Gold Editorials & Commentary

Ah the Lone Ranger! "Return with us now, to those thrilling days of yesteryear. From out of the west, come the thundering hoof beats of the great horse Silver, the Lone Ranger rides again!" Being of advanced age, I grew up on the Lone Ranger.

To understand what is happening in the gold and silver markets, it is necessary to understand the rules by which the game is being played.

There appear to be four "teams" of players, as follows:

There is a lot of talk about deflation nowadays, but very few people do understand the real meaning of its definition. One reason might be the fact, that there are several types of deflation and subsequently a clear understanding by the public is lacking.

Given the interest being shown in these two owing to the threat of war and the prospect (some mistakenly believe) of inflation, I'm going to show you what's happening for as long as there is an interest.

The purpose of this article is to provide the investor with a non-biased analytical look at the stock market. I can assure you that my analysis is based on sound technical principles, not the hope and hype that Wall Street is trying to feed the public.

This article and the imbedded links are a "must read" for those in the U.S.

I have recently written how the price of gold could easily skyrocket towards infinity dollars per ounce as a result of a total dollar currency collapse, and how the gold price might stabilize at $32,567/oz. if the U.S.

Under the rules of Elliott Wave analysis, a bullish trend is determined by the fact that the price being charted forms 5 waves in an upward direction.

Not long ago, Gold Fields Mineral Services, Ltd. published its Gold Survey 2002--Update 2. The report began with the following:

We were asked the question, " What makes the gold price rise?", and the answers are not difficult to detail, but we realised that we were being asked the wrong question. The wrong question because a list of factors would be like a pile of bricks.

Even knowing that it actually happened, it still is almost unthinkable that the United States government would nationalize the personal assets of its citizens, give paper in exchange at 60% of the value of the assets - and book a profit.

For several years I have been harping about the Dow in Gold Dollars (DiG$). Why? Because valuing stocks in terms of gold gives us a superbly reliable indicator of the trends in both stocks and gold.

For a long time I have been tormented by a complicated question. I believe I finally have the answer. Especially after reading so much on the Café and other sites.

As if the war itself were not enough, the aftermath of the Civil War was a wrenching experience for the nation. In Washington there was high drama - the President was assassinated. His successor was impeached and his trial before the U.S.

The price of gold goes up, but gold stocks don't, and you don't know why. Or the price of gold stays steady, but gold stocks go down, and you don't know why.

This article and the imbedded links are a "must read" for those in the U.S.

That central bankers are the quartermasters of inflation is no longer a controversial assertion.

As we descend further into the Kondratieff winter over the next decade, the possibility of a serious financial meltdown in America and worldwide will become ever greater.

There is no question that Gold has been the only story worth talking about in 2002. For the year gold was up 20%. Many junior gold shares were up many hundreds of percent.

Since the early 1980s, the United States has been the major destination for foreign goods on a global scale. With an increasing part of these imports being financed by debt creation, the international monetary system has been swamped with liquidity.

Market Summary

Bullish Markets: Gold, commodities (XAU and the Rogers Raw Materials Fund), gold stocks, silver stocks and the U.S. Treasury markets.

Bearish Markets: The dollar and equities

The following Point and Figure charts tell an interesting story.

The US Dollar has broken down

Y'see, when you get to be as old as I am, you can remember a lot. I grew up in a drug store, because my Dad owned one for 36 years.

Early in the year 2001 twenty-two "expert" Wall Street analysts from Louis Ruykeyser's "Wall Street Week" gave their estimates as to where the Dow would be at the close the year. The estimates ranged from 11,400 to 12,300. But the actual Dow close was 10,021.

Despite mounting opposition to war with Iraq, the Bush Administration is intent upon bringing Saddam "to justice." The resulting rhetoric has dimmed the global community's view of the United States as reflected by the dollar's recent performance.

This one will be controversial, and I am sorry, but this is MY OPINION ONLY, and I won't change it. If you disagree, that's your prerogative. My opinions on anything, are formed by experience, knowledge, and hunches. Also a bit of prejudice, if you please.

A little over two months ago, we expressed some doubt about the immediacy of a push to new recovery highs. We reasoned that the resumption of the up-trend necessitated a weaker dollar and/or a complication in the imminent U.S.