The stealth bull market in gold continues

Spot gold prices are up today $13.80 to $873.4 an ounce and yet not a whisper on the streets.  Crazy huh?  Nobody’s talking about it.  It’s like nobody but the old gold bugs are saying anything.  The gold-bugs have been rattling the cage for quite sometime, but everybody says they are bonkers.  “Gold is a relic” everybody says.  “The only thing gold is good for is for filling teeth.“  “Gold in a commodity.“ 

Personally, I don’t know.  Maybe gold is a commodity.  Commodities have been rising.  Last year the Commodity Index rose approximately 25%.  So maybe gold is a commodity, but maybe it isn’t.  Maybe this amazing rise in the gold markets means something else?  Maybe it means that there are people in the world that are aware of what the governments are doing?  That they are flooding the world markets with liquidity (paper dollars that they just make up out of linen and ink and roll off of their printing presses at will)  Maybe some people are aware just how fast those printing presses are spinning so the governments can try to inflate their way out of this credit/housing debacle?  Maybe some people are aware of just how high the real inflation numbers are, not the doctored up numbers that come out that have housing, food and energy removed?  How do you feel?

I know how I feel.  I wish I had bought a ton of gold back in June 1999 when it was selling for $258!  Ah well…what can one do?  What’s done is done.  Sigh.

Posted by Meg Tilly on Tuesday, January 08, 2008 in Chewing the Fat