The Abundance Engineer January 2011 - It's Debt That Moves Gold. Gold Tells The Truth

Gold Tells The Truth

Dear Investors,   The markets certainly hit 2011 with a bang. The dollar rallied and Gold & Silver fell. What an opportunity and what a great gift to start off the year.  Jim Rogers gave his predictions for 2011. Gold, Silver, Sugar, Rice, AUD, CAD, SD, HKD. Short long term U.S. Government bonds & Chinese Real Estate. Hard to argue with that.  Gold & Silver are still top of my shopping list for January. Every currency in the world has been losing value to Gold & Silver for the last 10 years. The Dollar & The Euro are in a terrible amount of debt. The Asian currencies are not a whole lot better as they have to keep themselves low to compete with US & European manufacturers.  As always in the markets prices rarely move in a straight line. The fall in the Gold & Silver price in the last few days would be seen by many as a great entry opportunity into the Gold & Silver market I am still very fond of Silver as an investment opportunity. As Gold gets higher & higher Silver becomes much more affordable to the common man. According to a trader in India, Silver demand went up 6 fold in the country last year. Asians have a love affair with Gold & Silver they don't put much faith in their Governments, banks and paper money.   There is widespread agreement that Gold & Silver are the ultimate safe haven investment in times of currency crisis and inflation.  You can buy Gold & Silver and store it at Bullion Vault. NEWS   (Bloomberg) -- Silver to Outperform Gold in 2011 on Real Demand, UBS Says Silver is likely to outperform gold in 2011, supported by industrial demand, according to UBS Securities Co. As the real economy continues improving, silver has the advantage as 30 percent of consumption is from industrial use, whereas in gold it only accounts for 10 percent to 20 percent of consumption, said Lin Haoxiang, associate director of China equity research. The average cash copper price on the London Metal Exchange may rise 23 percent to $9,149 a metric ton, Lin said at a media briefing today.   (Bloomberg) -- Makishi Rokugawa says he's installing the first gold vending machines in central Tokyo so Japanese consumers can invest in "something real."     (Bloomberg) -- Record Food Prices Causing Africa Riots Stoke U.S. Farm Economy The same record food prices causing riots in Algeria and export bans in India are allowing President Barack Obama to combine the biggest-ever U.S. farm exports with the tamest inflation since the 1960s.   (PTI) -- Former Tunisian Prez's wife 'flees country with 1.5 ton gold' Tunisia's ousted President Zine al-Abidine Ben Ali's wife has fled the riot-torn country with 1.5 tons of gold worth more than 45 million Euros, according to a French media report. Leila Trabelsi, the wife of the 74-year-old former president now in exile in Saudi Arabia, went to the Central Bank of Tunisia to fetch the gold bars, France's 'Le Monde' newspaper quoted the French secret service as saying. The governor of the bank is reported to have refused to give them to her, so 53-year-old Trabelsi rang her husband who personally intervened, and she flew out with the bullion as she joined him in exile in Saudi Arabia, the daily said. "It seems that the wife of Ben Ali left with some gold, 1.5 tons or 45 million euros worth," the British media quoted a French politician as telling the French newspaper. But a central bank official denied receiving verbal or written orders for gold withdrawals, adding that the country's gold reserves "have not moved", 'Le Monde' said. However, an official from the Elys e Palace told 'Le Monde' that "this information comes directly from Tunisia, in particular the Central Bank. It seems to be pretty much confirmed." After 23 years of dictatorship, the former President Ben Ali fell to a wave of student protests on Friday, fleeing into exile from the Arab nation that had descended into blood -soaked chaos and riots. The French government also believes that the Libyan secret service may have helped Ben Ali flee in order to avoid violence, the newspaper said   There are many many ways to invest in Gold & Silver. You can buy direct at Bullion Vault.   To Your Success,   Robert McManus

72 Analysts Believe Gold Will Go Parabolic To Between $2,500 and $15,000!

Higher than $10,000

1. Mike Maloney: $15,000;

http://goldbasics.blogspot.com/2009/09/gold-should-reach-15000-oz-mike-maloney.html

http://goldsilver.com/news/newsID/8538/tPath/2/

2. Howard Katz: $14,000;

http://www.24hgold.com/english/contributor.aspx?contributor=Howard+S.+Katz&article=2241359014G10020&redirect=False

