The Golden Truth: More On Today's Milestone in the Price of Gold

Friday, September 11, 2009

More On Today's Milestone in the Price of Gold

To begin with, the record weekly close over $1000 will get the attention of technically oriented investment funds this weekend. Expect heavy follow-through buying next week, barring some kind of unforeseen heavy intervention in the bullion market by the Fed/Obama Administration, in a desperate attempt to support the U.S. dollar.

I want to bring your attention to an excellent analysis posted on www.thetechnicaltakedotcom.blogspot.com, in which the author presents an excellent case to be made that the public has yet to join in on the gold rally based on the fact that the assets in the Rydex Precious Metals fund have not increased at all during this move over $1000. Here, the link to his work and it's a must-read:

Gold Is Going Much Higher While the Public Snores

2 comments:

EconomicDisconnectFriday, 11 September, 2009
Dave,
perfect capture of what I was saying, NOBODY is in gold so please stop with the bubble talk! I can never understabd the viceral reaction to gold as an investment, most people are angry and hate gold. Hmmm, I wonder why? No games and no way to fake it I guess bothers some folks.
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Dave in DenverFriday, 11 September, 2009
My buddy and I were talking about that on the golf course today. We can't believe that the public in general still doesn't understand the precious metals market.

I see it all the time in presentations to potential clients for my fund. The public just doesn't understand how close the dollar is to collapsing.
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Why Gold?

Gold is the world's oldest currency. You exchange your fiat currency (dollars, euros, yen, yuan) into gold as an insurance policy against catastrophic Central Bank and Government policies which serve to destroy the value of fiat currencies and destroy democracy.

Gold can ONLY be considered an investment to the extent that it remains significantly and historically undervalued in relation to the fiat currencies against which its value is measured. Otherwise it remains the world's oldest currency and is completely free from the counterparty risk associated with currency by Government fiat (i.e. fiat currencies rely on a Government's "full faith and credit.")

Quote Of The Month Courtesy of "Jesse"

Unfortunately for Larry Summers, Ben Bernanke, and their friends at the BIS, they have not yet figured out how to print physical gold, silver, and other essential commodities, and the world is reaching the point where it might simply start ignoring the New York based markets with respect to essential commodities such as basic materials, oil, foodstuffs, and the like, as they become increasingly irrelevant, fraudulent, and Orwellian. And then where will the financial engineers be, except with no more excuses and no place to hide?

Here is the link to his entire commentary, well worth a read:

http://jessescrossroadscafe.blogspot.com/2010/07/gold-daily-chart-shock-and-awe-for.html

Great Quote From Jim Rogers On Govt CPI Reporting

JR: I mean, we have inflation now. If you go to the shop, whether it’s groceries, or education or insurance or health care, prices are going up for everything. The government lies about it in the US. Some countries lie, many countries don’t: Australia, China, India and Norway. Many countries don’t lie about it and acknowledge that we have inflation. Others lie about it, the UK and the US, but if you go shopping you know prices are up.

Q: Are you saying that the American Consumer Price Index (CPI) published by the US Bureau of Labor Statistics is a lie?

JR: In my opinion, yes, of course it is. Have you looked at it? They’ve changed their accounting several times in the past few decades. When housing was 20% to 25% of the CPI and housing was going up, they didn’t count it, saying rents weren’t going up, and then when home prices started going down, they counted it. It’s the same with many things. It’s staggering some of the tortuous reasoning that the BLS has used over the past 25 or 30 years. When the price of gasoline goes up, they say it’s not really going up because it’s better gasoline, better quality, therefore you’re getting more for your money. I mean, it’s endless, the stuff that they say and for some reason people sit there, although more and more people are catching on, and accept what the government says.

source: www.clusterstock.com

Quote of the Week

"The primary function of a Central Bank is to engage in the massive transfer of wealth from the middle class to the wealthy elite. The Federal Reserve was set up to do this with the blessing and support of Congress." - Dave in Denver

If you refuse to believe the above, please read "The Creature From Jekyll Island: A Second Look at the Federal Reserve" by G. Edward Griffin and then explain to me why the Senate voted down the Vitter Amendment and Congress refuses to pass a law requiring a full audit of the Fed, even though the Fed is using taxpayer-backed money to bailout Wall Street and Europe.