Gold Prices Up for Third Straight Week

Gold prices were up by $11.80 today, hitting $1,229.50 at 12:44 PM EDT, heading for gains for the third week in a row.

Recent pullback in prices has brought another buying opportunity, and investors are taking advantage of it by buying on the dips.

Over the last couple of days gold have fallen by just under 2 percent, after breaking another record earlier in the week of $1,254.50 an ounce.

All this continues as the faith in paper currencies continues to plummet, making gold to be an alternative currency.

“We’ve seen gold reassert itself as an alternative currency,” said Evy Hambro, the manager of Blackrock Investment Management Ltd.’s World Mining Fund. “You only really get a true bull market for gold when gold is rising in all currencies, and that’s exactly what we’re seeing.”

There is nothing happening in the world that will change this any time soon.

Gold Prices Scream to New High Today

Gold prices exploded to new highs today in New York and London as confidence in paper currencies continue to erode and concerns over the sovereign debt crisis in Europe and China demand for raw materials and products surge.

Prices for gold today early in the session reached as high as $1,254.50 an ounce, and was trading at $1,250.80 an ounce as of 10:34 AM EDT, a gain of $10.50 at the time.

These gold prices reflect the August futures delivery.

The past high for gold was $1,249.70, set on May 14, 2010.

US Gold Coin Sales Explode

As confidence in paper currencies continue to wain, sales of gold coins in the U.S. has soared in May, already twice what it was in May 2009, with several more days to go before the month ends.

So far in May, 158,000 ounces of gold coins have sold in the U.S., according to the U.S. mint.

Gold coins aren't used primarily for investment purposes, but for an alternative currency for those who believe geopolitical events, or the debasing of the currency could render paper money worthless, or at minimum, of little value.

When news of the bailout of Greece was agreed to by German officials, the people of Germany bought up all the available physical gold they could, and there wasn't near enough to go around, and supply wasn't close to meeting demand.

Germany has experienced the failure of their currency in the past, and the people of Germany know it could happen again, the reason why they ordered or bought every coin available.

Gold coin demand will continue to soar, as there's nothing out there that will change the direction we're going, and politicians have committed to extraordinary debt and printing of money in order to keep their jobs at all costs, as the general public still doesn't realize what the endless bailouts, government debt, and printing of paper money is going to them in the long run.

That is slowly changing, and hopefully enough will learn to not only make it through this crisis, but to help change things forever.

At this time, all of us should have some gold coins put away somewhere in case of emergency, and it'll hold its value no matter what happens to the existing currencies.

Make your decision before it gets impossible to acquire gold coins. If things continue to get worse, it'll get harder and harder to get hold of gold coins, and a lot more expensive as well.

Jim Rogers: Gold Going Much Higher

Commodities investing expert Jim Rogers continues his mantra on being a bull for most commodities for the next decade or so, and he reiterates that position with gold, which he says will continue to be considered a safe haven again inflation from the weakening of paper currencies.

With faith in fiat currencies continuing to weaken, gold has reached record levels against a number of currencies, including the euro, US dollar, Swiss franc and British pound.

In a recent interview with Reuters, Rogers said this about his outlook for gold: "I certainly expect gold to go much higher over the next few years. Paper money is going to be debased and the price of real assets will be enhanced."

Rogers doesn't just believe this about gold, but many of the other raw materials as well.

Along with a growing number of analysts and economists, Rogers knows the extraordinary and unprecedented level of debt being incurred by nations will be devastating to currencies and result in strong inflation.

Once the overall market begins to understand how large the credit expansion has been, we could see commodity and gold prices surge beyond levels some that are optimistic even think they will.

Gold as Currency and Safe Haven

One of the more positive results of the economic crisis we face is abn increasing number of people are better understanding the overall scheme of economics, currencies, the central banks, and gold.

Gold prices today have risen to just under record levels, and that alone is good news, not just for gains made by investors, but because it reveals people in general are starting to see that historically gold has been the most durable asset that has existed; going back thousands of years.

But just as important is the understanding that the Federal Reserve and other central banks around the world are a major problem in the health of our economic system, and the endless printing of money by central banks had done as much harm to the global economy as anything else, and probably more.

Another great benefit is people are beginning to see that paper currencies aren't worth much, and gold is far more valuable and safe than it will ever be.

All of this is important because our generation, for the most part, haven't experienced this depth of economic chaos in their lifetimes, and it has brought to the surface the underlying causes which few have taken time to search out. Now they are, and it's doubtful it'll ever return to the naive practices of the past without being challenged.

Gold is safe because it holds its value and can be used as currency at any time, in the sense if things get so bad that the financial system breaks down, which it in reality could. This is why a growing number of people are acquiring physical gold to not only protect their wealth, but to have a means of exchange if things go that sour.

If nothing else, hopefully this crisis will change the understanding of our financial system and help people to see what needs to be changed after decades of Keynesianism has let us to where we are today.

GFMS Ltd.: Gold Bull Run Over

In an incredible statement, consultancy firm GFMS Ltd. announced in a press release that the gold bull run was over, and it'll probably play out over the next year or so.

Of course that's cowardly in itself, as they give themselves enormous wiggle room if gold keeps on going up in price to say it's taking some time to wind down.

In the press release, GFMS chairman chairman Philip Klapwijk said this, "We're certainly in the end-game now, although that could still take a year or more to play out. But after that, it's difficult to see how we can avoid a hefty drop in prices if we want to boost jewelry and trim scrap to bring the overall market back into equilibrium."

So the trillions in paper money printed around the world, increasing inflation and place of safety aren't factors any longer in the price movement of gold? That can't even be taken seriously.

Now that doesn't mean there won't be a correction, as there is always that as part of any commodity or investment that rises quickly. But to announce the gold bull run is over is the height of ignorance to me, and must have been thrown out there to garner attention rather than to be taken seriously.

But when the gold bull run continues, people need to remember it was GFMS that said it was over, and determine from there if they want any other input from the company.

Greece Borrowing and Gold

Gold: The New Currency

The finance minister of Greece announced today that the country will continue to borrow, even at the high interest rates which have increased of costs of attaining capital. It generates the question of how all of this will affect the price of gold, the yen, and the U.S. dollar.

Investors are again losing any faith that is left in the country, and are very unsure as to weather Greece will be able to pay off its huge debt, which are about to become due very soon.

What the sovereign debt crisis of Greece has revealed in relationship to gold, the yen and the U.S. dollar is that gold is increasingly becoming thought of as a form of currency by a growing number of people, which is the reason you see it moving in tandem with the U.S. dollar and yen on some days people are looking for a safe haven for their money.

That means there is a lack of faith in all paper currencies at this time, and while the dollar and yen will continue to be considered to be a relatively safe place for people to place their money, gold is growing in influence, and for many, is by far the safest place to put their money in economic times like these.

The Greek debt crisis has brought this to the surface for all to see.

Gold: The New Currency