Gold Ta Da Moon!

Gold has gone up 127% since Jan. 3, 2011 (see chart, above, of weekly nearest futures contract prices). This compares well to other commodities shown below (2011 increase or decrease):
0 Crude Oil: -2%
0 S&P 500 E-Mini: +5%
0 NASDAQ: +5%
0 Sugar #11: +14%
0 Silver: +24%
0 Russell 2000: +6%
0 Corn: +15%
0 Soybeans: -1%
0 Wheat: -21%
So what’s going on with Gold? Prevailing global socio-economic conditions will continue to drive investment demand for gold. These include: continued uncertainty over the US economy and the dollar, ongoing European sovereign debt concerns, global inflationary pressures and continued tension in the Middle East and North Africa. Sustained momentum in Chinese and Indian jewellery demand will underpin growth in the jewellery sector throughout 2011. Net purchasing by the worlds central banks, as a means of diversifying their reserves (especially China). Global gold demand in the first quarter of 2011 was up 11%, an increase of almost 40% over the same period in 2010. The quarterly average gold price hit a new record of $ $1,386.27/oz, it’s 8th consecutive year-on-year increase. The main thrust of this demand was from demand for physical bars and coins, which was double Q1 2010. Supply of gold decreased by 4% year-on-year from Q1 2010. Central banks purchased 129 tons of gold in the first quarter of 2011, exceeding the combined total of net purchases during the first three-quarters of 2010. In a nutshell, higher demand and lower supply always mean higher prices.

In my opinion, gold will have spiked to over $2,000/oz by Aug. 22, 2011. Part of the reason is that the U.S. Government is debasing the dollar by continually increasing the money supply. They are doing this because they are trying to inflate their way out of debt and weaken the dollar (regardless of what they say), so that American goods and services will be cheaper overseas. This action, they hope, will create jobs in the United States. What they don’t seem to realize is that the U.S. economy is in a credit contraction phase and that the natural boom and bust business cycle is headed much lower. The FED Chairman, Ben Bernanke, told Congress Wednesday that a failure to raise the debt ceiling and the subsequent default that the US would undergo would send “shock waves through the entire financial system,” according to the Associated Press (AP). This is entirely possible, after all, know one thought that Minnesota would shutdown it’s government, but it did!

The forces of economic booms and busts are unstoppable. The U.S. is headed for an inflationary Great Depression II within two to three years and there is nothing anyone can do about it!
The Master of Disaster

About wfoster2011

Disaster researcher and current financial and economic news and events: Accidents, economics, financial, news, nature, volcanoes, floods, earthquakes, fires; airplane, ship & train wrecks; tornadoes, mine cave-ins, hurricanes, pestilence, blizzards, storms, tzuami's, explosions, pollution, famine; heat & cold waves; nuclear accidents, drought, stampedes and general. Futures trader using high volume and open interest futures markets. Also, a financial, weather and mundane astrologer with over 30 years of experience. Three University degrees from California State University Northridge: BS - Accounting MS - Busines Administration BA - Psychology Served in the U. S. Army as an Armored Platoon Leader in the 5th Battalion, 68th Armored Regiment, 8th Infantry Division (Retired). Have published three books and 36 articles available for sale through my blog: Commodology - Secret of Soyobeans (Financial Astrology) Timing is the Key (Financial Astrology) Scum City, a fiction novel (no longer available, under contract to major publisher) Currently resident of Las Vegas, NV, USA
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