Saturday, January 24, 2009


Trader Dan Norcini at Jim Sinclair’s MineSet has an interesting take on Gold's latest move.
“The battle for Helms-Deep is over; the battle for Middle Earth has begun”!
So says Gandolph the Wizard in the second of Lord of the Rings trilogy, “The Two Towers”.
Gold has beaten back the Orcs and Uruk-Hai to regain the critical $880 level and must now deal with the Ringwraiths (the bullion banks) and Sauron (the monetary lords) as they attempt to defend Mordor (the unbacked paper money system – the root of all economic woes in the global universe). If Frodo can just make it to the fires of Mt. Doom and throw the golden ring of power into the volcanic flow (reintroduce gold into the monetary system), the system will topple freeing the masses from the tyranny of the money masters!
While the $880 level is technically important, its encouraging to see Gold rise even as the USD has continued to strengthen. Gold has been extremely volatile recently, but the worsening crisis gives support to prices everytime they threaten to break down.

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