Gold Editorials & Commentary

[Note: The following is the second installment of a four-part series based on the John Kenneth Galbraith classic, The Great Crash 1929, and the parallel events of today's stock market.]

While it was a difficult week to make money as a bear, it was one of the more encouraging weeks in some time as fundamental developments strongly shifted in our direction. For the week, the Dow lost 84 points, or less than 1%.

Depressing Disparity

Strength in T-Bonds. . . followed only a minor hiccup in the wake of our forecast move this week by the Federal Reserve Board's Open Market Committee.

I made an uncharacteristically bullish prediction here six weeks ago when I wrote that the Dow Industrials would tack on 2,000 points by mid-summer if Asia's economies began to lift from their long dirge.

Final Part

Final Observations To Gold In A Deflationary Economy:

Onward And Upward

Last Month I demonstrated how an investor could have greatly enhanced the performance of his or her portfolio most of this century, by allocating 15% to Homestake Mining Company.

Incongruities . .

One of the timeless maxims known to almost every student of human affairs is that history always repeats, and that those who do not learn from the mistakes of the past are doomed to repeat them.

CHANNEL SURFING recently, I caught Louis Rukeyser delivering one of those metaphorical gibes (for which he is deservedly beloved) to the groin of his favored patsy, Gloomy Gus.

Chart Symmetry is designed around the observation that prices tend to change direction along certain preferred gradients. New readers are advised to read the first article in this series to discover how Chart Symmetry works.

Morale boosting rallies . . . were the centerpiece of Wednesday's fairly impressive comeback; an advance no doubt emphasizing a liquidity-drivencharacter of this market, more than recent ones, as a matter of fact.

The Honorable Arthur Levitt

Chairman

The Securities and Exchange Commission

450 Fifth St, NW

Washington, DC 20549

Dear Chairman Levitt:

It is becoming more and more evident with each passing week that the gold market, along with commodities in general, have seen a bottom and will continue to consolidate or move higher in the weeks and months ahead.

I have written extensively over the past two years about precious metals leasing and its manipulative effect on the markets.

After a month that saw more good earnings, robust growth in Gross Domestic Product, a soaring Dow Industrial Average-- up 10% for the month of April, the best performance in a single month since October 1982--the first quarter of 1999 appears great on the surfa

Talk of returning to a gold standard conjures up images in most investor's minds of government confiscation of gold and tight money supply, among other things.

Chart Symmetry is designed around the observation that prices tend to change direction along certain preferred gradients. New readers are advised to read the first article in this series to discover how Chart Symmetry works. The link to this article is :

The broad U.S. stock market continued to show its underlying strength last week in the face of a bearish near-term technical picture.

Before the 1990s boom in equity prices, a 3% dividend yield was considered a harbinger of a market top. The long term average yield is over 4%.

Recovery in cyclical stocks. .

Just as teenagers are going to find out about sex, adults are going to find out about day trading.

Say this for the kids, at least they're using condoms.

Chart Symmetry is designed around the observation that prices tend to change direction along certain preferred gradients. New readers are advised to read the first article in this series to discover how Chart Symmetry works. The link to this article is :

The stock market is certainly taking on all the characteristics of a runaway train, completely out of control and destined for an accident.

Never in the past 71 years has there been a week like last week (week of April 12) which saw the Dow set five consecutive record highs at the same time the S&P 500 Index declined for four consecutive days and key stocks like IBM and Wall Mart declined 10%.

A "B Wave" Rebound. . . or the first phase of a thrust to new highs.

Bankers hate precious metals; they cannot create them, to lend, with the stroke of their pens. Bureaucrats hate them also, for to obtain enough of them from the people to finance their grandiose schemes would require tax rates guaranteed to cause a revolution.

Chart Symmetry is designed around the observation that prices tend to change direction along certain preferred gradients. Different preferred gradients are linked though the Fibonacci ratio.

Distribution under the cover of a firm Dow Jones umbrella . . . has been our straight forward multi-day assessment here.