“Trader Dan” makes an important point about gold’s strength: “This is occurring late in May, a time frame during which gold tends to show seasonal weakness. The festival seasons from Asia and India are over. However, gold is not deriving the bulk of its strength from that source, but rather from currency-related matters.”
“By currency-related matters I mean investor concerns over the stability of paper currencies,” he said.
This sense of financial crisis is widespread. On Friday, The Gartman Letter uncharacteristically engaged in a blistering denunciation of the Fed for letting the “adjusted monetary base” surge: “In only five months, the base has risen 30%. ... Where are the adults, we ask?”
From Australia, The Privateer (see website ) notes: “Today, the Fed’s balance sheet is more than three-and-a-half times the size that it was in late 2007.”
At JSMineset (see website ), veteran Jim Sinclair pulls seniority: “Here we are at that place we have anticipated for the past 45 years, knowing that all the games being played had to play out.”
Sinclair predicts hyperinflation — in language that I won’t even try to get past MarketWatch’s editors!
http://www.marketwatch.com/story/gold-signaling-hyperinflation-2011-05-30?link=MW_story_popularb
