Gold Editorials & Commentary

The traditional method of conquering another nation has been via warfare. It's a dangerous method, and leaves the victor with a seriously impaired property to manage after the war is over.

If I recall history correctly, it was a Venezuelan who fathered the concept of OPEC (Organization of the Petroleum Exporting Countries) about 25 or so years ago. And we all well know the monumental impact OPEC has had on world economics since.

Beginning of month buying . .

The bull market continues to rage ahead in the OTC market, but is by no means broad-based. This market has become extremely narrow and the leaders are few.

A SECOND STARTING POINT

Appendix A: Introduction to Elliott Wave Theory.

Recent history and the current market bubble.

SETTING THE STAGE

Why should we care about the long-term outlook for the stock market?

INTRODUCTION

Despite what have appeared to be indications of an imminent change to this most difficult environment, the historic stock market dislocation continues. Again this week, the market is dominated by wild moves in stocks and sectors with large short positions.

U.S. markets continued soaring into the stratosphere last week as the "melt-up" continued to exert its influence on key stock market sectors, particularly the OTC stocks.

In this article, I attempt to raise and level new specific accusations in the ongoing gold and silver manipulation. Before I articulate my new allegations, let me summarize what I've said to date.

From an historical perspective, the possibility that the Dow Jones Industrial Average and the gold price could converge at around $3000, i.e., the Dow at 3000 and gold at US$3000/oz. sometime in the next decade is quite supportable.

T-Bond action foretold the reversal . . . or so we thought late Tuesday.

The gold deposit scheme announced by the Indian Finance Minister aims to draw out a part of country's vast gold holding in private hands and thus reducing India's dependence on importation of gold.

What we are witnessing is the death of the dollar as we know it. This is a chess game where the loser's currency devalues greatly. All the moves from all corners of the world are centered around gold, the dollar/IMF, and the new Euro currency.

Superlative strength in computer and technology stocks . .

Underneath the surface of a bubbling and vibrant U.S. stock market is a banking industry scandal waiting to erupt.

I admit that all this flurry of activity in gold confuses me.

Introduction

The battle for supremacy pits Frankfurt against London. However, beneath the turbulent surface is fierce hand-to-hand combat of Gold vs the US$.

Relieved that business is slowing . . . based on corporate reports from housing and autos, the stock market seemingly views this as a favorable sign to embolden it not to fear the Fed, as time marches on.

The Dow Jones Co. shocked the financial world last week when it announced it was de-listing four of the 30 components that make up the famous Dow Jones Industrial Average.

The plot thickens: Along with currencies and interest rates, central banks add gold to their list of manipulated markets. But even the best laid plans of mice and men can't overpower checks and balances of the marketplace.

The war being fought between paper and gold has already been decided. It was decided when European central banks announced they would sell a limited amount of gold over the next five years and end leasing. This effectively remonetized gold.

We wrote in last week's commentary that a bottom may have been in place and that accumulation appeared to be broad-based.

I have been a student of the market umteen years. And although I first cut my financial teeth on purely Fundamental Analysis, many years of experience and financial battle scares have taught me the invaluable service of Technical Analysis.

Irregular price behavior . . . dominated Wednesday's action most of the day, with a "relief rally" of sorts in the "interest rate sensitive" areas as the afternoon progressed.

Time to dip into the mailbag, since it's been a year-and-a-half since Market Directions last fielded questions and comments from readers.

I have been affiliated with Wall Street more years than I care to remember. Consequently, I felt until today I had already seen everything -- all the possible tricks and shenanigans the securities industry could invent to deceive the investing public.