Gold Editorials & Commentary

I covered municipal bond yields last year as they approached their second anniversary of an amazing and historic yield inversion.  Geeze Louise, muni-bonds pay tax-free income, yet since November 2011 they have yielded more than Barron’s Best Grade Bonds.  Ther

Have a good look at the following two charts.

I have never appealed to the so-called conspiracy theories in trying to explain the strange world of fluctuations in the price of monetary metals.

Explanations for this gold selloff abound everywhere and nearly all of them are inane and incorrect.

There are likely, at minimum, half a dozen reasons for the swift correction in precious metals over the past week. The real reason might be one, two, or even all of what I’m going to lay out below.

The recent drop in gold and silver is not critical to buyers of physical metals. Instead, it is an opportunity – to buy more at lower prices; at worst, it is an irritation, since it means a longer wait.

On Friday we witnessed a great plunge in gold (almost $80 – from $1560.30 to $1480.50) and silver (almost $1.7 – from $27.58 to $25.89) and we are seeing even lower prices this week.

That was the question I asked myself after being 100% cash into the last hour yesterday and seeing the bottom fall out on the gold stocks once again. Classic trading methodology teaches that you do not try to catch a falling knife.

To me, at least, times are fascinating as much as they are disturbing. The take down we have seen in gold and silver beginning on Friday and still continuing on Monday is breathtaking.

I have come across the above item on eBay. It is selling at $60 for a 2 pound bag. It is not an illegal drug and it would not be much good for smoking either.

The threat of war against the United States is making headlines and roiling investors’ nerves.  While full-scale war is likely not imminent, it’s something worth considering in light of where we stand in the long-term War Cycle.

It has been a painful few days for those who believe that gold (and silver) are a safe haven from government money-printing machines and the mountain of debt of the Western economies.

When volatility prevails in the gold market, I love seeing so many different opinions because it promotes critical thinking and healthy markets.

To me, at least, times are fascinating as much as they are disturbing. The take down we have seen in gold and silver beginning on Friday and still continuing on Monday is breathtaking.

I have come across the above item on eBay. It is selling at $60 for a 2 pound bag. It is not an illegal drug and it would not be much good for smoking either.

It has been an increasingly brutal ride for gold and silver, beginning around late March and accelerating through April. The gold price was over $1600 and on Monday April 15, it fell below $1350, a loss of $250. Silver did even worse, falling from $29 to $22.

Until recently I was expecting the bubble phase for gold to occur as we came out of the next 8 year cycle low in 2016.

Three weeks ago, the investing public was awarded a brief glimpse into the mysterious world of central banking through events in Cyprus.

The last week has been a fright fest for the gold “community”. But these are the financial markets, not a community. There is a world outside of whatever is going on in gold and silver.

In the opening years of the last decade, most mainstream investors sat on the sidelines while "tin hat" goldbugs rode the bull market from below $300 to just over $1,000 per ounce.

October highs of last year. I'm going to show you some charts, further along in this article, that will shed some light on what is really taking place right now. Keeping an open mind is key to being successful in the markets.

Late Friday afternoon in New York (April 12, 2013) gold plunged through the critical support level around $1525 level that has held resolutely since the start of this 19 month correction from $1900 in September 2011.

"The main purpose of the stock market is to make fools of as many men as possible."

Bernard Baruch

Gold bullion prices have been subjected to a cleverly orchestrated bear raid in our opinion. Selling of paper Comex contracts on Friday, April 12th, and Monday, April 15th, totaled 1 million contracts, exceeding global annual gold production by 12%.

When I was a boy I was told that anybody could become President. Now I’m beginning to believe it.



— Clarence Darrow

For gold to rise to levels significantly higher than the recent high of $1920, a new impetus is needed. Without additional energy from such an impetus, gold could just trade sideways for a very long time, or even fall further.