Gold Up Another $13 To $1554

And a stronger dollar is killing US exports! Q3 earnings will take a real beating if this continues! The equity folks are hoping Q2 earnings convince everybody to buy but if you look forward it can't be good for equities. Gold may break out to a new high this week if things in Italy deteriorate,silver is still fighting the"industrial metal" tag so it appears to be time to grab all the silver you can afford. I expect we will see some form of QE3 by September to drive the dollar back down and increase US exports. I think people have finally realized there is no way out for any fiat currency.

From the Kitco site it looks like the dollar has really jumped in the last few hours bringing the gold price down some. Still,there is a lot of gold buying driving up the price so we will see,at the end of the day,which holds the upper hand. It is a good sign that the drop is not because of profit-taking.It looks like many folks are safe haven buying the dollar. As I always say,they can choose to dance with the prettiest ugly girl at the dance if they want,I am dancing with the glimmering princess that avoids those dances!

And this thing in Europe is NOT just Greece. The Euro looks like it may be in a line of falling domino's, and that can't be good for any of us elsewhere in the long run, minus gold bugs of course....

Gold bugs should, indeed, do well over the next several months, if not for several years. Only the currencies of the big natural resource exporting countries seem to be holding up well. Them and the Swiss, of course. Oz, Canada, and Norway seem to be doing quite well. This is making me think that I should put some of my money into a Canadian bank and hold it there in Canadian dollars. Heck, I can remember when a Canadian dollar was about $0.67 in US funds. Guess this is what happens when you fail to balance your national spending with your income. :-/

Speaking of money... I sold off almost all of my equity and bond holdings on 7/5. All I have left are small positions in FCX and SIVR. Both of these seem to be bouncing a bit but they are not large holdings and I wanted to see how they would do over a 6 month trial period.

The market is acting like it is crazy or drunk (on easy money, no doubt). In neither case is it a good place to be for us amateur investors. I can't use much of my 30+ years of investing experience these days because this ain't my Daddy's market! Oh, no... it is something else altogether. This is not an investor's market, it is a traders market. Buy and dump on small up-ticks seems to be the order of the day. Sorry but I am just not wired that way, so must take a step back from all the bizarre things that are happening now. Need to catch my breath and try to figure out what all this crud means. It's not easy. There is no other time in US history when we have had such a complex mixture of economic, financial, political, and social factors to consider. I'll give it a couple of months and will then see if it looks like a market in which I can invest. If not, then I have some serious cash in which to get some gold and silver.

Today's market was kind of odd with gold up $10 and silver, platinum, and palladium all down. The dollar was up but only very slightly. One would think that a rise in gold would have put at least a bit of upward price pressure on the other PMs but it didn't seem to. Maybe it just cushioned their fall? Hard to say.

It could easily hit $1600 on my birthday (Thursday). That would be a pretty good present from the metal markets! Silver is following with a nice $2.50 bump up today.

Happy Birthday, Junior... rock on, dude!

I know what you mean about gold, though. It's pretty cool stuff and is looking pretty invincible these days.

The dollar is bouncing a bit. Even when it is up, it is mostly because it isn't the Euro! :-/

Dollar strength is not something that would influence my investing in gold. The dollar's fundamentals are no different today than they were 6 months ago, yet it can be higher or lower based simply on how other developed countries currencies are doing.

Did anyone else watch Bernanke's testimony on CNBC today? I laughed out loud when Ron Paul asked him, Do you think that gold is money?". Bernanke got the most shocked look on his face as if he either didn't ever expect to get such a question or he was amazed that anyone had the guts to ask him that in a public hearing. After about an 8-9 second blank-faced pause, Bernanke said that he did not think that gold was money, so Paul asked him, "What is gold, if not money?". Bernanke then said that it was "an asset... like T-bills... not money but an asset". It was hilarious.

No problem, Hock. You can check it out on You Tube...

http://www.youtube.com/watch?v=2NJnL10vZ1Y


Paul's question on "Is gold money?" comes at the end of the exchange between Paul and Bernanke. Good stuff for sure.

Gold is now higher than it was when silver ran up to $48. If gold stays or climbs we should see silver pushing $45.