Remember that, fellow Americans – no matter what you see or hear, everything is just peachy keen. So, please ignore this:
Gold futures – as well as spot metal – extended record highs shortly before futures floor trading opened in New York on Monday.
A markedly weaker U.S. dollar was mainly behind the surge.
In recent trading, December gold was up $11.70 at $1,107.40 an ounce after hitting a most-active record of $1,111.70. Nearby November gold hit $1,109.30, a front-month Comex record. Spot gold also hit a fresh all-time peak of $1,111.15 an ounce as the U.S. dollar weakened against the euro.
The continued record extensions are bolstering fund expectations that gold prices will keep rising, said George Gero, vice president with RBC Capital Markets Global Futures.
In addition to dollar woes, stronger equities futures and crude prices were helping gold, Gero said.
People are hiding their wealth – converting our rapidly devaluing currency in to gold and oil so that no matter what the government and banks screw up next, they’ll have something left. Of course, not all of us can do this – in fact, most of us can’t. We have to hold on to our ever more worthless dollars because we have to pay the day to day bills and don’t have a lot of surplus cash to shovel in to thousand-dollar-an-ounce gold or seventy-dollar-a-barrel oil.
As I’ve always said, pay very little attention to what people say – people with money are telling us that the economy is getting better…but what they are doing with the money (betting it on stocks, taking profits and converting the results in to commodities) is a much more powerful statement than all the glad-handing about “green shoots” and other references to Happy Days Are Here Again. We’ve got a dead economy, and all we’re waiting for is the burial.
Obama and his bankers hope to finesse things and figure that some how, some way, the wherewithal will be found to get Americans consuming again – thus allowing China to sustain its bubble and keep buying US bonds so we can finance our continued finessing of the economy. See the circle? Well, its a circle jerk. We, the people, are playing center.
Time for us to break out of this – to get past the idiots who brought us here and start laying our plans to build an economy based upon hard work, savings and real wealth. It’ll be a lot more boring – not quite as many X-Boxes under the Christmas tree – but once we do it, we’ll never have this problem again.
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