Gold has done spectcularly in this period, all things considered.

The strength in gold is not due to buying in the United States, particularly. It is true that many in the U.S. are awakening to the perils of paper currency and have begun buying, but other areas of the world are much more sensitive to paper currencies and have begun to buy in earnest almost to the point of panic. Hence even though the U.S. dollar has gone much higher gold continues to rise in price in the U.S. dollar. Gold is setting new all time highs in many other currencies.

The Euro, the currency European Union, is the focus of the current currency crisis. When we speak of the strength or weakness of the U.S. dollar, we are not really measuring the strength of the dollar as respects it purchasing power or its value in the eyes of the people who hold it. We are measuring how it compares (in the eyes of the holder) to its respective value compared to other currencies according to this formula.

Currently the Euro has suffered significant setbacks in perception hence the dollar has risen comparatively. This is due with absolutely no credit to the dollar and as everyone knows the problems in the U.S. are every bit as bad and much bigger than the problems of Europe.

As a result it is just a matter of time until the pendulum stops swinging in the current direction and heads back again.

The banks or "commercials" have been shorting the dollar and going long the Euro for a while now. They layer in their trades once an overbought or oversold condition exists in a market where they wish to invest and just keep buying or selling (if going short) as the price goes against them knowing it is only a matter of time until it turns for them and they can start cashing in on each of those trades as the trend turns their way. Currently the Euro is as oversold as it has ever been since its inception according to an indicator I favor. Can it go down further? Yes and the banks don't care as they have limitless pockets. Once it turns, those last positions will be the first to pay off.

Now what happens once the Euro starts to rise from its highly oversold condition? Well about then the focus will shift to the U.S. Then the dollar will start to fall and the Euro will rise as it is the counterpart of the dollar. People in Euroland will continue to buy gold because they know nothing of substance has happened to improve their currency or politics and the people of the U.S. will start buying like mad as the dollar begins its fall and the pressure which Europe is currently experiencing gets felt there.

Gold will go berserk in U.S. dollars because it is the world reserve currency and the whole world will be in panic. People in Europe will be happy that their currency is appreciating but having come so close to the edge they will not have confidence and confidence is the essence of paper currencies.

Once gold starts going up fast, really fast, in the U.S. dollar it will quickly become the next bull market to be in.

Then even the junior miners will do well. For a while the producers may have the edge but the juniors (with the goods) will be the better investment overall. If one is fleet of foot and a good trader they could try to play it for the best of both worlds.

Its too much like work for me. I'll just wait for it to come to me AND IT WILL.

P.