The Gold Economy

Here is a series of monthly close charts of the Nikkei 225, the S&P 500 and gold. This series also includes an overlay chart with the three peaks aligned.

In retrospect, most people readily recognize a dramatic rise in the Nikkei and S&P indexes as bubbles — especially acceleration during the decade prior to the peaks.

At some point in the future, will we have a similar epiphany about gold? Absolutely. The only question is … how soon?

Click to enlarge images

Alright folks, everything sold off Tuesday.

Without further ado, let’s take a look at some charts — short and long term — that indicate renewed global panic.

The following are a range of stocks, bonds, commodities, and currencies.

Click here to see the charts > or click on charts below to enlarge

From time to time, we like to check in on investment guru Jim Rogers to catch up on his thoughts on the markets and global economy. We do so of course due to his past success with the Quantum Fund he previously ran with George Soros. Nowadays, Rogers invests his money under Rogers Holdings and he has some pretty staunch viewpoints. Rogers himself proclaims he is a poor market timer. So while he may be early on an investment theme, he often finds and rides macro trends. To some, his views seem repetitive. But you must keep

By Brad Zigler

You need buyers and sellers to make a market like the one in which gold is traded. There’s no shortage of players in the gold market presently. There are, in fact, sellers aplenty now. Commercial traders have been building up a net short position that could soon outsize the one that set up gold’s December sell-off.

At last count, commercial traders held the equivalent of 326,571 futures contracts[1] short. As of October 20, 2009 — six weeks ahead of an eventual $183 swoon — commercial traders were short 328,344 FCEs.

Commercial Net Short Positions in COMEX