Gold is making a classic breakout this morning to new highs for the year - and all time (nominal) highs. I am showing the chart of the gold etf below since stockcharts.com does not have real time charting for the commodity.
I've added a 1.1% allocation to our gold holding, Powershares DB Gold Double Long (DGP) on the breakout. For newer readers, I do not think gold strength at this moment has one iota to do with inflation and everything to do with a global race to the bottom with fiat currencies. As our debts grow ever larger, the path to monetization of debt - and thus destruction of wealth of savers - by central bankers worldwide is growing clearer. I believe this is what gold is telegraphing.
Long Powershares DB Gold Double Long in fund; no personal position
Friday, June 18, 2010
Bookkeeping: Adding Gold (GLD) Exposure
Powershares DB Gold Double Long|
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