Gold Editorials & Commentary

I have chosen to delete the first 17 points as they refer to subjects that might cause the western precious metals researcher to prejudice the rest of this extremely important document.

Gold Trashed Gives Birth to the Big Dollar Lie

That the United States is the world's largest consumer of energy is indisputable.

First, be sure to read Doug Noland's great and scary piece on the current absolutely astounding state of credit in the US, better known as the Greatest Credit Bubble in recorded history.

In my most recent Gold-Eagle.com article I discussed the theory behind valuing a mine. This article attempts to apply that theory to derive a valuation for Silver Standard Resources Inc. (SSRI)

This'll be a pity party probably, because of the intense grief out there in gold futures land. I haven't seen gold take a dump of $6 within a couple of hours in many years.

Monetary Realists, knowing not so much what they've been taught, but what they've learned with their eyes open and ears tuned, see things clearly, without peering through a haze of misinformation masquerading as knowledge.

I have had numerous ideas floating in terms of another GOLD-EAGLE.com contribution over the past fortnight, however they were not sufficient to get the project over the line in terms of creating an article that may be able to add some value to the readers of th

In fact, that process of a dollar decline may now be in its very early stages, judging by the bearish posture of the dollar in the chart below. At 104.95, the Greenback has fallen below the 20, 50 and 200 day moving averages.

Frank Shostak is an economist at Man Financial, Australia. He was interviewed following the announcement of the Fed's latest policy move.

The Fed threw a party and nobody came. They surprised the market with a full 50 basis point cut rather than the consensus 25 basis points. To ease fears that the economy might be really bad the important bias was changed to neutral.

This article attempts to explain the difference in valuation methodologies when applied to industrial companies as opposed to mining companies:

Metals

January Platinum futures have been under considerable pressure lately and are at a pivotal point along its 4-month uptrend line.

The old game of tossing a hot potato from one to another, because if you held it too long, you'd get burned, applies now. Think about it, and once again compare it to 1924 in Germany, writ much slower.

To warm you up for today's editorial, I'd like to share three of the most powerful quotes I've had the pleasure of reading on the subject of gold and money:

During September we said that gold stocks were likely to experience a sharp correction and nominated the 200-day moving-average for the Amex Gold Bugs Index (HUI) as a reasonable objective for the correction [the HUI was trading at around 130 at the time].

Question -- What's behind this market advance, Russell? I thought this was a bear market.

The Dollar Decline May be Very Significant

We wrote last week (Oct.

The following two Point and Figure Charts demonstrate just how difficult it is to make a definitive call in today's market.

Most investors, and this includes most analysts, just don't know how bear markets work. Either that or they don't want to know.

To Quote Clinton, It depends on what the meaning of…..is." It really does!

A June 1996 high standard deviation preemptive selling episode brought about a downward directional change in the 200-day moving average of gold prices. Immediately following that change in trend, the two banks that later became J.P.

The prices of gold and gold mining shares since our last Update continued to consolidate their rapid January to May upward moves. Speculative long positions on the COMEX were unwound since the end of September, and a possible war in Iraq seemed less imminent.

Two years have passed since the above essay was written and much has happened in the interim; therefore it is time to revisit the essay and update the statistics it contained.

December gold has arrived at another one of the tell-tale crossroads and will be forced to make a decision early this week as to whether to continue onward with its 2-day rally or reverse sharply beneath the combined weight of a 4-week line of supply in the dai

An investment allocation to gold and gold shares makes sense only if one does not expect an imminent return to the investment world of the 1990's.

In short, the economy seems unlikely to grow strongly from this point.