Wednesday, March 28, 2007

New Record High Gold Price

Back at the end of the last gold bull market, the 1980 monthly closing high was $666.75.

According to Kitco's prices, the February 2007 closing high was $669.35. Chartists are taking note of that.

A monthly closing gold chart:
(click chart to enlarge)

Something is up!

“a government can get away with the illusion that paper is wealth, but in the end, too much paper is always created, and with that action the illusion falls apart.” - the venerable Richard Russell.

Weird that gold and silver have been in 6 year long screaming bull markets, not to mention commodities in general, with plenty of years left to go, yet the US financial media will not mention it, the fact that these bull markets are in place. Strange. If you had spread equal "money" on each of the stocks that make up the Amex's Gold Bug Index, the HUI, you would be up about 600% over 6 years. 100% a year. Not bad. Yet most in the Anglo Saxen world are clueless as to what's going on with the gold price and the silver price. Wait till they wake up and start piling into gold and silver and the stocks when these bulls make there last phase of their markets.

Even the BBC is writing about the continuing decline of the US dollar:
"The downward pressure on the greenback looks set to continue"

"March 27 (Bloomberg) -- Federal Reserve Bank of Cleveland President Sandra Pianalto said today that an increasing number of countries are diversifying their currency reserves from U.S. dollars to euros."

"China shifts to euros for Iran oil
Chen Aizhu – Reuters March 27, 2007
China's state-run Zhuhai Zhenrong Corp, the biggest buyer of Iranian crude worldwide, began paying for its oil in euros late last year as Tehran moves to diversify its foreign reserves away from U.S. dollars."

Oh, and Iran has made it illegal for US dollars to be used inside Iran.

Of course it's not just the US that is devaluing their fiat tokens, most all other countries are too. It's just that the US dollar looks to have the ability to be devalued far more than the rest, the US as a whole is in such bad financial/economic shape. In many ways it is in worse shape than it was prior to it's last great depression during all of the '30s and the first half of the '40s.

The US's Fed (cental bank) is between a rock and a hard place. If it holds or increases interest rates, it will crash the economy. If it decreases interest rates, it will crash the US dollar which will ultimately crash the US economy anyways. There are no US markets left that the US Treasury/Fed can inflate into one more bubble attempting to delay the day of ultimate settlement.

War games are heating up in the Gulf.

No wonder both the gold price and the silver price are still holding their second more upwardly sloping primary trend lines. The channel has steepened.

The nature of attacks on computers has changed a lot over the years. People making ** online financial transactions ** need a lot more security nowadays. Rayservers provides root encrypted laptops for protection in case of loss of machines as well as for privacy.

You can get Windows with Deep Freeze (puts files back to how they were on the last start up, eliminating any trojans, etc.), and with Anti-Executable (stops any trojans, etc. from executing while online) installed.
You can get Ubuntu Linux.
You can get Windows.
You can get Windows and Ubuntu Linux.
You can get Windows and Ubunto Lunux and a second Windows installed within Ubuntu Linux.

All root encrypted.

There is hardly anybody out there doing what Rayservers is doing.

They take digital gold currencies as well as government fiat, and will ship anywhere possible.

The intersection of gold, money and security:

Reality check charts:

Microsoft:Gold (funny)
Berkshire Hathaway:Gold (funny)


Anonymous said...

I would love to see a chart to confirm this blog post. I only have access to a long term afternoon fix chart and it doesn't confirm the claim, but of course it wouldn't since it's only the afternoon fix. If you could post a chart I would much appreciate it. I like your posts and appreciate your good writings and your insights. Many thanks.

Anonymous said...

I have checked the data. According to my source, the all-time monthly high close for gold is $681.50 in Jan 1981, so the claim you are making can't be correct. I would love to see the data you are using, backed up with a chart.

Anonymous said...

My source of this information was 'The time for gold "to go ballistic" approaches' - by John Embry, chief investment strategist at Sprott Asset Management. It's from a .pdf file at:

I'll try to locate a chart to show the current last monthly close compared to the last one at the top of the last bull market in gold.

Keep in mind that prices vary. There are spot prices and futures prices. Also data can be a little buggy sometimes. BigCharts can give a stock price in numbers when at the same time the chart of that stock is saying a price that is a little different.

Whether the current monthly close is a tad below, the same, or a tad above the last bull market monthly high, something is clearly up.
"You've come a long way, baby." - old Tarrington cigarett commericial

And there should be a lot more to go.

In the mean time, I'll ad a 32 year chart of gold to the column while I am looking for a long term monthy closing chart.

Anonymous said...

Obviously, it should have been "$681.50 in 1980," not 1981 as I posted; that was a typo. But I haven't confirmed that it is correct, and I suspect it's not. Thanks for the kitco chart, but it's not a very clear chart. And if the highs of the chart represent the closing prices, then $750 is higher than the recent price activity. John Embry has an article out claiming that according to the kitco data a new monthly closing high was made, at the sime prices you list. Perhaps you've read it . . . At any rate, his article doesn't provide a chart, or a link to any page from where he got his data. My belief is that one should always provide clear data and sources to back up claims made in the writing. Perhaps this is a better chart:

You'll need to reset the time to "All data," the frequency to "Monthly." Then click the "Chart style" button and change the size to "Big." I made my best effort to copy it and would have posted it to a link, but the image quality was poor at each effort. A straight edge helps confirm Embry's and your claim, I think. Cheers.