3. Silver-Coin-Investor.com: $7,000-$14,000;

http://www.silver-coin-investor.com/gold-and-silver.html

4. Jim Rickards: $4,000 – $11,000;

http://www.cnbc.com/id/34038650/Gold_s_Money_Value_is_4_000_to_11_000_Market_Strategist

5. Roland Watson: $10,800 (in our lifetime);

http://www.gold-eagle.com/editorials_05watson081605.html

$5,001 – $10,000

1. Bob Kirtley: $10,000 (by 2011);

http://www.goldeditor.com/wp-content/uploads/editorpdfsimages/Gold-Prices-at-10-000.pdf

2. Arnold Bock: $10,000 (by 2012);

http://www.munknee.com/2010/06/gold-going-to-parabolic-top-of-10000-by-2012-%e2%80%93-for-good-reasons/

3. Porter Stansberry: $10,000 (by 2012);

http://www.kitco.com/ind/stansberry/dec022009.html

4. Tom Fischer: $10,000;

http://gold.approximity.com/gold_price_models_sinclair.html

5. Shayne McGuire: $10,000;

http://www.safehaven.com/article/9572/shayne-mcguire-the-early-innings-of-a-gold-boom

6. Eric Hommelberg: $10,000;

http://www.gold-speculator.com/eric-hommelberg/17257-golds-inflation-adjusted-high-reaches-8000-a.html

7. Gerald Celente: $6,000 – $10,000;

http://www.trendsresearch.com/forecast.html

8. Peter Schiff: $5,000 – $10,000 (in 5 to 10 years);

http://www.businessweek.com/magazine/content/10_23/b4181044623002.htm

http://www.commodityonline.com/news/Gold-forecast-Jim-Rogers-Peter-Schiff-or-Roubini-23940-3-1.html

9. Egon von Greyerz: $5,000 – $10,000;

http://www.munknee.com/2010/06/why-many-analysts-see-gold-going-as-high-as-10000/

10. Patrick Kerr: $5,000 – $10,000 (by 2011);

http://www.marketwatch.com/story//a-reality-check-for-investors-mulling-sale-of-gold-2009-11-20

11. Peter Millar: $5,000 – $10,000;

http://www.gata.org/files/PeterMillarGoldNoteMay06.pdf

12. Alf Field: $4,250 – $10,000;

http://www.24hgold.com/english/news-gold-silver-gold-price-objective.aspx?contributor=Alf+Field&article=1440499960G10020&redirect=False

http://www.gold-speculator.com/alf-field/7413-elliot-wave-gold-update-23-a.html

http://jsmineset.com/2009/05/10/alf-field%E2%80%99s-gold-price-predictions/

13. Peter George: $3,500 (by 2011-13); $10,000 (by 2015);

http://news.goldseek.com/GoldSeek/1129126809.php

14. Jeff Nielson: $3,000 – $10,000;

http://www.bullionbullscanada.com/index.php?option=com_content&view=article&id=12906:the-real-truth-about-the-imfs-gold-sale&catid=48:gold-commentary&Itemid=131

15. Dennis van Ek: $9,000 (by 2015);

http://goldnews.bullionvault.com/Goldbug/gold_price/gold_prices_could_hit_9000_per_oz_by_2015_18898034

16. James Turk: $8,000 (by 2015);

http://www.munknee.com/2010/06/where-gold-and-silver-will-be-by-2015/

17. Joseph Russo: $7,000 – $8,000;

http://www.financialsense.com/fsu/editorials/russo/2007/0416.html

18. David Petch; $6,000 – $$8,000;

http://www.gold-eagle.com/editorials_05/petch040105.html

19. Michael Rozeff: $2,865 – $7,151;

http://www.marketoracle.co.uk/Article14168.html

http://www.lewrockwell.com/rozeff/rozeff16.html

20. Martin Murenbeeld: $3,100 – $7,000;

http://www.dundeeprecious.com/Theme/Dundee/files/The%20Gold%20Price%20Outlook%20through%202010-%20website.pdf

21. Dylan Grice: $6,300;

http://www.abnnewswire.net/press/en/63123/Barry_Dawes_Projects_Gold_To_Reach_5000oz_At_The_Resources_Investment_Expo_In_Brisbane.htm

22. Aubie Baltin: $6,000 (by 2017);

http://www.24hgold.com/english/contributor.aspx?rss=true&article=2158395926G10020&redirect=false&contributor=Aubie+Baltin

