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Gold Editorials & Commentary

October 4, 2013

Gold stocks are inarguably the most-hated stock sector on the planet these days. After they spent 2013’s first half plunging precipitously, investors have left them for dead. Even most former contrarians who earned vast profits in gold stocks over a decade have...

The partial government shutdown that began this week is not going to have a quick resolution. Both sides of the political aisle seem to be entrenched and unwilling to negotiate. It is political theater to be sure, but there are real world consequences and investment...

We’ve discussed the negative correlation between precious metals and the stock market. It has now been in place for over two years. Since September 2, 2011, the HUI Gold Bugs Index is down 64% while the S&P 500 has gained 43%. Silver has lost 48% while Gold has...

It was only recently that I looked at the Dow Jones Industrials/Gold ratio (DJI/Gold ratio). I wanted now to add another ratio that is often overlooked but is equally important. The Gold/Bonds ratio. The ratio in this case is the price of gold divided by the price...

We live in a time of great illusion in terms of money, wealth, and justice. Investment banking and finance continue to attract the greatest minds. Fraud of the greatest degree goes practically unpunished.

WHOLESALE GOLD rallied from a 1-day low of $1310 per ounce lunchtime Friday in London, but was still trading 1.4% down from last week while European stock markets also reversed earlier losses.

Fed Chairman Ben Bernanke’s decision to go ahead with unabated quantitative easing (QE) seems to have taken many by surprise. To such an extent that, from now on, the major market participants are saying they have totally lost faith in Ben Bernanke. True, Ben...

October 3, 2013

This issue we team up with the charting research services, Macrotrends.net and Thechartstore.com, to bring you a grouping of highly illuminating charts on the gold and silver markets. Though we are a full five years from the genesis of the 2008-2009 financial crisis...

In recent commentaries we’ve discussed the likelihood of a broad market correction due to a series of divergences among the major averages. The divergence between the Dow and the NASDAQ, for instance, suggests insider distribution. Not surprisingly, insider...

We live in a world of exploding debt, unsustainable deficit spending, Quantitative Easing, corrupt politicians, and “forever” wars that benefit the political and financial elite. We will need help to survive the collapse of failing economic and political systems.

The standard wisdom on gold is that it does well in times of economic bad news such as in the 1970s, a period of stagflation and recessions, when the yellow metal rose from $35/oz to peak at $850/oz in 1980. But this time, Don Coxe, a portfolio adviser to BMO Asset...

PRECIOUS METALS fell back Thursday morning in London, with gold reversing $20 of yesterday's near-$50 rally to trade 2.6% lower for the week so far. The price of silver dropped almost 50c from Wednesday's peak, but held only 1.1% beneath last week's finish at $21.57...

One of the biggest problems facing a miner, a refiner, a jewelry maker and anyone forced to hold gold for a period of time, when his business is not speculating on the gold price, is avoiding the price risk inherent in owning gold for such a time. Just the act of...

The crucial story for gold investors is not the pure inflation rate of the dollar, but something much deeper. When you focus on gold, you should sharpen the focus of your lens on the dollar system. As history confirms, gold can both increase and decrease under...

October 2, 2013

Austrians have often looked at how central banks cause the boom-bust cycle domestically. But in recent research, you’re looking at how the Federal Reserve has contributed to unsustainable booms in Latin America.

Most economists surveyed by Bloomberg News are now of the view that the Federal Reserve will begin tapering asset purchases in December. Contrary to expectations on the 18-19 of September, Federal Reserve policymakers have decided to continue with a very loose...

WEDNESDAY morning in London saw gold recover half of yesterday's $50 plunge per ounce, rising back above $1300 as world stock markets slipped and the US government shutdown spread to new departments.

October 1, 2013

Russian President Vladimir Putin created a stir recently when he shared his thoughts with Americans in an op-ed printed in The New York Times. According to The Times, very few pieces written by heads of state have been published by the paper and very few received...

We summarized our previous free commentary ( http://www.gold-eagle.com/article/current-situation-us-dollar-and-non-us... ) by stating that the medium-term outlook was bearish – did anything change?

As one deadline after another passes, the US government is beginning to shut down. This is a truly horrific situation, and I'm stunned by the incredible complacency being exhibited by stock market investors. For decades, I've labeled the September-October time frame...

The U.S. government has begun a partial shutdown for the first time in 17 years, after the two houses of Congress failed to agree a budget. The Republican-led House of Representatives insisted on delaying Mr Obama's healthcare reform - dubbed Obamacare - as a...

For the entire history of the Federal Reserve prior to October of 2008, the Fed was not legally able to pay interest on bank reserves. However, the Emergency Economic Stabilization Act of 2008 gave the Fed the power to pay interest on reserves and the Fed has since...

September 30, 2013

Before giving in to some late day selling, the stock market was holding up relatively well Monday given the negative drag from the budget talks in Washington. A positive offset came out of the Midwest.

When Lucy keeps changing the rules and the yardage required for Charlie Brown to move the ball down the field changes on every play, the incentives change just as they do in economics. Rules that provide advantages for some over others and protect against the true...

Tensions in the Middle East have always had an impact on everyday life around the world through their effect on the price of oil. During the last month we saw this impact very clearly. At the beginning of September, the price of light crude dropped as fears of U.S....

CNBC announced this morning that a total shutdown of the US government may limit gold's price decline, and there is a new rumour that CNBC may announce later today that if the known universe is 100% destroyed, that event could also limit a gold price decline.

In the interest of simplicity there will be little talk of support, resistance, volume and measured objectives in this segment of the service. In short, all we want to know with these charts is ‘are they on bull, bear or neutral signals?’ Very mechanical, very...

Put simply, so long as a central bank decides to hold interest rates at a chosen level and is prepared to provide liquidity to any bank that requires it, the central bank stands in the market to offer unlimited quantities of money at the stated rate. As a result...

In this Weekend Report I would like to look at the Chartology of the precious metals complex as this is either a consolation phase or as some think a bottoming formation is building out that will lead to the next bull market. In order to grasp what is really going...

September 29, 2013

In recent commentaries we’ve looked at the possible scenario for an October stock market correction. This scenario is based on Kress cycle “echo” considerations as well as a number of technical and market psychology indicators which suggest a market top may be...

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Small amounts of natural gold were found in Spanish caves used by the Paleolithic Man about 40,000 B.C.

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