Gold Editorials & Commentary

The Cycles

We certainly live in interesting times, and the current political, social and economic problems are all combining to create somewhat of a disturbing atmosphere that could have ramifications for many years to come.

Somehow, someway, it always comes back to the central bank.

I know this is unusual, but it has to be done, simply because of its wide implications, and the fact that it might be the hinge on which the American economy swings. More and more letters have come to me about these columns on housing.

December Gold: $309

Critical underlying support: $309

Critical overhead resistance: $310

The summer correction continues, while the volatility picked up in July.

TIME TO GET READY FOR REAL CRASH!

Trillions of dollars have been lost so far on Wall Street, but in my view, the biggest losses are still to come. I say that for at least two reasons.

Many investors have asked where has Alan Greenspan and his Federal Reserve and so-called "Plunge Protection" team been all through the current traumatic year?

I'll never forget the raspberries Gold Eagle writers used to get, when we accurately predicted the stock market crash. "You guys are nuts," is basically what our dire warnings were greeted with, by the 90% who disagreed with us.

It is interesting how, when you are long a particular investment, you try to find reasons to justify the long position; and when you are bearish and out of the market you tend to want the market to fall.

Among the obscure financial reports that have more pages than readers is one from the Bank for International Settlements. The staff economists had toted up the figures and found a massive black hole in the universe of money movements.

During my nine years dealing with speculative stocks and cycles, I have noticed that during such times you develop somewhat of a procedure that separates the "wheat from the chaff".

Politicians intent on re-election have stirred up a media frenzy over "corporate governance," exploiting the bankruptcies of a handful of companies like Enron and Worldcom.

I am producing this issue early as having poured over all my gold data for the past 48 hours I have reached the conclusion that the gold price is on the verge of an explosive catapult to well above $400 by the

So what if the Dow goes up by 15% over the next three to four months. That's no consolation to anyone that watched it drop 30% in the past four months. To recover losses like that the average would have to rise 40% off its recent bottom, near 7600.

"Despite its severity, we believe that the slump in stock prices will prove an intermediate movement and not the precursor of a business depression such as would entail prolonged further liquidation..."

Bearish Charts - All Below Their 200-day Moving Average!

One of the enduring myths about government is the notion that successful governments are those entities that "provide prosperity" for those who are governed. The real issues involve who receives the blame for causing the calamity--and who benefits from it.

Gold futures fell out of the proverbial bed on Friday (July 26), falling to a 4-month low just above the psychological $300 mark.

This could be America's next nightmare, and possibly even worse than the stock market going down the tubes. Think about what has been the second biggest balloon of late.

It's always darkest before the bottom falls out - JP McGoran

With the recent meltdown in stock prices, some economists have said that there is no need to be concerned because the stock market does not reflect what is happening to the economy.

Gold rallied over $320 an ounce, ending a month long correction as the euro rose above parity against the dollar. We believe the second leg will begin shortly and will see $375 per ounce before the yearend.

Most global gold indexes, as well as the bullion price, peaked in late May. At that point of time the Dow was trading at 9900 and has since fallen 23% in just eight weeks. All the major currencies appreciated as the dollar took a beating.

Argentina's recent bankruptcy and the spreading financial turmoil in its neighboring countries are just the latest chapters in Latin America's long history of foreign debt and default.

THE ECONOMY & MARKETS

Peering Into a Bottomless Pit

HITS FOUR-YEAR LOW... The Dow tumbled 400 points today and, more importantly, finally broke last September's low. The Dow is the last of the major averages to fall below the lows of last fall.