Gold Editorials & Commentary

After a ferocious year terrorizing traders on Wall Street, the great bear has taken a temporary hiatus, and buyers have been allowed to mark up prices in the first significant rally in several months.

Government pronouncements notwithstanding, the ongoing bombing campaign in Afghanistan is all about oil (a point we recently emphasized in a GOLD-EAGLE editorial) and the stakes are as high as ever.

Interesting that the bond market got roughed up pretty well last week after having rallied sharply for the past several weeks.

I am taking a break from my normal IMF research to focus your attention on a special situation that has developed over the last 2 months.

Relief and exuberance . . . have characterized this week's market, as Wednesday in fact again delivered the projected pattern, which included the idea of a 'second rally' a bit less euphoric than Wednesday's first one.

We read much that is bearish on gold and gold stocks in the financial press, but little that is bullish in scope. When was the last time you heard an advisor or newsletter writer heartily recommend getting long of gold stocks?

The so-called "War on Terrorism" has so far none nothing to alleviate the constant threat of international and domestic terrorism, but has always been about the geo-politics and logistics of the oil economy.

What is $6 billion a week, you ask? $6 billion a week, is the number of dollars that are currently being inserted into America's money supply, not counting the actual deficit of billions per year over taxes collected. "Added liquidity," in Greenspanese.

Of the metals, silver is the best conductor of heat and electricity; consequently, it is used widely throughout industry. Including photographic demand, some 845 million ounces were used in 2000.

Even as the stock market was ascending to undreamed of heights, IAN GORDON warned our subscribers in our June 11, 1999 interview, that we were nearing an end of the greatest bull market in the history of the stock market.

Is everybody looking for a top . . . if even on a short-term basis? Or, is the idea that we won't drop because 'everyone' thinks we will, actually an excess of double-think?

"The case of Howe vs. Bank for International Settlements et al."

NOTE: This column has been revised, because one paragraph assumed that everyone knew I was a precious metals broker in 1980 and before, and could indeed refuse to sell to clients who requested silver when it rose to $54 an ounce.

Modern economic thought, encumbered as it is with traces of Marxism, tainted with the flaws of Adam Smith, and permeated with the fallacies of J.M. Keynes, has not the scope nor the vocabulary to address the problems unique to today's economy.

Ciprofloxacin is said to be the best antibiotic for the treatment of anthrax. I am not in a position to deny this, but because anthrax-especially the deadly pneumonic version-is so rare, I wonder how this discovery was made.

IAN GORDON'S "SPOT ON" DEFLATION FORECAST

"Execute unrestricted warfare against the forces of Imperial Japan" were the orders of the day for December 8th, 1941. America has now issued another unrestricted warfare edict after our second Pearl Harbor on September 11th, 2001.

While grieving over the horror of September 11, 2001, American investors must not lose sight of the investment implications of the new war on terrorists. It has been quite some time since the U.S. was involved in a protracted armed struggle.

During the course of any given week we receive a good number of questions related to gold, the stock market and economic affairs. Some of these questions are universal and therefore merit broader dissemination than a mere individual correspondence.

Words pale, if not fail, in the aftermath of the September 11th tragedy and continuing terrorism. These are not occasions to be used to promote self interests.

Panic psychology is beginning to manifest itself among the trading public in ways not seen since the Great Depression.

Impressive thinking . .

The talking heads on CNBC and the other official members of the American misinformation machine are trying to con investors into buying the stock market on the basis that it is now so cheap. This is of course a monumental lie.

During the course of any given week we receive a good number of questions related to gold, the stock market and economic affairs. Some of these questions are universal, and therefore merit broader dissemination than a mere individual correspondence.

Techs continue dominating the action . . . as heightened domestic tensions show no tendency to reduce their impact on the broader economic conditions.

As the economy weakens, and almost exactly duplicates the horror of 1929-31, many rightfully blame a lot of the mess on Alan Greenspan. Greenspan, a one-time member of an intimate group of Any Rand's, seems to have forgotten all he ever thought and believed.

Peter Lynch of the Fidelity Megellan Fund fame needs to reinvent his idea of long term investing. Long Term anything these insane days means 24 to 48 hours. Will Israel enforce its Wednesday deadline with the PLO? Will a suitcase nuke be set off by Friday?

Many years ago I made the decision that I wanted to become financially successful, yet I was never taught in school or at home exactly how to achieve this goal. I therefore went to the bookstore and purchased Napoleon Hill's famous book "Think and Grow Rich".

Pushing Emotions Aside & Allowing Objective Truth to Prevail

The Dow is about to begin its final rollover for the year, eventually testing the critical 7400 cycle low last achieved in 1998.