Gold Editorials & Commentary

RIGHT ON SCHEDULE

Banco Azteca, which has about 1,000 branches throughout Mexico, is about to launch a new service for those who like to save silver. It is the first bank in Mexico to offer this service; other banks are expected to follow suit, sooner or later.

"Central Banks eye asset as well as FX shift."

We have seen the severe smackdown anticipated in the last Gold Market update, although it did first manage to trip our overhead stops by a whisker before plummeting.

With the price of crude oil now down over 30% from its August high of nearly $80 per barrel, many have concluded that the bull market is over.

PREFACE TO GOLD

Stockmarket trading has certain similarities with driving a car.

We all have favorite books, films, and foods. Books, films, and foods we always gyrate to when we need a treat, refresher, or to prove a salient point. I stumbled across a marvelous book several years ago in a Phoenix, AZ used book store.

Back in December of 2001, Robert Arnott and Clifford Asness published an interesting paper entitled "Does Dividend Policy Foretell Earnings Growth?".

December's larger than expected jump in non-farm payrolls is predictably being touted as evidence of a more vibrant U.S. economy. Unfortunately, the data does not support this conclusion.

In order to soften the coming blow of a credit collapse, a group of concerned citizens has decided to establish, in the year 2007, the Gold Standard University Live, home for the study of monetary issues placed under taboo by other institutions of higher learni

The USDollar decline remains in progress, the one which began when the United States citizenry and its Wall Street aristocrats observed the great eating orgy known as Thanksgiving. Nothing can stop a holiday where Americans make eating the order of the day.

The S&P 500 WILL BE UP 10 to 15% IN 2007

For commodities the new trading year did not start off with a bang or a whimper, but rather with an implosion.

Unlike other analysts, I do not provide predictions or forecasts in January every year. We stay true to our trading models, and this is our current position as 2006 ended and 2007 just begun.

The monthly chart of the HUI is providing us with the maximum amount of information concerning its future path that we could ever hope to obtain from any chart.

Dedicated to the Memory of Ferdinand Lips (1931-2005)

Student and Advocate of the Gold Standard

On the Occasion of the Inauguration of Gold Standard University Live*

Those of us in the older generation remember the 1970s. It was a wonderful time (for gold bugs). Gold went up. Almost all commodities went up. Bonds went down. Stocks went down. By 1980, most of the top mutual funds were gold funds.

It is a well known fact that the powers that be, want America to partake in a 'one world' system, and this has never been a political teaching or campaign speech by either Democrats or Republicans.

First Majestic, (FR.V - TSX, FMJRF on the pink sheets and AOLHKJ at Frankfurt), is a well managed silver miner, intending on becoming a senior producer through acquisitions and by adding reserves via the drill bit.

A very significant development occurred this week in the resource sectors of energy and metals, which could affect price action in coming weeks.

Long ago - so long ago that I can no longer remember exactly when - I heard the expression "an ant's eye view of the Universe".

I've been reading a book again, which I have had for at least five years. It is copyrighted in 2001, and titled "The Coming Collapse of China," by Gordon Chang.

THIS TIME ITS DIFFERENT

1929-30 = 1972-1973 = 1999-2000 = 2006-2007

The real currency story in recent months is the euro-yen cross, and not so much the euro-dollar headline breakout. In Japanese yen terms, the euro is on a tear. Aiding the euro is significant Asian diversification away from the USDollar by their central banks.

This week, in what I believe to be an unprecedented diplomatic pilgrimage, the sitting U.S. Secretary of the Treasury and the Chairman of the Federal Reserve were dispatched to China.

History replaying

Although gold has not exactly glittered since it broke out of its large triangular pattern late in October, immediate downside now looks limited, while upside remains relatively unlimited.

Life is full of decisions to make. No matter what the situation is, be it serious, comical, or dire, there's always a decision to make as to what to do to remedy or solve a problem. Examples are myriad.