Guess what gang, Treasuries don’t pay enough to cover the inflation rate. But you still have all the risk of default, the inflation risk and lost opportunity cost. Is treasuries a bubble? We shall see. Is Gold a great long tern investment? The past 8 years have proved that!
When the BIG house of cards collapses there are at least cards left on the table right? In our current case, there are no cards left on the table. So you see, the current system is not collapsing but evaporating. The downside risk for Gold should be limited. We are retracting off that 900 spot but even with the markets soaring today Gold is not really selling off terribly bad.
As I said yesterday I think Gold is in a long term Gold Bull market. The dollar is starting to rollover already. If gold is the only long term bull market then that speaks huge volumes about the lack of confidence in all the paper around the world. Don’t discount silver, platinum, and oil either, I say diversify. There is no doubt the central banks can and do move the price of gold. However, over longer periods of time, gold is the most stable store of wealth in my opinion.
A couple observations
1. Lets see if the POG can make a series of higher lows.
2. Watch to see if any pullback is bought (so far so good)
As long as we’re stuck in this recession/depression/deflation mode, gold will probably just move slightly north. BUT when inflation inevitably finally takes off, gold will soar.
LONG>>> AUY, GG, KGC, SLW
The trading action this morning on AUY seemed like blatant manipulation by the MM’s. We are seeing a nice turn around here and hopefully trend higher and finish GREEN for the day! Those damn Hedge funds 
GOLD & AUY are in a very bullish ascending triangle pattern!
