So, the yellow metal hit a new all-time nominal high in $US terms--over $1040 an ounce. All in all there really wasn't much hoopla in the MSM and for a long-term gold bull like myself, that is good news. I don't know whether this breakout is the result of future inflation fears, the alleged secret meetings of the Gulf States to create an alternative reserve currency to the dollar or just a further decline in confidence in "paper", but what I do know is that this action does not bode well for our economy and I would go so far as to say our society. Jim Sinclair, Mr Gold offers his assessment,
"The reason why I suggest that today’s market should scare you, and not be a cause for high five because of the implication of the event.
Hyper-inflation has always been a currency event, not an economic event. The currency event has always been, for whatever reason it occurred, a loss of confidence phenomenon. Clearly confidence in the US dollar and its management is slipping. Historically when this currency event comes about the transition is extremely fast.
We have been doing a countdown to the beginning of the end, or that process acceleration. The are 33 days to go.
Gold is then off to $1224, $1650 and then on to Alf’s numbers."
I have heard a few commercials on various radio stations advertising gold coins, but for the most part I'm hearing more stories about people selling their gold for cash now instead of actually going long. I know it's not scientific but it's enough to keep me long for the time being. I believe the yellow metal has a long way to go on the upside.