the revenge of the gold bulls ...

It was quite interesting watching mainstream financial TV like Bloomberg and CNBC overnight and seeing the stuttering attempts to explain why gold was up US$40.00, indicating the commentators didn't have a clue.

Even more amusing was imo the misinformation being given on how to financially protect yourself, such as cashing up and forming a buy list of quality blue chip stocks, "but don't buy for a long time."

As we know, in the USA, if you're cashed up you "earn" less than 1% interest on your savings! So the purchasing power of your savings is being smashed by REAL inflation - not the doctored US figures.

It was also quite interesting to see US markets get smashed - the Dow was down 265 points while the HUI was up about 2% - and with EVERY HUI stock rising in price. Sure - the shares were still underperforming compared to gold - but when there's red right across the board I guess you'll settle for a 2% rise! lol

Basically what we saw and what we were told loud and clear was that gold and gold shares can rise when the rest of the market not only falls, but gets smashed. It won't take investors too long to realise they can protect themselves in gold equities.

For Australian investors, continuing weak economic data such as housing and consumer confidence here meant our Reserve Bank did not increase interest rates yesterday.

Our over inflated dollar fell well over 1% against the US dollar - meaning in Aussie dollars gold has jumped over AUD$60 in just 24 hours - gold is currently AUD$1540.

Gold now also looks primed to set record nominal highs in our currency which should help to put a rocket under our gold equities.