Gold Editorials & Commentary

Summary: The global equities markets have enjoyed and extremely bullish rise from early October to the present, with many market indexes retracing 100% of their previous losses or more.

Technicals -

Contemplate the enormity of the following. There are 1.2 billion Chinese, 1.0 billion Indians and 1.1 billion Arabs in the world. That represents nearly 60% of the world's population. Your response might be, "SO WHAT?!" …Well, here's the WHAT!

A short-term market top? That's the most obvious interpretation of this week's push against a rising-tops continuation channel, simply as both a straight-line shot above previous highs argued, and as the most-likely outcome for a market conditi

Technicals -

There is no common definition of the terms "inflation" and "deflation" and certainly not much agreement even generically as to what they are. Most consumers feel inflation is when they must pay more for goods and deflation is when commodity prices decline.

Our currency, the beloved Federal Reserve Note, is printed by the Bureau of Engraving and Printing on 15th Street in Washington, D.C., and in Pyongyang. The Pyongyang printing is unauthorized, and small-time---only about 20 million yearly.

The last two months in the U.S. equities market have been nothing short of nerve wracking, especially for investors of a bearish mindset (as we have maintained throughout).

Joining the "shooting stars". . .light parade in the skies, a number of high-flying Internet stocks are at risk of suffering the same fate as the meteor particles, at least in the fullness of time.

Technicals -

It is widely known the crushing debt of Southeast Asia caused its demise last year when their currencies, stock markets and economies were totally devastated - with only the behemoths China and Japan being able to stave off the inevitable.

Ah, those incomparable Canadian junior gold mining stocks. Where else in these troubled financial times replete with deflation, volatility and falling prices can one find such comfort, such joy, such amazing profit potential for so little?

It is widely recognized that the roaring engine of the U.S. economy is showing the signs of wear and tear from its high octane performance over the past several years - and almost certainly will slow down in the coming months.

The article began like it was right out of our Forecast '97 and Forecast '98 annual reports:

A practical definition of the word shortage as it pertains to a tangible commodity would evolve around supply being insufficient to meet demand.

Canadians, much more so than Americans, are inveterate goldbugs. They are especially fond of gold mining stocks and exploration companies—as well they should be since so much of Canada's economy depends on the market condition of the yellow metal.

Financial Panic . . . truly gripped the Street, not so many weeks ago. Aggressive Fed ease was called for here, weeks in advance to calm things, and to psychologically help stabilize currencies abroad, and thus indirectly our markets.

Technicals -

Bears will have some explaining to do if the current stock-market rally achieves new record highs.

Our call this week . . was for a "pop-up" after Elections to convince many others on the Street that it's onward & upward once again.

The technical outlook in gold is looking better than it has in quite some time and it is starting to be confirmed by a rapidly improving fundamental picture as well.

This week U.S. investors were reassured that the Clinton Administration's agenda to "do something" about the global economic crisis is, in fact, now being implemented.

The outlook for U.S. stocks, while somewhat mixed, is still firmly bearish based on our indicators. A serious decline in the major indices is still a distinct possibility as we head into November.

When an American uses the expression, "It can't happen here," he is probably referring to the replacement of republican government by some form of tyranny. We smile at his naivete. But the expression can be interpreted in other ways.

Durban Deep is probably the premier gold investment on the market today. South African gold stocks in general offer excellent values in today's gold share market, that is if you are interested in making money!

The past week in the equities market has been nothing less than tortuous for the bears as we continue to monitor the market for signs of a continued collapse.

More than any other time in history, mankind faces a crossroads. One path leads to despair and utter hopelessness. The other, to total extinction. Let us pray that we have the wisdom to choose correctly -- Woody Allen

Just when everyone was betting that Japan's yen would continue to weaken against the U.S. dollar, guess what happened? The yen halted its decline and went from 135 yen to the dollar on Oct. 1 to 110 yen to the dollar on Oct.

I was chatting e-mail talk with Vronsky of the very popular GOLD-EAGLE web site and somehow Don Quixote came up. Maybe because he is fluent in Spanish. Anyway, it stirred memories of my past and, ironically, of my future.