There are a couple of quotes I want you to read today. The fist from a interview done at silverseek with David Morgan who writes the "Morgan Report".
Gold looks to be diverging from the rest of the market it finally. To soon to tell if this is the new trend, but it looks very promising. Stocks are down hard today, while gold is up. But what I find interesting is the gold mining stocks are up as well! Usually these shares get sold with the rest of the stock market. That's just not happening this time, and it seems to be finally telling the story we've been expecting (At least for today).
That is the U.S. is issuing too much debt, other governments are bankrupt, and the unemployment problem is back on everyone's mind.
The Dredd Market report has a great update on what's going on with the currencies and consequently the stock market over the last few days. Specifically the PIIGS nations and their effect on the Euro.
It seems almost with each passing day there is a new "Gold Beaks Record" headline. Even if gold corrects this trend will continue and has a long ways to go. If reporters bothered to look at the inflation adjusted price of gold they would see that no records have been broken. Not yet anyway. They do make for some great headlines though. Inflation adjusted prices range from $2,000 to $5,000 and ounce.
Gold makes a big move today. It’s at a 3 month high here in the U.S. Gold makes its move while the dollar stays strong. As I write this the USDX is actually up hitting the 86 level. It’s a rare day that gold and the dollar move up at the same time.
The gold story is far from over, and it may start getting front page notice over the next couple of years.
Mark Faber who easily saw this depression coming had this to say, “It’s to some extent a trade war, You cheapen your currency so you export problems to somebody else, but since the whole world is engaged in trying to lower the value of their currencies, it may very well happen that all currencies lose value against the hot currencies like precious metals.”
Got this press release in my email today. Check it out!
FOR IMMEDIATE RELEASE
People of Lakota Launch Private Bank for Only Silver and Gold Currencies
Hill City, Lakota - November 24, 2008 - In a stunning development, the Free & Independent People of Lakota announced today the introduction of the world's first non-reserve, non-fractional bank that accepts only silver and gold currencies for deposit.
This is really cool. I was actually thinking about doing this myself, but just haven't had the time. In any case someone else did it, and from the looks of it did it better than I would. I would like to try and add these real prices on precious metals to the site. I'll keep you updated on that.
Today feels like one of the good old days of 2007. Bernanke is planning on cutting rates and gold reacts by going up. It feels like it should today. Thank you Jebus.
It’s such a strange time. It’s like being in the eye of a hurricane. I believe many of the gold bugs thought the price in terms of dollars would be shooting up during the crisis. There were those who believed that the dollar would go up, while the hedge funds deleveraged. Both however seem to believe gold to be good for the long run at this stage.
