Blog

March 10, 2003 – The Dollar Index closed this past Friday at 98.04, a new 3-year low, 19% below its 2001 high. Even more importantly, its downward path is accelerating. In contrast to last summer when this index moved sideways for a few months after a protracted decline, this time it has hardly stopped forRead more

February 26, 2003 – For months one of the most frequently asked questions that I have been receiving from subscribers is ‘Are you worried about the size of Newmont’s hedge book?‘ Until now, the answer has always been yes. We no longer need worry. Why the change? Newmont’s 4th quarter report provided some significant newRead more

February 24, 2003 – I highly recommend that you read an excellent article in the current issue of Insight magazine. Investigative journalist Kelly O’Meara boldly asks, what if the gold reserves reportedly stored in central bank vaults are gone? She answers, a “panic is near”.(www.insightmag.com) Not only is this article an exceptional piece of journalism,Read more

February 10, 2003 – I will be the first to admit that the future cannot be predicted just because some line on an uptrend channel is broken on some chart. Technical analysis is useful, but it does have its limits. Consequently, I also use a healthy dose of fundamental analysis in these letters. So ifRead more

January 20, 2003 – One of the most important things to do when managing an investment is to stay aligned with the primary trend. This principle is true for every market and every investment – stocks, bonds, commodities, currencies, etc. You name it. You may have even heard the catchphrase that ‘the trend is yourRead more

Januray 6, 2003 – I have today mailed the following letter to the Enforcement Division of the Securities & Exchange Commission. It’s about time that we learn the truth regarding JP Morgan Chase’s activity in the gold market, the full extent of its gold exposure, and whether it used gold loans to fund the so-calledRead more

December 23, 2002 – There have been several important developments regarding gold since the last newsletter. These include: December 2nd – A strike erupts in oil producer Venezuela to protest the rule of autocratic president, Hugo Chavez. Though initially dismissed by many as unimportant, the strike continues as this is written, and the price ofRead more

December 2, 2002 – Gold failed to close above $325 at the end of November. As a result, I am concerned that the Fear Index may begin to break-down from here. Here are the preliminary calculations of the Fear Index for November. (US Gold Reserve) * (Gold’s Market Price) ———————————————————————- = Fear Index M3 (261.5Read more

November 18, 2002 – Long time readers of these letters know that I am not shy about making my views known. In other words, when it comes to markets, I call ‘them’ as I see them, which is something I am going to do again now. Every once in a while, a market will reachRead more

October 28, 2002 – It has been several months (see Letter No. 301, March 18th, 2002, Asking for Help from My Congressman), but my Congressman has at last received a reply from the Federal Reserve. Unfortunately, the reply did not come from Alan Greenspan, but rather, from an apparently low-level bureaucrat, Winthrop Hambley, Deputy CongressionalRead more