23. Murray Sabrin: $6,153;

http://www.kitco.com/ind/Sabrin/may262009.html

24. Harry Schultz: $6,000;

http://www.moneynews.com/StreetTalk/harry-shultz-deflation-hyperinflation/2010/06/11/id/361725?s=al&promo_code=A0D6-1

25. Paul van Edeen: $6,000;

http://paulvaneeden/Dr.murenbeelds.gold.price.forecast.for.the.coming.year

26. Lawrence Hunt: $5,000 - $6,000 (by 2019);

http://laurencehunt.blogspot.com/2010/06/gold-invisible-bull-market.html

27. Paul Brodsky/Lee Quaintance: $3,000 – $6,000;

http://www.gold-eage.com/editorials_08/brodsky121208pv.html

http://gata.org/files/QBAssetManagement-07-2009.pdf

$5,000

1. David Rosenberg: $5,000;

http://www.zerohedge.com/article/rosenberg-pattern-would-suggest-test-5000-dow-same-time-gold-5000-too

http://www.investmentpostcards.com/2010/05/16/3000-gold-price-may-yet-prove-conservative-says-rosie/

2. Martin Hutchinson: $5,000 (by end of 2010);

http://www.prudentbear.com/index.php/thebearslairview?art_id=10309

http://www.nytimes.com/2010/05/14/business/economy/14views.html

3. Doug Casey: $5,000;

http://pragcap.com/is-gold-going-to-5000

4. Peter Cooper: $5,000;

http://www.arabianmoney.net/gold-silver/2010/05/12/5000-an-ounce-in-sight-as-gold-its-new-all-time-high/

5. Robert McEwen: $5,000;

http://www.bloomberg.com/apps/news?pid=20601082&sid=ajm6lryLYViQ

6. Martin Armstrong: $5,000 (by 2016);

http://www.businessinsider.com/martin-armstrong-gold-headed-to-5000-and-beyond-2009-16

7. Peter Krauth: $5,000;

http://moneymorning.com/2010/01/14/gold-superspike

8. Tim Iacono: $5,000 (by 2017);

http://seekingalpha.com/article/174088-faber-gold-a-better-buy-than-at-300-oz?source=hp

9. Christopher Wyke: $5,000;

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aF1439PVhAgk

10. Frank Barbera: $5,000;

http://www.theaureport.com/pub/na/1575

11. John Lee: $5,000;

http://goldnews.bullionvault.com/gold_dollar_fiat_currency_fed_confidence_030320082

12. Barry Dawes: $5,000;

http://www.abnnewswire.net/press/en/63123/Barry_Dawes_Projects_Gold_To_Reach_5000oz_At_The_Resources_Investment_Expo_In_Brisbane.html

$2,500 – $5,000

1. Pierre Lassonde: $4,000 – $5,000;

http://www.commodityonline.com/news/Panic-effect-could-push-Gold-to-$4000-or-$5000-11770-3-1.html

2. Mary Anne and Pamela Aden: $3,000 – $5,000 (by February 2012);

http://www.adenforecast.com/articlesInterviewDetail.php?id_publicacion=19

3. Bob Chapman: $3,000 (by 2011);

http://bobchapman.blogspot.com/2010/05/gold-will-go-to-75-and-gold-to-3000.html

4. Larry Edelson: $2300 – $5,000 (by 2012);

http://www.uncommonwisdomdaily.com/two-mandatory-investments-9648?FIELD9=1

5. Luke Burgess: $2,000- – $5,000;

http://www.wealthdaily.com/articles/gold-etfs/2409

6. Ian Gordon/Christopher Funston; $4,000;

http://www.munknee.com/2010/06/the-long-wave-cycle-of-winter-is-coming/

7. D.P. Baker: $3,000 – $3750;

http://www.stockhouse.com/Columnists/2010/Jun/8/Gold-s-next-move-could-be-parabolic

http://news.goldseek.com/GoldSeek/1272548046.php

8. Christopher Wood: $3,500 (in 2010);

http://www.bi-me.com/main.php?id=32459&t=1&c=62&cg=4&mset=1011

9. Adam Hamilton: $3,500 (by 2010-11);

http://www.commodityonline.com/futures-trading/technical/Gold-price-to-hit-$3500-by-201011-13620.html

10. Eric Roseman: $2,500 – $3,500 (by 2015);

http://worldcurrencywatch.com/2010/04/08/the-still-unpaid-price-of-the-global-bailout/

