Chris

I also feel your pain, and am quite disturbed to say the least that the fundamentals, for the time being, have been trumped by manipulation...........

I just read this interchange on the Tycoon Report--

Q. Is there a possibility of double-digit inflation or even hyperinflation going forward?

A. If commodities get revved up again too quickly this could be a very real possibility. Our first tip off would be a complete collapse of the US dollar. If we see that then we’ll know it is time to hedge with gold and physical commodities, and we can use various ETFs to get that exposure.

Q. What is going on with Gold and Gold mining companies, is the government manipulating the market on this through not allowing failures or is it naive to think it should bounce to a inflation-adjusted new high, and any idea on the timeframe of a breakout or otherwise?

A. I think that they are ridiculously cheap but they will take their cue from the dollar. As the dollar goes, so goes gold.

Q. I've read that extraction of new gold from mines is decreasing about 70,000 ounces each year. Do you think gold will soak up many of the dollars being fed into the global financial system?

A. No, not until people lose faith in the greenback and so far the exact opposite is occurring. People are viewing the T bill market and therefore the US Dollar market as a safe haven. Right now, safe-haven buying is trumping the long-term inflationary effects of the Treasuries' actions. BUT that will reverse at some point. As market participants become less fearful, they will exit dollars and we could see the value of the dollar fall quite dramatically. This would reignite prices in gold, oil and commodities in general.