the final hour, which was marvelously easy to trade with respect to intraday S&P activity during Wed. late going.

After almost two tumultuous weeks of trading, the U.S. equities outlook has now definitely established at least a short-term downtrend.

What is likely to happen to the price of gold? Up or down?

If gold does begin a great new bull market, how far can one realistically expect the price of to gold to rise within a reasonable time frame?

Leverage:

It was a decisive week for the bearish view, with losses for the dollar, credit markets and stocks. For the week, the Dow and S&P 500 dropped about 2%. The Morgan Stanley Cyclical index and the Utilities shed 3%.

I'd like to offer a unique perspective (most remaining gold stock investors are focused only on big hedgers like Barrick Gold) on picking rewarding gold stocks for the next gold bull cycle.

The market environment . .

Deflation and policy makers' attempts to defeat it:

Most economists and financial journalists continue to misidentify the meaning of the fall in the U.S. dollar price of gold. That price has plummeted from about $300 per ounce a year ago to near $250 recently.

It's the proverbial "eleventh hour" in this 17-year-old bull market and the manipulators are out in force.

Quiescent Federal Reserve gradualism . .

Wow, it was another wild and difficult week for the bear camp. The Dow was largely unchanged, gaining 15 points, while the S&P 500 rose about 1%.

The following excerpted material is important for understanding the way many view U.S. stocks today:

Ian Gordon is a broker with a major Canadian brokerage firm. Admittedly, he is not a household name - at least not yet. That might change if he is reading the current stock market cycle properly. Ian is a student of the Kondratieff Cycle.

Gold stocks: the next Internet boom!

Taking a breather . . . in the midst of a nominal Expiration week is fairly unusual; but since this was mostly a function of the Dow Industrials alone, more so than the rest of the market, it's still suspect on a daily basis.

Several years ago in an essay on gold ("The Golden Sextant"), I pointed out that gold is arbitraged like currencies, which is to say on the basis of interest rate differentials.