Gold Editorials & Commentary

The US financial system is experiencing a combination of a heart attack (fibrillation from absent trade recycled surpluses), a massive hairball (subprime debt securities) working through the bank arteries, and a realization (like Wiley Coyote in cartoons) that

As everyone knew gold (spot) was going nowhere in the past week. During those days, the market has been developing a flag pattern in 4-hour charts. Technically, a flag is a consolidation pattern. What would happen at the end of a flag?

Gold held up remarkably well last week given the carnage all around, with silver and Precious Metals stocks cratering, and despite the sharp drop on Thursday it did not break below critical support, unlike silver.

The Gold Price is telling an important story at present. It's telling us that the days of Financial Engineering are over.

GLD - on sell signal.

The current weakness in domestic markets has recently been magnified overseas as panic spread to foreign investors with exposure to U.S. asset backed debt.

Precious metals have been one of the top performing asset classes over the past six years, and investors wanting to add a precious metals component to their portfolios are often overwhelmed by the number of investment vehicles available to them today.

This Market, including stocks, bonds, real estate and commodities have all been built on a massive amount of credit and "out of thin air" monetary creation.

Maximize life, not profits!

Summary

As the man said: "Rumours of my death are premature". Huckleberry Fed (huckster that he is) seems to have done it again.

For years, Americans have been able to pay for enormous trade deficits by exchanging IOU's for imported consumer goods.

Fannie Mae is being groomed to be the central clearing house for mortgages and their bonds, sponsored by the USGovt and the US Federal Reserve.

The outlook for gold turned decidedly more bullish last week when it broke above the confines of its “Distribution Dome” for the second time in the space of as many weeks.

Preface

Berenanke's hands are tied, he cannot lower rates for fear of a US $ collapse. On the other hand, the money out of thin air creation machine cannot work while lending standards are being tightened.

There is an old market adage which says every Bull market contains the seeds of the next Bear market.

GLD - remains on a buy signal.

Amid the recent stock market weakness, the pundits are virtually unanimous in their claims that good underlying economic fundamentals are being trumped by irrational fear. However, if investors understood just how bad the fundamentals for the U.S.

Editor's Note: The following is in answer to a reader's question "What do they mean when they talk about global liquidity drying up?"

A quick review of signals surely can be both encouraging and confusing. They point to higher physical prices, calmer stock prices, and a continued housing crisis & mortgage debacle. The big banks and Wall Street broker dealers are breaking down very badly.

This month, I was honored to be interviewed by Maurice Rosen who publishes the Rosen Numismatic Advisory. It was a very good and comprehensive interview, with hard questions, and provides me a good occasion to send out an email, my first in over a month.

This month, I was honored to be interviewed by Maurice Rosen who publishes the Rosen Numismatic Advisory. It was a very good and comprehensive interview, with hard questions, and provides me a good occasion to send out an email, my first in over a month.

GLD - remains on a buy signal.

Last week, as the Dow breached the 14,000 mark for the first time, bullish swagger on Wall Street went into overdrive. Some of the bulls that I'm often pitted against on television used the occasion to specifically heap scorn on my assessment of the U.S.

"History does not always repeat, but sometimes it rhymes." Mark Twain.

Many years ago I was blessed to make the acquaintance of one Samuel J. "Bud" Kress, a stock market cycle expert. Mr. Kress is noted for discovering a set of interrelated daily, weekly and yearly cycles all using the same numerical series.

An unusual chart is presented, since the Broker Dealers sit at the nexus of the massive asset-backed bond 'con game' perpetrated upon the nation and the world. The extent of possible fraud will be sure to be unraveled.

The powerful rally by large Precious Metals (PM) stocks over the past couple of weeks is believed to be the start of a ‘breakout drive” that will vault the sector indices out of the large holding patterns that they have been stuck in for past 18 months, for the