Gold Editorials & Commentary

Investment Conclusion

Barron's Confidence Index is the ratio of the yield of best-grade bonds to the yield on medium grade bonds. When the bond crowd gets worried, they move to the best-grade bonds and the CI declines.

Blue turns to gray

And try as you may

You just don't feel good

In three previous pieces, (click at bottom of this to access them) I discussed the distinct possibility of the housing market taking a deep plunge because of heavy layoffs and consequential inability to pay mortgages, as well as having been overbuilt, over-fina

Bullish Markets

The Giant Sucking Sound

My interest in money as a child began at an early age. I happened to be 7 years old when the new 1965 "tokens" were first minted. I was not sure why, but I knew there was something going on here.

Everyone wants to know, "When will the real estate bubble finally burst?" The answer to that question is at once simple and complex: "It breaks when it breaks!" Calling the exact peak of a market bubble-whether stock, commodity, or real estate-is an extremely d

THE MARKETS

No Capitulation in sight. That's bad news

In the latest move to revive Japan's financial system, the governor of the Bank of Japan (BOJ) announced that the central bank would buy stocks directly from lending institutions in order to help them reduce the impact of falling share prices.

We all know about the hundreds of billions (literally) in credit card debt. It is frightening, but true. Imagine a picture of those who have this debt. They must keep up the impression of wealth.

Degrade first the Arts if you'd Mankind Degrade.

Hire Idiots to Paint with cold light & hot shade:

Mr. Magoo is starting to resemble Gollum of Lord of the Rings in his single minded obsession. I also believe he will share the warm embrace of Mt. Economic Doom's volcanic heart.

The U.S. & Global Economy

The economy is receiving mixed reviews. From moment to moment, we hear goods news and bad news. The lack of a definitive economic assessment has held the Dow Jones Industrial Index in an anemic limbo for most of this year. Presumably, everything is okay...

Safety is important to all of us. I happen to live in a small town because I love the atmosphere, the weather, close proximity to America's most rugged mountain range, and because it is a safe place to live.

Any reader who has an interest in seeing gold go up is likely to enjoy reading this article.

A fatal flaw in "specialist education" is that it provides one with canned answers in search of recognisable questions. Economists thus tend to think in economic terms, Accountants in accounting terms, and so on.

Two weeks ago we published an article titled "Gold and Deflation" in which we argued that the gold price would fall during a period of genuine deflation (a period during which the total supply of money and credit was shrinking).

It is unwise to be too sure of one's own wisdom. It is healthy to be reminded that the strongest might weaken and the wisest might err.

- Mahatma Gandhi        

Summary

The purpose of this essay is to show just how distorted (overpriced) the US stock markets have become during the last decade. The main exhibit to prove this point is the relationship between the price of the S&P 500 Index and the P/E ratios for this index.

Persisting faith . .

What if the major stock market averages were to trade in a wide range over the next 15 to 20 years, between 6000 and 12000ish on the Dow for instance? Could you name that tune?

In these times of faltering growth and worries about a relapse into recession, we ask pointed questions about the competency of our leaders and policymakers. Is Mr. Bush not doing his job? Is Mr. Greenspan not doing his?

Popped Bubbles Expose Lies

Most people will be surprised to discover (as I was) that the long "Kondrat'eff Wave" about which so much has been written is less an Economic phenomenon than it is a Biological phenomenon.