I don't know why but I'm extremely optimistic. I think we're off to the rodeo, kids.

Last night I must have read about 10 articles on the physical bullion shortage and most of them in mainstream media. It's getting very obvious that something is awry. I tried finding some silver bars but none to be had without paying a hefty premium. Screw that. If I'm going to pay a premium, I'll just play CEF.

Then comes in FB's update saying we should be buying up producers. Everywhere I look the signs are bullish. The dollar is going to drop and gold always acts the inverse to a declining dollar. Not always so on the upside though so it looks very good.

Oil is going up now and I believe we'll see further gains as oil producers start cutting back after last weeks big draws. Oil producers never need to lose money. They can either make a lot of money selling less oil or a little money selling a lot of oil. I think they'll opt for selling less at a higher price since they don't have endless supplies.

For the last couple of days we've seen the POG jump in overnight trading and drop as NY opened. Something is wrong here. However, I think it's about to correct on a big scale.

I noted last night after looking over some charts that the bottom in the depression came exactly when they dropped the gold standard. I don't think that was a coincidence. It allowed them to start pumping tonnes of money into the system. No different than now. They are filling the tank with the fuel it needs. That won't stop a recession but it will change the nature of it. It will be inflationary my friends. Gold will triumph here.

However, they know damn well that they have to contain gold and so they are doing all they can. Problem is, it's not in everyones interest to do so and the US is losing their grip on the world's economy. Don't doubt for a moment that every country in the word outside the USA is pissed off as hell at the US and will take this bounce in the USD to start diversifying their reserves. Gold is the obvious alternative now. Not that they'll be doing 30% gold or anything like that but considering just how small the gold market is, a 5% increase in gold reserves in major countries will make a huge move for gold.

Juniors may not enjoy the party as much as we like but surely if gold hits $2000 in an inflationary environment we'll see some positive signs.