Gold Editorials & Commentary

The Fed crossed the Rubicon last week with its announcement of another massive tranche of QE (Quantitative Easing or in common parlance money printing), known as QE2.

We are officially in an inflation trade melt-up.

GLD - buy signal this week.

The highly-anticipated 2010 mid-term elections are finally over, a huge relief if you hate politics and government meddling in our lives as much as I do.

With the election over and congress divided, it may be difficult for the president to get much done.

A love affair with silver is so natural. The fundamentals are astoundingly positive and bullish in price prospects. My basic argument has been repeated many times. Industry has countless uses for silver, significant demand.

This week we have a major wild card (Election) happening on Tuesday. Most of you know I don't get involved with political discussion for several reasons... one of them being that I am Canadian "an outsider" looking in.

The word "millionaire" first made its American print debut in an obituary for Pierre Lorillard II in 1843 when he died leaving behind a fortune of over $1,000,000.

Gold and silver at last staged the expected correction necessary to unwind the extremely overbought condition that had persisted for weeks.

Since I've started my weekly market report in October 2008, I've written over 400,000 words, constructing thousands of charts and over 100 different reports in the process: time for a bit of a rest.

GLD - on sell signal.

As I've stated in countless article before, the Fed is good at nothing but blowing bubbles.

The Bible teaches: "You can't change other people, you can only change yourself". Will We Ever Learn?

The mortgage & foreclosure scandal runs so deep that ordinary observers can conclude the US financial foundation is laced with a cancer detectable by ordinary people.

The G20 meetings this weekend seem to have ended as they began. The two heavyweights are China and the US. The US says that China must let it's currency appreciate since they have such a large external surplus.

Last week was volatile thanks to China raising their interest rates a quarter basis point. This rate hike caused the Dollar to spike in value which in turn forced equities and metals to sell off sharply.

GLD - sell signal this week.

Before I get to the meat of this short article, I'd like to say that the correction in Gold is very welcomed by me.

Gold has enjoyed a relentless and rather one-sided rally since late July. Up 18.9% at best over an 11-week span where nearly 2/3rds of the trading days enjoyed gains, some traders are wondering if this metal is getting overbought.

The Chinese are clever people. Their leaders play a good game of chess in the global scramble for commodity supply and financial dominance. Their patient strategy has tied the arms & legs of the USGovt, using their own debt securities as the binding rope.

I'm just saying that I've been thinking about 'Risk' and specifically about risk in the securities markets. What prompted that thought?

With QE2 apparently coming within the next few weeks, markets are shedding off the more common October blues and rallying.

Gold's relentless climb to new record highs is driving a renaissance of investor interest in junior gold stocks. This fascinating subsector amplifies investing's usual risk-reward equation to breathtaking extremes.

It's been an interesting week with stocks, commodities and currencies having a knee jerk reaction to the FOMC minutes released Tuesday afternoon. In short the Fed clearly said there must be more quantitative easing before things will get better.

Long time readers may recall that I lived in Copiapo, Chile for quite a while - 2 years to be exact, although I now live in the very different Lake District in southern Chile, near

"A government that robs Peter to pay Paul can always count on Paul's support." -- G.B. Shaw

"All problems come from the fact that people don't understand money." -- John Adams

The increasingly visible vote of no confidence in the fast failing USGovt financial structure, and in the missing capital formation apparatus that was once Wall Street, and in the entire avalanche of paper in debt monetization to undermine valuation, is the GOL

The metals corrected slightly this past week and look about ready to put on hold, their runs higher. Don't worry though, it won't last long.

GLD - on buy signal…but very overbought.