All:

It is a good day for all of us today so far. As I am writing, Gold is up another $7.80 to $946.90 an ounce, The Dow is down another 175 points to 7762 and Kimber is up 5 cents to 64 cents. The U.S. Government is well on its way to massively increasing the money supply to finance a series of bailouts and the so called stimulus plan in what I believe will be a failure of legendary proportions. Massive inflation will result, most likely of a type like few of us have ever seen. The mind of the market is starting to adequately comprehend this, therefore gold continues to slowly and steadily rise.

Money needs to come from somewhere to finance everything that our government wants to do. We either can borrow it, we can mine it or we can create it out of thin air by using the "printing press", so to speak. China and Japan are going to stop lending us money eventually if they can't get better interest rates on the government bonds we give them in exchange. We CANNOT raise those interest rates, because that would really collapse the already collapsing housing market and all the ancillary businesses that go with it.

So all we can do right now is print more money to pay off our debts, always decreasing the value of the money that's already out there in circulation. Eventually, that money will become worth so little that people will no longer want to use it. Gold will rise all the way up as the value of the dollar goes down. And IF the dollar collapses, which is might, then there will be only one way left to get money... work for it, i.e. money will be reduced to its simplest form, tangible storage of human labor and ingenuity. We will either have to dig gold and silver out of the ground to use or sell ALOT of stuff to people for gold and silver. (The other option which we should not exclude is to invade another country and take all their gold and silver. If times get bad enough, anything is possible.)

If we get to a time in the future, which we might, when the dollar can no longer store up our hours of work, i.e. thought, labor and ingenuity, we will rapidly find something else that will be able to do that. And I believe that gold and silver will be those "somethings". History gives us intelligence about this.

Uranium, coal to liquid fuels, solar power. Who knows what will come next involving energy? We don't have a previous fossil fuel age to judge from. But we do have a previous paper money age. In fact we have many of them and their equivalents in many different parts of the world during many different times. Gold as money was the outcome every single time. EVERY SINGLE TIME. Some day we will look back and wonder why nobody else recognized this in 2009 when it was unfolding in exactly the same way it had unfolded hundreds of times before in human history.

As always I wish you all well. Do your utmost to remain patient. The road can sometimes seem lonely and long, but the ending will be a great one, full of knowledge and awareness, a new level of understanding, and hopefully, if we are deserving, great wealth. Bull