Gold Editorials & Commentary

Dear Fellow Deviants,

Dear Fellow Travelers standing by for the next flight to Genius,

The Dow Jones Industrial Index is now badly oversold from a technical perspective, and it looks more likely that the markets will bounce up than "collapse".

GLD - on sell signal.

As internal debates in the Gulf and Asian nations intensify over the need to continue propping up the U.S.

The competing currency wars are beginning to escalate. Since 2002 the battles have certainly shown signs of economic damage. But they are really heating up. The winners are difficult to define. The losers are all nations involved.

WHAT'S THE REAL PROBLEM

Did you know that warrants have been in existence for many decades but very few investors know about them? Why? Unfortunately, very few of the professional newsletter writers and analysts understand them so they do not write about them.

When home prices skyrocketed in the early part of this decade, everyone seemed to forget that the subprime borrowers were high risk by definition.

The chart below is a close-up of the Dow Jones Industrial Index as at close of business in the USA on November 15th 2007 (courtesy bigcharts.com)

This looks suspiciously like an OBV sell signal to me

In the last several weeks, tremendous movement and change has occurred in foreign currencies. Almost all foreign currencies have made multi-year highs against the crippled USDollar.

Although yesterday’s reaction may have seemed severe, it is was actually perfectly normal, and served to bring things off the boil, which is necessary if the larger uptrend in gold and silver is to continue.

There's the Housing Bubble and the Commercial Office Space Bubble. There's the Bond Market Bubble and its two progenies, the Junk Bond Market Bubble and the emerging Market Debt Bubble.

Recent reports of better than expected job growth and a 3.9% gain in 3rd quarter GDP have spawned much talk about how the resilience of the American consumer is enabling the country to weather the subprime storm.

GLD - remains on buy signal from 9/04.

The public and investment community continues to be bombarded with denials as to the importance of the seemingly endless slide in the USDollar, along with curiously shallow commentary that the US$ slide seems overdone.

Drug addiction is precisely the correct analogy of what has happened to the world’s capital markets during the Greenspan’s Chairmanship of the Federal Reserve.

Last week I mentioned how silver was underperforming gold at this present time but demonstrated that this was something to be expected.

The following table shows Exxon's Gross Profit Margins over various periods:

GLD - remains on buy signal from 9/04.

If you have ever wanted your child to study Technical Analysis so that they can become a millionaire like you, instead of maybe ending up living off you for half their lives and bringing their washing home etc, but have not summoned up the courage to attempt to

Yesterday, as the dollar fell to new record lows and oil and gold prices surged to new highs, Wall Street remained fixated on wholly meaningless government data that managed to report the lowest inflation in the last half century.

It is still open season on Goldman Sachs. Ditto for JPMorgan and the clique of Wall Street firms, who enjoy untold tremendous privilege. Well, Goldman is at it again, playing games, abusing their role, and making money, all legally.

Executive summary

There is often a moment in a major market move where public perceptions of the item suddenly change and the feeling is something like: "Yup, this REALLY is a bull market!" or "Yup, this REALLY is a bear market!" This is sometime called the "Point of Recognition

GLD - remains on buy signal from 9/04.

There has been a disconnect in logic which has been seriously bothering me in recent weeks.

Four leading members of the Bush administration's economic team, including Ed Lazear, Chairman of the Council of Economic Advisors, Commerce Secretary Carlos Gutierrez, Al Hubbard, director of the National Economic Council, and Jim Nussle, director of the Offic