European Run on Physical Gold

Europeans have been caught by surprise over the announcement that not only is the EU going to bail out Greece, but they put just under $1 trillion on the table to redistribute to the other socialist countries in the region.

Warnings of the consequences to the euro have went unheeded, and now Europeans are not only pouring money into gold, they're also ordering gold bullion at a pace of demand that can't be met, and already some gold dealers have shut down orders in response to the demand, as they simply can't supply it.

The actions of the EU leaders over the last month just over Greece is part of the problem, as it was highly contested as to whether or not they were going to provide them with a bailout. That seemed to imply it was questionable as to whether or not that was going to happen. And now seemingly out of nowhere the announcement comes they're ready to bail out every country that needs help, or at least says they need help.

This is why so many rushed to gold, as they were caught off guard with now generous the EU was going to be with their money, and how that would drive down the value of the euro, and eventually bring it to an end.

Something stinks in how this has happened, and to abruptly turn around and not only bail out Greece, but offer the type of funds that were offers, seems to imply this may have all been orchestrated by politicians and central bankers over a period of time, as it doesn't really make much sense in how it burst upon the scene the way it did, as if there was this huge, inner battle going on, and suddenly everything is okay, and they'll add an additional $800 billion to the pot for good measure.

If there had really been that much resistance, it's doubtful this is how it would have played out.

It must be understood what is happening here. This really isn't a bail out of the nations, this is a bail out of the banks that bought the bonds of these nations.

What this means is these bankers were supporting these socialist, welfare, entitlement societies for many years, which were created by the politicians to garner favor in order to remain in office, and funded by the outrageous acquisition of debt that had no way of being repaid as it was played out. Now it has come home to roost and is being exposed as the fraud it is.

Next step? American and other westerners are going to be called on again to bail out banks, but this time banks which helped created socialist, entitlement cultures where people believe they deserve to be taken care of for nothing, and unions run by these socialists demanding extraordinary pensions and perks with very little in the way of productivity to pay for them. This is why socialism needs to be completely and totally abandoned, along with Keynesianism, which provides the theoretical and intellectual justification for this type of spending.

For Europeans and other western countries, they're again being asked, no forced, by their governments and central banks to bail out these losers, robbing our children and grandchildren of their inheritance so these others can live the easy live at our expense.

The Federal Reserve is already trying to cover its rear-end by saying they aren't going to provide funds so these socialists can live the good life, rather they're bailing out the banks, who I guess, are still too big to fail. What a nuthouse.

Europeans are starting to understand the threat, and since Germans have had this experience in the past, I'm sure they're leading the way in trying to buy physical gold in order to hold onto their wealth, which is slipping away with the failure of the euro.

Marc Faber: New Gold Standard Already Created

Marc Faber on Gold

Marc Faber recently sad in an interview that we have already entered into a new gold standard; one created by the free market and not anyone else.

Faber cited the increasing acquisition of physical gold by investors as well as the growing number of exchange traded funds.

In his interview Faber recommended that people flee cash and bonds over the next decade and buy gold and some equities.

Gold will continue to rise in value against all paper currencies which are depreciating said Faber.

Is There a Gold Bubble?

A lot of people don't understand the dynamics that make up financial bubbles, and it's not simply the fact that prices of a stock, commodity, or real estate is skyrocketing, it's more related to who is driving those prices up and for what reasons. And that is true with gold futures, gold prices, gold production and gold mining companies, or many other of the precious metals as well.

There really isn't a bubble until the general public begins to invest in something. The fact that they have no idea why they're investing other than they're hearing about it on the news and around the water cooler. That's what results in bubbles, not prices rising for good reasons.

Gold prices are rising for real reasons, and the majority of those investors aren't main street America or mainstreet other countries as well. Until that happens, there will be gold futures price corrections, but not the collapse of what some consider a bubble, as a gold bubble hasn't arrived yet, as most Americans still don't understand or recognize the value of gold; it hasn't entered into their minds yet. Once it does, then we'll have a good chance of seeing a gold bubble. Until then, we should be sure gold will continue to have support and prices will continue to rise over a period of time.

A number of countries, like China and India continue to stock up on physical gold, knowing the infaltionary pressures ahead, as well as the ongoing collapse of the value of the U.S. dollar. Other major investors have also focused on investing in physical gold and gold futures in preparation for the continuing increase in the price of gold for years ahead.

With the price of gold growing fast, it doesn't mean it's in a bubble like we've been talking about, but it could be due for a correction, or at least we should probably hold off until it pulls back a little, and watch how it responds from there.

Gold mining stocks are also at high multiples at this time, making them very expensive to own. In general, it's a time to hold gold and not buy too much. At the same time, I wouldn't sell any gold at all any time soon.