It is refreshing to remember How much Gold and Silver is left available and how easily it could be bought up!
Will gold go up in a straight line? Absolutely not.
Remember, the value of all the gold ever mined currently amounts to about $5 trillion, only a fraction of world financial market values. Thus, in a cataclysmic financial event when institutional money leaves risky assets for quality, it simply wont be possible for everyone to pile into gold. Silver is even smaller amount available!
About 1 Billion ounces or $20 billion for private investment.
In the longer term, this means that gold will likely have some breakaway runs to higher and higher levels in US dollar terms, similar to how the oil market was behaving in 2007-2008. I think that yesterdays market reaction foretells this trend.
I would suggest keeping a close eye on the Greeks debacle and how it plays out, not to mention inter bank lending tightening up and the US Super Debacle and Europe Deep debacle and investors start looking at other sick economies like Japan. If the trend holds, it is an extraordinarily bullish sign for gold.
