Gold Editorials & Commentary

As expected, it was another very unsettled week in the stock market and financial markets generally. Despite higher interest rates, stocks rocketed higher led by the most speculative issues in a move that looked to be exacerbated by derivative trading.

Don't be confused by self-serving outcries from various parties trapped in the gold short squeeze. I am amazed to hear reports that so-and-so has restructured their hedge book or that this or that group has covered its short position in gold.

Options trading and bungee jumping have a lot in common. Both can slam you into the ground ... and both can send you flying into the stratosphere. So why attempt such extreme sports?

Gauging the wind .

It seems unanimous: the economy is booming. Presidential candidates allude to it in condemning their opponents for not proposing more spending for education, or housing, or whatever pleases their current listeners.

In "A Peek at Smaller Golds" (Part I) I presented a group of successful advanced stage exploration companies that should offer substantial upside gains in a gold bull market.

During the first part of this year, I wrote an article for Gold-Eagle titled GOLD, COMMON SENSE AND PATIENCE.

Here's an update from my last piece, "No Way Out", in which I postulated that the leasing scam in gold and silver would soon come apart and we would have a market event similar to what occurred in the stock market in Oct 1987, which was triggered by "portfolio

In the last "Midas," I reported that several sources had told me that the Federal Reserve was "jawboning" futures commission merchants not to pressure firms to deliver gold.

A lot of shorts must be wondering why the European Central Bankers decided to limit their Gold sales to not more than 400 tons per year for the next five years.

The European central banks moratorium on gold sales limits aggregate sales to 2,000 tons over five years and 400 tons per year and specifically excludes "already decided sales." The ban includes the UK and Switzerland.

Pinch me quick and tell me I'm not dreaming. How can this be? Fourteen European central banks plus even the English Poodle announce that they will restrict gold sales and lending for the next five years.

Aftershocks following Tuesday's Wall Street circus . .

Chart Symmetry is designed around the observation that prices tend to change direction along certain preferred gradients. New readers are advised to read the first article in this series to discover how Chart Symmetry works. The link to this article is :

A former professional football player and commodity trader named Bill Murphy is shaking things up in the gold markets and perhaps in the boardrooms of some of the most powerful bankers in America too. Mr.

As the world's central bankers make ready to shove gold off the cliff, their odds of getting away with murder have never appeared more remote.

A senior member of the Japanese ruling party and unofficial advisor to PM Keiza Obuchi, suggested Japan should use excess dollars in its foreign reserves to buy gold from the IMF.

Spot Gold $266 up $1.80

Spot Silver $5.26 unchanged

Technicals

When I first started extensively researching the Year 2000 Problem ("Y2K") in early 1998, the extraordinary magnitude and ramifications of the Y2K challenge to modern society hit me with breathtaking impact.

The only purchasers of the Bank of England's gold sale were the 12 market makers and 50 ordinary members of the London Bullion Market Association (LBMA).

Markets have shown no signs of broadening-out. . not only now, but during the entire year as a whole. Given our annual forecast, not just our shorter-term assessments, this isn't surprising.

The following is a statement issued this week by the Princeton Economic Institute, which defends the recently arrested financial analyst Martin Armstrong. The PEI statement is followed by a reply dispatched therefter by GATA Chairman Bill Murphy.

Nine months ago the Gold Anti-Trust Action Committee developed an action plan and we have stuck with it. It was patterned after the "enveloping horn" strategy of Shaka, the famed South African Zulu warrior of old.

Fabian was excited as he once more rehearsed his speech for the crowd certain to turn up tomorrow. He had always wanted prestige and power and now his dreams were going to come true.

Money & Debt

Selling into a benign CPI rally. . . was the call for early Wednesday, if that was the way the CPI number came in, and it did; though there's no doubt we view price levels higher than "massaged" data being officially reported today.

After the Problems Of 1980s, The Easy Money 1990s Helped Create A Stock Market Bubble. Then, The Fed Got Worried.

Last month an analysis of monthly charts showed that gold was near support in dollar terms as well as in Yen. Given the strength of the Yen, the latter finding is particularly important as is explained later.

Every now and then a market comes along which presents so few clues as to its preferred trend that it becomes almost impossible interpret until a decisive breakout occurs. The present market is just such an example.