Gold Editorials & Commentary

Got married in 1960. Bought a house even before that. We've owned various types of real estate during the past 43 years and did fairly well financially with most of them.

An enormous amount of mind-space has been given to arguing the pros and cons of whether we are in an upward reaction within a Primary Bear Market or whether we are entering a Primary Bull Market, but very few commentators appear to understand what is happening

I recently had an opportunity to hear testimony by Federal Reserve Chairman Alan Greenspan at a hearing of the Joint Economic committee. I always relish the opportunity to question Mr.

While the echo bubble in general equities booms, fueled by the blundering fools who must have slept through the hard valuation lessons of NASDAQ 2000, the stealth bull market in gold stocks continues unabated.

To the Honorable Ron Paul

U.S. House of Representatives

Washington, D.C.

June 10, 2003

Dear Dr. Paul:

This following extract of Richard Russell daily newsletters points to the corner stone of the future of the economy.

Trading Rules

All stock market sectors have their own unique criteria and set of rules for both valuation and for trading specific securities.

The chorus calling for the Fed to facilitate higher money-supply growth has become deafening. Jude Wanniski and Larry Kudlow have been long-term members of this chorus, while gold market commentator and veteran trader Jim Sinclair has just added his voice.

Mexico's Central Bank, the Banco de Mexico, has ample reserves of some $50 billion U.S. dollars.

Let's talk silver, shall we? Over the past few weeks there has been increasing interest in the white metal sector after the vigorous rally in silver earlier this spring.

All power-structures in human society face the problem of keeping the majority of population both in relative poverty and in dutiful submissiveness, so that the power-elite could enjoy relative affluence undisturbed by popular unrest.

The current bull market in gold is different from any other in the past.

Scottish philosopher Alexander Fraser Tytler, writing nearly two hundred years ago about the fall and decline of the Athenian Republic, proclaimed, "A democracy cannot exist as a permanent form of government.

For years leading up to the millennium year change, the Argentine currency (peso) was pegged to the US dollar. As a result the Argentines 'lived high on the hog' so to speak.

A complete answer to the above question would necessitate a book (one we are not qualified to write). However, we'd like to just make a couple of points in response to a recent article by Frank Shostak titled "The Dollar and the Balance of Trade".

Market Harmonics

Many readers who grace this site believe in precious metals but have yet to "try the water". Well come on in boys, the water's just fine!

The following is a summary of what I believe to be the "macro" economic status quo:

As investors in South African gold stocks have found over the past several years, changes in currency exchange rates can have a huge effect on the prices of gold stocks. By considering two hypothetical examples, we'll attempt to demonstrate why this is so.

The dictionary states that an asset is, "Anything owned that has exchange value. A valuable or desirable thing.

A Thinking Shift

A comparison of the Long Term Silver and Gold markets yields some interesting observations. Both charts are up to date to end April 2003.

Pre-Supposing Deflation

Deflation Bad. Inflation Good.

Whip Deflation Now

No Pain, No Gain

The World Gold Council (WGC) launch of a gold exchange traded fund (ETF) promises to revolutionize the gold market. It was filed with the SEC 5/14/03.

The long-term picture

The long-term chart clearly shows that the USDJPY exchange rate is in the process of completing a head-and-shoulder reversal and that the pressure is on the down-side.

Sections 8 and 10 of Article I of the Constitution of the United States of America read:

"Congress shall have the power -

SILVER, GOLD, LEAD AND ZINC IN THE UNITES STATES, MEXICO AND VENEZUELA

Many commentators have observed that the consequence of the activities of the Fed have been inflation and currency debasement. I personally can remember as a kid when my dad bought himself a pair of worsted wool long pants for around $3.

In previous commentaries we've explained why the US Government could be expected to do everything in its power to prevent the current downward trend in the money supply growth rate from continuing.