Joltin,

I agree with you, the ability of the banking establishment to jaw bone down the price of gold and suppress it with physical sales of bullion is decreasing rapidly. However they are not totally toothless just yet and still can dump 10's of tons on the market on any single day. This along with shorting of paper gold in the futures market at the same time can still have a significant impact in the short term on the bullion price. Example, today.

The resource sectors make up only about 5% of the stock market at the moment. The historical average for the resource sector is 40%. When even a fraction of the money invested in the 95% of equities outside of the resource sector eventually tries to squeeze into it, it will send the resource stock into the stratosphere.

Just as an example of what kind of money that represents here is just one fund

(Calpers, which has about $240 billion in assets, agreed at a Feb. 19 board meeting to hold between 0.5 percent and 3 percent of its assets in commodities, spokesman Clark McKinley said. The Sacramento, California-based fund last year put $450 million into commodities, its first such investment )

One fund out of the countless hedge funds, pension funds and investment funds around the world. Just wait till they try to invest the historical average of there funds worth into the commodity markets.

The size of the physical commodities markets is nothing compared to the amount of world wide paper floating around looking for a safe home.

That is why I said that the big movers and shakers of the world who collectively personally own in the hundreds of billions of dollars of liquid assets must move slowly. Slowly so that they do not alert the general markets to the real situation untill they are fully invested in that sector.

The gold sector in my opinion has just started to enter the stage where investment funds have started to take some note of it. This first move up was mostly the result of smart old money slowly entering it and position themselves.

The resource boom is going to make the .com boom look small. We are just entering the secound and most profitable stage of this bull market as the investment funds enter the resource sector.

Regards,

F.F.