We began this Gold Commentary in January 1996.
Due to many requests, we began to archive them in May 2000.
February 26 - The Genie Is Out Of The Bottle
"But for the global financial system, the fundamental problem remains the same. In early December last year, facing a rapidly rising Gold price and the absolute necessity to increase the US Treasury's debt limit, drastic measures were called for. The "sovereign debt" genie was let out of the bottle with the decision to downgrade the sovereign debt of Greece by the US based ratings agencies."
February 19 - Not Afraid Of The Debt - Yet
"On Friday, February 12, Mr Obama officially increased his Treasury's borrowing limit by $US 1.9 TRILLION to $US 14.294 TRILLION. Monday, February 15 was a holiday on US markets. On the next day, $US Gold had its biggest one-day rise since November last year (when it was on its way to $US 1200 plus). On February 16, Gold jumped $US 29.80 while the trade-weighted US Dollar index - the USDX - fell back below the vital 80.00 level"
February 12 - The Power Of The US Pen
"In the face of the EXACT same problem for which Greece and its fellow "PIGS" nations are now being pilloried, what does the US government do? It passes a "law" giving itself "permission" to borrow more. In this case, $US 1.9 TRILLION more. "
February 5 - This Time It's "Sovereign"
"So why the big US Dollar jump against the Euro? Quite simply because the Global Financial Crisis has come back, but this time, it is not the risk of banks going under - it is the risk of "sovereign nations" going under. Which sovereign nations? European ones, or more precisely peripheral European ones along the shore of the Mediterranean sea."
January 29 - Business As Usual
"Mr Obama has given his State of the Union address. Mr Geithner has been grilled by the US Senate. Mr Bernanke has been confirmed for a second term as Fed Chairman, albeit by the weakest vote (70-30) in the history of the Fed. The Senate has approved a watered-down bill to "curb spending" and attached a $US 1.9 TRILLION increase in the Treasury's debt 'limit'."
January 22 - Something Happened
"In fact, what happened after January 19 this week looks eerily like what happened after the GFC hit crisis maximum in September/October 2008. Back then, the US Dollar rallied hugely and commodities and precious metals swooned in a huge global deleveraging."
January 15 - The Calm Before Something Happens
"Over the first week of January, the $US Gold price was up 4.0 percent. That surge continued at the start of this week as Gold poked above $US 1150 on Monday - January 11. But then on January 12 came the announcement from China that they were increasing the reserve requirements in their banking system."
January 8 - Has Any Market Gone Up Every Year For A Decade?
"In particular, any MAJOR market? We must admit we do not know but if one has, it would be a rare occurrence."