Gold Editorials & Commentary

"We're off to see the Wizard, the wonderful Wizard of Oz. We know he is the wiz of wizes, if ever a Wiz there was.

Dramatic snapbacks . .

After interest in gold died down with the last failure to push above $300 resistance, suddenly, the metal wakes up to no fundamentals.

After interest in gold died down with the last failure to push above $300 resistance, suddenly, the metal wakes up to no fundamentals.

How very interesting it was to see a reputable financial publication addressing an issue that has been highly debated among gold bugs in recent years, but never formally substantiated.

The gold sector has been a source of both delight and frustration among traders in recent weeks.

The gold standard failed because a gold standard and central bank cannot coexist. It is as simple as that. That is particularly true when the gold standard is not sound in the first place, which many argue it wasn't.

Every month, my web site gets about 48,000 - 50,000 "hits." This means a lot of you people out there, are curious as to the prices of the various coins, bars, and other forms of bullion type gold and silver.

We sound like a broken record. But the fact is the stock market, as measured by the S&P 500 remains absolutely, ridiculously overvalued! Not since the pre-crash Japan have stocks anywhere in the world been priced so far in excess of their intrinsic value.

Complex crosscurrents . .

A highly significant article featured in last week's Financial Times.

If ever there was a reason to worry about a "double-dip" recession, here it is: according to Reuter's, "Few economists see a double-dip recession as a credible threat right now."

Let's see, since our last update:

Mr. Greenspan, would you please do something about this (see chart) before it gets outta' hand?

The wonderful federal government issues statistics galore, about every possible item that can be counted. I consider them to be about as reliable as the distorted mirrors in the funny house at an amusement park, which make you tall, short, fat, skinny, etc.

As a whole, stocks remain enormously overvalued. Thanks to Decision Point (www.decisionpoint.com) we know the latest GAAP S&P 500 earnings yield is a measly 2.24%.

We have been asked by some of our subscribers to give an opinion of the recently released report on gold bullion by the Blanchard Economic Research Unit of the precious metals sales firm Blanchard (New Orleans, LA).

Nailed Wednesday action . . . for another consecutive day of calls that defied most of the prevailing logic about this holiday-shortened trading week.

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.

Gold futures on the COMEX saw an impressive upside run this past week, closing up to $297.60 as of Friday. This is certainly a sign of underlying technical strength in gold on an immediate-term basis.

In all ages, pioneers of new ways of thinking and acting could work only because private property made contempt of the majority's ways possible - Mises in Liberty and Property

Have you ever known of an increase in government bureaucracy, spending, services, or intrusion into our life, that has ever regressed? Even local governments, when they form a new department, never, ever, see fit to send it to the rubbish heap. Never!

We sound like a broken record, but overvaluation of the stock market is so severe that we must continue to hammer away on this theme week after week. According to Decision Point the latest GAAP measured PE ratio for the S&P 500 is 44.3 times.

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.

Heaviness prevailed . .

During the past week the gold price was virtually unchanged, but since its February 8th high gold has declined $13.40 to $290.10 an ounce.

Avoid this Bear Market Rally Like the Plague