Gold Editorials & Commentary

Mark down June 10, 2005 as the day the great commodity bull market resumed. The USDollar continued to rise, but that story must be put aside. The euro currency finally reacted to the much anticipated EU votes.

Introduction

Below is a 20 year chart of the goldollar index - which is derived by plotting the product of the US Dollar Index and the US$ price of gold per ounce.

It will rise under two circumstances:

With today's release of a 0.1% decline in May consumer prices, many pundits continue to assert that the inflation threat has ended. However, a closer look at the data reveals that the threat has only just begun.

For the past five years, the correlation between movements in the gold price and the Euro has been increasing.

William Petty

"Apophenia is the experience of seeing patterns or connections in random or meaningless data.

Coming in at $3 billion less than some had feared, today's release of April's $57 billion trade deficit is being heralded as good news.

Introduction

In the last 18 to 24 months, two key "False GO Signals" lifted the gold price from its low in 2003 of $320 per ounce to its recent high of $455 in December 2004. The markets finally figured it out though, and the gold price has languished.

After writing for more than two months I'm happy that the Gold Drivers Report 2005 has been finalized. I really enjoyed writing it and want to thank my readers for their continued support.

To be a gold bug has required one of two "irrational" (?) predispositions:

The Richter Scale is "A logarithmic scale used to express the total amount of energy released by an earthquake.

The following article is unusually technical, and may not be of interest to many people.

However, because it arrives at some interesting conclusions, these conclusions are set out below:

Introduction

In the past few years, a remarkable parallel can be seen emerging between financial markets and the laws which govern physical motion. In the world of science, we call this field physics.

Introduction

The French "No" vote on the European Constitution, which has created political uncertainty in Europe, has produced the reflexive, and ironic "flight to quality" into the U.S. dollar.

There goes the buck? Will that flashy new currency and coinage called the euro, spell doomsday for the used to be almighty dollar? Hardly.

One cannot blame any institution from wanting to present a brighter picture than reality, to paint a rosier description in order to impress, perhaps even to minimize or deny some elements of weakness. Ask any person being interviewed for a new job.

I have fond memories of hanging out with my old man when I was about 12 years old. He was a humble man with a gentle soul, and he had a couple of hobbies - one of which was photography.

Introduction

I have been analyzing interest rates because they can affect all of our investments. The lynchpin to the projection of US rates is how foreigners handle our US trade deficit, which is often described as “unsustainable”.

Some charts are breaking down and others are breaking up

1. Breaking Down

Some charts are breaking down and others are breaking up

1. Breaking Down

Many gold shares owners are pulling their hairs out every morning in front of their computers. "Those suckers just keep going down, and down, and down!"

Today, as the Labor Department reported that April consumer prices rose at a faster than expected .5%, which follows yesterday's release of a .6% rise in April producer prices, Wall Street and the financial media once again celebrated the irrelevant fact that c

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Over the long-term gold stocks are counter-cyclical investments in that they trend higher during periods of stock market weakness and trend lower during periods of stock market strength; or, putting it another way, when the broad stock market is in a long-term