Gold Editorials & Commentary

Symmetry is beautiful and best shows up on a chart. Naturally, situations can change in markets and technical analysis is a bit of mathematics, art and luck all wound up in a knot together.

We are looking for the PM sector to make a big run starting right about now- a run that will likely take $Gold up to new highs over the next couple of weeks. Let's take a look at a couple of charts.

This article concludes that the probability of another stock market crash within the foreseeable future is very high. The word "crash" is used advisedly. Since early March 2009, the industrial equity markets have been rising on misplaced hope.

Last week was interesting with precious metals stocks finding support and moving higher to close above resistance on Friday.

Our title is borrowed from a caption of the Chicago economist and monetary scientist Melchior Palyi (1892-1970) writing on the fiscal and monetary legerdemain of the U.S. government in his Bulletin #401, dated February 27, 1960, as follows.

Men Of Honor

Last week gold rallied away from the danger zone, leaving behind a fine small Double bottom on its chart, and it is now shaping up to begin a strong run.

GLD - buy signal this week.

The markets in general just couldn't eek out a seventh week of gains. However they didn't lose much and are holding up surprisingly well in the face of worse and worse news, for now.

Over the past two weeks the broad market has been inching its way higher. The recent intraday volatility indicates bull and bears are both trying to take control. Money flows in one hour and out the next.

In a series of maneuvers, Chinese officials have revealed their strategy implementation in a very broad set of steps.

It has recently been stated by various writers in the press as well as politicians and thinkers such as De Bono, that the recession is up to 50% psychological.

Everyone is a player when it comes to gold. Investors, speculators, doomsday merchants, scholars, traders, governments, central banks, coin collectors and scrap metal dealers.

"The problem with Socialism is that you eventually run out of other people's money." Margaret Thatcher.

In this morning's media, (April 19th 2009) a Reuters article appeared, entitled U.S.

So many people want to know how to trade gold and to be honest, if your patient enough to wait for a buy signal and low risk setup then trading gold can really pay off with only a few trades.

GLD - on sell signal.

Following my decision last November to quit writing these reports, I was inundated with a flood of emails requesting me to continue writing. The emails are still arriving some six months later.

So far this week has been very tame as traders are sit on the side lines, waiting to see which way everything will go.

One must give a tip of the hat to the Wall Street conmen for engineering a reasonably robust stock rally. The Dow and S&P were led by financials. The Financial Times out of London claims 'no real money' was behind the stock rally of over 20%.

For years we have all watched Zimbabwe in dismay as it printed trillions of dollars thinking it could out run the inflation rate.

A LEADING EXPLORATION COMPANY IN THE PROLIFIC RED LAKE GOLD CAMP IN ONTARIO

Business Summary

Mention the word GOLD to any group of friend's colleagues or clients and watch their reaction. People either love gold or hate it; but there aren't many who feel ambivalent toward it.

At this special Easter Time I would like to dedicate my market work in general to a fallen friend from long, ago. I doubt that anybody would appreciate my work with the markets as much as he would.

In my previous paper The Revisionist Theory and History of Depressions I argued that persistently falling interest rates cause an erosion of capital, unseen but nonetheless lethal. Producers are squeezed and try to survive by cutting prices.

At this special Easter Time I would like to dedicate my market work in general to a fallen friend from long, ago. I doubt that anybody would appreciate my work with the markets as much as he would. I know you are smiling down upon us, Big Lou… "Free Bird."

Hypothesis:

Increasing the money supply fosters currency devaluation; AND currency devaluation is a discreet, subtle method for WEALTH DISTRIBUTION.

Gold and oil traders have been on edge for the past few weeks wondering if prices will drop or rally from this correction/pause in prices. You will see in the charts below that gold and oil are at points where they could go either way very quickly.

Another week full of "good" economic news has passed. Preliminary bank earnings floated the stock markets late in the week. Although the specific banks earnings won't come out for another two weeks the talk is that they will be great.