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September 14, 2011 / Hal (GT)

Fundamentals unchanged. The globe continues to be in crisis.

I had an unexpected day yesterday in that the activities I scheduled for the morning were more difficult than I expected so that I was unable to do my normal gold tracking activities. Not surprisingly, gold and silver and platinum did little. Right now the metals are exhibiting the uncertainty that grips the markets in that they appear rather stagnant to me. Note though that gold and silver remain above 1,800 and 40 dollars respectively.

While I was away from the computer my cell phone wasn’t far away so I was able to pull up Lear Capital’s mobile real time spot price page for quick updates:

Looking at the desktop widget I can see over night that starting in the Asian markets gold showed strength but that once we got into the European markets the yellow metal went into decline mode and that we now find ourselves back to the range where we were yesterday sitting at $1,823.80.

I’ve had a number of conversations with several people on the current conditions, like the poverty levels and global economic woes, and the thing that is the most clear is that fundamentals that have brought gold to this price level have not changed. The reality is that many of the global conditions are worsening for the average person and government economies have done little to help, but more to hinder the plight many find themselves in. Sure the sound bites that are rolling off the lips of economists and government officials sound tasty but there is no meat to them.

The end result, gold will continue to climb in my opinion, because all we are getting is more of the same empty calorie rhetoric.

Here are some links for your consideration today.

Alarming Poverty Rate: Is U.S. Becoming a Third World Country? <- Highest Poverty rate they’ve recorded since record keeping began. Given that this is our government reporting the numbers, I can’t help but think that the number is likely far worse.

Bill Bonner asks Doug Casey – is gold still a buy? (It’s a Yes!!)

“Gold is the ultimate cash, and that’s where people will go when there’s a global, total, panic to cash.”

Lear Capital: Is Ben Bernanke Gold’s Best Friend?

“But, make no mistake, whatever wig you put on the mannequin, it’s still a dummy and it’s still printing money.”

 Embry – Institutional Gold Holdings Will Increase 12 Fold <-from KingWorldNews. Here’s a good quote from Embry:

So it’s a healthy consolidation, but it’s also being helped by very aggressive central bank actions.  The bottom line is this is orchestrated volatility for the expressed purpose of frightening all of those who do not fully understand the gold market.  But if you understand it, you must use every bout of this weakness to continue to enhance your position, it’s a gift.

‘Political Dysfunction’ at Root of World’s Troubles: Geithner <- This makes me laugh frankly. But the bigger question is why did they choose Cramer to do this interview?

Dylan Grice Deconstructs The “Perpetual Ponzi Machine” Of Global Finance, Sees Gold At $10,000 In A World Of Dishonesty <- Something I’m sure Geithner knows about.

British Trade Unions on Brink of Calling Massive Nationwide Strike <- It’s all about those pensions.

Gold is all about confidence in money and money systems <- Julian Phillips writes:

We are now moving to a point where there is a fundamental separation of money’s role as a means of exchange and a measure of value. The cost in terms of economic functioning, let alone well being, will be huge. In the past such turmoil has led to social unrest at the very least and the toppling of governments and occasionally civil war or economic catastrophe at the worst. The difference, this time, is that it is not simply a single country that will suffer but in this global world, whole economic zones will be badly affected. It is even possible that the entire global economy will be badly affected.

Jim’s Mailbox <- check out the charts in this post on Jim Sinclair’s MineSet.

The Great Beard’s Next Step <- On Bernanke and the FOMC next meeting.

World Bank chief says world economy in new danger zone <- you don’t say?

Richard Russell – Not So Fast Gold-Haters <- check out the charts.

Trump’s New Gold StandardInstead of Cash, a Tenant Makes Deposit in Bullion; Tough on the Wallet <- HT to AJMCafe on twitter.

Excerpts From EU Report Stating Euro Crisis Contagion Has Spread And Is Now Systemic <- is it the beginning of the end?


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