Gold Editorials & Commentary

"We bought gold at 640 today."

In today's style over substance economy, the job of Treasury Secretary has devolved into a pitch man for the government's economic disinformation campaign.

This is one of those times when the Elliott Wave labeling suggests we are approaching a top for a correction in a new down-trend, however there was so much buying power generated in Thursday's rally in major equity markets that reliable "buy" signa

It's really difficult to be objective about something one despises so much, but here goes. Why hate a bureaucrat or bureaucracy? Simply because they are so inefficient, self serving, wasteful, costly, and pervasive, if that's reason enough..

Greenspan's long-ago warning of 'irrational exuberance' still rings true. No one listened then, and No one is listening now?

Technical chart analysis is called an art form, highly subjective, given to experienced interpretation, and not the least a hard science.

As U.S. inflation is beginning to be taken a bit more seriously, the dollar has found some temporary support as traders anticipate higher interest rates from a more aggressive Fed.

Lease rates are spiking up again.

My view here is that the shorts are leasing silver and are "dumping" what they have leased into the market in an attempt to get the price down as much as possible.

We are fast entering the other side to statistical distortion, as an unusual combination has revealed itself. If it were not so destructive, it would be hilarious.

The much anticipated and much needed new ETF for precious metals stocks has finally debuted on 5/22, without much fanfare. In fact, there is very little info on the web. Reason is obvious, gold bulls are not in a celebratory mood these past few days.

The action on Friday was characteristic of a reversal and it was sector wide with Reversal Days showing up in the charts of the gold stock indices and many gold and silver stocks.

This week Wall Street finally began to acknowledge the possibility that all is not necessarily sanguine on the inflation front after all.

 “Silver is rarer than gold. Period. There is less silver in the world, above ground than there is gold. That is easy to document.

BUSINESS SUMMARY

In my work, I have focused 100% of my gold study on macroeconomic trends and world political developments. I have found this method very fruitful in understanding precious metals. I have not used charting, mathematical modeling of price activity, Fibonacci ratios,...

Anyone who cannot detect rumblings with more magnitude than early volcanic tremors is brain dead, plain and simple. For a full year, the USDollar enjoyed a sizeable counter-trend bounce. It relieved the long-term oversold condition.

It's my gut feeling the price of Gold did not break freely above the $550 level till the end of March. Because of that, the higher average price of Gold is simply not reflected in the earnings of the Gold stocks for this quarter.

The mainstream of economic thinking holds that China will continue to finance America's current account deficit indefinitely because American consumption is vital, if not critical, to the survival of China's export driven economy.

Much new money has been attracted to the resource sectors of metals and energy lately, therefore, it is only appropriate that a substantial correction has now begun.

The growing risk of a snapback rally by the dollar, highlighted as a danger in the big article on the site at the weekend and in the last Gold Market update, became reality today, precipitating a bloodbath in gold and silver and Precious Metals stocks.

A letter from a reader takes me to task for my missive "Bull in Bear's Skin?" saying that I am an "ultracrepidarian" out of my depth.

Summary & Conclusion

By now, almost everyone who has any interests in the financial markets are aware that gold is at levels we have not seen for twenty five years. The question I often get asked by public readers is, is it too late to buy?

Since silver has recently risen so much in the past six months, from about $8 to as high as nearly $15/oz., it's time to review the fundamentals.  I will back up each point with a link, so that you don't have to trust me, but so you can confirm the facts, and

What a week. Gold prices soared to their highest levels in 26 years, and the dollar collapse verses just about every other currency on the planet. Despite the fanfare, the Dow Jones dropped below 17 ounces of gold, off 15% thus far this year.