Gold (GLD) blasted through to an all time high last night, doubters and naysayers carping all the way up that it was overpriced.
The white metals of silver (SLV), platinum (PPLT), and palladium (PALL) were firm, but were clearly being held back by flagging industrial demand in front of a potential double dip scenario for the economy.
Sales of one ounce American eagle gold coins has roared to an 11 year high, and there is a risk than the US Mint will run out of blanks.
Other gold coins providers are seeing the same. The maker of South Africa's krugerrands has boosted production to meet surging demand. The Austrian Mint sold 238,000 ounces of its Vienna Philharmonic coins last month, a six fold increase. The Royal Canadian Mint, which usually sees as little as 5,000 sales a month, received a single order for 120,000.
Concerns about an overhang of a potential 400 tonne sale from the IMF for a Greece bailout had kept bulls at bay, until word leaked out that a single Canadian investor offered to take the entire lot.
It does move my personal long term forecast for the barbaric relic of $2,300 from the realm of the wild eyed optimists, the Armageddon crowd, and the hyperinflationistas, to a comfortable country club of sober conservatives.
Article courtesy of: The Mad Hedge Fund Trader
