I have stated that $1,550 is an important plateau for gold. It was nerve-racking to see gold fall below this support level, but thankfully, today gold easily cleared $1,550 and as I am putting the finishing touches on Thursday’s daily at 5:00 A.M. Friday morning, gold is closing in on $1,600. We, in the gold universe, need some uplifting price action. In the last 48 hours, gold is up 4%, a whopping $60. Before the year is over, this kind of move will not be unusual.
And how about silver; its two-day performance ain’t too shabby either. It was below $27 on Wednesday.
Today was a thing of beauty. Gold, as I’ve repeated numerous times, is almost always capped at 1%. It hardly ever logs a 2% up day. Today gold closed up 2.21%! Without going way back and digging, I can’t remember a day that gold rose so much. Gold’s RSI was as oversold as I can remember and now, it appears that gold is ready to move back up. I expect that later on Friday, Ed Steer will write about the JPM closing out a massive amount of their gold and silver shorts.
I haven’t got Thursday’s sales figures yet, but Andy told me it was very, very busy all day. All of the brokers were selling a lot of gold and silver. Our ¼ oz. Gold Maple Leaf promotion was well received. We don’t “promote” too often, but when we do, it is a good deal!
A topic I often mention is the falling standard of living in America and how it is hitting the middle class especially hard. Backwoods Jack keeps reminding me that the highways are jam packed during rush hour and the restaurants are full. Things appear “normal,” but are they really?
You see, we are getting so accustomed to the “new reality,” post-2008 that it almost seems normal. Life goes on, but for millions of Americans, life in America now is nothing like what it was just a few years ago. And what will happen when all of the trillions of dollars our central bank has poured into the system start to torture us with rapidly rising prices? There are millions of (formerly) middle class Americans who are just barely hanging on now by the skin of their teeth. A jump in food, energy and housing costs will push them out of the “poor” category and into the “poverty” category. This is the great tragedy of the 21st century. Millions and millions of hard working, well-educated Americans are dropping out of the comfort of Middle Class living. And through no fault of their own! Hard times have come to the suburbs.
The first article in today’s daily is an eye-opener, taken from the Huffington Post and though a bit lengthy; it is one I hope you decide to read. There is a new “normal” in America. And you can find it tucked away in the suburbs: