Gold Editorials & Commentary

US Dollar Chart

Dollar Commentary

Fear is the greatest buy signal ever seen in the stock markets. This overpowering emotion flares fast, driving excessive selling that rapidly hammers stock prices down to irrational oversold levels.

The people who are looking at the gold market as if it's a deflating bubble are ignorant, or more likely ignorant and lazy.

Something big is going on in the United States in a sentiment change, an altered state of psychology, a growing sense of panic. My opinion is that the nation has entered the early stage of comprehension among the population of systemic failure.

After this week, it's safe to say that the dead-cat bounce in the 2007-11 bear market is over. It ran from the March 2009's -53% bottom, until April 2011, when it climbed back to its BEV -10% line.

It was another absolutely madly volatile week, especially as we moved to the end of it. It's a day-traders bliss, but I'm not a day-trader. It's not an easy way to trade, and every tick counts. It's just not for me, or most people.

Gold is now running up through the series of price targets that we laid out early this year, though a couple of months later than we had originally expected.

GLD - on buy signal.

"No country upon earth ever had it more in its power to attain these blessings than United America.

Gold has enjoyed an amazing rally in recent weeks, catapulted higher by the extreme fear sparked by the sharp stock-market correction.

The past few weeks traders and investors have been completely spooked from the surge of negative news and collapsing stock prices. This fear can be seen by looking at the volume on the GLD gold ETF fund.

Gold and Silver have emerged in the last 12 months as the dominant asset group. They led the entire 2000 decade, still gathering disrespect. They do not require respect from the Wall Street and London crowd.

Gold has shown impressive strength over the past couple of weeks having risen as high as the $1800 area.

To say it was a volatile week would be an understatement. Wild, fast swings of 400 points or more in the Dow is something we rarely see. In this type of market avoidance is the goal for most including us.

GLD - on buy signal.

With the plunging stock markets terrifying traders, many are running for the hills. Steep selloffs always generate intense fear, a scary emotion from which we humans are naturally hardwired to flee.

The events of the last ten days are surely for the history books. The story must be told through a prism of the epic battle between inflation and deflation. The Jackass hates the parlance, since each term is abused.

I did a weekly article on the Dow Jones bear market starting in October 2008, after it declined 40% below its highs. I developed several indicators not seen anywhere else.

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I didn't get the chance to get to the free weekend letter this weekend and I apologize, but in my defence it is summer and the sunny days have been few and far between this year so with family and friends home I couldn't resist taking some rest.

GLD - on buy signal.

Bear Markets serve a necessary purpose in the financial markets: to clean up the mess left by the bulls. What kind of mess is that? When the party is financed with other people's money, Mr Bear's clean-up crew has quite a task before them.

It's sure been an exceptionally-ugly week in the US stock markets! The threat of Washington defaulting on its debt, worse-than-expected economic data, and the waning of Q2 earnings season conspired to wallop equity prices.

All numbers and calculations are destined to turn to zero unless they are underwritten by philosophical underpinnings which themselves have values as well as clear cut, realistic and sustainable strategies.

I had two purposes in writing today's commentary. The most obvious intent is to help people avoid committing financial suicide in our real estate markets.

The US Federal Reserve has no monetary options whatsoever. They have been backed into the corner since 2007.

Bill Murphy and Chris Powell are busy with GATA's much anticipated London Conference this week. I hope both have a good time promoting "Planet GATA" in the belly-of-the-beast.

Back in Mid-May of this year we had a big rally in the Dollar and Gold was correcting hard. There was a bit of Dollar Bull hysteria at the time which I felt was quite unfounded.

Over the past seven trading sessions we have seen stocks plummet in price because of the debt issues in the United States.