Gold Editorials & Commentary

Gold was a star performer during the month of August, outshining other assets in an impressive rally which took many investors by surprise.

It has been a year since the price of gold bullion topped out and even longer for silver. Many traders and investors have been patiently waiting for this long term consolidation pattern to breakout and trigger the rally for precious metals and miner stocks.

Begin with a preface to a meaningful event that could change the entire US landscape, a redux of what happened four years ago. Consider the next Wall Street financial firm failure. It is in progress. It is not avoidable. It will have numerous ramifications.

As Republicans convene in Tampa to nominate Mitt Romney and hammer out their party platform, one of the planks that could attract the most attention is the Party's official position on the gold standard.

GLD - on buy signal.

A breakout this week.

Last week we got what we had expected - and prepared for - for weeks, an upside resolution of the tight standoff in both gold and silver.

Gold Sentiment Chart

After spending the better part of three months locked in a lateral range, gold finally broke out on August 21st and went on to make a series of follow-through highs. December gold was quoted at $1,667 as of this writing, its highest level since early May.

With gold awakening from its usual summer slumber, traders are getting more excited about its prospects. Presumably this shifting sentiment will even grow to encompass futures traders, who've been incredibly bearish on the yellow metal for months now.

Tonight I would like to get you caught up on a few charts of gold I haven’t shown in awhile.

The answer to the above question is no, meaning that "Austrian Economics" makes no prediction about whether the future will be inflationary or deflationary.

One of the top stories in the financial markets in 2012 has to be the stagnation in the price of gold at around $1600 an ounce, which is down approximately 17% from its peak at $1920.30.

GLD - on buy signal.

Prices testing 200ema again.

With the odds for a new stock bear growing, prudent contrarian investors are looking for bear-resistant destinations for their hard-earned capital.

There is no question we have a barrel of troubles from the Devil of Inflation to the Deep Blue Sea of Deflation.

The year 2012 has been relatively peaceful compared with the past 10 years. The lack of military aggression on the part of the U.S. has led many to believe that the America's days of military adventures are over.

It is an endless debate for investors interested in gold. Should they buy a direct play on the gold price, either gold bullion itself or even so-called paper gold with an ETF such as the SPDR Gold Shares (NYSEArca: GLD)?

GLD - on buy signal.

Prices testing 200ema again.

When does a precious metal known for feeding off investors' fears need the opposite of fear to move higher? Answer: Right now!

With the US stock markets challenging a major multi-year high, investors are feeling pretty complacent these days. But unseen below the placid surface, a serious risk is arising from the depths.

Below is the balance sheet for the Federal Reserve. Here we see the vast increase in the supply of US dollars flowing through the world's economy since 1953.

In this weekend report I would like to show you some charts that can tells us if we are in a risk off trade, DEFLATION, or risk on trade which would signal INFLATION.

I've taken the last few weekends mostly off and skipped out on the free weekend letter. I've got no particular reason for it, I just felt like I needed a little break to enjoy friends and family and the unbelievable weather we're having this summer.

Lately investors have been worried about liquidity, specifically the central bank's willingness (or unwillingness) to continue providing it, and with good reason.

Some extremely powerful differentials in power are setting themselves up, in a manner never seen before in modern history. Those who dismiss the uniqueness of the situation are those who continually are surprised by events as they unfold.

Ok just to get to the major issue, when 1 out of 4 people are unemployed for a long time, they have to rely on others to survive. Either housing with relatives (who often have limited patience or none) or from the government assistance.

Last week we examined the bullish symmetrical triangle pattern in gold and identified the potential breakout points in this time-tested technical indicator.