Gold Editorials & Commentary

GLD - sell signal this week.

FOREWORD: At certain times, focusing on the big picture is important not just for investment success, but for personal welfare, and even survival. We believe such times are here. It is estimated that 98% of Americans have never held a gold coin in their hands.

It's been a crazy week for stock and futures traders as the market moved up and down like a yoyo, finally closing down sharply on the week.

Seasonality, the tendency for prices to consistently move in the same direction at particular times in the calendar year, is always fascinating.

For the past few weeks I have been expecting the market to correct. By looking at the price action on the weekly and daily charts we can see that there has not been any real pullback since November and that is important to note.

Whether you are trading stocks, ETFs or futures, technical analysis is the preferred choice for short term traders. Technical analysis in short is the study of price and volume movements on charts.

This week's letter is abbreviated since most things were mentioned in the update to subscribers, and quite frankly that long update burnt me out.

GLD - on buy signal.

I know a lot of funny jokes. They are so funny that one of my friends has confessed that he has nightmares of ending up in the same old people's home as me, listening to me tell those jokes over and over again.

I know a lot of funny jokes. They are so funny that one of my friends has confessed that he has nightmares of ending up in the same old people's home as me, listening to me tell those jokes over and over again.

At the end of the day the economy is driven by the sum total of all businesses and investing is/should be about finding good companies which are well managed by professional managers who understand that they are employed by - and accountable to - shareholders.

Over the last few months, the behavior of the US stock markets has been rather vexing. Usually when they grow overbought, when greed and complacency wax extreme after a powerful rally, a healthy pullback soon rebalances sentiment.

The purpose in owning commodities like gold, silver and oil is to protect oneself from the effect of inflation that I believe will begin to assert itself in the coming months.

I always try to keep things simple. Any highly educated dummy can use big words and double speak, like Allan Greenspan (who was the master at it), but when you walked away you wondered what it was that he actually said.

It's nice to be back to work after a hectic and unfortunately stressful holiday season. The general complacency regarding markets in general continues on into the new year and the metals are back on track to their wining ways, but more on that next week.

GLD - buy signal this week.

In Part One I discussed the clear and present danger to pension rights: deflation as manifested by the interest rates structure that has been falling for almost thirty years, while most observers still think that the real danger is inflation.

Copper has enjoyed a spectacular run higher. In calendar 2009 as it emerged out of the stock-panic-induced commodities-price crash, it rocketed 153.2% higher! Such performance is just staggeringly good, even by the high post-panic standards.

The year 2008 bore my mark as the year the system broke. A public article addressed the issues, laid out before the breakdown occurred in September of that year.

It is not the size of the national and international problems but the size of the governing brains that preclude any meaningful solution to the ongoing dangers and mess faced by the United States.

On February 23, 1950, The Commercial and Financial Chronicle published an article from Ludwig von Mises with the above title. In it the author concentrated on the threat of inflation as the greatest danger to pension rights.

The year ended with a typical light volume"Santa Claus" rally.

"The more laws, the more corrupt the Republic"

Corruptimus republica plurimae leges-- Tacitus 118-123 A.D.

GLD - on sell signal.

"I consider it to be a reasonable demand that the economic burden placed on the current and future generations of Icelanders, in the form of a state guarantee for Icesave payments to the UK and Dutch governments, be subject to a national referendum,