Gold Editorials & Commentary

It has been a painful few days for those who believe that gold (and silver) are a safe haven from government money-printing machines and the mountain of debt of the Western economies.

When volatility prevails in the gold market, I love seeing so many different opinions because it promotes critical thinking and healthy markets.

To me, at least, times are fascinating as much as they are disturbing. The take down we have seen in gold and silver beginning on Friday and still continuing on Monday is breathtaking.

I have come across the above item on eBay. It is selling at $60 for a 2 pound bag. It is not an illegal drug and it would not be much good for smoking either.

It has been an increasingly brutal ride for gold and silver, beginning around late March and accelerating through April. The gold price was over $1600 and on Monday April 15, it fell below $1350, a loss of $250. Silver did even worse, falling from $29 to $22.

Until recently I was expecting the bubble phase for gold to occur as we came out of the next 8 year cycle low in 2016.

Three weeks ago, the investing public was awarded a brief glimpse into the mysterious world of central banking through events in Cyprus.

The last week has been a fright fest for the gold “community”. But these are the financial markets, not a community. There is a world outside of whatever is going on in gold and silver.

In the opening years of the last decade, most mainstream investors sat on the sidelines while "tin hat" goldbugs rode the bull market from below $300 to just over $1,000 per ounce.

October highs of last year. I'm going to show you some charts, further along in this article, that will shed some light on what is really taking place right now. Keeping an open mind is key to being successful in the markets.

Late Friday afternoon in New York (April 12, 2013) gold plunged through the critical support level around $1525 level that has held resolutely since the start of this 19 month correction from $1900 in September 2011.

"The main purpose of the stock market is to make fools of as many men as possible."

Bernard Baruch

Gold bullion prices have been subjected to a cleverly orchestrated bear raid in our opinion. Selling of paper Comex contracts on Friday, April 12th, and Monday, April 15th, totaled 1 million contracts, exceeding global annual gold production by 12%.

When I was a boy I was told that anybody could become President. Now I’m beginning to believe it.



— Clarence Darrow

For gold to rise to levels significantly higher than the recent high of $1920, a new impetus is needed. Without additional energy from such an impetus, gold could just trade sideways for a very long time, or even fall further.

Precious metals investors can’t look back at this week’s declines in gold and silver and not be a little upset.  But it’s important to keep in mind that nothing happened this week that reversed the decade long bullish trends for gold and silver.  So, keep in mi

Gold’s Bull market from 1999 is not over, and a huge rally leg remains in its future. That future is not far off. This article presents why the market is telling us Gold could reach 3,000 before the Bull Market ends.

There’s been a recent huge draw down of physical gold at the New York COMEX and at the JP Morgan Chase depository. Look at the physical market draw down on the charts below. It has taken a drastic plunge.

Yes, I really do hate to say it but I did tell you so!

I’ve been sceptical and bearish on gold and silver in 2013 as soon as the initial low of $1,625 was broken.  We’re now some $150 lower.

What happened?! is the question so many are asking about Friday’s waterfall in prices.

Back in 2008, silver fell from over $20 per ounce down to below $10. This was a stomach-turning experience for those who had begun investing heavily in the metal.

While there are many risks to the current ultra-loose money policy, consumer price inflation isn’t one of them.  Inflation remains persistently low despite the best efforts of central banks to increase it.

We are now at the point in the bull market where traders think that stocks are bullet proof.  Back in December  I warned this was coming. I said at the time that this round of QE was going to be different.

Anyone who wants to get to the truth behind the inflationary threats to their wealth should ignore everything the Central Banks say about inflation and look instead at their actions.

A quick look at the weekly gold chart shows that the metal is holding above a line of support that goes back over a year.