Commentaries

I’ve been consistently warning that U.S.government bonds will eventually implode. Using history as a guide, I know that when the sell-off in bonds begins, it will be very swift. The magnitude of panics are inversely correlated to the degree in which investors are deluded. Some of the most ignorant comments I’ve ever heard have been on … Continue reading

The gold rush mania that drives the price of gold to unbelievable price levels may well come from a global stampede into the world’s oldest currency that leaves the American hoi polloi left holding worthless U.S. monopoly paper and little else. The best part about the action the in metals is that CNBC/Wall St. Journal/et al … Continue reading

This essay is based on the Premium Update posted on December 11th, 2010

Analysts and pundits provide various reasons for the bull market in Gold. This includes emerging market demand, low interest rates, money printing, central bank accumulation, central bank policies and falling gold production. These are all good reason but there is one reason which stands apart and will drive precious metals to amazing heights. It is … Continue reading

Gold or stocks?….

Why do smart people do dumb things? Or, more germane to our Daily Reckoning beat, why do smart investors make stupid decisions?….

Gold has edged higher in each of the past nine years, and it is set to close off its decade-long bull market. Buying has been driven by…..

1.   Gold war update from the front lines:  The Gold Community retook $1400 last night.  Silver is close to retaking $30.  I won the battle as to whether gold would take out $1424 on the upside or $1315 on the downside.  Most thought $1315 would fall.   It didn`t.  Gold soared to $1430 basis dec futures … Continue reading

Do you think the Fed’s decision to move ahead with QE2, despite the strengthening economy rhetoric, was coincidence with the rollover in the “the Formula” and “Leading Formula” in November? Don’t think so. When the formula rolls over, it begins to feed on itself as described by Jim. Identification of the real secular trends shows the … Continue reading

The past week has been interesting to say the least. Gold is trying to find support while the SP500 grinds its way higher. Let’s jump into the charts and analysis to get better feel for what I feel is happening here. Gold 4 Hour Chart As you can see from the chart below gold has … Continue reading