Gold Editorials & Commentary

"We learn from history that we do not learn from history."

Dr. Milton Friedman, Nobel laureate in Economics

Sector shifting from the NYSE to the NASDAQ market . .

The 4th quarter market action was simply amazing. Despite some of the most aggressive valuations in financial history the popular high-tech stocks and indices rose in breathtaking fashion. It's hard to know what to make of something like this.

The absence of an international monetary order rooted in gold makes the century now ending unique. Professor Robert H. Mundell emphasized this point in accepting the 1999 Nobel Prize in Economics a couple of weeks ago. See R. L.

Murphy's Law will be at full strength when the clock strikes midnight on Friday. For the guidance of investors and market-watchers, here are my predictions of the top U.S. news stories in 2000 as Millennial insanity threatens to lurch into high gear:

Holiday focuses . .

I would like to dedicate my end of the millennium crystal gazing to the Gold-Eagle Forum, its managers and faithful contributors, to Harry Schultz, Frank Veneroso, Bill Murphy, Ted Butler and the many others, who are doing so much to bring present on-goings in

Introduction

The manipulation continues unabated. The Dutch central bank has announced it intends to sell 300 tons of its gold reserves over the next five years. Nederlandsche Bank will sell 100 tons initially and then 200 tons over five years.

In the 1970's a very courageous gentleman named Edward Durrell claimed that substantially all of the US Gold Reserve being stored at Ft. Knox was gone. Only 1,000 tonnes or so of the 8,500 tonnes supposedly being stored there remained.

Huge, almost neurotic, volume and swings . . . are in harmony with our call for Wednesday's action, but belie the underlying nervousness that increasingly is prevailing in the stock markets.

Dear Chairman Greenspan and Secretary Summers:

We assume all you readers are well aware of the September actions of the European Central bankers in regard to future gold sales, leasing, futures or options.

By definition, a market bubble is not a very obvious affair. If the man on the street begins to see what by all accounts is a bubbly market, he will act rationally, or so the academics believe, and find a safer haven for his savings.

In my last article, I publicly accused at least six financial firms of fraud and manipulation, for their dealings in the precious metals derivatives arena. I'm still here.

Overweight "discipline" and recognizing building risk . .

Western central banks are in panic mode. No other interpretation can be put on the announcement yesterday of further Dutch gold sales of 300 metric tons.

Come January the biggest post-holiday markdowns in the retail sector may be on Wall Street, not Main Street.

Studies addressing the occurrence and causes of cycles in the financial markets in recent years have tended to place a strong emphasis on the supposed causative effect of mass psychology.

Just when gold stock investors thought they were dealt a winning hand, we get blood in the streets instead. As of this December 3rd writing we find POG at around $282, still up from the $255 area of last summer.

The traditional method of conquering another nation has been via warfare. It's a dangerous method, and leaves the victor with a seriously impaired property to manage after the war is over.

If I recall history correctly, it was a Venezuelan who fathered the concept of OPEC (Organization of the Petroleum Exporting Countries) about 25 or so years ago. And we all well know the monumental impact OPEC has had on world economics since.

Beginning of month buying . .

The bull market continues to rage ahead in the OTC market, but is by no means broad-based. This market has become extremely narrow and the leaders are few.

A SECOND STARTING POINT

Appendix A: Introduction to Elliott Wave Theory.

Recent history and the current market bubble.

SETTING THE STAGE

Why should we care about the long-term outlook for the stock market?

INTRODUCTION

Despite what have appeared to be indications of an imminent change to this most difficult environment, the historic stock market dislocation continues. Again this week, the market is dominated by wild moves in stocks and sectors with large short positions.