Gold Editorials & Commentary

Why Is China Hoarding So Much Gold?

I told my subscribers back at the 2009 low that the longer the rally out of that low lasted, the more convincing it would become.   At the time I made this statement, I did not truly understand how profound it would become.   I have maintained, ever since the r

Well, that’s two straight Tuesdays that U.S. stocks have fallen.

In Parts I and II (  https://www.gold-eagle.com/editorials_12/nielson061013.html   )  of this series, readers were presented with a bleak reality. We live in hopelessly insolvent economies.

Last week we introduced the theoretical ‘taper to carry’ scenario whereby the Federal Reserve would indeed ‘have the balls’ to begin the end of traditional QE and transition the inflation via a new set of mechanics.

Now that the S&P 500 has crossed into new high territory (above the 2007 peak), is the U.S. index starting a new secular trend, as it did in the 1980s and 1990s? The answer greatly depends on whether or not you add inflation.

The saying, “Close, but no cigar!”  could probably be used now, to describe gold & silver investors trying to call a turn in the market.

The recent collapse in gold price hasn’t discouraged consumers across Asia, and in particular from China and India from buying yellow metal. Taken together, China and India account for more than half of the total consumer bullion demand worldwide.

Wall St. Pundits have summarily exculpated Ben Bernanke from the negative effects derived from artificial interest rates and massive increase in the Fed’s balance sheet.

Thanks to the life support of $12 trillion and 515 rate cuts by the world’s central banks since March 2009, the global economy’s heart is beginning to beat again.

In attempting to remedy any particular problem; human beings are generally resourceful creatures.

We are very close to or at a major bottom in gold and silver now, regardless of the potential for another short term downleg. This is made plain by the charts we are going to look at in this update.

In the final part of the article on the rising convertibility of the Chinese Yuan, towards the end of this year we look further into the path both the Chinese Yuan will follow and the changes that will follow in the global monetary system.

Markets provide an opportunity to grow one’s capital, and create a return on capital, in addition to a return of capital, its preservation being the benchmark to ensure it remains fully intact. Is there a magical formula for success in the markets? No.

“In life we all have an unspeakable secret, and unreachable dream, an irreversible regret, and an unforgettable love.”

-    Diego Marchi

“When the Federal Reserve decides to move interest rates higher the bond market will collapse.  It will be the biggest bubble the world has even seen and all will suffer!” “In the end it will not matter if you were early purchasing gold and silver…but t

“Experts” speak much on inflation and deflation, but most peoples understanding of them come from academics (aka “educators”), people whose self interest lies in keeping the public unenlightened of what they actually mean.  As long as the public understands tha

I took a bit of criticism after last weekend’s letter, especially on Monday with gold and silver rising.  I was called arrogant and smug and worse and told to throw out the charts.

It never gets tiring to say how the market is the most reliable source of information in the form of developing market activity.

The Percent Buy Index (PBI) shows the percentage of medium-term BUY signals for all the stocks in the S&P 500 Index, and the chart tells us if the index is medium-term overbought or oversold.

It has been a very long couple of years for the precious metal bugs. The price of gold, silver and their related mining stocks have bucked the broad market up trend and instead have been sinking to the bottom in terms of performance.

Futures speculators are extraordinarily bearish on gold today.  Their short positions on it are extreme and unprecedented, the highest seen by far in gold’s entire dozen-year secular bull.  They expect downside gold momentum to persist indefinitely.  But despit

The U.S. Mint has resumed selling its 2013 American Eagle One-Tenth Ounce Gold Proof Coin at a hefty $195 per coin as of last week. The Mint has set a 20,000-coin production limit for the coin.

If you hold precious metals in your portfolio, there is a good chance you fear hyperinflation and the crash of fiat currencies.

In a continuation of the article on the rising convertibility of the Chinese Yuan towards the end of this year we look further into the path both the Chinese Yuan will follow and the changes that will follow in the global monetary system.

Despite the recent weakness, the broad market has displayed a fair amount of resilience in the face of rising interest rates and falling commodity prices.  The charts even leave us with some hope that there will be one more rally to new highs in the coming week

At the conclusion, I will offer a solution.

Society requires money to be maximally fungible, as this maximizes the division-of-labor which increases efficiency, productivity and prosperity.