Gold Editorials & Commentary

Dr Doolittle20 years ago the shiny yellow took off into the wild blue yonder.....see Chart of Jan-Dec 1987.

One of the great fears plaguing resource stock investors is what will happen if the broad market suddenly goes into the tank.

For anyone who wants to make an immediate 80% return on your investment, go to your local bank with your worthless Federal Reserve Notes and tell them that you'd like to exchange them for rolls of nickels.

As stocks markets around the world rise to record highs, even former Fed Chairman Alan Greenspan could not refrain from raising concerns about surging Chinese stocks.

The gold sector remains on a sell signal since April.

The Bretton Woods II principal propaganda plank has been buried, with no fanfare, no eulogy on a moronic indefensible myth chapter. Asia no longer supplies credit to the United States debt monster.

Ok Guys, I defy you to tell me, "What is a dollar?" You can't define it? It's sort of like trying to define a circular stairway without using your hands, I guess. Maybe a dictionary will help? Webster's New World Dictionary 3rd College Ed.

I have received the following letter from a reader of my column.

Mr. Fekete:

Oil is now very close to breaking out from the large Head-and-Shoulders bottom that we had earlier identified, and from the look of the latest oil COT chart, on which the Commercials short positions have shrunk dramatically, it is close to doing so – and if it

Summary

As Treasury Secretary Henry Paulson continues to drum up interest in direct investment in the United States, he will rely on a set of skills that only a long-time Wall Street pro can truly master.

I wrote about this back in January, but the questions still come to me regularly, so I'll reiterate it again, with more details.

The gold sector remains on a sell signal since April, and prices continue to deteriorate.

The topsy-turvy world of central bank gold sales

Here is a passage from my 1998 book entitled Gold and Interest that will soon be released as an e-book.

We noticed this evening that the Central Fund of Canada (CEF) is selling at a 3.8% premium and we can't remember ever seeing it that low. It seems that sentiment for the precious metal sector is pretty glum.

In Update XII, which was published 2 months ago, it was stated:

"Both gold and silver seem poised for dramatic upside price explosions if the latest Elliott Wave count set out below is correct.

I started to put a chart together, tonight, to show a simple relationship but as usual got carried away.

The newest deceptions are with jobs and housing. Each is much worse than reported. The housing decline might be as much as 15% worse than reported, which leads to much bigger job loss than is reported.

In the last update, published on or after 16th April, we expected gold to drop back from the $690 area due to the bearish COT structure, and that is what has happened.

It is practically impossible to find a government economist, central banker, or private mainstream economist today who shows the slightest concern for the store-of-value function of Money.

Russia and China have become a major problem. Everywhere one turns, there is Russia & China at odds with the United States. We have the Great Bear in a conflict over energy, Iran, military installations, and central bank policy.

Until recently, the greatest threat to investors in gold shares was commonly perceived to be toxic hedge books.

With the Feds holding their course on rates, we are also holding our course in the gold sector. We remain in cash until a buy signal.

Paper money, over the years, and in all lands, have taken all forms and designs. These designs are universally created to instill trust. Things are no different now than they were when paper was first invented.

Even the gold plated bears are turning bullish on the industrial equity markets.

Why?

The short answer: "Inflation"

Carlo "Charles" Ponzi (1882-1949)

Born in Parma, Italy, Ponzi immigrated to America in 1903 and was quick to show his entrepreneurial flair.

The following evidences the (surface) fact that the US economy is healthy:

It may come as a shock to many of you, but I too believe that we are experiencing a "Goldilocks" economy. However, unlike most on Wall Street I do not define this as economic growth that is neither too hot nor too cold.

All the conditions were there, a euro currency breakout, a British sterling currency breakout, and pronounced USDollar weakness. The sterling exchange rate even hit $2.00 to capture a tremendous amount of attention.

On June 3, 1963, John Fitzgerald Kennedy, the then President of the United States, issued an Executive Order, which appears to still be in effect. It basically states that the United States Treasury shall issue silver backed dollars against any silver in the United...