Gold Editorials & Commentary

GLD - on sell signal.

This is the second part of a conversation I was privileged enough to have with the great Mr. Jim Rogers.

Gold bullion and Crude Oil are both setting up for a rally higher if they continue to complete the breakouts.

I had the pleasure to talk with the famed investor and world traveler Mr. Jim Rogers on February 2nd, 2009 and I have finally gotten to transcribing the conversation.

"We are spending more money than we have ever spent before, and it does not work.

A speculator is a trader who approaches the financial markets with the intention to make a profit by buying low and selling high (or higher), not necessarily in that order.

GLD - on sell signal.

This was one of the most news filled and busiest weeks I have ever had. Bailouts, lies and deception ruled the week. The events unfolding could hardly be imagined by most even a month ago, let alone years ago.

In my previous article I was calling for a trend acceleration in gold. My recommendation was to build and maintain a core position in physical bullion held in your own possession.

Gold and gold stocks have had a nice controlled correction over the past 9 days. We look to be nearing the bottom of the bull trend channel, which could be a great buy point.

A couple of bright friends reported to me some overriding themes at the PDAC gathering in Toronto last weekend. Apparently, some surprise came to them. They mentioned that more than a few analysts, writers, and speakers still do not get it.

In summary, the following analysis/argument concludes that Depression is a far more likely outcome than Hyperinflation.

The mathematics of inflation is as follows:

In my article Growth and Debt: Is There a Trade-off? (www.gold-eagle.com , February 12, 2009) I have stated the "Iron Law of the Burden of Debt": The liquidation value of total debt

Clarifying our depression forecast

I am rebutting (responding) to this article:

Here is my logic:

The past 6 months have been every interesting, as the financial markets try to find a bottom while banks go bankrupt and more and more investment scandals continue to pop up on the radar destroying investor's life savings literally over night.

Gold ran at its highs of last March, before reacting back heavily, as expected and predicted in the last update. The 1-year chart makes very clear why it has reacted back so.

The week was a doozie seeing the major averages head into low ground and signalling more downward movement as the bear market unfolds. We will see a large rally but when is the real question.

GLD - sell signal this week.

SUDDEN SHIFT, FICKLE FOLKS

I've been on the lookout for an article with a concise description of the ongoing saga of the Credit Default Swaps (CDS) markets to pass along to readers and I have found a nice, simple one on the Guardian UK website.

THE AMERICAN FINANCIAL CRISIS

Modern economies were created by the collusion of bankers and government. The banks are now collapsing and only the governments are left. It's like watching a two legged man trying to stand on his one remaining leg.

The economic collapse continues to deepen with no end in sight, just more spending. In general many stocks remain expensive on a historical basis. Gold and silver are soaring as some investors are waking up to the economic reality of today.

Alot of subscribers have been perplexed by the relatively miserable, laggardly performance of Precious Metals stocks in recent days as gold and silver have soared, especially against various major world currencies.

GLD - on buy signal.

PROLOGUE & AFTERMATH

No market goes straight up or straight down.