Gold has, as of today, dipped down a tad. I wanted to use this occasion to remind you that there is no top in sight. None. Zip. I know that very few of you (if any) trade these markets. That is part of the point.
The active December contract at the Comex (GCZ10) printed new all time highs yesterday, at 1347.70 (the settlement price). At the same time, open interest in that contract rose to new all-time highs at 444,894 contracts.
This is not a short-covering rally. This is fresh money pushing the, er, envelope.
The Fed has announced that inflation is too low to meet the requirements of "price stability," half of the Fed's dual mandate.
Perhaps it is appropriate to post this drivel on a site that deals with an industrial arena (after all, entertainment IS an "industrial arena," no?) within which prices constantly rise.
Yet, according to monetary authorities, inflation is too low.
Those are the structural facts, in terms of how the biggest gold exchange in the world currently proceeds, and in terms of the macroeconomic fundamentals according to the folks who print the paper. What else do you need to know?
There is no top in sight. There is no BOTTOM in sight, concerning the paper we all call "money." Believe it. Buy the dips and sell the rallies. AUY (9.50 at my last post, and currently 11.47) and GG (40 at my last post, and now 44) are STILL the most undervalued miners out there. Or, just buy the real stuff and take it home.
Many of you thought the real stuff was too high when Buddha bought it, at around 1050. Surely, then 1350 must be 'WAY too high. Don't bet on it.
There is no top in sight. Cheers, and happy tunes.