Gold Editorials & Commentary

For Tocqueville Gold Fund's John Hathaway, gold shares "give you more octane than the metal itself."

November 10, 2005

Discontinuance of M3

Gold in US$ terms has surpassed $490 per ounce, with the "magical" $500 level within spitting distance. The financial markets and their shallow mavens have grasped the price inflation issue as a relevant factor, and little else.

There's the housing bubble and the commercial office space bubble. There's the Bond-market bubble and its two progenies, the junk-bond market bubble and the emerging-market-debt bubble.

As little as one hundred years ago, a silver dime paid a worker for a full days worth of work. At today's fire-sale prices, you can buy those same 90% silver dimes for about 60 cents each.

Historically, national housing prices have increased no faster than the annual rate of inflation, as measured by the CPI.

We have always known about Greenspan's Interest rate conundrum but now we are becoming aware that he has a few more conundrums. In his latest speech he mentioned the "Currency Trade deficit" conundrum.

This is a follow up to my last week's buy signal on the gold sector. If that buy signal succeeds, we are at the beginning of phase two of this generational bull market in gold and gold stocks.

Has silver mine production in the United States of America finally peaked never to recover? Never mind the ongoing debate about Peak Oil, what about the case for Peak Silver in America?

Monetary expansion

Last week we showed the fractal similarities of the daily HUI Index in late 2001/ early 2002 versus the weekly chart of the HUI from late 2003 to today.

The following chart shows a clear reverse Head and Shoulders formation with a target of 100 with the clear neckline at 90 having been broken to the upside (Source:htt

It's been more than twenty-five years, since former US central bank chairman Arthur Burns was at the meeting of the International Monetary Fund in Belgrade (September 30, 1979) where he made his famous speech entitled "The Anguish of Central Banking".

The two year correction in gold stocks appears to be over !

The named appointment of Ben Bernanke (green from inexperience) represents a promise for continued dependence upon inflation for economic growth.

An old trading adage states the following: markets can remain irrational longer than investors can remain solvent. As our recent experience with the dot com bubble proved, in financial markets anything is possible in the short-run.

IS their a problem with the dollar ? After falling to $1.30 against the euro representing a decline of 20% since the beginning of 2003.

The twenty-year picture

I have spent many hours over the last few years reading posts on the Gold-Eagle Forum. It is a wonderful place where many talented and intelligent individuals post their thoughts about the Precious Metals and Precious Metal stocks.

Bimetallism theory and practise requires that gold must be defined in terms of another precious metal also having the reputation of being 'honest money.' The general public will understand this, because people can understand that one cannot define a word using

Last week, following my appearance on CNBC's "Squawk Box" Steve Liesman dismissed my warnings of dire consequences resulting from America's growing current account deficit, by arguing that 20 years of consistent deficits have failed to slow the US economy.

In one of my previous articles written a few months back, I suggested that we are in a broad base bull market, and one of the charts I used for this purpose has just given us another major buy signal.

In the wake of the US Federal Reserve interest rate hike on Tuesday, with no signals of an end to measured mindless moronic future hikes, the USDollar has failed to clear 90 on its index. In fact, 90 has become the "scrimmage line" of battle.

"We inflate our paper currency, we repair commerce with unlimited credit, and are presently visited with unlimited bankruptcy."

- R.W. Emerson, The Young American, 1844

The New Deal Debunked

Last time I was excited about politics, I was a fool. I voted for Ross Perot, twice! And we idiots were in favor of protectionism. Today, I'm a firm believer in the benefits of free trade. After all, I'm now an investor and trader!

I just think with gold and silver that are both political metals, they are manipulated, so Elliott Wave analysis is null and void for these metals (manipulation does not make for a good count anywhere). - David Petch, April 1, 2005

The weekly chart below (courtesy stockcharts.com) shows a market that has been indecisive of the relative merits of silver vs gold as an investment target.

Never has a changing of the monetary guard taken place with the U.S. economy in so precarious a position. When Paul Volcker arrived, everyone knew the economy was a mess. Volcker's obvious job was to clean it up.