Gold Editorials & Commentary

It is an endless debate for investors interested in gold. Should they buy a direct play on the gold price, either gold bullion itself or even so-called paper gold with an ETF such as the SPDR Gold Shares (NYSEArca: GLD)?

GLD - on buy signal.

Prices testing 200ema again.

When does a precious metal known for feeding off investors' fears need the opposite of fear to move higher? Answer: Right now!

With the US stock markets challenging a major multi-year high, investors are feeling pretty complacent these days. But unseen below the placid surface, a serious risk is arising from the depths.

Below is the balance sheet for the Federal Reserve. Here we see the vast increase in the supply of US dollars flowing through the world's economy since 1953.

In this weekend report I would like to show you some charts that can tells us if we are in a risk off trade, DEFLATION, or risk on trade which would signal INFLATION.

I've taken the last few weekends mostly off and skipped out on the free weekend letter. I've got no particular reason for it, I just felt like I needed a little break to enjoy friends and family and the unbelievable weather we're having this summer.

Lately investors have been worried about liquidity, specifically the central bank's willingness (or unwillingness) to continue providing it, and with good reason.

Some extremely powerful differentials in power are setting themselves up, in a manner never seen before in modern history. Those who dismiss the uniqueness of the situation are those who continually are surprised by events as they unfold.

Ok just to get to the major issue, when 1 out of 4 people are unemployed for a long time, they have to rely on others to survive. Either housing with relatives (who often have limited patience or none) or from the government assistance.

Last week we examined the bullish symmetrical triangle pattern in gold and identified the potential breakout points in this time-tested technical indicator.

There are no certainties in the investment universe. Investors are forced to weigh up the various risks and assess the probabilities involved before committing themselves to a course of action.

"We have, in this country, one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board. This evil institution has impoverished the people of the United States and has practically bankrupted our government.

"The things that will destroy us: Politics without principle, pleasure without conscience, wealth without work, knowledge without work, knowledge without character, business without morality, science without humanity, and worship without sacrif

GLD - on buy signal.

Prices testing 200ema again.

For what seems like a few months, I've been saying that there is no chance for the Dow Jones would ever close above 13000; okay I was wrong! But I wasn't wrong about what drives the stock market up and down; the "policy makers."

Gold has been deeply out of favor lately, languishing in its usual summer doldrums. This sentiment wasteland is driving traders to flee wholesale, including the futures players. Their mass exodus from the gold market is readily apparent in futures data.

Gold's historic run-up from $250 to nearly $2,000 an ounce in the last 10 years has underlined the long-term value and intrinsic worth of a key asset.

As preface, consider that the USTreasury 10-year yield went below 1.4% this week. Some unenlightened celebrate the asset appreciation and point to a successful asset in performance in an otherwise dismal financial market.

Since the start of the global economic recovery in 2009, the status of the U.S. economy has been a perplexing one.

GLD - on buy signal.

Buy/sell signals within a consolidation are potential whipsaws.

Most would be investors and speculators in the Precious Metals sector at this time look and behave like the raw recruits at the start of the film An Officer and a G

It can be seen from the first chart below that there is now no more room for indecision. Breakout (up or down) must happen this coming week. Note falling volume as price floated up over the past 7 weeks.

Well the dog and pony show Wall Street calls "the stock market" ended up for the week. However, once again, it developed a bout of acrophobia just as it was a few points shy of 13,000 (or a BEV -8.22% in the blue plot below).

It was just about a year ago today when the S&P500 was sitting at fresh highs and everyone was enjoying a rather upbeat summer. It was a nice summer, the markets were calm, and there was a surreal sense of optimism.

After being sucked into the general commodities correction, silver has been relentlessly drifting lower since late February. But this weakness has forced the white metal down to a very bullish place technically.

After being sucked into the general commodities correction, silver has been relentlessly drifting lower since late February. But this weakness has forced the white metal down to a very bullish place technically.

Although it probably won't happen within the next couple of months, it's a good bet that the ECB will eventually be prodded into monetising a large amount of European government and commercial bank debt.

It's not easy to make a buck in this type of market so we're sitting and waiting for the right setups to form mainly with the odd little trade here or there.