Subscribe in a readerAll of a sudden gold is king and you cannot help but hear it being discussed about on the news, at work and or by friends & family. Hmmm?
Gold set an all-time record high Tuesday, as investors continue to have concerns about markets and the global economy. There is a growing realization that the unprecedented measures taken by global governments may not be enough to contain the euro-zone debt crisis. The moves taken to shore up financially strapped nations are similar those the U.S. undertook as the 2008 financial crisis was intensifying. Granted not exactly identical, Doug Kass wrote an excellent report today on this subject... READ
Gold has been rising steadily for a few years now, mostly in response to erosion in the U.S. dollar and rising Euro. But the Euro has collapsed since December '09 while the dollar has been rallying? More than likely the euro is being dumped for gold and buying the dollar, flight to safety. Itz has stated numerous times, that gold reflects the incompetence of global governments. Will gold continue to rally? Yes, could it rise to $2,000? It is possible on a meltup. But as we've seen of late, there have been those that hyped the S&P500 @ 1250, those that suggested oil was going to $150 when it was at $87 and now that gold is at $1230...it's a buy??? Sounds like a crowded trade...just be careful. As always diversify & be hedged.
The rally in gold & silver is due to concerns of rising liquidity into the global financial system by central banks causing FEAR of Pending Inflation! European bailout buys more time but doesn't fix budget deficits in the long term.
Past Itz Gold Blog Posts >>LINK ... >>LINK
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