“The US started with a better economy than the Europeans did, but we’ve now mortgaged our future also…We haven’t reached our reckoning point yet, as a consequence of being the world’s reserve currency, but we have the same root problem as Europe in that we’ve exceeded our ability to service our obligations. So there will be a reckoning, and I’m not terribly optimistic about North America either.
I continue to be a gold bug. The gold market is showing some real signs of strength. Gold has been holding its own, despite recent strength from the US dollar. Momentum players are out of gold, but there has been strong retail support for the gold market…the high net cost of gold production, which is over $1,200, is fairly bullish for the gold price.”