Tuesday 6th November 2007: 8.30pm
Well, Adrian Ash from bullionvault.com presents his graph on goldseek.com saying that there is a new all-time high for gold in Pounds Sterling. So that confirms what I said in my last entry. Of course, now we are in the 390s in Sterling and at about 820 in US dollars. Yesterday, there was more disturbing political news to come out of Pakistan. At the weekend, Jim Puplava played an excerpt from the brilliant John Bird and John Fortune, giving the 'definitive' explanation of the cause of the 'sub-prime' mortgage debt crisis. It is on YouTube here: George Parr - Subprime and also here for an encore: It's Credit and its Crunchy - nowhere else are you likely to see it more clearly explained! These two men are the kings of satire.
Why the rise in gold again today (Tuesday)? 'Inflation fears' say the popular financial press. That must assume that the subprime crisis and possible derivatives meltdown don't cause a deflation because the central banks will issue such vast amounts of fiat money that deflation simply won't be possible. We are of course, within a stone's throw of the old 1980 gold high and also within spitting distance of $100 per barrel oil. Inflationary enough, I think. More interestingly for British gold investors (if there are any), gold is nearing the £400 Sterling level, never before seen. Petrol is now nearly £1 a litre, that would be about $9 per (UK) gallon. I'm sure that in the near future this round number of £1.00/litre will be left behind in the dust.