Gold Editorials & Commentary

GLD - remains on a buy signal.

Last week, as the Dow breached the 14,000 mark for the first time, bullish swagger on Wall Street went into overdrive. Some of the bulls that I'm often pitted against on television used the occasion to specifically heap scorn on my assessment of the U.S.

"History does not always repeat, but sometimes it rhymes." Mark Twain.

Many years ago I was blessed to make the acquaintance of one Samuel J. "Bud" Kress, a stock market cycle expert. Mr. Kress is noted for discovering a set of interrelated daily, weekly and yearly cycles all using the same numerical series.

An unusual chart is presented, since the Broker Dealers sit at the nexus of the massive asset-backed bond 'con game' perpetrated upon the nation and the world. The extent of possible fraud will be sure to be unraveled.

The powerful rally by large Precious Metals (PM) stocks over the past couple of weeks is believed to be the start of a ‘breakout drive” that will vault the sector indices out of the large holding patterns that they have been stuck in for past 18 months, for the

During his testimony before Congress this week, Ben Bernanke didn't hesitate to opine on a number of topics that had very little to do with his mandate as Fed Chairman.

As the gold stocks have made a significant move since our last essay, we thought the time was ripe for an update.

THE BEAR STERNS HEDGE FUNDS

By requests, we are now including GLD and SLV in our weekly commentary.

As many of you may recall, on the site we had earlier been wary of a substantial dollar rally, which was a big reason for fearing that a Double Top may be forming in gold and silver.

This week, bond rating agencies Moody's and Standard & Poor's finally announced downgrades on billions of dollars of bonds backed by subprime mortgages.

Battle of Titans

There are several factors coming together now to suggest that a powerful rally in gold is drawing near, and because they are so clear and potent, they do not require a long-winded description.

Collateralized Debt Obligations are the CDO bonds under fire, soon to suffer huge losses, subject of debt downgrades, object of failed auctions. We are talking about hundreds of billion$ in bond losses.

Foreword

Elliott Wave Gold Update XV

As the Japanese government continues holding short-term interest rates near zero while printing yen like it is going out of style, getting out of the yen has now replaced pachinko as the national pastime for rank and file Japanese.

One chart only this week. The one which matters…

Summary

HOLIDAY

"Everyone loves an early inflation. The effects at the beginning of inflation are all good.

When the contagion (denied no longer) is systemic, pervasive, broad, multi-faceted, and ominous in its lethal potential, perhaps one can calmly conclude that the system is merely adjusting to a total change in the seas. NO WAY!!!

The meltdown in the subprime mortgage market is inexorably spreading throughout the U.S. economy. The first shoe dropped in February, when scores of mortgage originators went bust amid rising defaults and tightening lending standards.

Every ten years or so, we hear the ardent cry of "this time it's different" and/or "we have now entered another new paradigm that will lead to UP, UP and away." In the late 60's, it was The Nifty 50's.

$HUI - is on buy signal.

We have recently maintained a neutral/bearish stance on gold, which was not unreasonable given the way the earlier advance had petered out and been followed by weakness resulting in the failure of a long-term uptrend line that signaled a change of intermediate

"...What people don't fully appreciate is the extent to which our financial system has geared up over the last twenty years to finance the worldwide residential housing boom..."

Now that yields on ten-year Treasuries have cracked through 5%, on their way to infinity and beyond, many on Wall Street are wondering how high rates must go before bonds begin to draw investors away from stocks.

The cancer that is mortgage bonds does not linger in isolation. Everything in the bond world is connected to almost everything in the bond world, at least within the US sphere of speculative madness.