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I noted in the last commentary, the importance of resistance for the gold/silver ratio at 69. I even drew a red horizontal line at that level, which can be seen again on the accompanying chart. I also warned: “We simply have to stay alert for the possibility of a deeper correction.”

The DJIA could not climb above its 200-day moving average and has now slipped back below overhead resistance (the horizontal red line on the chart). The Dow looks oversold and could bounce, but for now, the trend is pointing lower.

July 10, 2009 – As is clear from the following chart, we can see that there was some technical damage to the XAU Gold Mining Index.  After finally climbing above the key resistance level around 134, the XAU dropped once again into the high 120s.  This outcome is of course disappointing, but the technical damageRead more

June 29, 2009 – I find the accompanying chart to be very interesting, and it is probably one of the most striking and informative charts on economic activity that I have seen in a while. It was first brought to my attention by Casey’s Charts, a publication of Casey Research (http://www.caseyresearch.com/). The chart presents theRead more

After the gold/silver ratio broke important support in the 68-69 area, it knifed down all the way to 61.7. The ratio has now bounced back up to test over-head resistance. I expect this test to be successful, and that the ratio will once again move lower.

June 29, 2009 – Continue to accumulate the precious metals. By doing so you are saving money, but it is sound money and not depreciating national currency. Turning to the silver chart above, there is good news and bad news. The bad news is that silver has fallen back below support at $15. I hadRead more

Gold’s enemies, namely, those banks comprising the nefarious gold cartel and acting under the direction of the supra-governmental Exchange Stabilization Fund, are throwing everything they can at gold in an attempt to reverse its ongoing advance. Consequently, gold’s push to $1,000 has been halted by this intensifying resistance, but this setback is only temporary.

My comments remain unchanged from recent letters. With each passing day, December’s top in prices (i.e., low in yields) looks more and more certain.

The dollar is headed for hyperinflation. The dollar is headed for the fiat currency graveyard. Do not lose sight of this important point. Do not believe the propaganda of government officialdom that they know what they are doing and will take care of your best interests. The fact is, they don’t know what they are doing, and they are not looking after your interests.

June 29, 2009 – The Dow Jones Industrials Average is at a very interesting juncture. Please take a close look at the following chart. As the dollar moves toward hyperinflation, I expect stocks to rise. I explained this point in recent letters. The general averages will not do as well as gold, and certain sectorsRead more