Gold Editorials & Commentary

Last year was an eventful one for the gold market. The yellow metal was up 10 percent in 2011 for its 11th consecutive annual gain. But despite making an all-time high on Sept. 5 at $1,900/oz. gold finished the year down 18 percent from that high.

The Dow's 8-count is simply the number of days the Dow Jones moved 2%, or more from the previous day's closing price in a running eight day sample. Whether the Dow Jones moves up or down 2% makes no difference.

All in all we had a pretty good week with major US averages slowly breaking out higher and holding so far, but still we're not seeing massive moves and a full scale bull market breakout.

GLD - on buy signal.

Since rocketing to new all-time highs last summer, gold has weathered a major correction. While that selloff was healthy and necessary given the excessive optimism that catapulted gold to very-overbought levels, a strong US dollar accelerated gold's swoon.

MF Global went down in October and the government which can sniff out weapons of mass destruction thousands of kilometres away in enemy territory, still cannot figure out what happened to $1.2 billion in its own back yard.

There is a strong probability that the correction in the price of gold has been completed. This article has four separate sections. They are:

Events in the last decade displayed a vigorous effort to defend the USDollar. The rogue nation of Iraq sold crude oil in Euros for three years, until they were liberated. Its tyrant was a scourge to be sure.

Gold bugs argue that Gold is far from being a Bubble. Especially not when you look at the following comparison, which plots Gold's rise versus the Nasdaq's rise in the 1990?s.

We have in recent weeks been rather confused by the contradiction between the strongly bearish price patterns that are developing in gold and silver, which are indicative of a major top that portends a brutal deflationary downwave, and the seemingly bullish COT

GLD - on buy signal.

Some analysts believe that gold has bottomed . I think they may be missing something important. The global financial game may have changed because Europe is being seen as more of a basket case than the US.

The cyclical bull market recovery which began in March 2009 was powerful in its first year, moderately strong in 2010 and visibly weakened by the end of 2011. Thus we have the pattern of a recovery which is losing internal force with each passing year.

The new year started off with a bang with precious metals out-shining the competition. Is this a harbinger of things to come? We think so and we are not alone.

Gold had a tough December, falling 10.5% to grind along near its worst levels since July. This sparked hyper-bearish sentiment and end-of-gold's-secular-bull talk.

2011 was a good year for gold bullion, up 11.3%, but a tough year for gold stocks which declined 18.3% based on the XAU index of gold and silver stocks.

Season's greetings from all of us to all of you, wishing you peace and profits wherever you are!

I'm having difficulty dealing with current market sentiment for gold and silver.

The Experts Have Reached a Consensus and it's Not Good!

The last week of the year volume tends to be light due to the fact that big money traders are busy enjoying the holidays and waiting for their yearend bonuses.

This is the burning question for economists worldwide on the Eve of the New Year. This article is a compilation of many erudite sources and opinions copied from the Internet....plus my own thoughts.

Season's greetings from all of us to all of you, wishing you peace and profits wherever you are!

Typically, the week before Christmas, stocks and commodities drift higher due to the lack of participants. Light volume favours higher prices, which is why stocks want to rise going into the holiday season.

Recession is a four-letter word in the financial markets, striking terror into the hearts of everyone. And if reports since August are to be believed, there is a recession hiding behind every tree.

Paul Krugman's article in the December 15 issue of The New York Times under the title G.O.P. Monetary Madness takes G.O.P. presidential candidate Dr. Ron Paul to task for his 'ideological' stand on money.

"Gold again proves it is not the safe haven many had hoped for, breaking the 200-day moving average, the first time since 2009 and signalling that prices may drop to US$1400/ounce."

Shelley Goldberg

Divergence between paper gold and physical gold price is happening, the process begun. Actual physical shortages have kept the price up. The naked shorting of futures has kept the paper price down.

Chart created using Omega TradeStation 2000i. Chart data supplied by Dial Data.