“Ron Paul last week asked Chairman Bernanke during the Humphrey Hawkins type hearings if he thought gold was money and he (Bernanke) said, ‘no.’ My answer would have been, it’s better than money."Here's the link to the short interview from King World News: LINK
I was chatting last night with a financial advisor from a large financial services company who said he had been watching gold but was afraid that he has missed the opportunity. What's amusing about this is that I've had this same conversation with financial industry "pros" since gold went over $500. As long as the mainstream hoi polloi and their rocket scientist financial advisers feel this way about gold, the bull market in precious metals and mining stocks will be easy money for those of us who get it.
When I started doing this sector back in 2001, I thought $5,000 would be a lay-up and that it might take 5-7 years to get there. I had no idea that the skepticism and lack of understanding of this market that was so pervasive back then would still be nearly as pervasive now. In fact, back then, no one even knew what gold was other than maybe Keynes' "barbarous relic." Now, skepticism is nearly as pervasive and, in fact, the negativity toward the sector, per the constant "bubble" references in the mainstream media and from the big Wall Street advisers, has proliferated. This dynamic serves to further strengthen the argument for the gold bull.
Because of this, I now confident that $10,000 gold is a lay-up, although I have stopped putting a time-frame on my views because the markets are so incredibly manipulated and I believe that the financial and political oligarchs (i.e. the people who control Obama and Congress) still have room to prolong the day of reckoning for our system.
In the meantime, here's one of my favorite pics from the Amalfi Coast - this is on the beach in Positano: