Gold Editorials & Commentary

Several bubbles remain in the U.S. economy. Housing is one of them. Recent growth rates in this sector are unsustainable if for no other reason than housing is a durable item that is built once in a lifetime.

First let me make the following disclaimers. Everyone must do his or her own due diligence. Nothing in this essay should be considered investment advice. I am long gold and silver in the mining shares, options on futures, as well as physical.

In the field of economics, there are many facets. It isn't just all buying gold and silver.

It is absolutely fascinating to observe what is currently occurring in the in the world gold markets, as suddenly there seems to be a notable gold shortage. I estimate the shortage to be somewhere in the neighborhood of a 300 plus tonne annual deficit range.

Contractions and revival . .

The price of gold continued its upward path during the last two weeks and made a new two year high at $ 311.60 an ounce on Friday, up 12 % since the end of last year.

Gold's technical picture continues to strengthen. A friend of mine noted a very bullish put-call ratio. And at the end of Friday, spot gold closed in New York at $311.70, while the 50-day moving average was $297.37 and the 200-day moving average was $283.49.

Often the first rally after a significant drop off from a major top is a sucker rally, a bull trap. This is the way this so-called economic recovery feels after the post 9/11 economic freefall.

Technically, we can now say that the Amex Gold Bugs Index has entered into a new primary bull market.

"Gee, that's pretty cheap. I just love shopping at Wal Mart. They have everything." That phrase has been repeated thousands of times, every day, all over the world, but especially in America.

Much more volatile action . .

It seemed at that time as if the whole nation had turned stockjobbers. Exchange Alley was every day blocked up by crowds, and Cornhill was impassable for the number of carriages. Everybody came to purchase stock.

Call it Middle East tension. Call it economic uncertainty. Call it a flight to quality. Or, call it, " It's about time!" Absent inflation, gold has managed to pop from a February 2001 low of about $255 to a current April futures above $300.

Gold prices are having a hard time clearing recent highs between $304-$308 and have largely moved sideways in a trading range as we predicted in our last gold market forecast.

The major equity indexes in America still remain historically overvalued, and thus should be avoided. At the end of last week, according to Decision Point.com, the S&P 500 GAAP earnings yield was 2.26% compared to the 10-yr. U.S.

The strength of the U.S. economy in recent years can be credited in large part to the tremendous strength of the U.S. Dollar index relative to other major currencies.

Admittedly, it was the Colorado Supreme Court, but it was a 6-0 decision, and legal wags say it will have enormous national significance. To elaborate: It seems as though the federal drug goons raided a place that made amphetamines.

Greenspeak didn't help follow-through . . . primarily because we apparently were not alone in anticipating that the Fed Chairman would speak in terms of 'uncertainty', as regards strength of the economic recovery overall.

The U.S. mutual fund industry is a ticking time-bomb waiting to explode, and a substantial amount of damage to fund shareholders in coming years will be in the form of taxes.

Econ 101 courses around the world teach that central bankers cannot fine-tune their economies with monetary policy. The tools of monetary policy are generally considered blunt instruments, incapable of the necessary precision.

I first began investing in Durban Roodeport Deep (Drooy) in June of 2001. I did this mainly due to the essays of Adam Hamilton a.k.a. Zelotes). Mr.

It seems that market watchers and economic forecasters are unevenly divided into two camps with widely divergent views.

Stock market bulls have a big problem on their hands. U.S. stocks remain enormously overvalued. At the end of this week, the Earnings Yield on the S&P 500 stood at a measly 2.28% compared to a 10-Year U.S. treasury yield of 5.15%.

With the revelation to the investing public of fraud and misrepresentation in the presentation of Enron’s financial statements--fraud and misrepresentation in which the accounting firm of Arthur Andersen appears to have been complicit--at least 143 corporate cl

"We're off to see the Wizard, the wonderful Wizard of Oz. We know he is the wiz of wizes, if ever a Wiz there was.

Dramatic snapbacks . .

After interest in gold died down with the last failure to push above $300 resistance, suddenly, the metal wakes up to no fundamentals.

After interest in gold died down with the last failure to push above $300 resistance, suddenly, the metal wakes up to no fundamentals.