Gold Editorials & Commentary

Today's essay details the ongoing collapse of the US economy with a focus on why this coming fall will prove the "worst is over" crowd wrong yet again. Earlier this week, I detailed three major developments. They were:

Thanks to "Bullion Bulls" contributor, Paul, for supplying me with a link to an exciting, new opportunity for U.S. investors to get access to Canadian "junior", precious metals miners - and the explosive, profit-potential which they represent.

Earlier this week, a friend asked me if I thought this stock bear was over. My first thought was "which bear?", for there isn't just one. The stock-market action over the last couple years has been a tale of two bears.

With so much happening in the market, emotions flying high and from being blinded by fear and greed many investors are wondering What do I do now?

The rising long-term USTreasury Bond yield continues to capture attention. The breakout chart for the 10-year Treasury shot up to 3.75% last week, but zoomed to touch 4.0% this week. Less attention has been directed at the short-term USTreasury Bill yields.

The excitement in the stock market these days is not whether the economy will rebound the later part of his year, but by how much.

Commodities have been driving up the past few months and now it looks like Natural Gas is going to be joining the party. This report quickly and clearly shows Gold, Silver, Oil, and Natural Gas from a technical trading point of view.

The Dow rose 3.09% over the week while the S&P 500 lagged only rising 2.28% but the Nasdaq rose 4.23%. Up in Canada the TSX rose only 1.92% and the Venture was up 1.24%.

Gold did embark on a new intermediate uptrend as predicted in the last Gold Market update posted towards the end of April, however, the uptrend was not as strong as expected and it failed to break out to new dollar highs and is now starting to weaken again with

GLD - on buy signal as of early May.

At the height of the stock panic in late November, the flagship S&P 500 stock index had plunged 49% year-to-date. Fully 2/3rds of this decline happened in the 9 weeks leading into the panic lows!

There is no doubt that the equity markets have been rising in recent weeks. It would be foolish to argue with that fact. There is also no doubt that those who have "played" the rise will have made significant profits during the past few weeks.

Global statistics were recently released by the “precious metals research and consultancy” firm GFMS Limited, based in London.

The rising long-term USTreasury Bond yield has captured attention. The breakout chart for the 10-year Treasury was pointed out here when it rose over 3.1%, hardly a high level. In the first week of May, a target of 3.5% was cited, one easily surpassed.

The precious metals are on fire literally and the green in our portfolios is a sight to behold and enjoy. There are so many charts to look at this month so I will get right into it and be as brief as I can.

TRANSPARENCY: The headline read "Bank Stress Test Lifts Clouds of Uncertainty." Did it really? Did they explain the assumptions that they used? Was it mark to market, mark to model or what? Has the real estate market hit bottom?

Major dislocations are coming. Tremendous disruptions are coming. Price discontinuities are coming. Price chart patterns might be rendered useless soon. Last week, the case for a grand Paradigm Shift was made, covering many elements in order to paint a mosaic.

After a 10-week rally traders and investors are starting to think twice about dumping money into stocks. Since March, we have seen the equities market rally 30% -- and now everyone is starting to think prices are a little top heavy.

Fundamentally the rally in the broad stockmarket from early in March is viewed as being the result of a combination of media hype, wishful thinking and short covering, but there may be more to it than that - it would appear that a sizeable proportion of the TAR

The Dow was basically unchanged on the week gaining 0.1%. Same with the S&P which rose 0.47% and the Nasdaq was lifted 0.71%.

GLD - on buy signal as of early May.

On any day that commodities prices move materially, the financial media is quick to ascribe their action to the US dollar. And this oft-discussed causal relationship is certainly logical.

The broad market has been moving higher with great force the past 2 months. I have been expecting a top for the past 2-3 weeks. It looks like the market is starting to come in (sell off).

Numerous events have taken place of global importance. Alone, each story seems of some significance. Together, they paint a mosaic of extreme change in a very dangerous sequence of events that fit together.

Last week GFMS and the Silver Institute released their annual press release which sums up the basic supply demand equation.

In summary, it looks like the current upward technical reaction in the Primary Bear Market can be expected to suck more investors into the markets for another couple of months.