11. John Henderson: $3,000+ (by 2015-17);

http://seekingalpha.com/article/160592-gold-1200-by-year-end-1500-in-2010-3000-by-2015-2017

12. Hans Goetti: $3,000;

http://www.cnbc.com/id/15840232/?video=1043867279&play=1

13. Michael Yorba: $3,000;

http://yorbatv.ning.com/forum/topic/show?id=2014856%3ATopic%3A9698

14. David Tice: $3,000 (by 2012);

http://www.cnbc.com/id/34240489

15. David Urban; $3,000;

http://seekingalpha.com/article/36315-why-i-believe-gold-will-hit-3000-oz

16. Michael Lambert: $3,000;

http://mitchell-langbert.blogspot.com/2010/06/is-ride-to-3000-gold-going-to-hit-air.html

17. Brett Arends: $3,000;

http://online.wsj.com/article/SB10001424052748704792104575264863069565780.html

18. Ambrose Evans-Pritchard: $3,000;

http://www.moneynews.com/StreetTalk/evans-pritchard-gold-price/2010/05/26/id/360175

19. Trader Mark: $3,000 (by mid-2011);

http://www.ibtimes.com/articles/25200/20100526/if-gold-gld-tracks-nasdaq-housing-peaks-its-headed-to-3000-in-18-months.htm

20. John Williams: $3,000;

http://www.telegraph.co.uk/finance/personalfinance/investing/gold/4967209/Gold-Inflation-will-beat-deflation-and-gold-will-hit-3000.html

21. Byron King: $3,000;

http://whiskeyandgunpowder.com/gold-is-going-to-3000-get-some-physical-gold/

22. ThumbCharts.com: $3,000;

http://www.thumbcharts.com/1300/gold-at-3000-only-if-bubbles-repeat

23. Ian McAvity: $2,500 – $3,000 (by 2012);

http://www.mineweb.co.za/mineweb/view/mineweb/en/page33?oid=106419&sn=Detail&pid=102055

24. Jeff Nichols: $2,000 – $3,000;

http://www.mineweb.com/mineweb/view/mineweb/en/page34?oid=99961&sn=Detail&pid=1

25. Graham French: $2,000 – $3,000;

http://www.telegraph.co.uk/finance/personalfinance/investing/gold/7743787/Gold-bulls-claim-price-could-double-to-3000-in-five-years.html

26. Sascha Opel: $2,500+;

http://www.mineweb.com/mineweb/view/mineweb/en/page33?oid=79363&sn=Detail

27. Rick Rule: $2,500 (by 2013);

http://www.mineweb.com/mineweb/view/mineweb/en/page33?oid=107168&sn=Detail&pid=102

28. Daniel Brebner: $2,500;

http://www.midasletter.com/news/09031105_UBS-bullish-on-gold-price-nearing-2500-dollars.php

Conclusion
There you have it. Who would have believed that so many distinguished analysts would maintain that gold and by implication, silver, are likely to achieve such lofty levels as a result of the effects of our current financially troubled and volatile times? Their rationale is varied but each is sound in its own right. I have identified 72 analysts with such views and look forward to your assistance in adding to that number.

If we are to put any credence whatsoever into the rationale presented by the above analysts then it seems prudent for us to own some physical gold and silver in order to shield ourselves from future rampant inflation and currency devaluations and to ensure an outstanding return on our investment. Yes, indeed, “Got Gold?”

Iceland leads the way

Why Gold ?

-Gold is a currency with no liabilities attached.

-Gold is competition to paper currency.
-Gold is not a commodity.
-Gold is a barometer of fear.
-Gold is a barometer of confidence in Government.
-Gold is insurance.
-Insurance is not something to trade.
-Gold is money when money fails.
-Gold in your hand eliminates counter-party risk.
-Gold is the high ground when the global tsunami hits.
-Gold removes financial agents between you and your assets.

Gold Daily Chart and the Failure to Reform

Gold attempted to break out this morning hitting an intraday high around 1262, but was hit by concentrated selling designed to break the short term price trend. This is what is called a bear raid,

Each time gold attempts to break out, the shorts, in this case primarily the Wall Street banks and their associates, attempt to break the trend and push it lower. Each low is a little higher than the last, which is what gives the chart formation its shape of a rising triangle. As the energy behind the primary trend builds, the shorts must eventually give way and allow the price to rise, retreating to another line of resistance a bit higher.

