Consequently you are seeing gold climb higher, even while stocks in Europe are suffering a bloodbath. This is a historic watershed moment in gold’s bull market because investors globally are finally coming to the realization that gold represents the ultimate safe haven. And more to the point, that gold is one of the only assets on the planet that avoids counter-party risk.
This is an important point, Eric, investors selling stocks are not just attempting to flee the stock market, they are also fleeing the euro and the incredibly fragile european banking system. As money flees Europe, we are seeing a bit of a knee-jerk reaction with some of that hot money going into the dollar, but more importantly we are seeing tremendous money flows into gold.
So going back to our discussion on Thursday, I expected the buy orders for gold and mining shares to roll in this week after everybody returned from the three day weekend. That looks almost certain now given what’s happened today here in Europe.”
These are truly historic times as investors continue to flee the carnage of paper assets (being destroyed by currency debasement) and this secular bull market in gold enters the recognition phase. The gold bull market is in its second phase now and KWN readers need to know that second phases are the longest and strongest phases of a bull market.
This is why gold’s relentless upside advance continues to surprise so many market observers, they don’t understand the power of phase II. The manic phase III lies in the distance somewhere. At that point the masses will be buying and the gold mania as Jim Sinclair said, “Will light your hair on fire.”
