Gold Editorials & Commentary

"You cannot multiply wealth by dividing it." - Adrian Rogers

WHAT HAPPENED AND WHAT DO I DO NOW?

As gold stocks continue to power higher in their usual spring rally, they are starting to attract investors' attention again. This includes some value investors, a group that is always concerned with valuations.

The first five charts below are courtesy of"br> http://au.finance.yahoo.com/intlindices?e=asia

WHY ARE THE GREEKS PROTESTING?

Markets in the US hit the last line of Fibonacci Retracement levels this past week, and gyrated like a bucking bronco. Where they'll go from here is debatable.

The past couple weeks we have seen sellers control the price of gold. This can be seen on the charts by the light volume drifts up then heavy volume sell selling sending this metal sharply lower.

"Common sense is not so common." - Voltaire

CAPITALISM THE UNKNOWN IDEAL

GLD - on buy signal.

Let us start off by saying that we do not see the Euro collapsing and being shelved, at least not yet, anyway. No exit process was written into their rules anyway. But it is technically possible, so better to be forewarned. What would prompt such a collapse?

It's been an interesting week with Spain being downgraded as Europe debt crisis widens. This has investors looking at the US dollar in a new light thinking that maybe it's not that bad of an investment after all.

It seems that gold and the Dow have an agreement regarding the number 10. This number has acted like a "golden ratio" in that things really start to happen before or after the Dow/gold ratio breaches 10, either way.

Last week the market slowly recovered from the recent sell off in stocks and commodities. So far the market is unfolding as we expected and with any luck there will be a surge of low risk setups across the market in the near future.

GLD - on buy signal.

Launched 4 years ago this week, the SLV silver ETF has proven very successful. With $5.1b in net assets, it already ranks among the top 20 largest ETFs in the US.

The need is urgent. The recognition is broad. Supply & Demand of American debt paper demand price adjustment. The USGovt avoids the topic actively.

Last week was exciting with broad market and gold forming an intraday reversal pattern after a long overbought rally, then broke down though short term key support levels.

News of fraud charges finally surface and sent the particular stock as well as the markets in general into the toilet within seconds. Fleet footed traders made like bandits while Cramer looked to have seen a ghost and tried to talk the stock back up.

Silver's recent rallying action is starting to catch traders' attention. Since the end of its latest correction in early February, this white metal has surged 23% higher. It has well outperformed gold, which only climbed 9% over this same 9-week span.

In my last report I showed some cycles for the price of gold and how they were starting to roll over which would in turn put some selling pressure on both gold and silver this week.

Years ago, Jimmy Stewart played the lead in a movie titled, Mr. Smith Goes to Washington. In this case, it was Mr. Butler goes to Washington. Who did you meet with?

Markets just can't be stopped, like a runaway train. The Dow is on the cusp of retaking the important psychological barrier at 11k while the S&P500 is flirting with the 1,200 level.

BERNANKE

GLD - on buy signal.

In less than 8 weeks, the flagship S&P 500 stock index (SPX) has relentlessly powered 12.6% higher. This big run has been very unbalanced too, utterly dominated by long up-day streaks. And for the most part, the occasional down days have been trivial.

Investors often seek safety from financial market turbulence in US government bonds since they offer virtually no risk of default and, unlike cash or gold, provide a yield.  At the same time, sovereign debt default concerns outside the US, e.g.,

While the multitudes debate over whether an economic recovery is coming to the United States, signals sound loudly in harsh tones. While they point to the recent rise in the USDollar, signals sound loudly in harsh tones.

I hope everyone had a great weekend and Easter Holiday!

This is quick update as its Easter Sunday and it's a time to relax with the family.

Below are two charts and my thoughts on what I am looking for in the coming days and weeks.