Gold Editorials & Commentary

As the world's central bankers make ready to shove gold off the cliff, their odds of getting away with murder have never appeared more remote.

A senior member of the Japanese ruling party and unofficial advisor to PM Keiza Obuchi, suggested Japan should use excess dollars in its foreign reserves to buy gold from the IMF.

Spot Gold $266 up $1.80

Spot Silver $5.26 unchanged

Technicals

When I first started extensively researching the Year 2000 Problem ("Y2K") in early 1998, the extraordinary magnitude and ramifications of the Y2K challenge to modern society hit me with breathtaking impact.

The only purchasers of the Bank of England's gold sale were the 12 market makers and 50 ordinary members of the London Bullion Market Association (LBMA).

Markets have shown no signs of broadening-out. . not only now, but during the entire year as a whole. Given our annual forecast, not just our shorter-term assessments, this isn't surprising.

The following is a statement issued this week by the Princeton Economic Institute, which defends the recently arrested financial analyst Martin Armstrong. The PEI statement is followed by a reply dispatched therefter by GATA Chairman Bill Murphy.

Nine months ago the Gold Anti-Trust Action Committee developed an action plan and we have stuck with it. It was patterned after the "enveloping horn" strategy of Shaka, the famed South African Zulu warrior of old.

Fabian was excited as he once more rehearsed his speech for the crowd certain to turn up tomorrow. He had always wanted prestige and power and now his dreams were going to come true.

Money & Debt

Selling into a benign CPI rally. . . was the call for early Wednesday, if that was the way the CPI number came in, and it did; though there's no doubt we view price levels higher than "massaged" data being officially reported today.

After the Problems Of 1980s, The Easy Money 1990s Helped Create A Stock Market Bubble. Then, The Fed Got Worried.

Last month an analysis of monthly charts showed that gold was near support in dollar terms as well as in Yen. Given the strength of the Yen, the latter finding is particularly important as is explained later.

Every now and then a market comes along which presents so few clues as to its preferred trend that it becomes almost impossible interpret until a decisive breakout occurs. The present market is just such an example.

Many people, like myself, consider the Internet one of mankind's greatest technological marvels. In terms of the medium's impact on present and future commerce and business success and failure, we are truly witnessing a unique time in world history.

panicn1 : a sudden overpowering fright; esp : a sudden unreasoning terror often accompanied by mass flight 2 : a sudden widespread fright concerning financial affairs and resulting in a depression of values caused by violent measures fo

The outlook for precious metals and precious metals stocks remains mixed, and bearish overtones continue to hang over the market to be sure. But based on our reading of the tape there is light at the end of the tunnel.

The broad U.S. equities market continues to display serious technical weakness on a short-term and intermediate-term basis, but the bulls of Wall Street continue to fight to keep the bull market intact.

It is fascinating to me that much of what we have covered at the Cafe over the past year is starting to synchronize and boil over.

The only purchasers of the Bank of England's gold sale were the 12 market makers and 50 ordinary members of the London Bullion Market Association (LBMA).

What a day! Goldman Sachs sat on the gold market (what else is new?), as gold rallied only $1.10 while the dollar swooned again, bond yields rose, and the stock market dived. Silver put in a better performance and rallied 7 cents.

Activity somewhat mimicked Tuesday . .

We last looked at monthly charts of the gold price and related prices to set certain parameters for gold. With the next month end approaching, we can revisit those prices to see how they are shaping up for the end of August

Think about this great business idea for a minute. Let's borrow some surplus stuff and sell it for whatever we can get. We'll buy a futures contract to get it back at some certain future date, so we're covered.

Is the market thumbing its nose at reality? In a fundamental sense, yes; in a technical sense, no; and from a seasonal sense, this goes on mostly as it should for all the enumerated reasons, that the Daily Briefing has outlined.

The dismal science will never be the same if economist, Dr. Kurt Richebacher's dire predictions for the global economy should come to pass.

The broad U.S. equities market, as measured by the Dow Jones Industrials and NASDAQ Composite, flashed a bearish signal late last week and will likely experience weakness over the next several days.

Technicals

It was not a whole lot of fun but we are, nonetheless, happy to have another option expiration week behind us. For the week, the Dow gained 127 points, or just over 1%.