In a surprise reaction to the weekend approval of the one trillion euro bailout of Greece (750 billion euros from the ECB and 250 billion euros from the IMF, i.e., U.S. money, i.e., China’s savings), markets remained suspicious of long-term improvement in both Greece and the Euro.
As a result, this week has seen a steady return in gold’s climb up the proverbial mountain of paper currency.
Today gold broke through secular market highs, reaching up past $1247 an ounce. Since fiat currency drama seems to have already hit its own high notes, is there much, if any, room left for an encore? All of a sudden gold at $1300 by month’s end doesn’t seem unlikely. I’m sure the next resistance point is sooner than that amount, and if so, soaring past $1300 would likely happen just as quickly.
It became popular to blow off the so-called “gold bubble” 6-9 months ago after it touched $1220, but gold never really sank back very much, continuing to hover in the 1090-1110 range before making a calm climb to the 1180’s without so much as a whisper from the daily yak.
I’ve written enough about gold already, so please do check out the posts in the menu and sidebar, there is a wealth of links on how to buy it, whether you should go with paper gold (i.e., stocks and ETFs) or physical gold, how gold spikes, etc. My “prediction” of gold at $2000 by the end of 2010 certainly isn’t impossible. If the Eurozone bailout was supposed to put a rest to the wall of sovereign debt worries, it appears to have failed miserably. But that is probably only because the market is looking to crash into something, anything, perhaps, so it doesn’t have to drive into the U.S. debt apocalypse.
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