Blog

There is a tug-of-war going on. On one side are those who want to buy physical gold under $1000 per ounce because they recognize both gold’s usefulness and the fact that it is undervalued.

The precious metals began a correction last week, which was fueled by gold’s inability to penetrate resistance above $1000 after several determined attempts.

The performance of the gold/silver ratio over the past month has been stunning. From a high of 68.0 on August 19, the ratio closed today in New York at 59.2, a remarkable 12.9% gain. In other words, the silver you own has outperformed, or appreciated, 12.9% more than your gold.

September 18, 2009 – Certain segments of the media rarely give gold a fair shake, particularly when it approaches important price levels.  These publications time and again take bald pokes at gold.  So when I see articles doing that, I like to poke fun at the article, but more importantly, set straight its misrepresentations andRead more

Gold closed today in New York at $1005.00, a new record high. Any new record is always a noteworthy event, but particularly so when the technical position and chart are so bullish.

September 10, 2009 – After being in and out of backwardation several times this year, silver has again slipped into backwardation.  There are however, some notable differences this time. Early this year the backwardation was mainly in London.  In recent months the backwardation has been occurring mainly in New York, indicating the shortage of physicalRead more

September 9, 2009 – September has so far been a bad month for the US dollar.  From its close on September 1st, the US Dollar Index has declined 2.1%.  The following chart is looking increasingly bearish. The Dollar Index is now at its lowest level this year.  Today’s close is the lowest since last September,Read more

September 2, 2009 – The yield on the 10-year T-note closed today at the lowest level since May.  Yields have fallen on fears of another de-leveraging as we approach the 1-year anniversary of the Lehman Brothers collapse.  These fears have been heightened by the sharp decline in recent weeks on the Shanghai Stock Exchange, whichRead more

August 26, 2009 – According to the National Bureau of Economic Research, the United States has been in an economic contraction since December 2007.  It is now the longest contraction since World War II and without any doubt, the deepest since the Great Depression. Every economic contraction varies to some degree, so no two areRead more

August 24, 2009 – The S&P 500 and the other major stock market averages face an important test in the weeks immediately ahead.  Please take a look at the following chart of the weekly closing price of the S&P 500. The S&P 500 broke down from its downtrend channel as the financial crisis worsened lastRead more