Gold Editorials & Commentary

Last night I came across a site on the web named COSTOFWAR.COM which shows the accumulating costs of the wars in Iraq and Afghanistan.

Two thirds of all trading on the NYSE is algorithm trading by hedge funds - some, with advance information because of the location of their computers - effectively trading as quasi insiders. Timing is in seconds.

The Quantity Theory of Money

Historically, gold is rare because of the poverty of precious yellow metal in gold mines. Despite all the difficulties, the world gold production managed to grow for centuries; it is multiplied by 4 in 100 years.

The Hungarian Connection

As we all know, last weeks stock market blip/mini crash was very emotional for those of you watching or trading it live. A lot of money changed hands last week and you either lost a bundle or made a bundle…

Gold ended last week very close to new highs against the dollar, which was a remarkable achievement given that the dollar soared and that the stockmarket fell heavily.

GLD - on buy signal.

"You cannot multiply wealth by dividing it." - Adrian Rogers

WHAT HAPPENED AND WHAT DO I DO NOW?

As gold stocks continue to power higher in their usual spring rally, they are starting to attract investors' attention again. This includes some value investors, a group that is always concerned with valuations.

The first five charts below are courtesy of"br> http://au.finance.yahoo.com/intlindices?e=asia

WHY ARE THE GREEKS PROTESTING?

Markets in the US hit the last line of Fibonacci Retracement levels this past week, and gyrated like a bucking bronco. Where they'll go from here is debatable.

The past couple weeks we have seen sellers control the price of gold. This can be seen on the charts by the light volume drifts up then heavy volume sell selling sending this metal sharply lower.

"Common sense is not so common." - Voltaire

CAPITALISM THE UNKNOWN IDEAL

GLD - on buy signal.

Let us start off by saying that we do not see the Euro collapsing and being shelved, at least not yet, anyway. No exit process was written into their rules anyway. But it is technically possible, so better to be forewarned. What would prompt such a collapse?

It's been an interesting week with Spain being downgraded as Europe debt crisis widens. This has investors looking at the US dollar in a new light thinking that maybe it's not that bad of an investment after all.

It seems that gold and the Dow have an agreement regarding the number 10. This number has acted like a "golden ratio" in that things really start to happen before or after the Dow/gold ratio breaches 10, either way.

Last week the market slowly recovered from the recent sell off in stocks and commodities. So far the market is unfolding as we expected and with any luck there will be a surge of low risk setups across the market in the near future.

GLD - on buy signal.

Launched 4 years ago this week, the SLV silver ETF has proven very successful. With $5.1b in net assets, it already ranks among the top 20 largest ETFs in the US.

The need is urgent. The recognition is broad. Supply & Demand of American debt paper demand price adjustment. The USGovt avoids the topic actively.

Last week was exciting with broad market and gold forming an intraday reversal pattern after a long overbought rally, then broke down though short term key support levels.

News of fraud charges finally surface and sent the particular stock as well as the markets in general into the toilet within seconds. Fleet footed traders made like bandits while Cramer looked to have seen a ghost and tried to talk the stock back up.

Silver's recent rallying action is starting to catch traders' attention. Since the end of its latest correction in early February, this white metal has surged 23% higher. It has well outperformed gold, which only climbed 9% over this same 9-week span.

In my last report I showed some cycles for the price of gold and how they were starting to roll over which would in turn put some selling pressure on both gold and silver this week.