Gold Editorials & Commentary

GLD - on buy signal this week.

GDP

With gold forging glorious new record highs (in nominal terms), traders' interest in this metal's 8-year-old secular bull is ballooning rapidly.

Commodities have and continue to be a fantastic trading vehicle for those who can stomach volatility. After last year's market crash most commodities pulled back to normal if not lower than normal trading ranges.

The story hit like a thief in the night, even bearing Biblical proportions.

There are currently serious "wars" being conducted within the boundaries of the USA.

The impending gold breakout has been so long in the making that it has engendered a "we'll believe it when we see it" mentality amongst most market participants.

Gold is behaving well technically and is, thus far, on course to break out to new highs soon.

The incredible resilience the metals are showing caused the oft cited commercials to begin to run for cover.

In Australia (as in many other countries of the world), our Federal Government's reaction to the financial crisis was to distribute money in the form of "gifts". Their intentions were supposedly honorable. They wanted to stimulate the economy.

GLD - on sell signal.

I am of the view that the world craves leadership. Not the kind that threatens or declares wars, not the kind where words do not match actions and definitely not the kind where bad decisions are repeated in the hope of a different outcome.

We have been waiting for gold to breakout above the 2008 high for almost 2 years. These charts show we are slowly working our way there.

Gold Stocks Index - The Leading Indicator for Gold Bullion

Debate stirs on whether the financial structure of the USEconomy is broken irreparably. Debate stirs on whether actions taken in the last year or two have put the nation on a path that can even achieve stability, let alone recovery.

Some years ago I penned a paper with the title "The Supply of Oxen at the Fed". I am indebted to Alan Greenspan for a great line in one of his speeches, entitled The History of Money, from where I borrowed my title.

The daily chart of the Gold miners bullish percentage index (BPGDM) is shown below, with the HUI shown in green. In the past whenever the BPGDM reached 85 or higher, it was often associated with a top.

Amid all the Red Herrings splashed across the entire Media, the one really big and significant event, which was completely ignored by the Media, happened on Saturday 9/12: We had the first huge demonstration against being taxed to death.

The market continues to whipsaw traders out of positions as volatility rises. I have put together a few charts to show you where each of our commodities are trading along with the SPX (SP500 index).

The week was highlighted by the G20 and federal bank non-decision. There was little said about Ron Paul's bill to audit the fed. Would you have expected anything else. The mainstream tells you what they want you to know, not what you want and need to know.

GLD - sell signal this week.

If gold breaks out to clear new highs shortly, as it looks set to do, then silver is likely to make a "slingshot move".

Although copper is not the largest base-metal market (aluminum is way bigger), nor the most valuable of the primary base metals (nickel is worth several times more per pound), it is still arguably the most important base metal.

Only in Never Never Land can age and gravity be defied. In the real world such ideas may be described as "escapist fantasies".

Today we had a reversal day for the broad market, us dollar, precious metals and oil. The market is over extended. We have seen the market rally 20% since the July low.

A powerful hidden engine existed for close to 20 years called the Yen Carry Trade. The engine produced tainted trillion$ for its priviliged participants, whose access to cheap money was assured and whose control of government policy was tight.

The battle for the heavyweight championship is raging into the later rounds.

Commodity ETF trading charts allow us to track and trade the underlying commodities with ease. I have provided a few daily charts to show were current commodity prices and chart pattern are at.

GLD Gold ETF Trading - Daily Chart

GLD - on buy signal.