Blog

Gold closed today in New York at $1005.00, a new record high. Any new record is always a noteworthy event, but particularly so when the technical position and chart are so bullish.

September 10, 2009 – After being in and out of backwardation several times this year, silver has again slipped into backwardation.  There are however, some notable differences this time. Early this year the backwardation was mainly in London.  In recent months the backwardation has been occurring mainly in New York, indicating the shortage of physicalRead more

September 9, 2009 – September has so far been a bad month for the US dollar.  From its close on September 1st, the US Dollar Index has declined 2.1%.  The following chart is looking increasingly bearish. The Dollar Index is now at its lowest level this year.  Today’s close is the lowest since last September,Read more

September 2, 2009 – The yield on the 10-year T-note closed today at the lowest level since May.  Yields have fallen on fears of another de-leveraging as we approach the 1-year anniversary of the Lehman Brothers collapse.  These fears have been heightened by the sharp decline in recent weeks on the Shanghai Stock Exchange, whichRead more

August 26, 2009 – According to the National Bureau of Economic Research, the United States has been in an economic contraction since December 2007.  It is now the longest contraction since World War II and without any doubt, the deepest since the Great Depression. Every economic contraction varies to some degree, so no two areRead more

August 24, 2009 – I expect considerably more volatility in the markets in the months ahead, particularly for gold and silver. Once gold climbs above $1,000, I expect a whole new ballgame will emerge. The gold cartel will be less effective in managing their staged retreat, so the gold price will rise more rapidly thanRead more

August 24, 2009 – With the US still in a deep economic contraction with rising unemployment, why is the US stock market rising? The Pollyannas on Wall Street and the politicians in Washington would have you believe that the stock market is forecasting better times ahead.  I have an entirely different point of view. TheRead more

August 24, 2009 – The S&P 500 and the other major stock market averages face an important test in the weeks immediately ahead.  Please take a look at the following chart of the weekly closing price of the S&P 500. The S&P 500 broke down from its downtrend channel as the financial crisis worsened lastRead more

August 24, 2009 – Please take a close look at the following chart of the gold/silver ratio.  I have again added to this chart the red horizontal line at 69.  Note that this 69 level is again proving to be a resistance point. It is possible within the next week or two that the ratioRead more

Silver dropped into our buying area, but silver did not close below the level needed to trigger my buy recommendation. I think that we will get one more chance to buy on a dip toward support.

There is an important Comex option expiry on August 26th for silver, and then expiry for silver over-the-counter options will end the following day.