Gold Editorials & Commentary

Gold traders should have exited today as prices are showing strong signs of lower prices in the near future. Gold slid over 4% this week so far, while gold stocks have dropped an average of 9%.

The marquee line best describing the past two to three months has been that the Dollar Death Dance has been fueled by failure of US banks & corporations, along with sponsored assaults against speculative hedge funds.

There are some important similarities between the present and the 1930s.

Gold Trading: Gold closed higher for the week with very low volume due to the holidays. It is difficult to get a feel for where stocks and commodities are headed in the near term because of this light volume.

We've been here before haven't we? Gold has been in a rising trend for some considerable time, taking it to trendline or resistance targets, and then "wham!" it gets whacked back down again.

One of the most bothersome questions from 2005 to 2007 used to be whether the Untied States would ultimately submit to inflation or deflation. This is actually the wrong question.

Happy New Year

As is obligatory for commentaries written on January 1, I offer my wish for readers to be healthy, safe, happy, and prosperous throughout the new year.

EXPANDING GOVERNMENT and THE REGULATORY AGENCIES

Here is our monthly update on major indexes for our international investors.

An unhappy anniversary

A friend was kind enough to send me the following link to an article dated October 10th 2008, written by Martin Armstrong.

The US Dollar

GLD - on buy signal.

Many people are very confused these days. They should be. Slowly the nation is coming to grips with a harsh reality that a garden variety recession has not dug its roots inside the body economic of the United States. This is much worse.

"One swallow does not a summer make". (Aristotle)

That may be true, but it's possible that I saw two swallows today, and "summer" is not the season occupying my mind at present.

The way things look it will soon be impossible - or very difficult and expensive - to obtain physical gold and silver.

FROM YOU HEARD IT HERE FIRST

Broad Market Outlook

GOLD $/OUNCE

“Time is more important than price; when time is up price will reverse.”

W.D.Gann

GLD - on buy signal.

In an earlier article Backward Thinking on Backwardation I explained that backwardation in gold is the flipside of the phenomenon of a drastic contraction of world trade and employment.

Right now, the Treasury, the Federal Reserve, and the banking system seem to be gearing up for an event the likes of which has never been seen. I believe the crisis that will unfold over the next few years will add up to the biggest economic event in history.

I can't complain. My wife and I have plenty to eat and we own our home outright. With no debt and enough money to carry us for the next few years, we'll make it through this economic downturn as long as we continue to live modestly.

On Monday, December 15, backwardation on gold was still in force at an annualized discount rate that narrowed to 1.55% in the December contract, but widened to 0.36% in the February contract.

Back in 1989, Forbes Magazine published an article painting Vancouver, Canada as the “scam capital of the world”. As evidence he cited a few debacles which certainly caused investors to lose money, but the amounts are trifling compared to the trillions that have...

Over the past several days the dollar has gone into a severe decline, and this drop does not look like a reaction within an ongoing uptrend, as was the case in September, for as we can see on the 6-month chart it follows the development of a Head-and-Shoulders

The principal missing piece in the grand American mosaic of banking destruction, corrupt collusion, fraudulent bonds, Wall Street control, suppressed regulators, compromised ratings agencies is JUSTICE and REMEDY.

On Friday, December 12, backwardation on gold was still in force at an annualized discount rate hovering around 2% in the December contract, and 0.3% in February contract.

As most traders close out their books for the year it's looking like gold may be the best performing asset this year, but we still have a couple weeks to go. If that happens it should draw quite a bit of positive attention to the sector.