Gold Editorials & Commentary

Two years ago we reported in a GOLD-EAGLE essay that the "War and Peace" cycle was forecasting war sometime in the 2002-2004 timeframe.

Rumors of Bin Laden's capture . . . were denied later on, but generally were what was attributed as igniting Wed.'s late rebound behavior.

In India, gold is religion.

S&P Earnings Yield a Paltry 2.25%!

Memorial Day Meltdown is bubbling along quite nicely thank you. No, the Stock Market hasn't crashed yet, but the system is failing. If you are not careful, you will soon have a dent in your head from the falling economic debris.

It seems that there are two different possible types of dollar devaluation.

After the latest run up for gold will we see once again accelerated producer forward selling as we have seen it in the last five years? Will the gold price be down once again to new lows ?

We're just in the beginning the most desperate of times. We are about to hear the last gasp of our once great world economy. Call the summer of 2002 its swan song. Sweet song of sorrow, it will become a hymn. Few will foresee the devastation to come.

I now (after a lot of e-mails) realize that my idea of using Silver Eagles at their face value ($1) to purchase or sell real estate at 6 times its value, to avoid taxes, etc, was biting off a big chunk. I have an alternative, which may be easy for you to do.

Harmonious behavior . .

President Bush signaled his intention to follow along the path toward monetary deflation Monday by signing a 10-year, $190 billion farm subsidy program. The new law boosts U.S.

Lingering Questions

Indicators

The crackdowns are well under way. Regulators are all over Wall Street's mess.

The price of gold closed at $ 311 an ounce last Friday, approximately unchanged from our last Update. It has climbed 8 % from its March low of $290 an ounce, partly reflecting dollar foreign exchange weakness and a fall in the stock market (The S. & P.

Growing Trade Tension & A Still Overvalued Dollar

Now don't get me wrong! Gold is gold is gold is gold, and it matters not from where it came. All gold is a superb inflation hedge, beautiful, desirable, fungible, universally recognized for value, etc.

Warning bears would get burned . . .

It is apparent that Wall Street is walking through the valley of the shadow of death, as the well meaning public is increasingly becoming aware of the conflicts of interest related to its research enterprise.

If the economy is in such a slump, why are so many people buying cars?

After the latest round of quarterly earnings reports, Harmony (HGMCY) has extended its lead as the clear favorite based on a combination of stellar earnings, rapidly growing production and massive reserve/resource figures.

Several bubbles remain in the U.S. economy. Housing is one of them. Recent growth rates in this sector are unsustainable if for no other reason than housing is a durable item that is built once in a lifetime.

First let me make the following disclaimers. Everyone must do his or her own due diligence. Nothing in this essay should be considered investment advice. I am long gold and silver in the mining shares, options on futures, as well as physical.

In the field of economics, there are many facets. It isn't just all buying gold and silver.

It is absolutely fascinating to observe what is currently occurring in the in the world gold markets, as suddenly there seems to be a notable gold shortage. I estimate the shortage to be somewhere in the neighborhood of a 300 plus tonne annual deficit range.

Contractions and revival . .

The price of gold continued its upward path during the last two weeks and made a new two year high at $ 311.60 an ounce on Friday, up 12 % since the end of last year.

Gold's technical picture continues to strengthen. A friend of mine noted a very bullish put-call ratio. And at the end of Friday, spot gold closed in New York at $311.70, while the 50-day moving average was $297.37 and the 200-day moving average was $283.49.