Gold Editorials & Commentary

For a long time I have been tormented by a complicated question. I believe I finally have the answer. Especially after reading so much on the Café and other sites.

As if the war itself were not enough, the aftermath of the Civil War was a wrenching experience for the nation. In Washington there was high drama - the President was assassinated. His successor was impeached and his trial before the U.S.

The price of gold goes up, but gold stocks don't, and you don't know why. Or the price of gold stays steady, but gold stocks go down, and you don't know why.

This article and the imbedded links are a "must read" for those in the U.S.

That central bankers are the quartermasters of inflation is no longer a controversial assertion.

As we descend further into the Kondratieff winter over the next decade, the possibility of a serious financial meltdown in America and worldwide will become ever greater.

There is no question that Gold has been the only story worth talking about in 2002. For the year gold was up 20%. Many junior gold shares were up many hundreds of percent.

Since the early 1980s, the United States has been the major destination for foreign goods on a global scale. With an increasing part of these imports being financed by debt creation, the international monetary system has been swamped with liquidity.

Market Summary

Bullish Markets: Gold, commodities (XAU and the Rogers Raw Materials Fund), gold stocks, silver stocks and the U.S. Treasury markets.

Bearish Markets: The dollar and equities

The following Point and Figure charts tell an interesting story.

The US Dollar has broken down

Y'see, when you get to be as old as I am, you can remember a lot. I grew up in a drug store, because my Dad owned one for 36 years.

Early in the year 2001 twenty-two "expert" Wall Street analysts from Louis Ruykeyser's "Wall Street Week" gave their estimates as to where the Dow would be at the close the year. The estimates ranged from 11,400 to 12,300. But the actual Dow close was 10,021.

Despite mounting opposition to war with Iraq, the Bush Administration is intent upon bringing Saddam "to justice." The resulting rhetoric has dimmed the global community's view of the United States as reflected by the dollar's recent performance.

This one will be controversial, and I am sorry, but this is MY OPINION ONLY, and I won't change it. If you disagree, that's your prerogative. My opinions on anything, are formed by experience, knowledge, and hunches. Also a bit of prejudice, if you please.

A little over two months ago, we expressed some doubt about the immediacy of a push to new recovery highs. We reasoned that the resumption of the up-trend necessitated a weaker dollar and/or a complication in the imminent U.S.

We don't actually hope to go back to the old ways of using gold coinage; it's just that the Federal Reserve's monetary policies keep driving us there.

Introduction: Frank Giustra is not your typical investment banker.

The dollar price of gold broke out on the upside last week from the consolidation since May of its move from $278.70 an ounce at the end of 2001 to $ 330 an ounce in May. It closed at $ 333.20 an ounce last Friday.

What if I said the words "file cabinet," and you thought I was talking about a 1983 Buick Skylark? That would be a bit of an interesting conversation, wouldn't it?

Check out the papers. California is $21 billion in the red. All states are in the red. Counties, cities, towns, and even villages are broke. Ford stock hovers around $7, and United Airlines stocks which got almost to $100, now are worth pennies.

The supposed non-value of paper currency is a common theme in conservative financial circles today. It seems that the "demonization" of the dollar has come into vogue among a host of financial writers, who term it a "worthless fiat currency."

The bear market of 2000 and 2001 has produced the largest declines in the stock market since the 1970s. The Nasdaq declined over 70% from its highs in March 2000 until the lows of September 2001, and the Internet Bubble has clearly popped.

A little-known mining concern is rapidly making progress in exploring and developing gold-rich properties in Alaska and Canada.

THE 50% PRINCIPLE - Let's take a look at the very big picture as seen via the 50% Principle. For the benefit of new subscribers, I want to review the 50% Principle.

The words "not a casus belli" caught my eye yesterday. They appeared in a White House press release.