May 07, 2007

Gold's Infallible Indicator

Wouldn’t it be wonderful if there was an indicator that accurately predicted when the price of gold was about to rise?  Well, here’s an indicator that so far is batting 100%.  The important point is that this infallible indicator recently flashed another ‘buy’ signal.

The Economistrarely writes about gold, but when it does, start buying. It has an uncanny knack for publishing unswervingly bearish articles on gold just before the price heads higher.

I’ve been using this indicator for years as one of many tools that help me to identify important turning points in the gold market.  Here’s the record complied by The Economist:


Date Article is Published

Gold Price
On Date of Publication

Low Gold Price After Date of Publication

Number of Days Low Is Reached After Publication

Subsequent High in the Gold Price

Date of Subsequent High in the Gold Price

% Gain from Publication Price to High Price

23 Jan 1993





30 Jul 1993


11 Sep 2003





9 Jan 2004


1 Dec 2005





11 May 2007


8 Apr 2007



1 (so far)





Note that the articles appear very close to the actual low in gold’s price, and have missed the exact low price by just a few dollars.  And its timing is improving.  While the 1993 article appeared 32 days before the low price, the most recent article missed by just one day.

How can The Economist get it so wrong?  Or in other words, why is this indicator so reliable? 

While The Economist pretends to offer serious analysis of gold, in reality it doesn’t.  It has another objective – anti-gold propaganda.  It is an apologist for the Bank of England and the other central banks that want to keep the gold price low. 

By keeping the gold price low this cabal believes that they can make the dollar look worthy of being the world’s reserve currency when in fact it is not.  It is beyond the scope of this article to explain the motivation of the central banks that manage the gold price, but I offer an in-depth explanation at the following link:  You will find there my introduction to an important interview of Chris Powell, a co-founder of the Gold Anti-Trust Action Committee.

So The Economist helps promulgate the anti-gold propaganda of central banks, which explains the precise timing of the above articles.  When the gold price managers sense that they are losing control of gold’s price, they pull out all the stops.  One of those is to gear up the anti-gold propaganda machine, including The Economist, one mouthpiece for the anti-gold cartel.

So when reading about gold in The Economist, do it with a jaundiced eye, understanding that its foremost objective is to disparage gold to keep you from buying, thereby lessening the demand for gold.  More importantly, when this infallible indicator flashes a buy signal, start buying.




by James Turk
Copyright © 2007 by James Turk.  All rights reserved.

James Turk is the Founder & Chairman of He is the co-author of The Coming Collapse of the Dollar


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