With the break in price at above $1200, gold has shown that not only the investment demand is coming from the Central banks around the world, fund managers and large institutions are driving the price higher, the fear of uncertainty is at rise. Rumors always had that the price in gold rises due to fear and when this fear subsides, the prices fall. The primary trend of gold over the last decade has been up. This marks that when fear runs, on an average it takes longer time to lose that fear if you have noticed, gold has been running high now in almost every currency.
There have been warnings available at all points. The subprime crisis, the liquidity injection, the Collateral debt obligation (CDO), the failure of US banks, countries like Iceland, Dubai going bankrupt and now Greece being another tip of the iceberg, which is soon to follow along with a lot of other countries like Spain and Portugal. All these signs have been around us. The worthless paper injected into the markets needs to be fused somewhere and this has only begun its wave three of the longest dip.
A Simple answer would be to own physical gold at some place you can trust rather than trusting the corrupt governments and in these times of disaster and inflation which is what you are seeing – yes the inflated price of gold is telling you paper money is about to explode soon and the best way to avoid the risk of being part of that bubble is to exit paper currency to a class of money recognized all over the world which is gold. Friends! The debt bubble is here to stay..
A Close above the levels $1,230 will send the gold price to next levels of atleast 1300 or higher.
The Praetorion