Yesterday was a special day. Yesterday we once again saw a glimpse into the inside of the financial system, where current economic policy is dying a slow death, where people such as Ben Bernanke catch their books on fire after dragging them through the gates of Hell.
In the midst if this recent downturn we once again see a flat dollar - the dollar, the reserve currencie, the end all liquidity crutch of the Fiat Ponzi - we saw the continuation of a bond market propped up by the Fed buying Treasurie debt from Private Dealers (in the form of another multi billion dollar auction), and we saw stocks lose their luster around the world. Yet the kicker was that gold's price shut up like water from a whale's spout in the middle of it all, just as it did right before the US had its debt downgraded last summer. Right before a grand equity collapse; gold seems strong once again.
If gold relishes in these moments, what is the true safe haven play? What does really store wealth? These questions are easily answered when considering golds half life of hundreds of thousands of years, as well as its price action during recent times of financial turmoil, as well as during the last decade in general, due to supply constraints.
Gold is the safe haven for cash to move now, and it stands along side only the other precious metals silver and platinum. This because these three items define the term monie, and it is money that is needed in this time of economic uncertainty.