-->Gold -- a number of phenomena have now come together, all favorable for gold.

(1) Chaos in the currency markets, and therefore growing suspicion regarding the ultimate worth of all fiat currencies.

(2) Last Friday, the Dollar Index closed below 80 for the first time, raising fears that the dollar could be on the edge of a major decline.

(3) Governments throughout the world are diversifying out of dollars and into other currencies. In Asia, banks and individuals are buying gold, even as European treasuries sell their gold (Britain and Switzerland are leading sellers).

(4) The constriction of credit and possibly slowing business will force the Fed to lower rates and pump up the money supply. Both activities are bullish for gold.

(5) Japan will shortly have a Gold Exchange Traded Fund. The Chinese government has eased restrictions on its citizens owning gold and has really encouraged them to buy gold. Gold buying in both China and India is rising rapidly.

(6) There is a massive build-up of call options in the October and December gold contracts. This is similar to the November 2005 period, prior to gold surging by more than 50%.

-->>Gold -- a number of phenomena have now come together, all favorable for gold.
>(1) Chaos in the currency markets, and therefore growing suspicion regarding the ultimate worth of all fiat currencies.
>(2) Last Friday, the Dollar Index closed below 80 for the first time, raising fears that the dollar could be on the edge of a major decline.
>(3) Governments throughout the world are diversifying out of dollars and into other currencies. In Asia, banks and individuals are buying gold, even as European treasuries sell their gold (Britain and Switzerland are leading sellers).
>(4) The constriction of credit and possibly slowing business will force the Fed to lower rates and pump up the money supply. Both activities are bullish for gold.
>(5) Japan will shortly have a Gold Exchange Traded Fund. The Chinese government has eased restrictions on its citizens owning gold and has really encouraged them to buy gold. Gold buying in both China and India is rising rapidly.
>(6) There is a massive build-up of call options in the October and December gold contracts. This is similar to the November 2005 period, prior to gold surging by more than 50%.