Hold on 'Lizabeth I'm comin....this is the big one.....

Sorry I haven't updated recently, but I was recovering from a heart attack when I heard this morning, while driving into work, that gold was up $15 while the dollar was flat.

Why was gold up $22 at it height you ask? I think folks are realizing the US financial system is imploding before our very eyes. Gold is finally being realized as a currency and not as a commodity.

This is a editorial from today's FT Times:

"Gold Is the New Global Currency"

"In today's uncertain world, the yellow metal is back in fashion." I might point out that gold has always been a store of value, a.k.a., money, but it hasn't always been recognized as such. The editorial proceeded to agree with that thought: "A better way to think of gold may be as central bankers used to before America dropped the gold standard: not as a commodity, but as another currency. As long as the dollar stays weak, gold's bull run will last."
The FT points out that "the U.S. Federal Reserve's aggressive rate-cutting response to the credit squeeze has created a risk of a sharp rise in American inflation. That in turn creates the risk of a precipitous fall in the dollar and so makes gold more attractive as a hedge."


The gold stocks were having an orgasmic type day until the overall market cratered and the HUI gave back a quick 8pts from the high. Needless to say, I was not thrilled to have that happen. But Oh' well, 'it happens.



This move today, was not completely oil based. Oil was up over $2 at it's highs and gold was up $22. Yesterday, gold was down $3, yet oil was also down $3. raw your own conclusions.

IMO, this is the action that I want to see. Gold rallying on it's own merits. Now if only, gold, gold stocks and the overall market would rally at once. That would be nice.

The schmucks at CNBC still don't get it. While I did not hear any bashing of gold during the day, on Fast Money, my boy Guy Adami is still warning folks away from holding gold stocks. The reason, NEM trades at 28x earnings. Now, I admit, I do not have a list of his prior recommendations, but I would be willing to wager a fair amount that many have PE's greater than 28. But because they are not gold and prolly tech, that makes it acceptable. Oh yeah, he still is calling for $700 gold. First it was $700 before $800 now just a call for $700 and you should be careful because you could wake up one morning and gold could be down $100.

The guy doesn't get and IMO he is talking his book. A book that is taking a beating.

Great, now Dennis Gartman has just said that it's too late for people to get into gold. He actually sold some gold today.

I see gold hitting $887ish then having a bit of a correction, to where, I have no idea. But unless things change dramatically, I can't see gold NOT hitting $1000 by the end of the first quarter.

Now, if gold goes through $887 convincingly, say $892, it will make a moonshot higher. I can't tell you how high as I really don't know.