Gold Editorials & Commentary

Ah, those incomparable Canadian junior gold mining stocks. Where else in these troubled financial times replete with deflation, volatility and falling prices can one find such comfort, such joy, such amazing profit potential for so little?

It is widely recognized that the roaring engine of the U.S. economy is showing the signs of wear and tear from its high octane performance over the past several years - and almost certainly will slow down in the coming months.

The article began like it was right out of our Forecast '97 and Forecast '98 annual reports:

A practical definition of the word shortage as it pertains to a tangible commodity would evolve around supply being insufficient to meet demand.

Canadians, much more so than Americans, are inveterate goldbugs. They are especially fond of gold mining stocks and exploration companies—as well they should be since so much of Canada's economy depends on the market condition of the yellow metal.

Financial Panic . . . truly gripped the Street, not so many weeks ago. Aggressive Fed ease was called for here, weeks in advance to calm things, and to psychologically help stabilize currencies abroad, and thus indirectly our markets.

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Bears will have some explaining to do if the current stock-market rally achieves new record highs.

Our call this week . . was for a "pop-up" after Elections to convince many others on the Street that it's onward & upward once again.

The technical outlook in gold is looking better than it has in quite some time and it is starting to be confirmed by a rapidly improving fundamental picture as well.

This week U.S. investors were reassured that the Clinton Administration's agenda to "do something" about the global economic crisis is, in fact, now being implemented.

The outlook for U.S. stocks, while somewhat mixed, is still firmly bearish based on our indicators. A serious decline in the major indices is still a distinct possibility as we head into November.

When an American uses the expression, "It can't happen here," he is probably referring to the replacement of republican government by some form of tyranny. We smile at his naivete. But the expression can be interpreted in other ways.

Durban Deep is probably the premier gold investment on the market today. South African gold stocks in general offer excellent values in today's gold share market, that is if you are interested in making money!

The past week in the equities market has been nothing less than tortuous for the bears as we continue to monitor the market for signs of a continued collapse.

More than any other time in history, mankind faces a crossroads. One path leads to despair and utter hopelessness. The other, to total extinction. Let us pray that we have the wisdom to choose correctly -- Woody Allen

Just when everyone was betting that Japan's yen would continue to weaken against the U.S. dollar, guess what happened? The yen halted its decline and went from 135 yen to the dollar on Oct. 1 to 110 yen to the dollar on Oct.

I was chatting e-mail talk with Vronsky of the very popular GOLD-EAGLE web site and somehow Don Quixote came up. Maybe because he is fluent in Spanish. Anyway, it stirred memories of my past and, ironically, of my future.

The cronyism of the Japanese system was hailed as enlightened "government-business partnership" during the heydays of the 1980s when we were being told that America too must adopt this system or cede economic supremacy to the East.

Recent market action has led many investors to ask the question in our headline, "Has the bottom been seen on the Dow?" This question is a valid one and worthy of our attention.

Last week the Fed made its celebrated preemptive strike on the financial markets by lowering the Fed funds rate by ¼%.

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Technicals -

Can an ad hoc committee of international bankers make the tremors stop?

Our recent forecast of an imminent stock market sell-off was nullified last Thursday when the Dow Jones decided it had other plans and proceeded to leap nearly 400 points to the 8300 level—a level unseen since August.

The gold market last week did not disappoint goldbugs and investors who are keeping close watch for a possible turnaround. Yet it still has not yet provided us with the decisive penetration above $304/oz.

It is important that what passes for money today be taken seriously. There would be no point in producing it--not that that's difficult or costly--if its true nature were perceived.

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The outlook for U.S. and world equities was firmly bearish last week and we expect it to remain so for the balance of the year.