Gold Editorials & Commentary

Thirdeyeopentrades has been watching the current eleven month consolidation in gold stocks with fascination.

I have finally figured it out. Eureka! I now think I know why perhaps less than 1% of people are protecting themselves with gold and silver.

Two recent articles stated a theory that silver-to-gold price ratio will increase when the economy is strong, and decrease during financial meltdown (or inversely the gold-to-silver price ratio will decrease when the economy is strong, and increase during finan

With the meltdown in the sub-prime mortgage sector now laid bare, many on Wall Street desperately cling to the notion that the pain will be localized.

Recently, I have received many requests from both paid subscribers and public readers for more coverage on silver. Reason being, according to the consensus, is that gold at $700 is a gimme, and should reach $1000 by summer.

This past week we saw an expected bounce in the stock market.

I will explain why it does not matter whether the central banks lead us to inflation or deflation, because it is too late to maintain any balance in the business cycle, and defaults are now an unavoidable event in the not so distant future, whi

With today's relatively benign jobs report coming in close to the consensus forecast and with the stock market comfortably above Monday's low, most on Wall Street are breathing a sigh of relief.

Summary

In a series of public messages, the US Federal Reserve has issued some statements recently which telegraph an increasingly likely official interest rate cut.

Now for something completely different! This is about China's bubble in stocks, similar to the U.S. 1929 bust, and even the 2001 one. Did the bursting of the China bubble have an effect on the rest of the world's stocks?

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.