No need to worry about gold going up. Look at Bloomberg today and even Faber is saying that Gold will be an "interesting" investment going forward. He had said days ago that he thought it could go to $600. He now knows the real bailout expense will be closer to 5 Trillion dollars.

On another note, if you watch the unfolding saga in Washington, the politicians feel that the American public is fed up with Wall street making huge $$ and main street making nada. I called my senator and congressman personally and voiced that concern.

If you listened to clueless Pelosi, she said that a stimulus package for main street would follow suit behind this package for Wall Street. There goes another $100 billion.

Notice that WAMU failed on weekday right before a crucial meeting around this bailout(first non weekend bank failure all year). Interesting timing, uh? The politicians now have no choice but to pass some type of bailout this weekend. This WILL happen.

Additionally, when you see the banks coming out long in contracts, you know they will be right since Paulson has them in his pocket.

Add it all up:

1. Bailout package will be approved and will be like the Iraq war in terms of cost. It will cost 10 times initial projection.

2. To appease main street, a package for Joe six pack will follow. This will be viewed by foreign countries as we have lost all sense of financial control. Good bye US Dollar!

3. Banks are moving long in gold contracts and physical gold and silver are being sold at a premium(Now buffalos are being held up). This is the Smart Money getting in first(You are with the smart money!).

We will see one last test of $850 and then it will be off to the races my friend.

This is virtually lining up as the "perfect storm" for gold. I couldn't scrip it better myself.

SilverNut