Gold Editorials & Commentary

GLD – on sell signal.

Just a week ago gold and silver were well placed to begin a new uptrend and while they are still are, we have over the past week witnessed severe testing of - and erosion of - support at a critical level that is leading to rapidly increasing downside risk.

“I sincerely believe ... that banking establishments are more dangerous than standing armies, and that the principle of spending money to be paid by posterity under the name of funding

Some very confusing factors are at work relating to the USTreasury Bond market and the gold market.

I started writing this piece as the sub-prime crisis was unfolding.

As I have pointed out to you in the last few missives, BULLISHNESS dies hard and is typical when a market is in the process of forming a Major Top.

GLD – on sell signal.

Standard & Poor announced in late May it has cut or might cut debt ratings on $34 billion of securities tied to Alt-A mortgages, whose type issued in 2007 have a default rate to 6.64% for 90 days late as of end April.

I've been writing a lot of articles lately on the supply shortage of silver from various mints and coin dealers, but I wanted to take a step back from focusing on that specific issue, and present an overview of the major fundamentals again.

The title is a bow to Peter Schiff for his admirable article It’s Not an Oil Crisis: It’s a Dollar Crisis.

GLD – on buy signal.

A couple of years, ago, a poster started coming to the GE Forum late at night. His arrival was marked with upbeat posts that were usually posted in all “caps.” Shortly thereafter, this gentleman contacted me at my e-mail contact at the bottom of my editorial.

US Interest rates are on the rise, but there’s a bright light at the end of the tunnel – which is not emanating from an oncoming train.

An important swing in the pendulum is due to manifest itself in the near future. Leverage with gold mining stocks and silver mining stocks depends upon containment of costs.

It never ceases to amaze me how pervasive the level of economic ignorance is in this country and perhaps in the rest of the world as well.

GLD – on buy signal.

The gold and silver prices have broken out on the upside, not to register new highs but rather to emerge from a clear bullish wedge pattern in their daily charts. The stage is set for assaults on the 1000 gold high and the 21 silver high.

The technical condition of silver has continued to improve since the last bullish Silver Market update was posted a week ago.

GLD – buy signal this week.

The springtime corrections are really about done. They have gone on for a couple of months. The extent of the pullbacks have been tested and retested. The long-term trends are just about ready to asset themselves again.

For the last two days, I attended and participated in the Hard Assets Investment Conference in New York City which was well attended with many great speakers and companies.  I always encourage investors to attend these conferences to get a real ‘hands on feel’,

In my piece 'The Investment Case for Junior Mining Companies' I suggested a bottom for the juniors must be near based on the CDNX/GOLD ratio.

Gold Market Update

This afternoon toward the market close a poster on the Gold-Eagle Forum, Silverik, asked me when I expected Gold to get on its way, higher. I suggested that in my opinion, Gold would likely show it was ready to run by Thursday afternoon.

GLD – on sell signal.

Once every several months, an opportunity is presented on a silver platter to purchase a spectacular investment in a strong uptrend, with loud indications of continued upward trend in price.

Hyman Minsky, Ph.D. (1919 – 1996), was an economist and professor at Washington University in St. Louis, but stayed in New York during last 10 years of his life. A few years ago, almost no one heard of him, until the current credit crisis.

BEARISH ON GOLD?

It’s that time of year, and change is in the air.  The grass turns green and the trees start to bud.  Sometimes, Spring seems to suddenly “spring on you” after a nasty end to winter, and sometimes the markets act the same way.  In those times the change can be