Gold hits new record

(8PM EST – promoted by Nightprowlkitty)

  The price of gold surpassed its 2009 peak today, hitting an all-time record high of $1,232.50 an ounce. The reason for this is quite simple – Europe is printing nearly $1 Trillion dollar to stem their financial crisis and the markets think all that money will be wasted.

  This is leading people to blasphemous conclusions.

 “People are in panic mode,” said Matt Zeman, a metals trader at LaSalle Futures Group in Chicago. “There is absolute panic over the risk of contagion spreading to other countries in Europe. Yields on Treasuries are so low, people are starting to look to gold as an alternative.”

  “This is the beginning of the unraveling of fiat currencies,” said Michael Pento, the chief economist at Delta Global Advisors Inc. in Huntington Beach, California. “Money has to be backed by something. People are beginning to realize that gold is the world’s reserve currency.”

  “When the sovereign-debt crisis laps onto our shores, there will be a global realization that gold, not the dollar, is the world’s reserve currency,” Pento of Global Advisors said.

The fact that gold has been rising, not dropping, while the Euro has been crashing, is evidence that gold is now trading like a currency rather than a commodity.

  Gold mining stocks also rocketed higher today.

  For nearly a decade, the main alternative to the dollar has been the Euro. Before that it was the Pound.

  Now both the Pound and Euro are in serious trouble. This can be easily seen by looking at gold prices in Euros.

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 If should be noted that the crisis in Europe isn’t the only reason for gold’s 9-year climb. Official gold sales from the world’s central banks have dried up, while worldwide gold production has been dropping.

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 You might think this new high in the price of gold has gold bugs throwing their every dollar at the yellow metal in a mania. You would be wrong.

 Consider the average recommended gold market exposure among a subset of gold-market timers tracked by the Hulbert Financial Digest (as measured by the Hulbert Gold Newsletter Sentiment Index, or HGNSI). It currently stands at 46.6%, which means that the average gold timer is still allocating more than half of his gold portfolio to cash.

 Today, the gold bugs are surprisingly subdued, and that is a positive omen.

 As long as the central banks and governments of the world continue to throw massive amounts of money at their economic problems without making real reforms in the financial system, gold (and silver) will continue to go higher.

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13 comments

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    • gjohnsit on May 11, 2010 at 10:51 pm
      Author

    gold and silver bullion only please

  1. This is what we have with the crooked Rothschilds debt-based Central Bank money scheme, in implementation all throughout the World.

    When Central Bank managed money is created, it is intrduced on the books as a debt instrument (a government bond), that the poor citizens in all these Countries then have to reimburse their governments for (by means of their taxes).

    This is a system than can only produce endless debt and eventual poverty, because in order to pay off the debt you either have to:  1) borrow money (which is itself debt producing, 2) charge more taxes (which robs the people of their money), or 3) print more money (which we already established is itself debt producing).

    The mountain of debt can never be stopped by this corrupt system. But, of course, the Banking Elites (Rockfellers, Morgan, Chase, etc.) get filthy rich with interest.

    The printing of money also expands the total money supply, which means that the value of the currency necessarily gets more and more diluted, and worthless over time. The wealth of all these Countries systematically accelerates away from the masses, and to the rich controllers.

    The United States used to be different. We started out as a free Country, and fought back against attempts to establish a “Bank of England” (Rothschilds) style Central Bank model here in our Country.

    But we have only had a few Presidents that cared enough to really fight them.

  2. & 7.62 are going to be THE currencies –

    and I HOPE my track record is as good for the next 35 as it has been for the last 35 – especially since voting for HOPE has been a f’king waste more than once in my life.

    I knew Raygun was a christo-fascist when I was 20 30 years ago. I expected him to usher in a mad max – blade runner world, and fortuneately I’ve been wrong.

    HOWEVER … WTF has been accomplished in 30 years? Mountains and mountains of fucking debt so rich pigs can be richer pigs, google, amazon.com, facebook, the internet … taylor swift, beyonce and beiber.

    oh well.

    rmm.  

  3. 10 yr treasury notes.  So much for U.S. insolvency.  Investors were looking for safety & they found it in Treasury Securities.  

  4. is the US dollar vs. Euro.  Just saying.  What would Pento say about that?

    Gold is a good hedge against catastrophe but not a “world reserve currency.”  

  5. nothing but fiat money and gold cannot back anything in my opinion.

    when you have nothing to eat, the guy with the gun and the food can say, give me the roomful or he can just wait for you to expire and take the roomful or he can just take it.

    gold is shiny and people like shiny.

  6. Read up on The Crime of ’73 (that would be 1873) when the post-Civil War US government called in the wartime greenbacks and went back to the gold standard.  Suddenly every debtor (and farmers always are in debt) found themselves having to pay back their loans at par and plus interest with dollars that were both growing more valuable and more scarce.  It was this signal event that underlay the social explosion that first took the form of the Farmers Alliances and then the Peoples Party, what today we called the Populist Movement of the 1880s and 1890s.

    Although the speaker of the following words was not a Populist at all, was indeed something of a mountebank, a humbug of a Dem Party pol of a type we know all too well that wants to saddle the active and the radicalized for their own ends, he did quite effectively sum up the stand of the Populists with regard to the gold standard in this memorable passage:

    If they dare to come out in the open field and defend the gold standard as a good thing, we shall fight them to the uttermost, having behind us the producing masses of the nation and the world. Having behind us the commercial interests and the laboring interests and all the toiling masses, we shall answer their demands for a gold standard by saying to them, you shall not press down upon the brow of labor this crown of thorns. You shall not crucify mankind upon a cross of gold.

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