Why is this happening? Why the preoccupation with gold and silver by the banks? Notice that gold and silver were exempted from proprietary trading restrictions for the big banks in the 'financial reform' legislation. The US government and its central bank view gold and silver as rivals to the US dollar, and 'the canary in the coal mine' that exposes their monetization efforts and threatens the Treasury bonds. It is characteristic of a culture that secretly abhors and dishonors the truth, paying lip service to whistleblowers while discouraging and ignoring them at every turn. "What is truth?" Whatever we permit to be discussed, whatever is published, and in the end, whatever we say it is.

There is a prevailing modern economic theory, probably best expressed in Larry Summer's paper on Gibson's Paradox, that by controlling the gold price one can favorably influence the interest rates paid on the long end of the yield curve. So as policy the US permits and even encourages the manipulation of key asset prices. Thus price manipulation of key commodities becomes a major plank in a program of 'extend and pretend.'

This to me typifies the policy errors and failures of Bernanke, Summers and Obama. They do not engage in honest discussion of the problems and genuine reform, preferring to attempt to band aid the problems, cut back room deals, and maintain the status quo to the extent that they feel the people will tolerate. They will be remembered in history as the high water mark in an era of corporatism, institutional dishonesty, and greed.

The parallels in the current situation with the Great Depression in the US are remarkable. FDR was a strong leader with a vision, and faced tremendous opposition to his reforms from a Republican minority and its appointees on the Supreme Court. He was considered a 'traitor to his class' and a champion of the common people.

Obama is also a traitor to 'his class,' all those who voted for change and reform which is what he had promised. But he lacks genuine leadership, vision, and moral courage, confusing leadership with empty words and gestures.

The Banks must be restrained, the financial system reformed, and the economy brought back into balance before there can be any sustained recovery.

Those well-to-do that promote cutbacks and austerity measures now without substantial reform merely wish to shift the burden to the many while feeding on the public's suffering. "Now that I've gotten mine, screw everyone else, to make mine all the sweeter." But when the shoe is on the other foot, they whine and cry and threaten until they gorge themselves on subsidies.

And those who promote stimulus without reform are merely seeking to maintain the status quo while transferring additional wealth to their own supporters and special interests, often in support of theories that they barely understand. Stimulus only serves to mitigate a slump, but cannot repair a systemic collapse.

"If you keep on gouging and devouring each other, watch out, you will be destroyed by each other. " Gal 5:13

No other forecast is necessary.

Posted by Jesse at 11:21 AM

Debt Crisis Cannot Be Manipulated Away

Posted: Jun 28 2010     By: Jim Sinclair  

Dear Friends,
If the market for gold had not done its runaway/runaway common to overleveraged long morons, it would have broken out of the neat cup and handle formation going on to $1650. It will definitely break out of that formation.
The short term bullies that manipulated today’s market cannot manipulate the reality of the debt crisis away.
Today was the do or die takedown in gold by the mega hedge fund traders using the gold banks as beards for maximum effect. It was that because of the cup and handle formation. I know because I used to do the same thing on the other side.
Back in the 70s when the Middle East was the major buyers of gold they used a certain German bank as their broker constantly. When I wanted to run a large short position into oblivion, I used the same bank as buyers that represented the Middle East.
Nobody wants to buy or sell, only manipulate price, when they bid ten times what the offering is or offers ten times what the bid is in an open outcry market.
You have witnessed a pure operation by the bear hedge fund, just the same ones that are short of the junior and intermediate gold shares.
What has been painted in the gold market is also being attempted in the gold sharers. In time the futility of this will be very evident.
Respectfully,
Jim

