Gold Editorials & Commentary

Over the past few months I have been writing cautionary articles regarding the gold price.

Action in the Precious Metals markets yesterday was VERY bearish and confirms our suspicion that an intermediate top may be forming that could lead to a brutal correction.

"I believe that banking institutions are more dangerous to our liberties than standing armies.

GLD - on buy signal.

SLV - sell signal this week.

Last week was pivotal for equities as well as a reminder that the 3 ½ year-old recovery is still alive.

We are at the point in the paper currency cycle where for the price of Gold it is risk off, Fed management out of the way, and time for Gold to go into free-rise to start to devalue the huge debts in earnest and to balance the budget.

History shows that one cannot "manipulate" a primary trend (and maybe not even a secondary trend)

The recent decision by the US Federal Reserve to contaminate the financial body until it responds favorably was the last straw in my book. Witness a declaration of permanent QE and hyper monetary inflation of the most virulent strain, unsterilized.

Some competent analysts claim the United States and Western nations are stuck in the eye of the hurricane. Maybe so, but the internal stresses are so great that they will move beyond the eye into a zone of clearly apparent destruction soon.

We've speculated in TSI commentaries that unwavering devotion to bad economic theory (a type of stupidity) is the most likely reason for the Fed's introduction of a new inflation program at this time.

In this weekend report I would like to show you some gold ratio charts that  compare gold to commodities or indexes. Ratio charts are a good way to see how a stock or index is moving relative to another stock or index.

A leading precious metals consultancy, Thomson Reuters GFMS, has forecast that investors will buy record amounts of gold in the remainder of 2012. GFMS produces the benchmark supply and demand statistics for the gold market.

There was plenty of hoopla last week. The Federal Reserve's announcement Thursday of a third round of quantitative easing sent investors scrambling for gold and silver.

GLD - on buy signal.

Silver has certainly enjoyed an impressive run of late, catapulting nearly a third higher since mid-summer. Because this surge looks nearly vertical on short-term charts, some traders are getting nervous about this rally's staying power.

An Appropriate Quote

The great H.L. Mencken wrote:

The last several weeks have really changed the look of the HUI and the precious metals complex in general. In this report I would like to examine the HUI going back to the October 2008 bottom to the present.

Last week was a momentous one when the financial world passed the point of no return.

With yesterday's Fed decision and press conference, Chairman Ben Bernanke finally and decisively laid his cards on the table. And confirming what I have been saying for many years, all he was holding was more of the same snake oil and bluster.

GLD - on buy signal.

Stock and commodity prices across the board soared on the latest announcement from the Fed, which was viewed as wildly bullish by Wall Street.

Silver is mined year-round at a fairly constant rate across the globe. Thus it is somewhat counterintuitive that this metal would exhibit marked seasonal tendencies tied to the calendar. But it sure does.

The price of silver reached a 5-month high this past week as investor interest seems to have been rekindled in both gold and silver as belief in financial markets increases that the latest round of monetary easing from the Federal Reserve - QE3 - will soon be o

In this weekend report I would like to focus in on some of the longer term weekly and monthly charts for gold but would like to start off with just one daily chart.

Most investors were duped by the mainstream financial media into thinking that the broad US stockmarket made an important upside breakout last week, but according to our charts it did no such thing.

Last week was pivotal for equities as well as a reminder that the 3-½ year-old recovery is still alive.

GLD - on buy signal.

After weathering a long consolidation followed by a major correction, gold stocks remain deeply out of favor today. But this bearish sentiment is slowly yielding as gold powers higher in its usual autumn rally.