Gold Editorials & Commentary

Gold did move higher in response to silver’s late January breakout, but it did not succeed in breaking free of the influence of its long-term uptrend return line and advancing significantly as expected, and is therefore now vulnerable at best to a period of con

What does the well known constellation we all learned to look for in the night sky have to do with the gold market? Answer - Nothing except it sounded like a catchy title for a short missive on the recent doings in the gold market!

This article attempts to establish the notion that as the gold price rises, the mine production industry will not bring significantly more gold to market. In addition to other obstacles, they will be stymied by hedge book losses, sure to drain valuable funds.

Inflation, currency depreciation, wars and terrorism, credit bubble, deficits, India, China…….list goes on and on, for those who are looking for reasons, plenty of why this and why that can be found on the web these days.

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.

This week, Alan Greenspan bids a long overdue farewell to the Federal Reserve that he chaired for eighteen years. Praise from his Washington and Wall Street beneficiaries has naturally arrived by the boatload.

Inflation makes it hard to judge the value of everything. Because the measuring unit, the dollar, is always dwindling, how can you know what a price 10 or 20 years ago means? It's like shooting skeet off the back of a bass boat in a high storm.

The gold market lately has left many veteran analysts and gold experts baffled, and made many of them look amateurish, as many have advised their readers to exit the market in anticipation of a sell off.

In the last 90 days, the price of gold increased 25%, from around $440 to $550. In contrast, it took three years from its bear market low in 1999 for gold to sustain a 25% rise.

Summary

The article below concludes that the world's financial markets have reached a critically important juncture.

What a difference a few hours can make!

VANCOUVER GOLD SHOW

The immediate outlook for gold very much depends on the outcome of the silver "war of attrition", being fought in the $8.80 - $9.30 zone.

Home page of GLG

Today's move of the US Dollar Index to 87.98 represents a fairly significant technical break down below the longer term Moving Averages on all three charts below (Courtesy DecisionPoint.com).

When gold fell 10% in five sessions in Dec, top pickers were sure that was it, gold was going down to $420. On Wed this week, gold fell $10 and some of these top pickers were back, may be $500 this time they said.

Let us add another dimension to the perceived value of gold. It is a value applied to an alternative source of energy, higher states of consciousness, space-travel, health and in all likelihood, more.

"I am pleased to report the inflation monster has been captured and placed in a jar".

When it comes to spin, Washington is no match for Wall Street.

There are two important factors indicating that the Precious Metals sector is at a near-term top and that a significant correction is beginning, or will soon.

Below is an extract from a commentary originally posted at www.speculative-investor.com on 12th January 2006.

In his thought provoking article at the end of December, Alex Wallenwein examines in a coffee table setting the question of why the hedged XAU index broke out well before the unhedged HUI index.

I regret that (blush, blush) I must admit to an error in my article of 13 January 2006 in which I calculated a long term price objective for gold of $4,250 and a shorter term price objective of $785.

Abstract: the proposed Iranian Oil Bourse will accelerate the fall of the American Empire.

I. Economics of Empires

The Bernanke Era

The Sacrifice Ratio

How Important is Housing to the Economy?

On the Contrary: Why It Pays To Be Different

This week, Wall Street strategists cheered as the Dow Jones closed above 11,000 for the first time in four and a half years.

Here is an update on the gold sector.

With the gold price pushing to new 25 year highs, it is probably a good time to take stock of the longer term picture to see where the gold price might be heading. This will also enable us to see how far we have progressed into the new bull market.