Gold...and Jimmy Carter (Act Deux?)


Let's admit it right off the top: Gold did not reach our anticipated near-term target of at least 1800.

"Well the week's intra-day high of 1790 was pretty close, mmb..."

Very sporting of you there, Squire. However: we've been leaping and pom-pomming about now for better than a month toward Gold returning to 1800 and it hasn't happened, even with the Triple Top setup for a pop per our prior missive. And arguably your noting 1790 having just traded, one might opt that 'tis a quadruple top.

But at the end of the day (in this case the week), Gold per yesterday's (Friday's) settle at 1769 reflects price having lost some of its shine. Moreover, a bevy of Gold technicals have just turned negative, although we just cannot conceive in any fundamental way too much of a material price decline (GLD).

Worse, the "in thing" this Spring is some compelling urge amongst analysts et alia to compare Gold with bits***t as a store of value! The very notion of that is sufficiently disgusting as to heave one's cookies at such sacrilege! What are these people thinking?

"They're not, mmb..."

Absolutely right, Squire. Such manias merely add to the many signs of a wholesale topping for horribly overvalued markets and assets. By which let's segue to our title.

Remember ole James Earl Carter Jr.? We do. The night he was elected U.S. President back in '76, my roommate at The University of Spoiled Children (U$C) said "This can't be good...", straightaway grabbed Grandpa Hugh Baillie's sterling silver mixer and filled it with crushed ice, Tanqueray and a splash of Noilly Prat.

Gold that day (02 November '76) was priced at 125, the annualized rate of inflation was 5.7%, and the "prime" lending rate was 6.50%. Come Election Day four years hence (04 November '80) Gold was 660, inflation 11.3%, and "prime" 15.50%.

We mention this as, upon learning the context of President Joe "Nikita" Biden's address this past Wednesday night, we thought: "Here we go again..."

1 2 3 4
View single page >> |

Disclaimer: If ever a contributor needed a disclaimer, it's me. Indeed, your very presence here has already bound you in the Past, Present and Future to this disclaimer and to your acknowledging ...

How did you like this article? Let us know so we can better customize your reading experience.


Leave a comment to automatically be entered into our contest to win a free Echo Show.