Gold Editorials & Commentary

In short, gold will bottom when stocks bottom and the dollar bounce falters - unless fund managers run out of gold to sell before either of the other two events occur (or unless global investors suddenly come to their senses.

Homestake Mining and Dome Mines were two gold producers that made their shareholders wealthy during the Great Depression. Before Barrick Gold acquired it, your editor received daily price data from Homestake Mining dating back to 1888.

The USDollar rally in the last several weeks has been remarkable. At closer examination, it highly resembles a spurt prior to death.

Over the last few days, I have received dozens of emails and phone calls asking for my projections as to just how low this market can go and in what time frame.

Is the market going up or down? That is the question everyone wants to answer right now. They want to know if their losses are going to come to an end. People are incredibly anxious and nervous right now.

Thank you for your carefully considered argument in rebuttal of my (conceptual) proposal to nationalize the banking industry.

Gold Market Update

GLD – sell signal this week joining the other three ETFs.

Madam President, Ambassador Middendorf, Distinguished Guests, Ladies and Gentlemen:

Happy Birthday CMRE!

The tag team of JPMorgan as the monster and Goldman Sachs as its harlot represent a powerful pair that is more responsible for destroying the entire US financial system than 95% of the American public has any awareness.

Some months ago this analyst began voicing his view that what we are witnessing is the end of an old era and the commencement of a new one. Events of the past two weeks have certainly had no precedent.

THE OBVIOUS IS OBVIOUSLY WRONG

GLD – on buy signal but still no set up yet.

From 1885 to 2008, (123 years) the Dow Jones Industrial Average, (DJIA*) has fallen -40% from a bull market high on only nine occasions. Such deep bear markets are always historic and distressing.

As the precipitous drop of the Dow Jones index of industrial stocks to the 8600 level on Thursday shows, the $700 billion bailout is an exercise in futility. The rescue effort administers one wrong medicine after another.

WHAT’S HAPPENED TO COMMON SENSE

Has no one noticed “That doing more of the same as what got you into trouble in the first place, only makes the problem worse?”

Pardon the jumpy style, not burdened by depth, preferring breadth instead. The events of the last few days continue to be remarkable, alarming, chaotic, surreal, and desperate.

Since the Bear Stearns bailout at the end of the first quarter, the backdrop for gold has unfolded in a more positive way than almost any of its proponents could have imagined.

In spite of the economy and stock markets behaving almost exactly as I have been expecting them too for over a year now, I have received quite a few emails basically asking for a little hand holding.

“This, indeed, is an odd election: It pits a candidate who should have been president eight years ago against a candidate who should be president eight years from now,” Tom Gallagher in Abelson’s column, Barron’s.

The expression “Irrational exuberance” was originated by Alan Greenspan to describe a runaway stock market, and was made famous by Prof. Robert Schiller in his bestselling book.

Privatizing profits, socializing losses

Pardon the brief and jumpy style, laced with more emotion than usual. The events of the last few days have been remarkable, alarming, chaotic, and surreal. Gonna attend the Toronto gold show hosted by the Cambridge House this weekend.

This article was written just prior to the announcement of the rejection of the bailout bill but has been qualified to reflect current conditions. Celebrate today's victory! It is a victory for all of us, whether we know it or not.

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

Another month has gone by, and not much has changed as all global indexes we track are on long term sell signals.

GLD – on buy signal.

“Two legs bad, four legs good!”

The United States has transformed itself, the most radical degraded aspects having occurred in the last eight years.

I just got the chance to read the op-ed penned by Pimco's Bill Gross in this morning's Washington Post.