9/10/12

Gold is making fresh record highs. No, not in dollar terms, but when priced in errors, err rah, euros!

Today’s AM fix was USD 1,732.75, EUR 1,355.09, and GBP 1,082.63 per ounce.
Friday’s AM fix was USD 1,696.00, EUR 1,337.75 and GBP 1,062.06 per ounce.

“The record high shows an increasing lack of investor confidence in the single currency,” says zerohedge.com’s Tyler Durden. And yes, as faith in the euro declines you can expect more records for gold vs the euro and sooner, or later versus the dollar.

Today in dollar terms gold is consolidating.

The Bond King Says Buy Gold!

Gross on Bloomberg TV

Bill Gross likes gold.

The Pimco boss says…

-[There's] a diminished or dying cult of both bonds and stocks from the standpoint of a belief that they can return 10% ….

-Gold can’t be reproduced. It could certainly be taken out of the ground in an increasing rate but there’s a limiting amount of gold.

-And there has been an unlimited amount of paper money over the past 20 to 30 years and now – in this period of central bank expansion where it’s QE1 or QE2, or whether it’s the LTROs of the ECB or this potential new program … then central banks are at their leisure to basically print money.

-Gold is a fixed commodity that has a considerable store of value that paper money has not….

-When a central bank starts writing checks and printing money in the trillions of dollars, it’s best to have something tangible that can’t be reproduced, such as gold.

Consider the source, but interesting reading: http://www.infowars.com/double-down-vladimirs-putin-billions-into-gold-in-anticipation-of-global-upheaval/

Bernanke Week

No, that’s not the name of a new business magazine. Tuesday and Wednesday the Fed meets. Decision on QE rendered on Wednesday. Look for stocks, gold, etc to fall if QE doesn’t happen, or if a specific date is not announced. If it is more of “we stand ready to act”, we shall see some selling action. If Bernanke is like the Dom De Luise character in the move Fatso (Gimme te Honey!) and can’t help himself and QE is on, we are likely to see further gains in various markets. Hilsenrath at the Wall St Journal has written that the Fed is likely to act this week. We shall see. New QE will further propel gold vis a vis the concept of trillion dollar checks being written by central banks that Bill Gross described in the video above.

German court ruling on the ESM at the end of the week. German top court could seek readjustments to ESM: Germany’s constitutional court is not likely to topple the ESM… http://bit.ly/Qx3yaF.

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