It’s
been
an
exciting
month.
Gold
rose,
surging
well
above
the
$1300
level.
Silver
and
gold
shares
soared
even
more.
We
hear
that
gold
is
in a
bubble,
it
can’t
rise
much
further
and
so
on.
Many
wonder,
why
it’s
even
risen
so
much?
For
that,
you
again
have
to
look
at
history
from
a
global
perspective
and
it’ll
provide
the
answer.
LOOKING
BACK…
We’ve
often
pointed
out
that
gold
is
money.
It
has
been
for
thousands
of
years.
Paper
money
is
not
really
money
and
there
isn’t
one
paper
currency
that
has
survived
over
time.
Gold,
on
the
other
hand,
has.
It
can’t
be
created
at
will,
it’s
durable
and
it’s
always
maintained
its
purchasing
power.
In
1971
when
foreign
nations
(particularly
France)
demanded
that
the
U.S.
settle
its
deficits
with
gold,
Nixon,
who
was
worried
about
the
disappearing
gold
reserves,
said
“no.”
In
doing
so,
he
shut
the
gold
window.
So
the
time
honored
link
between
the
U.S.
dollar
and
gold
was
broken,
the
world
went
off
the
gold
standard
and
the
U.S.
dollar
became
the
world’s
reserve
currency.
The
U.S.
then
created
a
false
prosperity
via
inflation,
and
ever
larger
quantities
of
money
and
debt.
But
this
was
a
fantasy
that’s
now
meeting
head
on
with
reality.
ABUSED
DOLLAR
IS
THE
CULPRIT
Since
the
U.S.
is
now
going
overboard
with
massive
deficit
spending
and
out
of
control
debts,
the
world
is
starting
to
want
real
money,
which
is
gold.
And
that’s
why
the
dollar
is
falling
and
gold
is
soaring.
Naturally,
there
will
be
corrections
along
the
way.
No
market
goes
straight
up,
or
straight
down
and
the
hardest
part
is
to
stay
with
it.
We’ve
been
consistently
recommending
gold
since
2002
and
yes,
there
have
been
ups
and
downs.
In
fact,
gold’s
exceptional
rise
has
now
reached
our
temporary
target
level.
It’s
been
a
super
rise,
up
55%
since
April
2009…
or
you
could
say,
gold
has
soared
17%
in
recent
weeks
alone!
By
any
standard,
the
surge
is
due
for
a
rest,
which
is
likely
now
beginning,
and
this
could
last
for
a
few
months.
Gold,
however,
is
still
far
from
the
mania,
bubble
stage.
Average
investors
are
just
starting
to
appreciate
the
rise
in
gold.
They
know
things
aren’t
right
and
they
are
learning
that
gold
is a
safe
haven.
They
see
the
dollar
falling,
the
economy
dragging
with
debt
and
the
Fed
trying
to
keep
it
together.
The
public
is
concerned,
but
they’re
not
yet
buying
gold.
When
they
do,
gold
will
surge
to
even
far
higher
levels.
MEGA
BULL
MARKET
It’s
important
to
keep
in
mind
that
great
bull
markets
in
gold
occur
one
or
two
times
in a
lifetime.
The
last
one
ended
in
1980.
It
took
20
years
before
the
next
(and
current)
bull
market
to
begin.
It
began
at a
moment
when
most
thought
gold
was
dead
and
buried.
Central
banks
couldn’t
sell
their
gold
fast
enough.
The
Bank
of
England
sold
theirs
at
the
major
low
in
2001.
Meanwhile,
gold
producers
had
been
hedging
their
production
in
order
to
stay
afloat.
This
despair
marked
the
low.
But
now
10
years
later,
we’ve
seen
the
gold
price
produce
consecutive
annual
gains.
And
with
gold
up
more
than
20%
this
year,
2010
will
mark
10
full
years
of
gains.
This
is
the
longest
winning
streak
since
the
1920s!
Times
have
changed.
But
it
took
the
financial
crisis
and
the
ongoing
aftermath
to
change
the
way
people
view
gold.
Confidence
is
growing
and
the
change
in
the
central
banks’
actions
and
attitude
toward
gold
was
key
in
giving
a
green
light
to
investors.
Central
banks
stopped
selling
gold
and
they’ve
become
net
buyers
this
year
for
the
first
time
in
two
decades.
They’re
expected
to
buy
15
metric
tones
of
gold
this
year,
which
is a
major
turnaround.
Gold
is
becoming
an
important
reservable
asset
and
again,
this
bull
market
has
further
to
run.
So
use
weakness
in
the
weeks
ahead
as
an
opportunity
to
buy
at a
better
price…
and
then
plan
to
hold
on
for
the
long
haul.
--
Mary
Anne
&
Pamela
Aden
are
well
known
analysts
and
editors
of
The
Aden
Forecast,
a
market
newsletter
providing
specific
forecasts
and
recommendations
on
gold,
stocks,
interest
rates
and
the
other
major
markets.
For
more
information,
go
to
www.adenforecast.com
