Gold Editorials & Commentary

Could it be that one response to the Chinese shot across the bow of the corrupted and leaky USS Derivative ship at sea is the announcement that Barrick Gold to cover their entire hedge book… again? Maybe! They covered them all in 2007, didn't they?

I recently received a request in my mail to spend more time talking about precious metals mining companies.

This past week saw some great moves by gold and silver and their equities. Even some of the smaller stocks really woke up moving more than 30% in some cases.

Gold is back in the spot light as it flirts with the $1000 per ounce level. This closely watched commodity looks as thought it will rocket higher because of the multiple trading time frames indicating breakouts.

Investors will much more readily forgive a market commentator who is bullish and wrong than one who is bearish and wrong.

All four ETFs remain on buy signals. Prices are ahead of the moving averages, therefore, ideally a four to five week trading range will allow them to catch up.

Last week when gold started flirting with $1000, the gold stocks caught a serious bid. On an impressive 3.8% 2-day gold rally, the flagship HUI unhedged gold-stock index rocketed 15.7% higher!

How to trade hot commodities like natural gas, oil and gold - We should see big moves in the coming weeks as gas bottoms, and oil & gold breakout or breakdown.

How to trade hot commodities like natural gas, oil and gold - We should see big moves in the coming weeks as gas bottoms, and oil & gold breakout or breakdown.

Before the Hat Trick Letter was launched, a little splash was made when a Jackass Nobody wrote "25 Reasons Why Gold Will Rise" in November 2002. It was so many years ago that the piece no longer appears in archives. The motive for the article was simple.

Gold is once again the hot commodity, as the price rises to the $1000 per ounce level. This $1000 - $1033 is a technical pivot point for gold. One of two things is going to take place in the coming weeks.

Gold has broken out of its large Symmetrical Triangle to the upside, and is now in position for "the big one" - the breakout above the wall of resistance approaching last year's highs in the $1030 area.

Gold and silver are on the verge of breaking out to the upside right on schedule. It is going to be a tumultuous year end -- and the precious metals and their related equities will be the beneficiary.

GLD - on buy signal.

The warning signs have never been so many and so obvious. Every single economic indicator for housing, employment, consumer spending, foreclosures, tax collections, commercial property, trade and shipping is unsettling. And yet the stock market rises.

Before we get into anything heavy, let me inform you that the August 1st letter was sent out on time. Should any of you have not received it, please let me know and we will get it out to you post haste.

Another crazy week in commodities with precious metals and precious metal stocks surging higher on heavy volume, while natural gas and crude oil move lower. Money seems to be rotating out of energy and into precious metals.

The latest development in the gold world is highly favorable. Summarize by saying from the rooftops that GOLD LEADS THE CURRENCIES in price movement.

Merrill Lynch Asia (Bank of America) strategists Sadiq Currimbhoy, Arik Reiss, and Jacky Tang suggest that the S&P 500 could soar another 40% by December 2010 before it collapses completely based on a unique comparison with the Nikkei 225.

Here is our monthly update on global indexes for our international investors.

Summary

The markets appear to be anticipating a banking crisis.

If confidence is lost in the commercial banking system, the following is a reasonable outcome:

GLD - on buy signal.

25 years ago I visited Comex at the World Trade Center, watching the feverish activity in the gold pit from behind the glass wall in the gallery. A gentleman standing next, unknown to me, remarked: "One day this make-believe charade will come to a bad end.

New gold investors are often surprised to learn that gold prices have a heavy seasonal component. Seasonality makes intuitive sense for commodities inexorably tied to orbital mechanics, like wheat.

So far this week we have seen commodities move sideways with traders and investors waiting for the US Dollar to rally or continue dropping, which will trigger the commodities to move.

While all manner of attention remains transfixed inside the United States on a remedy and recovery of its bank sector, once again Americans make dangerous assumptions.

Here we are again approaching another 10-year cycle peak. The last such peak was in 1999 while the most recent 10-year cycle bottom was in 2004. We wrote extensively on both episodes at the time and the 10-year cycle is one of our favorites.

Precious metals like gold and silver appear to be forming a bullish pennant formation, which generally leads to higher prices. Currently the US dollar is hovering around a support level, which is the 76- 79 range.

UPSIDE BREAKOUT ALERT: gold is now believed to be very close to an upside breakout to new highs, a development that should lead to a rapid advance towards the $1300 area, and it should be noted that this scenario will not be negated by a brief sharp drop that m