SliderOnTheBlack.com

Gold is still comfortably within it’s bullish uptrend, and technically you have to stay long “of gold” (as Dennis Gartman would say) until it breaks support.

Fundamentally, gold is trading as the last remaining sound currency in a world of un-sound central banking. And gold is up an astounding 22% to 42% against the major global currencies over the last five months…

And now the good news…

On the horizon is brewing a “generational perfect storm” for gold.

Although the market is not making the gold trade an easy one… given a volatile broad market and worries of an IMF gold dump. The coming tsunami of central bank currency expansion from history’s first globally coordinated reflation and mass quantitative easing, creates what in my opinion will ultimately be…

“A Generational Perfect Storm For Gold!”

This was a recent headline in the U.K.’s London Telegraph:
“IMF poised to print billions of dollars in ‘global quantitative easing.”

The Telegraph reported that… “The International Monetary Fund is poised to embark on what analysts have described as “global quantitative easing” by printing billions of dollars worth of a global “super-currency” in an unprecedented new effort to address the economic crisis.”

“Alistair Darling and senior figures in the US Treasury have been encouraging the Fund to issue hundreds of billions of dollars worth of so-called Special Drawing Rights in the coming months as part of its campaign to prevent the recession from turning into a global depression.”

The article went on to state…” that economists warned that the scheme could cause a major swell of inflation around the world as the newly-created money filters through the system.”

And Simon Johnson, former chief economist at the IMF, said:

“The objective is to create a windfall of cash. However if everybody goes out and spends the money it could be very inflationary.”

Another factor influencing the price of gold of late, had been the “fear factor.”

The US is experiencing record gun and ammunition sales, and the purchase of physical gold and silver worldwide is expanding at an unprecedented pace…

“World mints report soaring demand for gold coins”

The Royal Canadian Mint, which produces Maple Leaf bullion coins, said it quadrupled its production capacity late last year as demand for gold and silver bullion products lept.

The United States Mint said sales of its one-ounce American Eagle gold bullion coins rocketed to 710,000 ounces in 2008, from 140,000 ounces a year before.

The chairman of the French Mint, Christophe Beaux, said sales roughly doubled last year in value terms and are expected to rise by another 50 percent this year.

In South Africa — the world’s second-largest gold producer — Natanya van Niekerk, deputy general manager for numismatics at the South African Mint Company, said she had seen a big increase in demand for gold.

And Michael O’Kane, head bullion trader at the New Zealand Mint, said the mint was averaging “a month’s transactions in a day,” adding he saw demand continuing to rise.

With fiat bankers now printing “Trillions” instead of mere “Billions” and with virtually the entire world now focusing on reflation, we can only hope they will be successful.

SliderOnTheBlack

PS: I’ll have some trading charts up tomorrow for the HUI Gold Bugs Index.