by Justin O’Connell, Dollar Vigilante:
With gold’s price increase of $50 on June 19, I thought I would take some time to ponder wherefore. After years of waiting and waiting, the sentiment among bullion investors had seemingly reached multi-year lows. Thus, few were expecting this week for gold to make a $50 run. Certainly betokening of the coming multi-hundred dollar days that will likely be seen in the physical market within a decade, it did anyway. But why!?
First things first, your eyes might be glossing over at this point. You might be thinking, “He’s trying to make a pitch.” So it might seem, but I think even more so I am merely describing something that’s a sure thing. The world is getting crazier and crazier, and increasingly is being driven by fear. Under these circumstances it might be sensible to see why gold has a certain allure.
Mainstream media, however, can’t touch upon why. Pundits will give you silly answers such as short-covering, which is merely a side-story in the overall story for gold at the beginning of the 21st century.
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