Gold Editorials & Commentary

The past few weeks traders and investors have been completely spooked from the surge of negative news and collapsing stock prices. This fear can be seen by looking at the volume on the GLD gold ETF fund.

Gold and Silver have emerged in the last 12 months as the dominant asset group. They led the entire 2000 decade, still gathering disrespect. They do not require respect from the Wall Street and London crowd.

Gold has shown impressive strength over the past couple of weeks having risen as high as the $1800 area.

To say it was a volatile week would be an understatement. Wild, fast swings of 400 points or more in the Dow is something we rarely see. In this type of market avoidance is the goal for most including us.

GLD - on buy signal.

With the plunging stock markets terrifying traders, many are running for the hills. Steep selloffs always generate intense fear, a scary emotion from which we humans are naturally hardwired to flee.

The events of the last ten days are surely for the history books. The story must be told through a prism of the epic battle between inflation and deflation. The Jackass hates the parlance, since each term is abused.

I did a weekly article on the Dow Jones bear market starting in October 2008, after it declined 40% below its highs. I developed several indicators not seen anywhere else.

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I didn't get the chance to get to the free weekend letter this weekend and I apologize, but in my defence it is summer and the sunny days have been few and far between this year so with family and friends home I couldn't resist taking some rest.

GLD - on buy signal.

Bear Markets serve a necessary purpose in the financial markets: to clean up the mess left by the bulls. What kind of mess is that? When the party is financed with other people's money, Mr Bear's clean-up crew has quite a task before them.

It's sure been an exceptionally-ugly week in the US stock markets! The threat of Washington defaulting on its debt, worse-than-expected economic data, and the waning of Q2 earnings season conspired to wallop equity prices.

All numbers and calculations are destined to turn to zero unless they are underwritten by philosophical underpinnings which themselves have values as well as clear cut, realistic and sustainable strategies.

I had two purposes in writing today's commentary. The most obvious intent is to help people avoid committing financial suicide in our real estate markets.

The US Federal Reserve has no monetary options whatsoever. They have been backed into the corner since 2007.

Bill Murphy and Chris Powell are busy with GATA's much anticipated London Conference this week. I hope both have a good time promoting "Planet GATA" in the belly-of-the-beast.

Back in Mid-May of this year we had a big rally in the Dollar and Gold was correcting hard. There was a bit of Dollar Bull hysteria at the time which I felt was quite unfounded.

Over the past seven trading sessions we have seen stocks plummet in price because of the debt issues in the United States.

"A fondness for power is implanted in most men, and it is natural to abuse it, when acquired." -- Alexander Hamilton

The week was owned once again by talk of a debt ceiling. The markets didn't like it and had a pretty hefty fall and annulled any bullish pattern they had. Now we're seeing 200 day averages being tested or close to it for most major US indices.

GLD - on buy signal.

I remember my first sin. I committed it when I was six years of age and in first class. I was a shy and skinny kid. Traits I would eventually lose. My big passion, which continued till age 11, was playing and collecting marbles.

It was an exciting trading session Wednesday to say the least… With all the uncertainty floating around it is causing the stock market to be more volatile than normal.

It's the thick of summer now and I'm trying to take it pretty easy this weekend and perhaps another weekend or two while the warm weather is here.

GLD - on buy signal.

Averaging $96 so far this summer, crude oil certainly doesn't feel cheap. Nevertheless, its technicals are looking increasingly bullish. After recently bouncing out of a major correction, oil appears to be embarking on a new bull-market upleg.

The economic theory in textbooks must be updated to account for Fiat Soft Science. An important third factor determines price. It is not demand, as most Deflationist Knuckleheads claim.

The dollar is and has been in a strong down trend for many years and I feel as though it's getting close to another major land slide. It could take place any time in the next month or so according to my weekly chart analysis.

The big talk these days is of the debt ceiling in the US having to be raised. The US is lucky they can do this unlike other countries such as Spain, Portugal, Greece, Ireland and others who need to be bailed out or pass huge austerity measures.