Gold Editorials & Commentary

It has been an interesting market in the precious metals since 2006 began. We have witnessed gold outperform the large gold stocks, yet the large silver stocks have outperformed silver.

Whilst looking at the gold chart below, (source: http://quotes.ino.com/chart/?s=FOREX_XAUUSDO&v=d12) I was struck by the repetitive similarity of the angles

For more than the past four years, both gold and financial assets have performed well.  From October 18, 2002 through February 28, 2007 gold rose 112% and the S&P 500 Index rose 59%.

Denial is always the first stage that marks the beginning of a Bear Market: There is no better example than the one that can be seen when observing today's real estate market.

After a week of heavy selling, many public readers have asked if this is now a good buying opportunity. There will be opportunities this week for short term scalpers, as the metals are deeply oversold and should see a relief bounce.

On 21st February an article was posted titled COMMERCIALS ON THE ROPES. This article was based on the erroneous presumption that “this time round it will be different” - that the COT pattern would be broken by a surge in physical demand.

With the recent sharp decline in the stock market, the timing of the official release of my new book "Crash Proof" this Monday could not have been better.

The events of the past week have served to reinforce my view that what we are witnessing is a sea change in the markets.

It doesn't take a great treatise or any "rocket science" to expose the ugly and sordid reality of the true condition of the broad US stock market - all it takes is a few charts and a modest helping of common sense.

Events in the last week have certainly caused a stir. Just what precipitated the broad global selloff. Was it the unwind of the Yen Carry Trade, a week delayed?

I hear it all the time, and it's true. "The trouble with your gold and silver is that they pay no interest." (Of course silver went up 69% last year, and gold went up 28%, but admittedly it paid no interest.) No cash flow, in other words.

Since this gold bull market began six years ago, we have seen our shares of spectacular breakouts, and also a few breakdowns. Some of these breakdowns occur shortly after a breakout, which I label as "fakeouts".

This editorial "series" is intended to take a look at some of the fundamentals that might generate the price movements in this generational Precious Metals Bull Market, along with the charts and the technicals.

It has been a while since I have talked about ratio analysis and because of a few developments of late, I thought that this may be a good time to do so.

Gold has gone and done it - after first breaking out upside from its 3-arc Fan Correction in January, a major positive technical development celebrated in the article Gold powering up for major uptrend - SECTORWIDE BUY ALERT, last week it smashed through the ce

I have made a few assumptions to limit this article to a reasonable scope.

With Wednesday's data release that showed that the increase in "core" CPI in January was higher than expected, the price of gold soared by over $20 per ounce to just shy of $680 per ounce, a new nine-month high.

The behaviour of the gold price over the past 48 hours is reflected in the chart below - source http://quotes.ino.com/chart/?s=FOREX_XAUUSDO

Numerous international events took place within the last month. The Economic Summit was held in Davos Switzerland. It convened a large collection of world renown economists, corporate chieftains, and some financial market kingpins.

There must be something wrong with free trade, because it's all the rage around D.C. Bush and all the D.C. Gang love free trade. It's as if it is the milk of life and human kindness have all been placed in one wonderful jug for us all to imbibe.

Some people thought I was mad posting a GOLD and SILVER BREAKOUT ALERT, what with the Commercials being so heavily short gold, and with yesterday's action I began to wonder myself, which is why it d

Back in late 1979, the lineups to buy Gold looked more like lineups of people waiting to buy Stanley Cup Hockey tickets at the then Famous Montreal Forum.

Gold is quietly on the verge of breaking out in all major currencys, after the all-out assault on the oil price left gold unscathed. Gold is the strongest performing among all the commodity items. Critical factors for the rise in the gold price are:

Silver Stock Report



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We have seen the breakout predicted in the last Gold Market update, although so far subsequent gains have been modest as gold continues to be restrained by the strong resistance level shown on the 1-year chart in the $655 - $680 zone.

Safety Deposit Boxes and Depositories in the UK, EU and most importantly Switzerland

Introduction

Below is an extract from a commentary originally posted at www.speculative-investor.com on 8th February 2007.

It has been interesting to read all of the views of the Precious Metals that have been offered up over the last weeks and months. I have read just about everything imaginable about Gold and Silver.