We began this Gold Commentary in January 1996.
Due to many requests, we began to archive them in May 2000.
April 27 - A Pause For Fiscal Breath
On both sides of the Atlantic, the monetary and political powers that be are staring at the IMMENSE pile of thin air debt "money" which they have already decanted into their systems. The thought of having to decant yet more is giving them pause. How long that pause will last is anybody's guess, and everybody is guessing."
April 20 - The Meat In The "Austerity" Sandwich
Anyone at any level of competence or comparative economic substance who is still striving to live within his means and independent of his fellows today is the meat in the "austerity" sandwich. "Austerity" in this context is any relaxing of the power of government OVER its citizens. In the final analysis, the extent of that power can be measured directly by the size of the debt of those who exercise it. The ONLY mechanism that lets them get away with it is their control of "money"
April 13 - There's Bad Debt - An Then There's "Good" Debt
Please cast your mind back to the great US debt impasse and debt ceiling stoush of July-early August 2011. That was the only prolonged period since the European sovereign debt crisis was ignited by the US ratings agencies at the end of 2009 when Europe has NOT been the focus of all sovereign debt worries.
April 6 - Good Friday Holiday - No commentary update
March 30 - ALL Markets Are Manipulated
It is interesting that many of the same people who are now abandoning stock markets because of their "volatility" over the last few years are the same people who become affronted at the slightest mention of the possibility of precious metals price manipulation. A moment's serious contemplation should make things clear. The precious metals and Gold in particular have always been the "alternative" to government promise based created out of thin air money.
March 23 - Ben Bernanke Doesn't Like Gold
On March 20, Ben went back to school. Well, in a manner of speaking he did. As part of the Fed's campaign to win freinds and influence people (something they haven't bothered with before), Mr Bernanke took himself off to George Washington University to give a series of lectures to (very carefully) selected students on the history of the Fed and all the wonderful things it has done to "stabilise" the US economy over the past century.
March 16 - Don't You Dare "Expect" Inflation!
Add those two daily falls, both of which took place in the immediate aftermath of comments by Ben Bernake, and you get a total of $US 128.40. On February 28, the day before Mr Bernanke's Congressional testimony, spot future Gold had closed at a 2012 high of $Us 1788.40. Take $US 128.40 away from that and you get $US 1660.00. Spot future Gold actually closed on March 16 at $US 1655.80. That's plenty close enough for government work.
March 9 - Two Precedents Set
The first real "haircut" for members of the financial SYSTEM - as opposed to the long suffering taxpayers who are paying for it all - has been taken. What did NOT happen to the banks in 2008 has now happened to the banks in 2012. And this time we are not talking about dodgy mortgages or contrived derivatives on same. This time we are talking about the BEDROCK of the current global system - sovereign debt.
March 2 - Gold's Great Leap Backwards
If you think this was "market action", you are of course right. There is no doubt it took place on what is called a "market". But if you think it was the free play of supply and demand on a market, we have a large portfolio of bridges located all over the world which are going very cheap indeed. Those who had accumulated Gold and Silver "longs" were said to be disappointed that MR Bernanke didn't make any decisive noises about more "stimulus".
February 24 - Inundations - Natural And Man Made
NO MAN MADE EVENT EVER HAD TO BE WHAT IT WAS. That is so because the actions which make such events inevitable did NOT have to be taken. And when they were taken, the inevitable results did not have to be ignored. Nothing that human beings cause HAS to be the way it is or was. Different choices could have been taken. And at any time in the future, different choices CAN be taken to ameliorate or even entirely negate a man made disaster.
February 17 - Lost In The Paper Shuffle
Now, another bailout is being eagerly anticipated, this one to take place in Europe sometime over the next month. Once again, the paper markets are gleefully contemplating yet another bailout. The closer the "deadline" gets, the higher the "irrational exuberance" becomes. Gold is doing nothing much at the moment, it is lost in the paper shuffle.
February 10 - LOWER Margin Requirements For Precious Metals??
Fascinating! On February 9, after the relevant markets were all safely closed for the day, the Chicago Mercantile Exchange (CME) announced that they were actually LOWERING their margin requirements on their commodity and metals future contracts - including Gold and Silver! Perhaps they had been spooked by the Baltic Dry Index which is falling at the fastest pace since 1986 at present. At any rate, Gold and silver margins were cut by 12 and 13 percent respectively.
February 3 - There's Too Much Gold Talk These Days
Of course, at every major high in the Gold bull stretching all the way back to 2005, there have been the obligatory media speculation about the end of the bull market. There hasn't been a major run up since 2005 that was not accompanied by an ever increasing media chorus about the Gold "bubble". But Gold's instant reaction to the Fed's announcement on January 25 that they were going to maintain their ZIRP (Zero Interest Rate Policy) until the end of 2014 startled the markets.
January 27 - They're Determined - We'll Say That For Them
They are "rescuing" the nation from recession by paving the way for economic collapse. A HUGE economic slump in the US and across the world cannot be prevented by ANY method. It can merely be postponed, at the cost of intensifying its effects when it does finally take place.
January 20 - Once More Into The Breach
On January 18, no less a paragon of the US establishment media than the Washington Post newspaper published an article with this startling title: "Ron Paul wins support urging end to the Fed, pushing the gold standard. But is that possible?"
January 13 - What A Wonderful "Coincidence"
Not much more than a week ago, it was all the rage amongst the mainstream financial media to portray Gold as an "investment medium" which had outstayed its usefulness. A couple of Barrons headlines are typical: Gold Slides to Five-Month Low, Gold Posts Longest Slump Since 2009.
January 6 - 2012
Not much more than a week ago, it was all the rage amongst the mainstream financial media to portray Gold as an "investment medium" which had outstayed its usefulness. A couple of Barrons headlines are typical: Gold Slides to Five-Month Low, Gold Posts Longest Slump Since 2009.