Gold Editorials & Commentary

It's been an exciting week for traders as volatility levels are through the roof and the broad market is moving up and down like a yoyo.

The great Professor Roubini has recently declared on television that "gold has no intrinsic value" and that "if anyone is concerned about inflation they would be better off buying spam."

The stock market topped in April which was expected from analyzing stocks and the indexes.

Drastic times call for drastic measures. I have made major changes this past week to my portfolio. I am scared, and have taken appropriate actions. Safety first is now the motto I embody.

GLD - sell signal this week.

The condition of Europe has become the psychological linchpin governing the world's financial markets. Even the notoriously insular American investors are fretting about Europe's woes on an hour-by-hour basis, which is incredible.

I'm not sure where this will all end, but today we saw a Dow Theory sell signal.

It has been an interesting week in the market as stocks and commodities push to extreme support levels. Below I have posted some charts showing where the market is currently trading at and what I think is likely to unfold.

"The budget should be balanced, the Treasury should be refilled, public debt should be reduced, the arrogance of officialdom should be tempered and controlled, and the assistance to foreign lands should be curtailed lest Rome become bankrupt.

Last week was amazing for both gold and index traders as gold surged higher and the SP500 tested a key resistance then fell 4% in our favor.

GLD - on buy signal.

With the European sovereign-debt troubles dominating financial news, the euro has taken quite a beating lately. The majority consensus opinion even believes that the euro's very existence is threatened by this crisis.

It's been an exciting couple weeks in the market with gold now making new all time highs as money floods into this shiny safe haven. It has everyone all worked up wanting to take part or they are riding the rally up already.

The events of the last 12 to 18 months have been as shocking as they have been instrumental in reshaping the global financial structures. In fact, the events have pointed out the fracture of the global monetary system and banking systems.

Last night I came across a site on the web named COSTOFWAR.COM which shows the accumulating costs of the wars in Iraq and Afghanistan.

Two thirds of all trading on the NYSE is algorithm trading by hedge funds - some, with advance information because of the location of their computers - effectively trading as quasi insiders. Timing is in seconds.

The Quantity Theory of Money

Historically, gold is rare because of the poverty of precious yellow metal in gold mines. Despite all the difficulties, the world gold production managed to grow for centuries; it is multiplied by 4 in 100 years.

The Hungarian Connection

As we all know, last weeks stock market blip/mini crash was very emotional for those of you watching or trading it live. A lot of money changed hands last week and you either lost a bundle or made a bundle…

Gold ended last week very close to new highs against the dollar, which was a remarkable achievement given that the dollar soared and that the stockmarket fell heavily.

GLD - on buy signal.

"You cannot multiply wealth by dividing it." - Adrian Rogers

WHAT HAPPENED AND WHAT DO I DO NOW?

As gold stocks continue to power higher in their usual spring rally, they are starting to attract investors' attention again. This includes some value investors, a group that is always concerned with valuations.

The first five charts below are courtesy of"br> http://au.finance.yahoo.com/intlindices?e=asia

WHY ARE THE GREEKS PROTESTING?

Markets in the US hit the last line of Fibonacci Retracement levels this past week, and gyrated like a bucking bronco. Where they'll go from here is debatable.

The past couple weeks we have seen sellers control the price of gold. This can be seen on the charts by the light volume drifts up then heavy volume sell selling sending this metal sharply lower.

"Common sense is not so common." - Voltaire

CAPITALISM THE UNKNOWN IDEAL

GLD - on buy signal.