Gold Editorials & Commentary

Bear Markets serve a necessary purpose in the financial markets: to clean up the mess left by the bulls. What kind of mess is that? When the party is financed with other people's money, Mr Bear's clean-up crew has quite a task before them.

It's sure been an exceptionally-ugly week in the US stock markets! The threat of Washington defaulting on its debt, worse-than-expected economic data, and the waning of Q2 earnings season conspired to wallop equity prices.

All numbers and calculations are destined to turn to zero unless they are underwritten by philosophical underpinnings which themselves have values as well as clear cut, realistic and sustainable strategies.

I had two purposes in writing today's commentary. The most obvious intent is to help people avoid committing financial suicide in our real estate markets.

The US Federal Reserve has no monetary options whatsoever. They have been backed into the corner since 2007.

Bill Murphy and Chris Powell are busy with GATA's much anticipated London Conference this week. I hope both have a good time promoting "Planet GATA" in the belly-of-the-beast.

Back in Mid-May of this year we had a big rally in the Dollar and Gold was correcting hard. There was a bit of Dollar Bull hysteria at the time which I felt was quite unfounded.

Over the past seven trading sessions we have seen stocks plummet in price because of the debt issues in the United States.

"A fondness for power is implanted in most men, and it is natural to abuse it, when acquired." -- Alexander Hamilton

The week was owned once again by talk of a debt ceiling. The markets didn't like it and had a pretty hefty fall and annulled any bullish pattern they had. Now we're seeing 200 day averages being tested or close to it for most major US indices.

GLD - on buy signal.

I remember my first sin. I committed it when I was six years of age and in first class. I was a shy and skinny kid. Traits I would eventually lose. My big passion, which continued till age 11, was playing and collecting marbles.

It was an exciting trading session Wednesday to say the least… With all the uncertainty floating around it is causing the stock market to be more volatile than normal.

It's the thick of summer now and I'm trying to take it pretty easy this weekend and perhaps another weekend or two while the warm weather is here.

GLD - on buy signal.

Averaging $96 so far this summer, crude oil certainly doesn't feel cheap. Nevertheless, its technicals are looking increasingly bullish. After recently bouncing out of a major correction, oil appears to be embarking on a new bull-market upleg.

The economic theory in textbooks must be updated to account for Fiat Soft Science. An important third factor determines price. It is not demand, as most Deflationist Knuckleheads claim.

The dollar is and has been in a strong down trend for many years and I feel as though it's getting close to another major land slide. It could take place any time in the next month or so according to my weekly chart analysis.

The big talk these days is of the debt ceiling in the US having to be raised. The US is lucky they can do this unlike other countries such as Spain, Portugal, Greece, Ireland and others who need to be bailed out or pass huge austerity measures.

GLD - on buy signal.

Copper is growing increasingly popular among speculators, who are catapulting this unassuming base metal up into the rarified ranks of market-darling commodities.

"According to the Wall Street Journal, economic experts now fear there may be a second recession: A second recession? When did the first one end?" -- Jay Leno (he must have become a subscriber of mine?)

The past couple months (May and June) have been tough on precious metals and crude oil. But recent price action shows that buyers are stepping back into the market buying up these commodities once again.

On Wednesday gold broke out from a 10-week long box or rectangular consolidation pattern to commence its next major upleg.

Take a short break from all the hubbub in the United States over the faltering USEconomy, the reckless politicians pretending to come to a USGovt budget agreement (small or large), and the tacit admission by USFed Chairman Bernanke that indeed QE3 is very likel

Traditionally, the long-term trends in the stock market and gold are counter-cyclical to each other. But there are those periods of market history where the Dow Jones and gold rise and fall with each other.

(In 2001 palladium reached $1,080/oz when gold was only $300/oz and platinum $715)

It's been an exciting couple months as stocks and commodities have moved like they are a roller coaster at a theme park.

It was another absolutely fantastic week.

GLD - on sell signal.