Blog

The shorts in gold – and particularly the shorts in silver – felt some pain today. Gold climbed $11.80 to close on the Comex at $1125.10, a 1.1% gain for the day. Silver did nearly twice as well, up 2.1% for the day and ending at $17.876, the highest in ten weeks. The gold/silver ratio fell to 62.9 from 63.6 the day before.

March 16, 2010 – Gold has been stopped time and again in its decade-long bull market by recurring hurdles that appear at an ever-higher price.  During these encounters, several things happen, most notable of which is the growing bearish sentiment in the face of a seemingly insurmountable price barrier.  We are seeing that pattern repeatRead more

The nearly $30 surge in the gold price from Friday to yesterday’s close in New York should not surprise anyone familiar with the gold price suppression scheme documented so carefully and thoroughly by GATA. For years the gold cartel has been manipulating the gold price to repeatedly feed upon those traders who are guided by black-box trend following models.

Every once in a great while, the market offers a unique opportunity to buy precious metals ‘on the cheap’. I believe today is one of those moments.

January 2, 2010 – It is time to record my outlook for 2010, but before looking forward to the year ahead, I always like to first look back at what I was expecting for this past year.  My forecasts for 2009 were driven by my overall outlook for the economy, which is captured by theRead more

December 16, 2009 – One of the best explanations of fractional reserves comes from a polemical essay written in 1995 by Murray Rothbard, one of the prominent champions of the Austrian School of Economics: “Banks make money by literally creating money out of thin air, nowadays exclusively deposits rather than bank notes. This sort ofRead more

December 13, 2009 – In my last commentary I asked “What’s next for gold?”  Answering my own question, I noted that “$1200-$1400 is a reasonable target for the end of this year, but first, it seems likely that gold will re-test support.” In fact, gold kept climbing to above $1200, so my timing was off.  OnlyRead more

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.”

Gold has been pushed into an extremely oversold condition. Fortunately though, and quite remarkably given this relentless selling pressure, little damage has been done to its chart. So while gold  dipped back deeper than I expected, I think the worst is over and further, it looks like both precious metals (gold and silver) will bounceRead 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.