Gold Editorials & Commentary

A 'V-bottom' and afternoon rally . . . was our preferred outcome for the daily basis, and we got it!

COMEX Gold Futures saw a two-day double top last week near the $308 level. A pullback and consolidation is underway with perhaps more short-term price weakness to come.

Following six days of steady advances gold reached a closing high of $303.50 an ounce on February 8th. Resistance and profit taking set in, and gold declined moderately to $299 an ounce on Friday, still up 6% for the month to date.

President Bush was recently in Japan. He offered homilies to the Japanese, and his best wishes, but this will have no effect in the dreadful depression that now engulfs them. The Japanese look to government for help, to escape their economic miseries.

For some time no forex analysis was done, the reason being that evidence was mounting that the US dollar was being manipulated to suit objectives of the Bush Administration and other vested interests.

As George Bush arrives in Japan all the economic and political signals coming out of the country continue to be depressing. You can tell when a person, company or country is in trouble when it becomes the target of gallows humour.

In my interview with Ron Gilchrist, which went to press yesterday as part of the February 15, 2002 issue of "J Taylor's Gold & Technology Stocks," he talked a great deal about a very special man named John Exter.

The great equities sell-off is just around the corner as almost every Dow 30 component stock has traced out a bearish parabolic pattern with enormous downside implications.

Observing 'they couldn't take it down' a week ago . .

Introduction

The Chicago Mercantile Exchange (CME), the exchange on which major world currency futures are traded, announced recently that December 2001 volume of trade reached a record of 411.7 million contracts, surpassing the previous record year by 78 percent.

Let's see now, the Japanese are buying gold like it is going out of style, carrying bags of yen to gold shops, and asking, "How much gold will this buy?" Dubya is spending, like there is no tomorrow.

The Japanese economy, the world's second largest, apparently is unable to recover from a lingering recession which descended on the country in 1991. Industrial output has been erratic and lackluster ever since, meandering between expansion and contraction.

As a teen-ager I toured the Ford Assembly Plant in St. Louis (actually, in Hazelwood, a suburb) with my parents in 1949, the year after it opened. Mercury automobiles were being put together there, in a pageant fascinating to watch.

You know you are in trouble when President Pretzel singles out Teddy Kennedy and praises him for his education "bipartisanship" during his State of the Union speech. The State of the Union isn't good as Bushocio claimed.

"J TAYLOR'S GOLD STOCKS ARE ON FIRE!"

First let me make the following disclaimers. Everyone must do his or her own due diligence. Nothing in this essay should be considered investment advice. I am long gold and silver in the mining shares, options on futures, as well as physical.

Gold futures on the COMEX have soared impressively over the past two days and have broken above benchmark $300 resistance, on an intra-day basis, even before we anticipated in our last commentary.

Are technology stocks on the mend? For those with controlled debt, that's more or less precisely the prospect of this whole era, believing September 20-21st lows were an absolutely spectacular buying opportunity, while dangers of short

Since our last update, bullion dipped near long-term support levels at $278, but quickly reversed course to end the week with an impressive $3.90 rally on Friday to close at $286.00.

(For Joy Foundation, which I mentioned last week, I forgot to mention the name of the rep. Call Paul Nystrom, at 1-970-249-1902 if you are interested)

Patiently shining your coins, and bullion may be a wiser pursuit than currently buying most gold stocks.

After years of denial and complacency, Americans are finally starting to realize that the U.S. financial system is one megalithic house of cards on the brink of collapse. Enron has been the headline rage of late and derivatives were its undoing.

It's easy to be confused by the mass of conflicting economic data these days. You don't even have to be an educated economist to sound like an idiot, although a college education is always helpful.

Before a self-righteous Congress tears Enron apart for its accounting lies, our elected officials should not forget that they are among the biggest liars of all.

In my last article (see reference [1]), I presented an assessment of the status of the long period cycle associated with the flow of investment capital between equities and other paper assets and ha

March 2002 gold futures on the COMEX have given the preliminary signal that our forecasted 2002 gold bull market will shortly begin.

No surprise to readers here . .

In the hundreds of cases, when the money in use becomes worthless, it is ALWAYS government that debases, and eventually kills it altogether. There is not a single case in recorded history, of a paper currency that did not inflate, and become worthless.

Up to this point in the presentation the K-Wave has been explored and the conclusion reached was that the fall season has been extended well beyond historical norms.