Gold Editorials & Commentary

Gold and silver have had one hell of a run in the recent days. Both looked like they were topping weeks ago but recent bad news hit the wires making investors buy gold like the stock market is about to go under.

It is not often that we Americans have the opportunity to examine the financial experiences of less developed countries and attempt to learn from them.

While I try to keep things positive and always give everyone a chance, it seems as if the new president is not changing anything in regard to spending.

GLD - on buy signal.

A hard time came when deciding upon a title today. "Dead Banks Walking" or "Insolvent & Motionless Yet Standing" or "Much Ado About No Credit" or "The Bank Vampires" or "The Primary Dark Syndicates" made sense.

Watching the stimulus debate is quite unnerving; we are witnessing eloquent politicians and confident bureaucrats that are really clumsy and clueless about the economy ready to do major damage to it.

Back in late 1979, the lineups to buy Gold Coins and Bullion looked more like lineups of people waiting to buy Stanley Cup Hockey tickets at the then Famous Montreal Forum.

Gold and gold equities have performed well over the past two months climbing in value as the broad market drifts sideways waiting for buyers or sellers to step up to the plate.

The Big Fix

Although copper may seem like a sideshow it is actually very important, for it is a barometer of changes in the world economy.

The tale of the tape saw the Dow actually rise 3.50% almost three hundred points above the perilous 8,000 level. The S&P jumped a very healthy 5.17% and the Nasdaq soared 7.81%.

GLD - on buy signal.

HAPPY ANNIVERSARY

For over 18 months most junior mining stocks have put in an absolutely terrible performance.

The gold price has finally disconnected from its nemesis, the USDollar. This news should be read as the coming of spring after months of wintry torment, or as the sighting of land after 30 days adrift at sea in a derelict vessel.

Stock market looks like it has bottomed forming a similar pattern as it did in 2003. What is the better investment during an opportunity like this if this is the bottom: Stocks, Gold Bullion or Mining Stocks?

The week was marred by corruption and greed once again. The very important level of 8,000 on the Dow held, but barely. Let's see what February brings, but if that level is broken a waterfall of selling will likely come into the market.

Trading Risk/Reward

Here is our monthly update on global indexes for our international investors.

What an interesting time we live in!

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We always look to a new year with a great deal of HOPE, but this year there is also a fair amount of trepidation.

A weak start and strong finish to the week for gold and silver should have set you up for a great weekend.

The purpose of this high level analysis goes beyond an attempt to explain why an economic depression is virtually inevitable. It seeks also to identify a possible pathway out of the economic quagmire.