| Brokers have been saying for decades, ever | | | | stood against all tides: gold. Last week all these |
| since gold fell from $850 nearly three decades | | | | uncertainties helped gold to stay hotly demanded. |
| ago that it was nothing but a YELLOW RELIC! Let | | | | Last week we were wrong in judging gold's trend |
| me see now, brokerage commissions as an | | | | because we thought that when everything comes |
| incentive aside, since September of 2001 you | | | | down, gold will also be pressured by liquidities. But |
| could have bought the Dow at 8,500 (some of | | | | that did not happen." Of course the new mantra |
| those 30 Dow stocks are no longer in the Dow of | | | | will be that gold ahs TOPPED OUT! |
| course). With the Dow currently 10,750 or so that | | | | Yeah right! NOT! |
| would give you a nice 29% return. And? | | | | With nothing but crises up the road, while |
| | | | | sovereign states going bankrupt (like |
| For those that decided to buy gold instead in 2001 | | | | Caleee-Forni-aaa too), deficits are going out of |
| for the then going price of $265, the return would | | | | sight, and INFLATION about to become the eight |
| be something like 459%. | | | | hundred pound gorilla on the block, gold has |
| Let's see now, 29% or 459%. Hmmm! | | | | nowhere to go but up. Will there be pull backs? |
| As I write this before the gold markets close | | | | Sure! Will the powers that be try and tamp down |
| (1:50pm), gold is up $30 for the day at $1,230 | | | | the gold bugs? Sure, but the operative word is |
| (give or take a dollar or two of fiat money that | | | | TRY (not do). |
| isn't worth the paper it's written on). Comex gold | | | | The king has no clothes and you can put |
| futures Tuesday afternoon hit a new all-time | | | | humpty-dumpty (The Euro for one) back |
| record high of $1,232.50 an ounce. The previous | | | | together again. Richard Russell wrote yesterday, |
| record high of $1,227.50, basis nearby futures, | | | | "Save the euro, must save the euro. All the |
| was set in December of 2009. | | | | world's central banks rush to save a fiat currency. |
| Gold continues to benefit from safe-haven buying | | | | If the euro should collapse, it would demonstrate |
| interest amid the European Union's sovereign debt | | | | the inherent vulnerability of a leading fiat currency. |
| crisis, and on building bullish technical momentum. | | | | The central banks and the IMF have put up nearly |
| With gold prices now in uncharted territory, | | | | one trillion dollars to bail out Greece, but more |
| traders should look for higher volatility both on the | | | | important, to show the world that fiat currencies |
| upside and on the downside, but with a continued | | | | are "safe" and here to stay. Remember, the |
| upside bias. I mean like UP, UP, and away. Why | | | | business and power of central banks lies in their |
| even Mahendra has come clean and confessed his | | | | fiat, non-intrinsic money- money they can create |
| sins-errors. | | | | at will). To hell with Greece, the euro, therefore, |
| Mahendra wrote, "While stocks and base metals | | | | at all costs, MUST be saved". |
| were collapsing as predicted, one commodity | | | | |