Gold Editorials & Commentary

The following Point and Figure charts tell an interesting story.

The US Dollar has broken down

Y'see, when you get to be as old as I am, you can remember a lot. I grew up in a drug store, because my Dad owned one for 36 years.

Early in the year 2001 twenty-two "expert" Wall Street analysts from Louis Ruykeyser's "Wall Street Week" gave their estimates as to where the Dow would be at the close the year. The estimates ranged from 11,400 to 12,300. But the actual Dow close was 10,021.

Despite mounting opposition to war with Iraq, the Bush Administration is intent upon bringing Saddam "to justice." The resulting rhetoric has dimmed the global community's view of the United States as reflected by the dollar's recent performance.

This one will be controversial, and I am sorry, but this is MY OPINION ONLY, and I won't change it. If you disagree, that's your prerogative. My opinions on anything, are formed by experience, knowledge, and hunches. Also a bit of prejudice, if you please.

A little over two months ago, we expressed some doubt about the immediacy of a push to new recovery highs. We reasoned that the resumption of the up-trend necessitated a weaker dollar and/or a complication in the imminent U.S.

We don't actually hope to go back to the old ways of using gold coinage; it's just that the Federal Reserve's monetary policies keep driving us there.

Introduction: Frank Giustra is not your typical investment banker.

The dollar price of gold broke out on the upside last week from the consolidation since May of its move from $278.70 an ounce at the end of 2001 to $ 330 an ounce in May. It closed at $ 333.20 an ounce last Friday.

What if I said the words "file cabinet," and you thought I was talking about a 1983 Buick Skylark? That would be a bit of an interesting conversation, wouldn't it?

Check out the papers. California is $21 billion in the red. All states are in the red. Counties, cities, towns, and even villages are broke. Ford stock hovers around $7, and United Airlines stocks which got almost to $100, now are worth pennies.

The supposed non-value of paper currency is a common theme in conservative financial circles today. It seems that the "demonization" of the dollar has come into vogue among a host of financial writers, who term it a "worthless fiat currency."

The bear market of 2000 and 2001 has produced the largest declines in the stock market since the 1970s. The Nasdaq declined over 70% from its highs in March 2000 until the lows of September 2001, and the Internet Bubble has clearly popped.

A little-known mining concern is rapidly making progress in exploring and developing gold-rich properties in Alaska and Canada.

THE 50% PRINCIPLE - Let's take a look at the very big picture as seen via the 50% Principle. For the benefit of new subscribers, I want to review the 50% Principle.

The words "not a casus belli" caught my eye yesterday. They appeared in a White House press release.

Mutual Fund rating service Morningstar.com recently ranked the top-performing mutual funds for the year-to-date 2002. Out of the top 50 funds ranked, gold mutual funds overwhelmingly dominated the list, along with a few bear market equity funds (e.g.

"Economists say America is unlikely to follow into Japanese-style deflation," said a recent Wall Street Journal article, "because U.S. leaders reacted to their slowing economy much more quickly than Japanese leaders did..."

I am certain that 98% of Gold Eagle readers are parents. Perhaps your kids are grown, or still young, but the principle remains: Keep the kids calm and secure, no matter what is going on outside, or even in the family.

This week marks an important anniversary.

After decades of "miracle" economic growth since World War II, Japan's economy abruptly faltered in 1990 and has stagnated since. Why? Neither the Keynesian nor Monetarist explanations can provide an account.

Truth is a delicate lining, not easily seen except in certain light - Ed Bugos

We in the gold community have a sticky decision to make.

It has been some time since we last discussed the bond market in some detail. But bonds are an integral part of the market. World wide it is estimated that there are $33 trillion of bonds outstanding.

W.D. Gann was one of the brightest, most innovative and most successful trader on Wall Street in the first half of the 20th century. Even today his name and status among the great traders and market technicians of the past is legendary.

A couple of people have taken me to task for my most recent article which drew attention to some technical non-confirmations and, therefore, to the possibility that Gold might not yet break up - as the charts have been apparently pointing to.