Ouch.
I was already knee-capped over the past month. Today they just decided to give me a wedgie and hang me up on the flagpole to rub it in.
Oddly, it's a relief though. The break of $1,550 almost seemed inevitable. Now it's happened and we can let this flush play out.
But here's what remains the same:
-The U.S. economy is weak.
-The Japanese are upping the ante on experimental monetary policy with some concerning results already. Greece got in trouble (an economy the size of Indiana) and gold shot up. What do you think will happen when the third largest economy in the world faces a debt problem...which it will.
-The Eurozone is not in any great condition.
All of these realities mean more money-printing. The issue at stake for gold is psychological. People believe that they don't need it, that printing money is a good thing. When they realize that it doesn't work, that it causes currency and sovereign credit issues, that will change. When will that happen? Well, it certainly wasn't today.
