Gold Editorials & Commentary

Even the most rabid silver bugs admit the possibility that the Chinese are the Big Silver Shorts. This suggests that the Big Gold Shorts are also governments. Neither are naked by any stretch of the imagination.

The following is an extract from the December 07 Issue of The Global Speculator sent to subscribers on the 4th of January 2008.

Anatole Kaletsky is the author of the most recent Anti-Gold Gospel (www.gavekal.com, January 21, 2008.) He is an establishment journalist, Associate Editor (formerly Economics Editor) of T

Back in late 1979, the lineups to buy Gold looked more like lineups to buy tickets to the latest rock concert.

In the last update posted on the 15th January gold was expected to consolidate rather than react, but instead it got taken down temporarily by the near crash conditions that then rapidly developed across most markets.

Over the past half-century, the United States has seen its global dominance in dozens of industries slip away.

Bankers, Wall Street hucksters, financial network commentators, and floating analysts seem to have flunked basic arithmetic in grand fashion. Maybe they only expose the next link in a long chain of deception, their apparent expertise.

Let there be no misunderstanding. The "investment" markets across the globe have become like casinos and, in trying to make a buck in any of these markets, you are betting against the house.

Now that the sound of cork-popping and other signs of celebrating the New Year, and the new record highs in the price of gold, are dying down, some questions arise the answering of which brooks no delay. How high is high?

For members of Congress desperate to avoid recession, the takeaway message that Fed Chairman Bernanke delivered in his testimony this week was that a successful stimulus package needs to be rapid and targeted.

In my letters dating back to the beginning of 2007, I selected a credit spread between Junk Bonds and Treasuries (buy Treasuries, short Junk Bonds) as my #1 best, lowest risk SURE THING trade.

The Sovereign Wealth Fund (SWF) movement has begun to expand in a powerful manner, and will not go away.

This is not the time to get bogged down with minor details, and thus risk losing sight of the big picture, which is that gold is now in a powerful uptrend that has a lot further to run.

Holding onto its "all is well" bias like a terrified cowboy on an enraged bull, Wall Street has managed to convince itself, and much of the world, that inflation is a non-issue.

The US system has been the dog led by the financial sector tail, as the tail wags the dog, for over two decades.

The Obvious Is Obviously Wrong

GLD - on buy signal.

Some years ago Gordon Brown, then UK Minister of Finance, was asked at a dinner party why he had allowed the UK to sell 60% of the country's gold reserves from 1999 to 2002.

As our economic ship continues to spring leaks, the goldilocks crowd still clings to the false belief that the Fed can easily keep us afloat with a few more rate cuts.

What a terrific start to the year for gold! When you see a breakout to new highs on the 1st trading day of the year like this for a commodity it normally signals further strong gains as the year continues.

EDITOR NOTE: My Spanish needs work, since 'Tonterias' was misspelled in the title, which prompted a couple corrections from Latino readers. Disculpame!

The Kondratieff Wave

Summary and Conclusions

Almost unanimously, the indicator charts are signalling the imminent emergence of a new ballgame.

The battle between bulls and bears seems to be centred around the two trendlines which have been drawn on the daily chart of the Dow Jones Industrial Index chart below (courtesy Bigcharts.com)

EDITOR NOTE: Fitch Ratings contacted me to make a clarification on last week's article, that they have not covered a debt rating on ACA Capital since 2004.

Season's greetings, wishing you all peace and profits in the New Year.

GLD - on sell signal.

Among those rational enough to perceive the looming economic downturn, a heated debate has arisen that centers on whether the slowdown will be accompanied by inflation or deflation.