Gold Editorials & Commentary

Having overestimated the psychological impact of President Bush's speech, I am obliged to focus even more resolutely on purely empirical indicators. Unfortunately, my most reliable tool -- the "hidden" pivot -- still paints a menacing picture.

It is conceivable that stocks might have come back after September 11, just as so many people had hoped. But the meddlers in DC seemed to be doing everything in their power to make sure that it would not happen.

It is clear that stocks are not attracting much buying interest unless allowed to freefall for a scary hour or two. So, do the specialists go for broke by pulling their bids on the opening today (Friday), allowing the DJIA to plummet to 8000 or even lower?

In this war climate, our views are subject to change not only daily or intraday, but even momentarily as events may require.

Ever play the futures market? I don't advise it, as it is a lot more fun to gamble at Las Vegas. I've lost more than I made, and have given it up. I don't advise it. But there are millions who regularly do futures, and some make money. Most don't.

Thus spoke the crucified Messiah nailed to a Roman cross on a bleak Judean hill many centuries ago; thus say I regarding the events of September 11, 2001. Let no reasonable person have any illusions.

The New York Mercantile Exchange (Nymex), has been closed since the World Trade Center catastrophe on Tuesday morning, as the Nymex facilities are only a couple of blocks away from ground zero.

In the midst of dominating news coverage, CNBC has managed to ask a host of commentators about their views on how the September 11, 2001 tragedies will alter the markets.

As New York City heroically digs out from under the rubble and businesses plot their return to normalcy, the feeling mounts that America has been greatly strengthened and unified by the appalling events of the past week.

Terrorism's tentacles . .

Gold mainly meandered through a narrow range, but as of today is down $4.00 to $272.10 an ounce since our August 20 update. Generallyspeaking, gold has been tracking the dollar, but at a lesser magnitude than the euro and yen.

As the dust clears from the World Trade Center Towers, Pentagon, and others, what will happen?

As of Friday's close, stochastic readings for many of the issues tracked in my daily newsletter were tracing out oversold lows that fell practically off the charts.

Part 1

The Root of the Problem: A Banking System That Requires The Issuance of Debt In Order To Function

Wall Street is befuddled. It can't figure out what is going on because economists are operating with an economic model that is about as out of touch with reality as if a physician tried to examine a pain in your big toe by listening to your heart beat.

Out of all the incredible financial developments of the 1990s, one of the most important fundamental structural changes in the nature of the operation and interaction of the global financial system was the literal explosion of the use of derivatives. 

Out of the woods . .

When we were kids, we wanted absolutely everything. Most of us came from families that may have been well off enough to pay the bills, buy a home and car, and even go to an occasional movie, or other amusement.

Part III

Why Is Gold A Good Store of Value During Deflation?

Nobody wants to pull a trigger . .

Editor's Note: Mr. Hickel challenges Mainstream Media Bias of "cheerleading stocks and bonds as the best investments period." Following are emails he sent to the perpetrators.

We have considered what makes a particular currency "hard," while another, equally valuable-or worthless, depending on your view-is "weak." It has nothing to do with the paper itself. Paper is paper.

This piece entirely deals with what to do with dollars. Of course it can also apply to Francs, Pesos, Yen, Pounds, or what have you, depending on what the economic situations are in the nation in which you reside.

Gold came off a bit last week as the manipulators continued to bide their time. Given the ridiculous levels to which the dollar has risen, manufacturing, mining and farming in America are all in deep trouble.

When the sun shines up here in Portland in August, we do know how to get down as they say. We have a local festival paying homage to real Italians and wantabes like me.

At precisely 1:57pm on June 27th, 2001, a seller dumped 100 contracts (10,000 ounces) of gold on the Comex market. The transaction was noteworthy as to the amount and timing.

Talk about 'climbing a wall of worry'. . . after the Fed failed to chip-away at several pertinent concerns in any way (effectively stating the truth we all know about the U.S.

Part I

Unbeknownst to a new generation of be-boppin' baby-boomers, the seeds were being sown for their new-millennium experience with deflation and a collapsing speculative bubble before they were even born.

INTRODUCTION

The gold market came to life during the eight trading days through Friday, rising $ll.90 to $280.50 an ounce. Both volume and open interest, which had declined to historical lows, rose with rising prices.