Gold love or hate it Gold is still going strong!

New York Spot Price
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Metals
Date
Time
(EST)
Bid
Ask
Change
Low
High
Gold Charts
06/25/2010
17:11
1255.70
1256.70
+12.30
+0.99%
1249.40
1259.50
Silver Charts
06/25/2010
17:10
19.10
19.12
+0.42
+2.25%
18.76
19.17
Platinum Charts
06/25/2010
17:12
1569.00
1575.00
+10.00
+0.64%
1552.00
1581.00
Palladium Charts
06/25/2010
16:49
477.00
482.00
+5.00
+1.06%
465.00
483.00



All the time analysts are dissing PM's. I am not a gold bug by the very definition, but I do own some gold and silver.

Gold Bug

What Does It Mean?
What Does Gold Bug Mean?
An individual who is bullish on gold. Gold bugs believe that gold is still a stable source of wealth like it was during the years of the gold standard international currency system. A gold bug invests in gold for what he or she perceives as financial security in the event of a currency devaluation, and often also believes that the price of gold will continue to rise in the future. The term also refers to analysts who consistently recommend gold buys.
Investopedia Says
Investopedia explains Gold Bug
Gold bugs view gold as a safe investment that will protect them from currency fluctuations or downturns in the financial markets. Although gold is widely known as a standard of value, its price - like that of any other precious metal or commodity - fluctuates widely. For example, the price of gold declined from more than $800/oz in the 1980s to less than $350/oz in the 1990s. This is a point frequently brought up by critics, who view gold as a standard of wealth from the past.

However, while there is no consensus, the market does continue to view gold as the traditional "safe harbor" during times of economic crisis. For example, following September 11, 2001, gold prices saw sharp increases as investors sold what they believed were riskier assets.



When I look at today's the chart above I wonder just how much more the world governments are willing to debase their currency? How long will they hold interest rates down? How long can the major banks hide the CRE nightmare that is under the bed?

Take a look at my watch list on Scottrade you would be looking at Senior producing miners with an eye on
BP and RIG and TBT. I like BP to splinter apart as the disaster in the GOM continues unabated. I see RIG
fighting its way back once people realize that we still need deep well drilling. I'll grant you this in a one day snapshot


HL5.78+0.29+5.288,588,4115.775.80
IAG18.57+0.84+4.743,213,21618.5418.57
NGD6.51+0.26+4.161,531,6016.506.51
SLW21.36+1.24+6.165,903,79421.3021.36
SWC13.09+0.69+5.562,810,25513.0813.10
GDX53.88+1.70+3.268,479,57053.9554.02
GDXJ29.62+1.02+3.571,364,23729.6529.78
NG7.37+0.12+1.662,592,2347.367.43
GG45.42+1.21+2.745,274,47645.4145.48
FNNVF32.53+0.937+2.9720,37132.3232.45
NEM61.67+2.72+4.6112,203,89061.6761.75
IVN15.01+0.28+1.901,066,54915.0015.01
GOLD98.17+3.20+3.37703,94998.0098.65
TBT37.52-0.30-0.797,548,78937.3637.55
AUY10.74+0.35+3.378,364,41110.7110.74
mvg6.64+0.05+0.76100,6556.616.67
RIG49.77+0.02+0.048,831,10949.7749.90
CDE16.85+0.87+5.442,588,89416.8416.86
bp27.02-1.72-5.9893,328,06026.9727.04

It's either that or we stop driving cars and a Jim Kunstler scenario unfolds. I do not see that happening. So RIG will come back and BP will not. We will go back to the mantra of  "Drill Baby Drill."

I never imagined gold would go to 1000.00 much less 1250.00. I'm starting to believe that the Chinese are trying to find a stealth way of unloading all the US debt, even if it means taking a haircut. The Chinese have been around a lot longer than the U.S. and they know that gold will always be accepted as debt settlement.

Question isn't how high will gold go, it is what will gold buy? I think Got A Watch talked about how the S&P 500 has not kept pace so let's look at the charts.





So you tell me. What exactly was the reason for playing the markets for the past 5 years? All the TA in the world could not have allowed you to keep pace with what the governments were willing to do to debase their currency thereby destroying their economies. They are a one trick pony so "Print Baby Print."