Gold Editorials & Commentary

“Time is more important than price; when time is up price will reverse.”

W.D.Gann

"If you don't use your eyes for seeing, later you will use them for weeping."

F.W. Foerster

WORLD WIDE RECESSION

Last week gold and silver remained in a trading range moving sideways, while crude oil had a large pullback on very heavy volume.

It was a rather slow week in the gold company news sector but the mine closures and spending cuts continued. Lower prices are the major factor in this trend and are reducing supply to levels I never thought we would be seeing at this stage in the bull market.

How to rebuild the shattered credit system

GLD - sell signal this week.

There are those who are arguing that the equity markets are due for a bounce - maybe even an upward surge in prices. Some are very seasoned analysts who have decades of experience under their belts.

Gold traders should have exited today as prices are showing strong signs of lower prices in the near future. Gold slid over 4% this week so far, while gold stocks have dropped an average of 9%.

The marquee line best describing the past two to three months has been that the Dollar Death Dance has been fueled by failure of US banks & corporations, along with sponsored assaults against speculative hedge funds.

There are some important similarities between the present and the 1930s.

Gold Trading: Gold closed higher for the week with very low volume due to the holidays. It is difficult to get a feel for where stocks and commodities are headed in the near term because of this light volume.

We've been here before haven't we? Gold has been in a rising trend for some considerable time, taking it to trendline or resistance targets, and then "wham!" it gets whacked back down again.

One of the most bothersome questions from 2005 to 2007 used to be whether the Untied States would ultimately submit to inflation or deflation. This is actually the wrong question.

Happy New Year

As is obligatory for commentaries written on January 1, I offer my wish for readers to be healthy, safe, happy, and prosperous throughout the new year.

EXPANDING GOVERNMENT and THE REGULATORY AGENCIES

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

An unhappy anniversary

A friend was kind enough to send me the following link to an article dated October 10th 2008, written by Martin Armstrong.

The US Dollar

GLD - on buy signal.

Many people are very confused these days. They should be. Slowly the nation is coming to grips with a harsh reality that a garden variety recession has not dug its roots inside the body economic of the United States. This is much worse.

"One swallow does not a summer make". (Aristotle)

That may be true, but it's possible that I saw two swallows today, and "summer" is not the season occupying my mind at present.

The way things look it will soon be impossible - or very difficult and expensive - to obtain physical gold and silver.

FROM YOU HEARD IT HERE FIRST

Broad Market Outlook

GOLD $/OUNCE

“Time is more important than price; when time is up price will reverse.”

W.D.Gann

GLD - on buy signal.

In an earlier article Backward Thinking on Backwardation I explained that backwardation in gold is the flipside of the phenomenon of a drastic contraction of world trade and employment.