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A Major New Development in Gold

By Brian Hunt, Editor in Chief, Stansberry Research
Wednesday, October 3, 2012

Just last week, the biggest trend in all of finance reached a major milestone.
Most Americans didn't notice this milestone. You probably didn't read about it in the mainstream press. You probably didn't see it mentioned on CNBC.  
But it was a big one... 
This milestone was a brand new, all-time high in the price of gold. But the new high wasn't in terms of the U.S. dollar. No... gold reached a new all-time high in terms of euros.
For around 10 years now, Growth Stock Wire's publisher, Stansberry & Associates, has been telling its readers to buy gold and gold investments. We've helped tens of thousands of investors make the right gold investments. We've even published a book on the stuff... 
We've been recommending gold because it appreciates in value as the world's biggest financial trend advances. That trend is the rising debt and unfunded obligation levels built up by the governments of the United States and most European nations.
These unfunded obligations are so large, they can only be paid off with gradually debased, devalued currencies. And the problem is so advanced – and such large portions of the population are on the dole – it is now political suicide to actually suggest that we should reduce spending and borrowing.
Let's go over that again: The only rational solution is regarded as crazy and unspeakable. It's a perverted set of circumstances.  
Regular readers know it's a sorry situation. But they also know how to protect themselves. As debts and obligations are paid off with debased, devalued currencies... gold, which cannot be debased, rises. And with Europe in such a sorry state, gold has steadily advanced against the euro.
Mind you, the euro isn't the currency of some crackpot dictatorship in Africa. This is the official paper of the world's largest economic bloc. Its finances are falling apart. And if Europe's political leaders won't announce it, gold will.  
You can see gold's "announcement" in the chart below. Gold just reached an all-time high in euro terms. This is another way of saying the euro hit an all-time low against gold.
 Gold Hits a New High When Valued in Euros
What's an investor or trader to do with this? 
Just realize the problems that have caused gold to rise every single year for the past 11 years have not been solved. They've only gotten worse. Excessive borrowing and excessive welfare spending have only increased. Liars are a bit more likely to get elected to high office.
That's why, as both an investor and as a short-term trader, I know that any time gold and gold stocks suffer a temporary sell-off, it's time to get on the right side of the world's biggest financial trend. It's time to buy.
Brian Hunt

Further Reading:

Late last year, the European Central Bank initiated a huge bailout... and gave investors a major "buy signal" for precious metals… 
"I can tell you how to avoid becoming the patsy of Western governments and their paper scheme," Porter Stansberry wrote. "Instead of storing your wealth in soon-to-be-debased paper currencies like the dollar and the euro, store your wealth in gold and silver." 
Read his essay here. And find an earlier, two-part series on the roots of the problem here and here.

In The Daily Crux
Market Notes
Bullish sign for biotech uptrend... Biotech giants Amgen and Gilead touch fresh all-time highs.
Fortuna Silver rockets 54% off late-July lows.
Residential real estate play Two Harbors is up 63% over the past 12 months, including dividends.
Big food distributor Sysco breaks out to a 52-week high.
Market Watch
Symbol Price
S&P 500 1445.75 +0.1% +27.8%
Oil (USO) 34.02 -0.7% +11.6%
Gold (GLD) 172.10 -0.1% +8.9%
Silver (SLV) 33.50 -0.5% +15.9%
U.S. Dollar 79.74 -0.1% +2.4%
Euro 1.29 +0.1% -3.7%
Volatility (^VIX) 15.71 -3.7% -63.4%
Gold Stocks (^HUI) 513.93 -0.7% -2.3%
10-Year Yield 1.62 +0.0% -15.6%

World ETFs
Symbol Price
USA (SPY) 144.50 +0.1% +30.4%
S. Korea (EWY) 59.18 -0.8% +28.0%
Singapore (EWS) 13.48 +0.1% +27.8%
S. Africa (EZA) 67.25 +0.8% +23.0%
Taiwan (EWT) 13.55 +0.5% +19.7%
China (FXI) 34.92 -0.1% +16.4%
Canada (EWC) 28.73 +0.1% +15.2%
Lat.America (ILF) 42.90 -0.1% +13.8%
Russia (TRF) 15.55 +0.4% +6.2%
India (IFN) 23.51 +0.5% +2.5%
Israel (ISL) 13.05 +1.6% +1.0%
Japan (EWJ) 9.10 -0.4% -1.7%

Sector ETFs
Symbol Price
Construction (PKB) 15.81 +0.4% +58.9%
Media (PBS) 16.65 +0.4% +42.7%
Consumer Svcs (IYC) 86.49 -0.2% +36.8%
Financials (IYF) 58.66 +0.2% +35.3%
Retail (PMR) 25.27 -0.4% +34.0%
Biotech (PBE) 24.49 +1.0% +33.8%
Health Care (IYH) 85.53 +0.6% +33.2%
Big Tech (QQQQ) 68.67 +0.3% +32.2%
Real Estate (IYR) 64.46 +0.8% +32.1%
Industrials (IYJ) 70.74 +0.0% +30.9%
Water (PHO) 19.48 +0.0% +30.8%
Insurance (PIC) 17.07 +0.4% +30.7%
Telecom (IYZ) 25.52 +0.4% +28.7%
Software (PSJ) 27.63 +0.2% +27.0%
Defense (PPA) 20.03 +0.1% +24.5%
Basic Mat (IYM) 67.52 -0.7% +22.2%
Transportation (IYT) 87.30 +0.3% +17.4%
Semis (PSI) 13.90 +0.4% +15.9%
Utilities (XLU) 36.41 +0.5% +11.7%
Nanotech (PXN) 6.29 -0.3% +8.6%
Oil Service (OIH) 40.20 -0.4% +0.0%
Big Pharma (PPH) 41.33 +0.3% +0.0%
Alt. Energy (PBW) 4.13 -0.2% -21.0%

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