Gold Editorials & Commentary

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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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.

U.S. equities markets entered the initial stages of what we consider to be a crash last week.

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Exactly one year ago I did a study comparing the incredible price run of the number one tech-stock of the 1920s (RCA) with the similarly spectacular price increase of unquestionably the best high-tech stock of the 1990s (MICROSOFT).

Fear and panic becoming predominant sentiments among global investors

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Bears were rewarded last week on Wall Street as a significant and long-standing technical development finally culminated with share prices falling hard towards the end of last week.

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After enduring several years of harsh investor sentiment in the form of depressed share prices, several Canadian gold mining stocks appear ready to reverse course and return handsome dividends to their long-suffering shareholders.

These are surely giddy times for bears.

And why not? For most of them the summer's stock market crash came on with a warning that had all the subtlety of a brass band parading down Main Street.

The gold market is showing unmistakable signs of a turnaround that could witness in the coming weeks a bullish move to levels unseen since 1997.

Long-time readers of this commentary will have noticed the large emphasis we place on geometric patterns formed in the stock charts.

Global markets, buoyed by short-term strength from buyers, evinced partial retracements of the declines that have plagued most major stock, bond and currency indices of late.