The Biggest News in the Market this Week
The biggest news in the market this week: Gold has broken “out of the box.”
Longtime readers know we’ve been steady and unrelenting bulls on the ultimate “anti-paper” form of money, gold, for over eight years (since even before we published our “$500 Gold is a Bargain” essay in 2005).
We don’t do complicated analysis on gold. We don’t need to. We know gold is rising because people and their elected representatives have racked up massive government obligations that can’t possibly be paid back with sound, honest money. The only way out of these obligations is to pay them back with debased paper currency. The winner in the whole wretched system is “real money,” gold.
Late last year, gold confirmed our thesis again with a big move from $1,200 per ounce to $1,400. It then “took a breather” and traded in a sideways pattern for five months. Some traders refer to a pattern like this as a “box.” As you can see from today’s chart, gold just broke out of its box to hit an all-time high. The trend of sound, honest money rising against IOUs issued by bankrupt governments continues…