Gold Editorials & Commentary

There are two parallel markets happening in gold. If you own the mining stocks you are currently caught between these two financial forces.

Après moi, le deluge, literally "after me, the flood," the French phrase is attributed either to King Louis the XV or to his mistress, Madame Pompadour.

The world functions upon a greatly different world chessboard compared to seven decades ago. Conditions inside the United States are as different nowadays versus the 1930 decade, as that Great Depression Era was compared to the Roman Empire. Well, not really.

Summary and Conclusions

I hate to be so critical of CNBC, especially since they were gracious enough to have me on as a guest on Monday, but when they present such an easy target, I just can't resist.

Introduction

"The objective of investing is to increase the purchasing power of capital."

Today's gold action was highly significant because it gave rise to a closing of the gap on the weekly bar chart of gold that manifested some weeks ago when emotion started to creep into the markets. (Chart courtesy Decisionpoint.com)

Judging from the level of complacency in the stock market, some of you may not care to make it to the second paragraph of this article--Hyman Minsky warned us about times like this!

This article was inspired by a recent article by Mr John Mauldin, entitled "The more things change".

Of the various vulnerabilities traditional financial assets are exposed to, a rising oil price is of particular concern.

Of the various vulnerabilities traditional financial assets are exposed to, a rising oil price is of particular concern.

Of the various vulnerabilities traditional financial assets are exposed to, a rising oil price is of particular concern. In 2004, oil hit an all-time high of $56 per barrel, up 366 percent from the $12 low of 1998, and up 75 percent since January 2004.

Much as home builders and mortgage associations and national realtors and REIT managers would like to deny, strong parallels exist between the housing bubble and the tech stock bubble in 1999.

As the debate over the existence of a real estate bubble rages, the most persuasive case in favor continues to be made by those firmly committed to the opposite point of view.

For successful investment decisions it is necessary to recognise the main driver for a future development and then adjust accordingly the investment strategy.

Bottom line of the charts that follow is: It seems that speculators are starting to exit the "hot" markets

Rising tops and bottoms in price accompanied by falling tops and bottoms in PMO is bearish for oil.

Summary and Conclusions

Acknowledgment: Mr Ted Butler's most recent article drew my attention once again to the relationship between outstanding Commitment of Traders contracts and subsequent price movement is the silver price.

The Big Picture

Gold & Historical Norm is Chapter I of the Gold Drivers Report and analyses Gold against its own historical norm. This is important since many people argue that Gold is at an historic high these days and therefore bound to fall.

The proportion of mind space that this analyst has been paying to the US markets (which he typically only does in his spare time) is growing to become uncomfortably high.

The fact that signs of growing inflation have coincided with a strengthening dollar has led many to the erroneous conclusion that higher inflation is somehow good for the dollar.

The term "Petro-Dollar" has been bandied about for years. In my travels, much has been mentioned in indirect terms about it, with assumptions of its nature and structural significance.

Home page: www.goldcorp.com

I just happened to stumble across the chart below, which is a 5% X 3 box reversal of the RATIO of silver to gold.

It is a matter of absolute fact that the Mayan Calendar ends on December 21 st, 2012.

There are two ways of looking at this:

Today's release of March's much weaker than expected non-farm payroll numbers (110,000 verses average estimates of 213,000), together with February's downward revisions, provides clear evidence that the "recovery" is indeed faltering.