Gold Editorials & Commentary

Recently I conducted some economic research on the last bull market we experienced in precious metals from 1970-1982.

Back in the late 1990's telecommunication companies such as Cisco, Nortel, and Lucent sold or, though various vendor financing schemes, pretended to sell, vast quantities of equipment to money losing start-ups.

In "Elliott Wave Update IV" published on 19 February 2006, the following was the summary of my views on gold at that time:

Summary of Gold Update IV:

The World, the Economy and the Stock Market in particular, always act like a giant pendulum, swinging from under valuation to over valuation, deflation to inflation, paper assets to hard assets, calm to turmoil.

As an investor, there are two main values of the U.S. dollar to monitor:

The current gold price correction has probably been completed in terms of price magnitude but the correction may not be completed in terms of time duration and complexity.

"We bought gold at 640 today."

In today's style over substance economy, the job of Treasury Secretary has devolved into a pitch man for the government's economic disinformation campaign.

This is one of those times when the Elliott Wave labeling suggests we are approaching a top for a correction in a new down-trend, however there was so much buying power generated in Thursday's rally in major equity markets that reliable "buy" signal

It's really difficult to be objective about something one despises so much, but here goes. Why hate a bureaucrat or bureaucracy? Simply because they are so inefficient, self serving, wasteful, costly, and pervasive, if that's reason enough..

Greenspan's long-ago warning of 'irrational exuberance' still rings true. No one listened then, and No one is listening now?

Technical chart analysis is called an art form, highly subjective, given to experienced interpretation, and not the least a hard science.

As U.S. inflation is beginning to be taken a bit more seriously, the dollar has found some temporary support as traders anticipate higher interest rates from a more aggressive Fed.

Lease rates are spiking up again.

My view here is that the shorts are leasing silver and are "dumping" what they have leased into the market in an attempt to get the price down as much as possible.

We are fast entering the other side to statistical distortion, as an unusual combination has revealed itself. If it were not so destructive, it would be hilarious.

The much anticipated and much needed new ETF for precious metals stocks has finally debuted on 5/22, without much fanfare. In fact, there is very little info on the web. Reason is obvious, gold bulls are not in a celebratory mood these past few days.

The action on Friday was characteristic of a reversal and it was sector wide with Reversal Days showing up in the charts of the gold stock indices and many gold and silver stocks.

This week Wall Street finally began to acknowledge the possibility that all is not necessarily sanguine on the inflation front after all.

 “Silver is rarer than gold. Period. There is less silver in the world, above ground than there is gold. That is easy to document.

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In my work, I have focused 100% of my gold study on macroeconomic trends and world political developments. I have found this method very fruitful in understanding precious metals. I have not used charting, mathematical modeling of price activity, Fibonacci ratios,...

Anyone who cannot detect rumblings with more magnitude than early volcanic tremors is brain dead, plain and simple. For a full year, the USDollar enjoyed a sizeable counter-trend bounce. It relieved the long-term oversold condition.

It's my gut feeling the price of Gold did not break freely above the $550 level till the end of March. Because of that, the higher average price of Gold is simply not reflected in the earnings of the Gold stocks for this quarter.

The mainstream of economic thinking holds that China will continue to finance America's current account deficit indefinitely because American consumption is vital, if not critical, to the survival of China's export driven economy.

Much new money has been attracted to the resource sectors of metals and energy lately, therefore, it is only appropriate that a substantial correction has now begun.