Gold Editorials & Commentary

Yesterday the Labor Department reported that July Consumer Prices rose by .5%. Today we were informed that July producer prices rose an even sharper 1%.

...Are doomed to repeat it!

There has been much debate in recent months/years regarding the symptoms of Central Bank excesses - which excesses range from excessive expansion of the money supply, to excessive downward pressure on short term interest rates.

De-leveraging the System

It is six months since the last in the series of long term reports on the US Bond market, the gold price and US dollar-Yen, using the principles of Chart Symmetry.

Most economists whose opinions are promoted, or are used to defend public policy, are very shallow, faulty, suspect, and compromised. That has been my opinion for years. Here my usual fare of harsh criticism will soften into mixed criticism.

Inflation

Whenever an asset falls in value by 80%, it has to be examined for its potential as a contrarian, value-oriented investment. Such is the case with Palladium.

In the second week since China's announcement of its decision to abandon the yuan's peg to the dollar, the reaction in global financial markets has intensified.

Recently, there were some interesting articles that discussed silver related issues in Mexico, like the unfolding of the "Peak Oil" scenario in Mexico and its impact on the Peso (www.gold-eagle.com/editorials_05/watson

Despite a sharply falling dollar, the U.S. Trade Deficit has continued to confound the experts by steadily increasing to new record levels of 6.3 % of GDP. What are the implications of this for the U.S. economy and what, if anything, should be done about it?

Today's (to be giant) Gold Bull Market continues grudgingly backing and filling so as to attract as few followers as possible.

A recent email exchange took place between me and the venerable Kurt Richebächer. We keep in contact regularly but not too frequently.

It was a July summer evening in La Jolla, a weekday night, and our favorite restaurant had an hour and a half wait to be seated. So, we went to an alternate restaurant. It was full, but able to seat us. The economy, on the surface looks like it'sbooming.

The left hemisphere of the human brain is where all the logical and sequential thought processes take place, whereas the right hemisphere of the brain is where the aha!! moments of inspired discovery come from.

Foreign Content 30% Ceiling Has Been Removed... (finally)

One week after China's decision to scrap its dollar peg, the Bank of China has already back- peddled, warning currency traders not to expect any further appreciation of the yuan.

These modern alchemists at the US Federal Reserve are in a pickle. They must promote an image of seeking monetary neutrality in the setting of interest rates.

Below is an extract from a commentary originally posted at www.speculative-investor.com on 17th July 2005.

Historically, one of the primary reasons for owning gold, silver or platinum bullion has been their ability to preserve purchasing power during inflationary periods. Over the long term, inflation robs us of purchasing power.

The views expressed in this column over the past couple of years have been wide ranging and, at times, disconnected. It seems appropriate at this point to set out a consolidated overview.

Introduction

The news that China cut its currency link to the U.S. Dollar came and went with little media reaction.

For a number of years now there have been alarm bells sounded about the huge growing under funded liabilities of both US and Canadian employee pension plans.

Back in the late 1970's, the lineups to buy gold were reminiscent of people waiting to buy Stanley Cup Hockey tickets at the Montreal Forum. They stood in their jeans, ski jackets, bulky sweaters, construction boots and business suits and coats.

The old saying "no one rings a bell," certainly doesn't apply today, as China rang the "mother of all bells." So deafening was its sound, that its vibrations will be felt around the world.

As the FED slowly raises interest rates quarter point by quarter point, the financial environment may seem to be changing very little, but in reality it is becoming increasingly at risk from financial tornadoes; A tornado is a storm that appear suddenly out of

From the early months of 2002, the key currency movement associated with the rise in gold has been the euro. Clearly, gold and the USDollar compete for primacy.

Introduction