Dear CIGAs,

The big story is once again the collapse in the Euro – it actually registered some prints BELOW the worst levels seen back in late 2008 at the height of the credit crisis inception here in the US. It looks to me like the only ones seeing “Shock and Awe” are the European monetary authorities who today look like total buffoons after all their grandiose comments that were uttered when they first announced that they would defend the Euro at all costs. The phrase, “at all costs,” is going to be taken literally. What are they going to try next, direct intervention in the Forex markets? That ought to be good for at least a one day pop before the sellers smash it lower again as it would rightly be seen as an act of desperation.

The result of this – Euro priced gold missed the magical €1,000 mark at today’s PM fix by less than 2 euros as it made a brand new all time high again. That did not seem to deter the bullion banks and the official sector from doing their worst to window dress the price of gold at the Comex. Yep – we get it – the Euro is falling apart, the Pound is under severe pressure, even the Australian Dollar is getting whacked, and that means that we should all sell gold. Nice try boys – the days of rigging the gold price are coming to an end because to believe that gold would be lower under such circumstances if left to trading on its own merits requires one to also believe in the Tooth Fairy...