As I write this article the XAU/USD is starting to pull back from its lofty heights toping out at 1152.83, This is an altime high for the spot prices but is this the begining of a new bubble? Is this current run up do to speculation or is there another reason? Remember for every buyer there is a seller so the question remains....who's selling?
If past correllations hold true the answer is an obvious YES! Gold is now officially in a bubble according to recent gov't pundits shouting the recession is over. If we are indeed in the begining stages of recovery then WHY is the Gold market trading at Hyperinflationary levels? Another BIG question is WHY hasn't Silver taken out its top or struggling to hit a new all time high? The answer to that is take a look at the NASDAQ 100 compared to the S&P 500 and the Dow. Back in 2007 the S&P 500 and the Dow hit all time highs even taking out the 1999 & 2000 highs hit at the Top of Tech bubble of the roaring 90's. While these two markets rallied on the NASDAQ 100 (smart money) stayed put and indicated that the rally was false and due for an enourmous crash! Well a year later the house of cards came crashing down financial armegeddon began. Now in 2009 the stock market is roaring on ahead and Gold is exploding out of the gate. If inflation is said to have been contained then there is NO rational reason for Gold to rally. If anything Gold should collapse and Silver should follow. However the above is NOT true and the stock market is being manipulated in order to cover up whats really going on.???....... a well planned total collapse of our SociaEconomical structure in order to pave the way for a new one world government headed by the U.N. I have facts, figures and testimony to demonstrate what I say. In the coming days I will be documenting this collapse as it begins to unfold. Don't buy into the hype. This country is broken and no amount of printing fiat money will fix it. Mark my words, the S&P 500, Gold, US Bonds Along with the US dollar will ALL eventually collapse at the same time. I will post regular updates regarding the following: OIH, GLD, SPY, AUD/USD, USD/CHF.
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