Gold Editorials & Commentary

My early years as a Broker and investor witnessed my attempt to master all aspects of this enormously complex and difficult field. I studied all the books I could find on individuals who had amassed great fortunes investing or trading for their own accounts.

One of the dangers of continually being close to the market, is that you can get lost in day to day detail, or even hour to hour detail, and end up not being able to “see the wood for the trees”.

This morning, whilst scrolling through the charts, the chart below (courtesy Stockcharts.com) caught my eye and prompted two questions.

Folks, we have a major breakout in gold and silver this week, and if past history is a guide, we are looking at new highs in both metals in the near future.

On the CBS Sunday Morning show of October 28th, a segment dealt with the software which allows total reconstruction and alteration of any photo.

The Current Phase of Precious Metal Investing

There is nothing that possesses all the qualities of money in the way that gold does, so there really isn't a competitor to gold as "the ultimate money".

Investor lust for hard assets has dimmed gold's status as the world's premier non government-issued form of money. Conventional wisdom now holds that gold, oil, and base metals are inextricably linked.

This morning's release of disappointing GDP figures for the third quarter capped a week of bad economic news. Nevertheless, Wall Street bulls continued to march to the pleasant beat of the "soft landing" scenario.

Last week we covered the GLD, and this week, we will cover the gold stocks ETFs.

First, a simple analysis

Since August 5, 1993, there has been a systematic attempt to administer downward impulse to the gold price through loans and sales of the metal.

Self proclaimed innocent Jeffrey Skilling has been sentenced to 24 years in the slammer, and fined $45 million for the loss of an estimated $65 BILLION with the collapse of Enron.

In the last few years, a dangerous trend has occurred, whereby hidden machinations, secret dealings, and devious activities have grown to become commonplace. What has become more alarming is that so few people seem bothered by the trend.

I thought we might spend a bit of time, today, looking at the formation of the current HUI fractal compared to the earlier one. To do so, we will use a bit of a different look, today, using "ribbon moving average charts".

Currently, traders are equally divided between the bull and bear camp, both with very convincing arguments why this and why that. Naturally, that is what makes a market.

This week it was announced that both producer and consumer prices dropped by 1.3% and .5% respectively, while housing starts unexpectedly increased by 5.9%.

It's close to Halloween, so why not one in basic economics? Here goes. Fact # 1: No currency in the entire world is backed by anything, be it precious metals, mulberry leaves, scrap metal, copper, acreage, or cotton thread.

Don't look now, but a puss-filled sore festers. It grows on the USEconomic foundation.

As mentioned recently, I have not been writing about gold personally and presenting articles about gold in the News & Analysis section of the website because I am a gold bug.

Before getting into the fundaments, let's briefly look at Metanor Resources from the perspective of a technician.

A reader recently sent me an interesting chart that compared the housing industry to the S&P 500 stock index.

I figure Friday the 13th is as good a day as any to take on everyone who insists on calling the price action in gold earlier this year a "bubble." Many commentators on gold believe that when gold hit $720 on May 11, 2006, gold was close to hitting its previous

The mega-storm develops slowly. Small regional home builder Kara Homes of New Jersey has filed for bankruptcy. Depositors have reason to worry. Other builders like Hovnanian, which serves the same northeastern area, has begun to ax executive and field jobs.

As America goes down the drain economically, and the buck loses ever more value and purchasing power, there are many reasons for it. We have discussed the huge problem of overseas jobs, and how some of it comes about by tinkering with tariffs.

My approach is different from that of other monetary scientists in that I take speculation into full account. The theory of speculation is conspicuous only by its absence from mainstream economics.

There is a high probability that the 5 month correction in the gold price has ended. Often there is a relationship between the lengths of the A and C waves of a correction, sometimes C equals A and at other times C is only 61.8% of A.

This week, the professional stock market boosters, who masquerade as wise market commentators, filled the airwaves with celebratory musings on the significance of a record high Dow.

This article is taken from a September Special Report for subscribers to the Hat Trick Letter, a piece of the same name. Several paragraphs are deleted which appear for paid subscribers, while others are shortened to manage the length.