Commentaries

Weekly Gold Review

No good news to deliver so far this year on the eurozone. Just this week Slovakia’s government became the first in the eurozone to fall over opposition of bailing out indebted economies after the country’s parliament voted down approval for enhancing the zone’s rescue fund.

Global markets are in the midst of a predictable relief rally to the technical bear market that recently became actualized off of various topping patterns that were in force for most of 2011.  It is important to note that this is coming off of a similarly predictable whiff of a deflation scare, as US and … Continue reading

Over the past year we have been learning more about the financial situations across the pond in Europe. With international issues on the rise, investors are panicking trying to find a safest haven for their capital. This money has been bouncing from one investment to another trying to avoid the next major crash in stocks, bonds, currencies and commodities.

The news over the last few weeks, including worries about a possible major banking crisis could cripple the Eurozone economy as a whole, has sent global financial markets down heavily.

We have alerted our subscribers on many occasions during the past two years that global credit downgrades of sovereign nations were inevitable. It does not take a prophet to have foreseen the turbulence in the global marketplace that we have witnessed since the expiration of QE2. Standard and Poor’s cut the rating one level from AAA to AA+. This action sent shockwaves reverberating throughout the financial world as irrational investors sought U.S. treasuries for liquidity.

As I expected from an oversold market, there was a sharp rally today, especially in gold and silver shares. I believe most sell-offs should be bought, especially because it is easier to buy and lighten up at perceived tops than to go short. This continues to be my strategy in this market environment. Gold shares … Continue reading

We’ve written about the importance of intermarket analysis. Movements in various sectors and asset classes influence each other. The Treasury market is the largest in the world and affects trends in other markets. Interestingly, Bonds at times move with Gold. In these cases it is due to a safety or flight to quality play and … Continue reading

As the Euro zone debt crisis flares fears among the consumers, gold hits a record high level emphasizing the fact that it is a safe haven for most investors. The much talked-about credit downgrade and the raising of the debt ceiling are the 2 most happening financial events that have had a global effect … Continue reading

Last week, we wrote that gold and gold stocks could be at – or very close to – a bottom. So far so good, as the miners rallied out of oversold conditions.