Kinda interesting in that Beck has lost all of his advertising revenue except for those gold scrap-for-cash spamfomercials.[/quote]
Using the actions of our bond purchasers as an economic indicator (which may be a tad more reliable than the Glenn Beck Index), gold has not jumped the shark. In fact, the shark is heading towards U.S. bonds, which are only months or weeks away from plummeting headlong into the water and being feasted upon by said shark:
“Treasury Bonds Decline After $12 Billion Auction of Securities”
“A worse-than-expected auction brings into question the benign inflation expectation that investors have,” said Anshul Pradhan, an interest-rate strategist in New York at primary dealer Barclays Plc, before the auction. “It reignites concerns about the strength and sustainability of the rally we’ve seen lately.”
No one wants our shit anymore, and the tepid demand that we do have for Treasuries comes with heavy Fed purchasing. Instead of focusing on the gold bubble (which has, incidentally, been bubbling for about 7 years now), perhaps the focus should more appropriately be placed on the Treasury bubble. Because that puppy is about to pop. When and if Treasury demand becomes robust WITHOUT Fed monetization; when and IF our $10 trillion debt is sliced to something more manageable that can be paid off in, oh, say three generations or less; when and IF *real* unemployment returns to 7% and we actually start creating thousands of jobs every month instead of using 250,000; when and IF the markets can rally without having rates held to ridiculous and unsustainably low levels; when and IF manufacturing returns to this country in a volume that can sustain a viable middle class, THEN gold may reverse its course.
Until then, it is headed for the moon, and you need to just deal with that fact. Because if you hate gold now, then you’re really going to hate it by the end of the year 😉
