Gold and silver broke important resistance this morning, and platinum has confirmed this breakout by moving to its resistance of $1830. Silver is now in very fresh territory, which means it has no resistance. Gold should next move to $1440 before a slight pause. After it breaks $1440, all bets are off, and we could see a huge move up.
The dollar is under full capitulation, adding fuel to the fire. Look at those up and down strikes. They are huge. WHACK! WHACK! WHACK! WHACK! Four of them so far; there has been four up and down moves across DXY 78, the current support level. So the dollar gets hit over the head with reality. Welcome to the real, doelarr (see Tracey R. Twyman).
And now with big cap corporate equity down, the world should see what the best investment is. Oil is up, and oil is a horseman in this ride to glory, but how will anyone trade oi? Oil will trade for precious metal, as for a currencie, with no fiat middleman.
Italian banks are the second to get wise now that they and Germany will use gold as official collateral for their liabilities. Of course, they did that before, and this is merely a charade. Gold is on bank sheets. It sit in vaults. It is the chief asset of the financial system, and has always been.
Yet the world does not know this. People say we are off the gold standard but do not understand the double speak. We are, but we aren't. As the US is at war with Af/Pak, but are not. We have pulled troops out of Baghdad, and so are pulling out of Iraq. Double speak is common since 1984.
Oil is in a light of its own and it is only a matter of time before there is a supply crunch. Oil demand will not lower with the billions of Chinese and Indians engaging in the global middle class. America will pay up to $4 per gallon before it breaks GDP, and they will drive; they have to.
The world failed to remember peak oil. They failed to remember because they knew and forgot. Everybody can understand that reserves have been established, but not everyone understands the earth is not filled with unlimited oil. There has been no major field found in forty years, the low hanging fruit has been picked, and technology only speeds production up. The other alternatives to replace oil are either old tools, like windmills, that have no room for growth, solar which is in an infant stage of development. hydroelectric which takes oil tools to create (cement, trucks, bulldozers), and dirty energy like coal. Natural gas has not been adequately brought to replace oil either. Also coal and natural gas will peak too, eventually.
So as always the Trinity finds herself alone on the top of the mountain, away from everyone and everything. The flood of fiat liquefies the world over, as people struggle for the truth. The Trinity watches from safety, wondering if anyone will make it up the mountain. They will find her there.