Gold Editorials & Commentary

The gold market, in true-to-form counter-cyclical fashion, is trading opposite the equities market and the U.S. dollar, and will likely test the lows near $270 over the next several days.

Interesting that the bond market got roughed up pretty well last week after having rallied sharply for the past several weeks.

Since September, the Dow Jones industrial average has gained 15% as the bulls rushed out to snap up stocks at bargain prices.

As in a previous piece, I must first make a disclaimer. I deal in bullion coins, not numismatics. There are two sides to every question…or more. I offer my side of the controversy, and will attempt to offer the other side too, to be fair.

PART III

PART I

EXECUTIVE SUMMARY

The ripple effects of the market's technical status . .

It seems only yesterday, we were hearing a lot about a new era, but now we are actually living in one, not because of Sept. 11th, which is not an occasion to be used to promote self interest.

In recent weeks we have commented on the likely scenario in the equities market as we round out 2001 and head into a new year.

Douglas Cliggit of J.P. MORGAN Dampens CNBC's Enthusiasm

Rumors about the demise of the Taliban and Mr. Bin Laden are greatly exaggerated as Mark Twain would put it; I would add official comments on the health of the global economy are even worse.

For the first time since the Roman Empire, legions across Europe are on the march for conquest under a united Euro banner.

An increasingly aggressive attitude . .

Let me begin by saying that I am a precious metals dealer. I have been such since November, 1977, and do not sell gold stocks, or any other stocks, for that matter. I have clients in all 50 states and Singapore, and enjoy what I do.

After a ferocious year terrorizing traders on Wall Street, the great bear has taken a temporary hiatus, and buyers have been allowed to mark up prices in the first significant rally in several months.

Government pronouncements notwithstanding, the ongoing bombing campaign in Afghanistan is all about oil (a point we recently emphasized in a GOLD-EAGLE editorial) and the stakes are as high as ever.

Interesting that the bond market got roughed up pretty well last week after having rallied sharply for the past several weeks.

I am taking a break from my normal IMF research to focus your attention on a special situation that has developed over the last 2 months.

Relief and exuberance . . . have characterized this week's market, as Wednesday in fact again delivered the projected pattern, which included the idea of a 'second rally' a bit less euphoric than Wednesday's first one.

We read much that is bearish on gold and gold stocks in the financial press, but little that is bullish in scope. When was the last time you heard an advisor or newsletter writer heartily recommend getting long of gold stocks?

The so-called "War on Terrorism" has so far none nothing to alleviate the constant threat of international and domestic terrorism, but has always been about the geo-politics and logistics of the oil economy.

What is $6 billion a week, you ask? $6 billion a week, is the number of dollars that are currently being inserted into America's money supply, not counting the actual deficit of billions per year over taxes collected. "Added liquidity," in Greenspanese.

Of the metals, silver is the best conductor of heat and electricity; consequently, it is used widely throughout industry. Including photographic demand, some 845 million ounces were used in 2000.

Even as the stock market was ascending to undreamed of heights, IAN GORDON warned our subscribers in our June 11, 1999 interview, that we were nearing an end of the greatest bull market in the history of the stock market.

Is everybody looking for a top . . . if even on a short-term basis? Or, is the idea that we won't drop because 'everyone' thinks we will, actually an excess of double-think?

"The case of Howe vs. Bank for International Settlements et al."

NOTE: This column has been revised, because one paragraph assumed that everyone knew I was a precious metals broker in 1980 and before, and could indeed refuse to sell to clients who requested silver when it rose to $54 an ounce.

Modern economic thought, encumbered as it is with traces of Marxism, tainted with the flaws of Adam Smith, and permeated with the fallacies of J.M. Keynes, has not the scope nor the vocabulary to address the problems unique to today's economy.