Gold Editorials & Commentary

This morning's release of disappointing GDP figures for the third quarter capped a week of bad economic news. Nevertheless, Wall Street bulls continued to march to the pleasant beat of the "soft landing" scenario.

Last week we covered the GLD, and this week, we will cover the gold stocks ETFs.

First, a simple analysis

Since August 5, 1993, there has been a systematic attempt to administer downward impulse to the gold price through loans and sales of the metal.

Self proclaimed innocent Jeffrey Skilling has been sentenced to 24 years in the slammer, and fined $45 million for the loss of an estimated $65 BILLION with the collapse of Enron.

In the last few years, a dangerous trend has occurred, whereby hidden machinations, secret dealings, and devious activities have grown to become commonplace. What has become more alarming is that so few people seem bothered by the trend.

I thought we might spend a bit of time, today, looking at the formation of the current HUI fractal compared to the earlier one. To do so, we will use a bit of a different look, today, using "ribbon moving average charts".

Currently, traders are equally divided between the bull and bear camp, both with very convincing arguments why this and why that. Naturally, that is what makes a market.

This week it was announced that both producer and consumer prices dropped by 1.3% and .5% respectively, while housing starts unexpectedly increased by 5.9%.

It's close to Halloween, so why not one in basic economics? Here goes. Fact # 1: No currency in the entire world is backed by anything, be it precious metals, mulberry leaves, scrap metal, copper, acreage, or cotton thread.

Don't look now, but a puss-filled sore festers. It grows on the USEconomic foundation.

As mentioned recently, I have not been writing about gold personally and presenting articles about gold in the News & Analysis section of the website because I am a gold bug.

Before getting into the fundaments, let's briefly look at Metanor Resources from the perspective of a technician.

A reader recently sent me an interesting chart that compared the housing industry to the S&P 500 stock index.

I figure Friday the 13th is as good a day as any to take on everyone who insists on calling the price action in gold earlier this year a "bubble." Many commentators on gold believe that when gold hit $720 on May 11, 2006, gold was close to hitting its previous

The mega-storm develops slowly. Small regional home builder Kara Homes of New Jersey has filed for bankruptcy. Depositors have reason to worry. Other builders like Hovnanian, which serves the same northeastern area, has begun to ax executive and field jobs.

As America goes down the drain economically, and the buck loses ever more value and purchasing power, there are many reasons for it. We have discussed the huge problem of overseas jobs, and how some of it comes about by tinkering with tariffs.

My approach is different from that of other monetary scientists in that I take speculation into full account. The theory of speculation is conspicuous only by its absence from mainstream economics.

There is a high probability that the 5 month correction in the gold price has ended. Often there is a relationship between the lengths of the A and C waves of a correction, sometimes C equals A and at other times C is only 61.8% of A.

This week, the professional stock market boosters, who masquerade as wise market commentators, filled the airwaves with celebratory musings on the significance of a record high Dow.

This article is taken from a September Special Report for subscribers to the Hat Trick Letter, a piece of the same name. Several paragraphs are deleted which appear for paid subscribers, while others are shortened to manage the length.

The free traders can think of only one thing it seems, and that is cheap consumer prices. While I love cheap prices, I abhor "free Trade" as I wrote in my book, which is now five years old.

There's the housing bubble and the commercial office space bubble. There's the Bond-market bubble and its two progenies, the junk-bond market bubble and the emerging-market-debt bubble.

Below we show all the Fibonacci phi mate turn dates so far for 2005 and 2006. The yellow arrows show the trend reversal that occurred each time.

Inter-market relationship is very complex , and like price itself, is dynamic and subject to constant change. One of the most influential factors in the financial markets is interest rates.

The charts below (courtesy bigcharts.com) shows a comparison of the Dow Jones Industrials relative to the S&P 500 going back 30 years. (quarterly) and 3 years (daily)

Two interesting points which emerge are:

In the past two weeks I was treated to two particularly moronic public statements from market experts.

Once in a while, a worthwhile exercise challenge is to think "out of the box" on an important topic. This article focuses on housing, and in particular Fanny Mae, the weakest among the Govt Sponsored Enterprises (GSE).

Ever wonder how it came to be that everything we use and need, seems to be made in China? I often wondered, and now a fantastic piece by the Washington Post, explains it all.

With regard to silver coinage, Mexico has followed the model established by the Roman Empire 2,000 years ago.