Hourly Action In Gold From Trader Dan

Posted: Jun 28 2010     By: Dan Norcini    

Dear CIGAs,
Monday must now be the new “Friday” when it comes to gold. Those of you who have been watching the gold price action over the last decade know what I am referring to. For those of you who are a bit newer to the gold game, Fridays, particularly after a payrolls report, have typically been the day on which gold was taken down by the bullion bank crowd to mess with the weekly chart and the technical picture.
Last Monday saw gold put in a horrendous bearish downside reversal day which the bulls managed to negate the rest of the week by a sheer gritty determination not to run. Today (another Monday) we have an exact repeat of the same bullion bank tactic that they employed 7 days ago; to wit, a takedown after price took out last Friday’s session high while gold mining stocks were also moving sharply higher. The result – an exact repeat of last Monday technically – another bearish outside reversal day on the daily chart. This coming on the heels of a brand new record high in Dollar terms at the London PM Fix ($1,261).
It is quite evident that the perma-bears at the Comex are determined to cap gold at $1,260. No one hits bids with the intensity that I saw this morning unless they are trying to take price lower. The reason is obvious – a closing push through $1262 and gold goes immediately to $1,280 – $1,285 garnering all the more headlines and casting more doubt upon the integrity of world’s current monetary system, which is under extreme duress. What the bullion banks are attempting to do is to form a double top on the daily price chart – it really is that simple.
Some are pointing to the stronger dollar as the culprit behind the weakness in gold, but that is denying the obvious and grasping for an explanation. Bonds are shooting sharply higher today and even the Yen is stronger as once again risk is back in focus and investors are moving to safe havens. Under such a scenario, the very notion that gold would be sold off as a “risky” asset is laughable for its stupidity.
The fact is gold was sharply higher after the conclusion of the meaningless G20 summit which was nothing but a group of yakking heads talking to hear themselves saying something. Investors rightfully interpreted that as further confirmation that nothing serious was going to be done that would restore confidence towards paper currencies. They then bid the yellow metal higher which held its gains from overnight as it moved into New York trading and even added some. We are then to believe that investors had a sudden change of heart so much so that they immediately became convinced at mid-morning that gold was no longer worthy to be held but instead US paper Treasuries were much more to be desired? Based on what news, what report? Come on already – are there actually people out there who are so damn dense that they believe this nonsense? This is what an orchestrated takedown looks like, pure and simple.
My own view is that this will meet with as much success as the previous Monday’s. Not a thing has changed in regards to the world’s monetary system – nothing. We always have to respect the technical price action because today’s markets are dominated by techies but those same technicals worked in favor of the bulls last week based on the price action Tuesday through Friday last week. They have to repeat their performance once again.
Let’s see how support levels function tomorrow and Wednesday. Chalk up today for the history books and forget about it. What is more important now is whether the bulls will hang tough and refuse to run. If they do not run, bears will be forced to cover as they did last week. As I mentioned in this past weekend’s analysis of the COT report, bears will have to force price down below $1233 on a closing basis to induce long side liquidation.

Gold $2,500 Looks More Likely Than Ever – DailyFinance

By DAN BURROWS Posted 4:42 PM 06/01/10 Investing




Gold added another $11.30 Tuesday to hit $1,226 an ounce, and although the yellow metal is still well off its nominal all-time high of about $1,240 set just a few weeks ago, you don’t have to be a member of the build-a-bunker-in-Montana crowd to believe gold could hit $2,500 an ounce in the next couple of years.



David Rosenberg, chief economist and strategist at Canada’s Gluskin Sheff, tends to be pretty bearish, but he’s also about as dispassionate and data-driven a guy as you can find. In other words, he’s hardly some kooky gold bug. And if past relationships among data sets hold up, gold fever is just getting started, Rosenberg says.



"There is no doubt that when benchmarked against the CPI, money supply and GDP, gold can easily double from here," Rosenberg told clients in a Tuesday report. "Demand is always difficult to forecast, especially for jewelry, but we do know that central banks have very deep pockets and bought more gold last year (425 tons) than at any other time since 1964."



A Simple Matter of Supply and Demand



Which brings us to the issue of stagnant supply, and that too favors a sustained bull market in gold, Rosenberg says. Global mined production of the ductile metal hasn’t increased in a decade — and has actually declined outright in five of the past eight years. Furthermore, almost all the gold that’s easy to dig up — and therefore cheaper to get at — has been unearthed. Gold companies in South Africa have to drill as much as 2.3 miles to get to new deposits. Meanwhile, all Federal Reserve Chairman Ben Bernanke has to do to create currency "is press a button," Rosenberg says.



"What makes gold different is that, unlike paper money backed by the good word of the government, it has withstood the test of time for thousands of years," Rosenberg writes. "It is not the liability of any government. It has an inelastic supply curve. How many times is gold mentioned in the Old Testament? Try 391 times. How many times is paper currency mentioned from Noah, to Abraham, to Moses? None. Nada. Efes. Gornisht. Nihil. Rien. Nichts. Niente."

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