Gold is back to its all-time high this month, but not (yet) in dollars, but in Euros.
The chart below shows the ratio of the gold price versus euros. Gold, priced in euros, is back to its all-time high reached in 2011.
Backwoods Jack emailed me today from his estate in Northern Minnesota to rave about the stock market’s 1.5% gain. What do ya think about that, he said. I said, “I’m not impressed. Gold was up 2.07% and silver was up 2.02%. And the dollar was down again – this time 0.46 to 79.24 and all of this on the news that The Fed is going to start up QE3.” That, dear readers, is the final nail in the coffin of the US dollar and if you don’t believe it – God bless and good luck!
Why is gold rising so rapidly in euros? For starters, ECB Chairman Mario Draghi intends to purchase unlimited amounts of European Union bonds – their form of Quantitative Easing. Europe is no different from the US. QE to infinity is the only option left to the central bankers. Gold is immune to this kind of currency debasement and as usual, gold is the “barometer” that tracks the death of paper currencies.
Below is a chart of gold going back to last October. Gold has formed a long bottom between $1480 and $1600. Now, gold has broken out to the upside, and is taking a rest around $1730. Notice the two peaks at around $1750. The next target is $1750 followed by $1800. As of this afternoon we can say “goodbye $1750, we hardly new ya.” $1800, here we came, again, and shortly we will leave you in the dust. If you own gold you are in great shape here. If not, what are you waiting for???
Make sure to listen to Greg Hunter’s linked interview with Shadowstats own John Williams, which leads off today’s daily. Really, you don’t want to miss this one and do take it to heart.
Gold is now higher in dollars than at any time in the last year except for a brief period last September, October and February – and it reached a new all-time high today in Euro and in the Rupee. Be patient and soon it will be at a new high in dollars as well.
Gold finished up 2.07%, yup – the same old 2% rule. If gold breaks out, make sure it doesn’t move up more than 2% in a day. Usually the cap is at 1%. But I’ll take whatever they allow.
Let’s hear it for silver! Silver was up a BIG $1.37 and is zeroing in on the Cartel’s Maginot Line at $34. Just one month ago silver was $28. Not bad huh, better than 20% in one month. Who says silver won’t revisit $50? $50 will only be the beginning of the big push up.
And the dollar – the dollar that was supposed to hit .90; well the dollar finished at .7924, down 0.26 – and headed toward .70. You better pray 0.70 holds because there is NO support at all below that number and if .70 is breached, John Williams’ hyperinflation is right around the corner. Come to think of it, that is exactly what’s coming.
Shame on me for ruining your weekend, but maybe I didn’t. Those of you who have a big position in gold and silver are doing well, but those of you, like Backwoods Jack, who think the economy will improve, the stock market will rise and everything will be fine (if only Obama, or if only Romney wins the upcoming election). At this point, I can’t convince any of you that the scenario I paint is not coming. No, I can’t but the markets will and by the time you finally open your eyes and realize that I, and the people of a similar point of view, were right all along. But that’s the rub. We have been right for the last 12 years and we still get no respect from the masses and that especially includes those who are close to us and who we love the most.
Why are just a few percent of the population really “rich?” Some were blessed with a family business or the benefits of an Ivy League Education. But some of us just saw the truth before the rest. That is a wonderful gift but it also carries a price. People not only don’t believe us, they think we are, as Backwoods so politely put is, “Wingnuts.” That’s o.k. Jack, I’ll be the well-to-do Wingnut and you can be the normal person who wondered What The Hell Happened To All Of My Money?
Like they say, “None is so blind as he who refuses to see!”
Let’s talk about Jim Sinclair for a moment – This man is beyond brilliant, he must be psychic. Always years in advance, he tells his readers what is coming and “why.” My respect grows for the man by the year and I’ve been with him for well over a decade. My only talent was recognizing early on that he was “the man.” You don’t have to be a rocket scientist; you just have to pick your “experts” carefully. His latest wisdom – “It looks like Gold hit $1764 for the 3rd time. Gold is usually 3 hits and out.” (Gold closed today well above the $1764 number and it looks like Sinclair was right once again.)