World financial system in a state of insolvency

Gold now represents a flight to quality, banks being nationalizied, financial system in a tailspin, the depression we are now in is stage 2, inflation is a hidden tax, dollar stability being debauched, China wants out of the dollar, stability of EU at risk, Dow hiding its worst stocks from its index, Hosing bubble now burst puts prices back in line with incomes,

The tenor of the gold market has changed. Gold has decoupled from the dollar and at the moment it is not driven by fear of inflation or hyperinflation, but by a flight to quality. What else can be expected when the media reports that governments are deliberately creating inflation to offset deflation? Jewelry demand that normally makes up 80% of gold demand has dropped and investment demand is what is now driving buying. SPDR Gold Trust, the ETF GLD, has added 200 tons of gold over the past six weeks and 62,000 ounces last week alone. We are very skeptical regarding GLD’s gold purchases due to a tight market and no reports of their purchases. They may be using derivatives illegally and if they are and the derivatives fail the owners of the fund will be left with little of their investment.

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