Gold Editorials & Commentary

Inspired by gold's relentless momentum, investors drove the flagship HUI gold-stock index to new all-time highs this week.

Wednesday's session closed mixed on the day. The DOW posted a third of a percent gain while the tech sector closed down almost nine tenths of a percent.

We are on the point of a major breakout by Precious Metals stocks that is expected to lead to a powerful rally.

There is no shortage of predictions and opinions, experts and forecasters, theories and ideas. Despite this, certainty is in short supply and chaos threatens to become the new norm.

I am quite often asked by readers "what do you think will happen?" in some monetary Armageddon-scenario, such as the complete collapse of the entire, global fiat-currency system, or 'merely' the collapse of their own, domestic paper.

Investors around the globe are concerned with the economic outlook, not only with the United States but with virtually every country.

Two of our three requirements for a major uptrend developing across the Precious Metals sector that were set out in the last Gold and Silver Market updates have now been met - first silver has broken out to clear new highs, then gold broke out above the top lin

GLD - on buy signal.

Becoming very overbought…

You may find this difficult to believe, but there are over 300 million scrap metal and paper recyclers in the United States. In Japan there are over 127 million, Europe 730 million and the list goes on.

Wednesday the market didn't tell us anything new. The equities market is still over extended on the daily chart but the market is refusing to break down.

Some prefatory stories are highly revealing. Bank of America is badly on the ropes. On the same weekend at the end of July, when the Bank For Intl Settlements executed a 340 ton gold swap contract, two other events happened.

Human stupidity manifests itself sometimes as a one off act and at other times as an enduring strategy. The experiment with fiat currency falls into the latter category.

Gold's at another all-time high today. What else is new! It's the same old, same old as it just keeps slowly mowing forth. Both investors and business networks are starting to pump the rally some, but still it's far from mainstream.

Regular readers will know that I shun short-term charts and "technical analysis." Such tools carry a low degree of reliability, since they are built upon numerous false assumptions (beginning with "free and open markets" and "perfect information").

Resistance is futile. Gold is charting into new frontiers. We're now on the road towards $1,500 Gold and $30 silver. Both targets should be reached with this move which should last until perhaps spring.

GLD - on buy signal.

Becoming overbought.

In the first part of this series, we took at a look at Partial Equilibrium (PE) analysis in terms of analyzing a particular good or service rather than macroeconomic aggregates.

An open letter to Paul Volcker, Chairman of the Board of Governors of the Federal Reserve, 1979-1987; Chairman of President Obama's Economic Recovery Advisory Board, presented to him, in person, last year

Gold's typical autumn strength has been garnering a lot more interest than usual this year. Since its late-July seasonal low 8 weeks ago, this metal has rallied over 11%.

Japan has proved without confusion that 0% is a permanent stuck position. The United States will repeat the path, but with a vast mudslide. Japan has had the advantage of a strong industrial base, a sizeable trade surplus, and no war budget.

There is regularly talk about the Fed (or Treasury) devaluing the US dollar, but how do you devalue something that doesn't have a fixed measurement? Specifically, what would the Fed/Treasury devalue the dollar against and how would they go about it?

As the old expression has it, there are:

More than 95 respected economists, academics, analysts and market commentators are of the firm opinion that gold will go to $2,500 and beyond before the parabolic peak is reached.

It was a major week in the precious metals market as the ones I cover in this free letter broke out to either new all-time highs, or new highs of recent times.

GLD - on buy signal.

Forget what you hear and read in the press about a gold bubble. I can virtually guarantee that there will never be a bubble in gold for seven simple reasons:

After weathering a lackluster grinding summer, commodities stocks are poised for a big rally. Thanks to an anomalous divergence between commodities prices and the general stock markets, commodities stocks are relatively cheap today.

Alan Greenspan had full knowledge of his betrayal to the principles of sound money. He wrote early in his career about the only legitimate basis for a monetary system, namely Gold.

Gold broke out today.

Some years ago I remember watching a retrospective documentary about life in Florida in the heady days of the Apollo moon program.