Gold Editorials & Commentary

STOCKS REMAIN HUGELY OVERVALUED

After years of worldwide high broad based monetary growth (M3) many investors ask themselves in what direction the economy will go. Are we headed for hyperinflation, depression or will goldilocks come back soon?

Warren Buffett, the renowned value investor, is noted for his ability to respond to sellers of businesses "usually within five minutes" whether or not he is interested in buying that business (at a specified price, of course).

Huge financial losses . .

I think I've got the stock market figured out for this year. It's a quarterly thing you see. At the beginning of the economic quarter hope is high, Mr. Magoo cuts interest rates and the whore media chirps in; presto, a stock market surge.

There are so many non sequiturs going around these days, that one can hardly tell fact from fiction. Take the trite expression "Developing Nations" which was coined by some liberal apologist from the United Nations, which name in itself is absurd.

This picture is worth 10,000 words

…and they all spell: B-E-A-R

In his magnificent May 2001 issue of "The Long Wave Analyst", Ian Gordon quoted John Kenneth Galbraith and Richard Russell that sets the stage for the news of a rapidly deteriorating global economy now in progress.

One year ago we reported that the "War and Peace" cycle was forecasting war sometime in the 2002-2004 timeframe.

Key supports were breached Thursday (June 14) in several vehicles tracked by Black Box Forecasts, suggesting that sellers have not yet spent their energy for the near-term.

Is the economy in new trouble? Or is today's sobering market behavior just a cross between a failed intraweek rally during a Triple Witching Expiration, while the Fed's Tan (or Beige) Book Report was a little pessimistic?

I just completed a telephone survey of all the registered, approved, financial planners in my town. They have various degrees, diplomas, and certificates of achievement, which certifies them as experts in economics. They have all the answers.

Exodus 17:3

But the people were very thirsty and continued to complain to Moses. They said, "Why did you bring us out of Egypt? To kill us and our children and our livestock with thirst?"

I would like to present a brief discussion quantifying the leverage available in the HUI.

Gold finished the week at $273.40, declining $5.70 since our last update two weeks ago. Following the mid-May price spike, bullion has consolidated, bouncing along the 45-day moving trend line.

The gold market posted a remarkable performance on Friday (June 8) and had many gold bulls licking their chops in anticipation of further gains in the near-term.

"MORGAN CHASE SEES YEAR OF GLOOM"

Alan Greenspan was no stranger to the tales of the great manipulative cliques in the gold market of past years, or "gold pools" as they were often called.

Introduction

Some centuries ago there was a very simple little piece of doggerel that was widely sung in England. It went like this:

Ring o' ring o' rosies

Not that politics ultimately matters in the least, but the mid-cycle elections in 2002 could provide an entertaining test of entrenched political theory.

After its upward surge of late last month, the gold market was in correction mode last week - but not for long.

Did our forecast late-May/early-June 'fling' . . . come to an end Wednesday?

One of the more objective newsletter writers on Wall Street these days is the veteran Richard Russell who has lived almost long enough now to have lived as a young man through the entire Kondratieff winter of the last cycle.

Never have so few, lied so much, to so many, for so long. Me thinks Mr. Magoo will have this engraved on his tombstone if he's lucky. Heck, why stop there, this is the epitaph for the whole filthy, rotten, stinking system we live under.

Following gold's $25 rise in less than five trading days a normal correction was abetted by rumor that Russia might sell gold to aid Siberian flood victims. A Thursday rally was turned into a decline that extended into Friday.

Gold traders and investors who have wondered aloud in recent months how the yellow metal can possibly mount a sustained rally--an-look so good from a chart perspective-in the face of a rising U.S. and global stock market outlook now may have their answer.

Andrew Harriman had just received his orders from his superiors at Goldman Sachs. He was instructed to keep the price of gold on the U.S. futures market below $500 an ounce at all costs.

An emerging consensus . . . against an imminent economic or technology recovery is occurring, and is perceived to be the excuse for the market's increased volatility of late.

First, from John Brimelow:

Indian ex duty premiums: AM $4.68, PM $5.32, with world gold at $267.20 and $266. Above legal import point, although showing understandable signs of shock.