Gold Editorials & Commentary

The rising long-term USTreasury Bond yield has captured attention. The breakout chart for the 10-year Treasury was pointed out here when it rose over 3.1%, hardly a high level. In the first week of May, a target of 3.5% was cited, one easily surpassed.

The precious metals are on fire literally and the green in our portfolios is a sight to behold and enjoy. There are so many charts to look at this month so I will get right into it and be as brief as I can.

TRANSPARENCY: The headline read "Bank Stress Test Lifts Clouds of Uncertainty." Did it really? Did they explain the assumptions that they used? Was it mark to market, mark to model or what? Has the real estate market hit bottom?

Major dislocations are coming. Tremendous disruptions are coming. Price discontinuities are coming. Price chart patterns might be rendered useless soon. Last week, the case for a grand Paradigm Shift was made, covering many elements in order to paint a mosaic.

After a 10-week rally traders and investors are starting to think twice about dumping money into stocks. Since March, we have seen the equities market rally 30% -- and now everyone is starting to think prices are a little top heavy.

Fundamentally the rally in the broad stockmarket from early in March is viewed as being the result of a combination of media hype, wishful thinking and short covering, but there may be more to it than that - it would appear that a sizeable proportion of the TAR

The Dow was basically unchanged on the week gaining 0.1%. Same with the S&P which rose 0.47% and the Nasdaq was lifted 0.71%.

GLD - on buy signal as of early May.

On any day that commodities prices move materially, the financial media is quick to ascribe their action to the US dollar. And this oft-discussed causal relationship is certainly logical.

The broad market has been moving higher with great force the past 2 months. I have been expecting a top for the past 2-3 weeks. It looks like the market is starting to come in (sell off).

Numerous events have taken place of global importance. Alone, each story seems of some significance. Together, they paint a mosaic of extreme change in a very dangerous sequence of events that fit together.

Last week GFMS and the Silver Institute released their annual press release which sums up the basic supply demand equation.

In summary, it looks like the current upward technical reaction in the Primary Bear Market can be expected to suck more investors into the markets for another couple of months.

From August 2007 when the world passed the tipping point it has been in the grip of massive deflationary forces that have already ravaged portfolios and pension plans and resulted in millions losing their jobs.

GLD - buy signal.

I am repeatedly asked how I can reconcile my belief that we have begun a deflationary depression with my belief that Gold is still in a bull market. As everyone supposedly knows, Gold does well during inflation but lousy during deflation.

The Enemies of Capitalism are not the Socialists, Marxists or Communists because everyone knows who they are and what they stand for.

This has been a volatile week for the market. Equities sold off Wednesday pulling precious metals stocks with it. Crude oil had a small pullback but energy stocks took a beating.

The so-called 'Green Shoots' have been trampled by people walking to their Unemployment Insurance Offices to collect jobless claims in order to pay their bills.

Or, we could say  “Goodbye Paper Money  – Hello Real Money”. We have for some time warned investors that the era of the dollar as a reserve currency is coming to an end soon and that the strongest and safest currency is gold. All currencies are hopelessly declining...

We are going to continue to take a bit of a break from our editorial series "The Effects of Dollar Inflation" while we continue to track the progress of what we expect to be a sharp run higher in the PM complex into June.

Another week, another move higher. I am nearly convinced that the storm has passed now and that sunny days are ahead for a long time. That is what I will say in 2012.

Gold, Silver and Oil breaks out to new multi week highs and shows signs of more strength to come. The charts below show both weekly and daily trading analysis pointing to higher prices for these commodities.

We are going to start this article with a premise, which is that the bond market and the dollar are much more important to the powers that be in the US than the stockmarket.

GLD - buy signal.

An ascending wedge pattern forms when the top of a rising trend channel converges toward the rising trend line that forms the bottom of the channel.

I have put together some interesting charts using the weekly time frame because they provide a cleaner picture of what to look for in the financial markets over the next 3-6 months.