Gold Editorials & Commentary

This article is my third in a series examining the historical importance of the Dow Jones Industrial Average (DJIA). The DJIA may be an outdated metric to some, but no other measurement of the American stock market spans three centuries.

Everyone must be wondering where this "unprecedented global financial crisis", (the World Bank's words), is heading. What follows, for what they are worth, are my cogitations on this crisis.

LIQUIDATION & USTBOND SUPPORT

The global economic system is deflating a lot faster than even I had forecasted.

GLD - on sell signal.

Introduction

Of all the stories woven around the subject of gold, possibly the story of King Midas is the best known, whilst also being the least understood. Circa 700 BC, Midas was the King of Pessinus, the capital of Phrygia.

Here is our monthly update on major indexes for our international investors.

With world leaders having "nailed their colors to the mast" in the recent past by going for massive increases in money supply coupled with extremely low interest rates, it is clear that they are going to go all out to inflate and liquify their way out of the...

The Fed’s action to either raise or lower rates has become a major focal point for the markets in recent years.

A number of public readers of our weekly commentary have asked me recently if our trading models have kept our paid subscribers on the correct side of the markets this year, and particularly, how have we done in avoiding the collapse in gold stocks?

The gold & silver futures markets are each hurtling down a dangerous path toward possible default. The artificial paper price has created enormous physical demand, and hampered supply production, if not delivery.

"...Take a look at this chart of gold prices measured in the top 10 most important world currencies..."

GLD – on sell signal.

Gold Market Update

In short, gold will bottom when stocks bottom and the dollar bounce falters - unless fund managers run out of gold to sell before either of the other two events occur (or unless global investors suddenly come to their senses.

Homestake Mining and Dome Mines were two gold producers that made their shareholders wealthy during the Great Depression. Before Barrick Gold acquired it, your editor received daily price data from Homestake Mining dating back to 1888.

The USDollar rally in the last several weeks has been remarkable. At closer examination, it highly resembles a spurt prior to death.

Over the last few days, I have received dozens of emails and phone calls asking for my projections as to just how low this market can go and in what time frame.

Is the market going up or down? That is the question everyone wants to answer right now. They want to know if their losses are going to come to an end. People are incredibly anxious and nervous right now.

Thank you for your carefully considered argument in rebuttal of my (conceptual) proposal to nationalize the banking industry.

Gold Market Update

GLD – sell signal this week joining the other three ETFs.

Madam President, Ambassador Middendorf, Distinguished Guests, Ladies and Gentlemen:

Happy Birthday CMRE!

The tag team of JPMorgan as the monster and Goldman Sachs as its harlot represent a powerful pair that is more responsible for destroying the entire US financial system than 95% of the American public has any awareness.

Some months ago this analyst began voicing his view that what we are witnessing is the end of an old era and the commencement of a new one. Events of the past two weeks have certainly had no precedent.

THE OBVIOUS IS OBVIOUSLY WRONG

GLD – on buy signal but still no set up yet.

From 1885 to 2008, (123 years) the Dow Jones Industrial Average, (DJIA*) has fallen -40% from a bull market high on only nine occasions. Such deep bear markets are always historic and distressing.

As the precipitous drop of the Dow Jones index of industrial stocks to the 8600 level on Thursday shows, the $700 billion bailout is an exercise in futility. The rescue effort administers one wrong medicine after another.