Gold Editorials & Commentary

The US stock market has just reached new record highs, as measured by the major indices, with valuations that are in no way supported by the earnings of the underlying businesses. Share prices are, in fact, supported by debt.

Hanging onto support by its fingernails . . . the stock market managed to climb back up from a very precarious position; though by no means has the market secured a good footing.

It explains the ridiculous rise in Internet stock prices.

"If it's magic, then why can't it be everlasting?"

—Stevie Wonder, "If it's Magic,"-1975

Alan Greenspan wants us to believe he's got a boring job, but I'm not buying it.

The Fed chairman was on Capitol Hill last week, waxing cautiously optimistic as ever while forecasting moderate growth in the U.S. economy.

The American Experience Conclusions

Chart Symmetry is designed around the observation that prices tend to change direction along certain preferred gradients. Different preferred gradients are linked though the Fibonacci ratio.

Since 1492 when Cristobal Colon (Christopher Columbus as he is known in the U.S.) discovered the Americas, GOLD has always been the monetary messiah of the Latin American continent. This region encompasses the entire area from the Rio Grande river (U.S.

"A pototypical distribution. .

Inflation, never far from the economic spotlight, enjoyed top billing at Alan Greenspan's recent appearance before Congress.

Chart Symmetry is designed around the observation that prices tend to change direction along certain preferred gradients. Different preferred gradients are linked though the Fibonacci ratio.

MYTH…

Central Bank Gold Sales: much ado about nothing

We haven't been this bullish on the speculative gold stocks sector in years!

Cast as the perennial bad guy of financial assets, gold faces many protagonists. Low gold prices reassure the bond market that commodity prices remain tame and that no inflationary threat exists.

Panicky peddling. . was not our expectation Tues. night when S&P premiums evaporated, and a big discount prevailed on the overnight Globex market.

" I set to work to read the Act of Parliament by which the Bank of England was created in 1694. The inventors knew well what they were about.

The American Experience

Period 5: Inflation of 1933-1997

Duration: 64 years

Commodity Prices: +1013%

Purchasing Power of Gold: +51%

Monetary System: Gold Exchange Standard, then Fiat

The U.S. stock market continued once again to display a surprising lack of decisive directional thrust last week for the sixth consecutive week.

Chart Symmetry – a comprehensive system for technical analysis – is designed around two observations of the way prices behave:

Supply is overwhelming demand. . . not just in IPO's, like the permabulls are rationalizing, but with the huge long positions "hot panting" mutual fund or vociferous hedge managers apparently haven't in any meaningful way started liquidating.

One of the smartest businessmen I know, a highly successful wine importer, has done well in the stock market over the last five years.

The global equity and commodity markets have been sending diverging signals of late, with some major foreign markets rebounding strongly from recent depressed prices while others hover near the precipice.

Bullish euphoria was severely dampened this week as the yield on the 30-year US government bond surged to 5.35% from last Friday's 5.09%.

Waiting for Godot . . . characterized much of Wednesday's price behavior ahead of Fedspeak.

A number of market observers have noted that the current excitement in the silver market is occurring exactly one year after Warren Buffett's announcement of his big silver purchase.

One of the worst things an analyst or investor can do is try to call a market top, especially if an all-out mania is underway, as is presently the case.

The stock market action over the last month was typical for the season. We started off with the usual sharp January rally, it fizzled a bit and then finished on a positive note.