Whether today marks a turning point in the recent gold price correction, many of us believe that gold will rebound and surpass the 2011 highs in the months ahead. The reason for this assumption is best outlined in a quotation that appears in a recent article by Brian Lundein. It should be obvious by now that the hard choices (with the exception of Iceland) will be be avoided in favour of the path of least resistance, which can only bode well for gold. Best of the season to fellow longs.

As my friend Frank Giustra recently put it in an editorial for the Vancouver Sun, “The bottom line is that the money needed to bail out Europe and to fund America’s spiraling debt and future unfunded obligations is in the tens of trillions. IT DOES NOT EXIST. It has to be created by printing money in massive quantities, and despite all the rhetoric you will hear against such policies, in the end it’s the path of least resistance. Printing money is an invisible tax on savings, much easier to initiate, than, say, raising taxes or cutting back on services and entitlements.”