Mailbox

Dear Eric,

How are you? Just wanted to share the following with you regarding gold; i am amazed at the current strength, given the strong $, IMF sale announcement and yesterday 's Fed rate increase. A few years ago, gold would have collapsed 10% on such events.

It looks like Europeans are getting worried about the possibility (very unlikely to me) of a breakup.

Have a nice weekend,

Constantin

Good. Thanks for asking.

This is the net result of gold's ascendency to a dominant global currency. While gold still gets pushed around by fiat, it has the ability to push back with force. This is characteristic of phase two of the great bull market.

The Fed decision is nothing more than a cosmetic, this-will-be-bullish bump for the U.S. dollar. Market rates, specifically the spreads, and gold are still saying to the Fed that they are way too loose.

Devaluation, the revaluation of the gold across the global, is the tool. When Europeans as well as Americans eventually realize it, the focus will shift way from preservation of the Union (either EU or US) to individual net worth.

Regards,

Eric