Gold Editorials & Commentary

Once in a while, a worthwhile exercise challenge is to think "out of the box" on an important topic. This article focuses on housing, and in particular Fanny Mae, the weakest among the Govt Sponsored Enterprises (GSE).

Ever wonder how it came to be that everything we use and need, seems to be made in China? I often wondered, and now a fantastic piece by the Washington Post, explains it all.

With regard to silver coinage, Mexico has followed the model established by the Roman Empire 2,000 years ago.

In the last update posted on the 17th it was predicted that gold would stage a rally to alleviate the oversold condition that existed at that time, and that this rally would take it about $595 before it reacted back again. Today gold attained $594.15 intraday.

Inflation

One can't help but feel a sense of dread about the consensus views on the risks of inflation. "With oil dropping there is no longer a risk of inflation" Really?

The gold smashup - that's what gold bugs have faced over the past several weeks. Just two weeks ago gold appeared to be poised to breakout and begin another big bull run. Everything seemed to be lined up.

"How to win friends and influence people". This was the catch phrase of Dale Carnegie - a guy who offered a self improvement course a couple of generations ago.

Over the past several weeks, oil and gas prices have fallen sharply, prompting many to conclude that the bull market has finally run its course.

There are several possible scenarios for the world's and US economies. They involve currencies quite naturally, because it is the various currencies which are used to buy stuff around the world.

To listen to the Bears over the past few years, you would have thought we would all be in breadlines and soup kitchens by now. So far, all of the ranting about doom and gloom sounds more like the boy who cried wolf than accurate forecasting.

Years ago (30 to be exact) when I began buying stocks, the only source to check how the portfolio was doing was to read the weekend financial section of the newspaper. Back in those days, short term meant a few months.

I have received questions asking why strongly suggested in the August 8 and August 15 editorials that the "HUI Fractal" work that I do suggested that we would see a new low for this corrective phase, yet I decided to focus on the upside.

Failure of support in the $600 area has led to gold dropping back into the target zone for this move - the $560 - $580 area.

Over the past several days gold prices have plunged by over $60 per ounce and silver prices have dropped by close to $3 per ounce. Popular excuses for the carnage include lessening tensions in Iran, falling oil prices, and diminishing inflation fears.

Last week it seems my "Bond Market Has It Right" stirred up a little hornet nest under my doorstep. Ok by me, since most feedback was in agreement and positive.

With the release of the U.S. Mint's new pure gold American Buffalo gold coin, First Strike coins have again become telemarketers' favorites. Despite the U.S.

Ever hear the line, "With a friend like you, who needs enemies?" Not bad, and it seems to this scribe that it applies to several items and institutions.

Gold has been correcting for 4 months since the 12 May 2006 peak. It is time to consider whether the correction is nearly over or whether we can expect more down or sideways action.

Judging from the emails I receive from the public, there are more traders than I expect who pay attention to my commentaries, and therefore, I feel somewhat obligated to provide ongoing guidance, and our course of action.

The Office of Federal Housing Enterprise Oversight (OFHEO) was created as an independent entity within the Department of Housing and Urban Development, a department of the Government of the United States.

References and claims have been made lately that the US Treasury market has it wrong, that the long-term yields should be much higher in accordance to the troublesome stubborn rising price inflation.

Below is an extract from a commentary originally posted at www.speculative-investor.com on 29th August 2006.

Back in the late 1970's, the lineups to buy gold looked more like lineups of people waiting to buy Stanley Cup Hockey tickets at the then Famous Montreal Forum.

Our breakout model finally confirmed the much anticipated BO#4 a few days ago, and alerted us to be aggressive buyers of the gold sector.

After a lengthy period consolidating in a large trading range gold is now in position to break higher. It has behaved pretty much as predicted in the last update, dropping back towards the important support at $600.

The free coinage or silver and gold had been adopted in 1792. This meant that anyone could take gold or silver to the mint, and have it coined.

Introduction

This missive is being written primarily for the great number of individuals who have written me emails and made phone calls over the last two weeks.

During the unprecedented run up in housing prices over the last decade, most economists and real estate professionals firmly declared that the market would always move higher.