Governments everywhere are going to have a difficult time explaining gold's strength today. Not only shall Washington be nonplussed regarding gold’s movement upward through $1000, but so too shall Downing Street have difficulties explaining how it is that gold is trading upward through £600 so readily, as it trades £611 as we write. And if Downing Street has problems, what then of Ms. Merkel’s government in Germany or Mr. Sarkozy’s in Paris as gold trades upward toward €700, trading €699 as we write? How then shall they explain this even more serious strength in gold? Likely they shall have none.

Nice. The governments are aware of the explanations - they just don't want them generally known.