Gold hit another all-time high yesterday! According to gold website Kitco.com,“. . . investors continue to seek out the precious yellow metal as a safe-haven asset amid heightened financial, economic and geopolitical uncertainty. One market watcher in a wire service report summed up nicely gold’s recent price action, saying “it’s a warm blanket on a cold day.” August Comex gold closed up $4.80 an ounce at $1,245.60 after hitting a new high of $1,254.50 in early trading.”
For gold investors, it was a gratifying event. For everybody else, it should be considered a warning sign that all is not well in the financial world. A wicked storm is blowing our way. What is triggering gold’s record rise? I’ll sum it up in just one little four letter word—DEBT,
and lots of it. It seems you can find it everywhere these days. Debt has soured the banking system, but it is kept hidden with government sanctioned accounting fraud. The consumer is loaded with debt and is tapped out. Entire governments are on the brink of insolvency; just take a look at Europe. The biggest ball of debt is possessed by our very own Uncle Sam. Yesterday, Reuters reported, “The U.S. debt will top $13.6 trillion this year and climb to an estimated $19.6 trillion by 2015, according to a Treasury Department report to Congress.” (Click here for the complete Reuters story.)
Let’s just let that sink in for a moment. The debt clock just tripped a cool $13 trillion, and we are going to tack on another $600 billion by the end of the year. Wow! I can’t believe I am still hearing that gold is in a bubble from the wonks on financial TV. We are in deep trouble folks, and gold is trying to slap us in the face to wake us up! Gold is not a commodity; it is money. Just ask the folks in Greece, who will probably be leaving the European Monetary System, if they would like to hold gold instead of the Greek Drachma?