Gold Editorials & Commentary

The title should really be “Psychology of 1000-20-100” to give respect to the major signpost price targets. The $1000 gold target is within reach. The $20 silver target has been breached. The $100 crude oil price has been breached.

I promised that I would return with a few charts of stocks in the HUI to show why I think the HUI will likely make a big move higher based on the charts of some of its components. Well, after a 15 minute break, here we go.

There is presently much debate over whether the gold price has further upside. Gold is at an all time high in nominal terms and one could not be blamed for being cautious when considering its investment viability.

In this recent editorial series I have tried to methodically lay out how I view the fundamentals of the Precious Metals sector while incorporating the historical ramifications of the fractal work, including how the psychology of investors might affect mar

The IMF as the linchpin of the fixed exchange rate regime

Jeff Frieden is professor at Harvard focusing his research on the politics of international monetary and financial relations. He has been quoted as saying that, if once more on a gold standard,

One week ago, my forecast did not come to pass for a euro currency selloff, and for a pound sterling selloff. Even the Aussie Dollar forecast of a selloff failed. In fact, in a convincing fashion, all three forecasts were shattered. What happened?

Having neither the will nor the means to confront our major economic challenges, Washington is instead hanging its hopes on words alone.

Barron Young Smith is a financial journalist whose piece What Would Happen If We Adopted the Gold Standard? is appended below. He describes Ron Paul’s campaign to restore Constitutional money in the U.S. as being “populist”.

Before we move on to the HUI Fractal work, I thought we’d dedicate some time to considering how the investment climate might look from different perspectives in hopes of getting an idea of what investors might be thinking.

I have decided to re-introduce the fractal work in segments. We will start with an overview of what a "fractal" is (which you might like to skip), then move on to the long-term chart of $Gold. Link to Part I and to Part II, below……….

Unfortunately one of the few things still made in America is inflation. In fact, it now ranks as our greatest export.

Like a whirlwind, the crisis triggered by the housing crisis and mortgage debacle has extended to almost every phase of the landscape in US economic and financial life.

How about $10,000? or $1,000? Or even $100,000?

The monthly chart below (courtesy bigcharts.com) is showing that the Nasdaq needs to bounce up from here to avoid breaking down.

I had planned on returning with a review of the general fractal work that I have shown in the past, but decided to delay it for the long weekend.

GLD - on sell signal.

EDITOR NOTE: Strange times in Costa Rica. No article last week. They have a strange custom here, closing the bus door in the face of gringos. This time, my reaction was to catch it with my left hand. Dumb move. The door closed on my wrist, like 150 lb weight.

Like frightened rabbits scurrying back to the apparent safety of their hutches, investors rattled by the sub-prime shocks and the associated tremors in stockmarkets have been fleeing to the perceived safety of Treasury Bonds and Notes.

Despite many conflicting signals from many different quarters, this analyst believes we have entered a Primary Bear Market for Industrial Equities.

In contrast to the dismal forecasting record of mainstream economists over the last few years, the forecasts that I have made regarding the dollar, oil, commodities, precious metals, global stock markets, inflation, and the U.S. economy have all come to pass.

GLD - sell signal this week.

People tend to think in terms of black-and-white. Many of my correspondents think that either hyperinflation or deflation is in store for the dollar; tertium non datur (no third possibility given). I would say tertium datur.

The charts are not telling a particularly happy story at present.

Despite the fact that the Fed still believes that a recession is unlikely to occur, Bernanke & Co. followed up on last week's emergency 75 basis point rate cut with a 50 basis point kicker on Wednesday.

If you read the media article below (Greenspan interview) in context of an understanding that "energy drives the economy", and in context of the rising trendline of the PMO oscillator on the 30 year Bond Yield monthly chart, you have to agree with Greenspan.

EDITOR NOTE: My math was done last week on a dirty napkin. The 'AAA' index on credit default swaps for mortgage bonds perhaps is not indicative of prime mortgages, my error in pasted title for the graphic. Mea culpa!