At approx 2am GMT-5 gold passed $1058 per troy ounce, another all time high in nominal terms.

Silver was a touch shy of $17.90 per troy ounce this morning.

Fundamentals have still not changed. We could see pullbacks as a normal part of an upward trend, but unless underlying fundamentals change, my long term outlook is of course the same.

Those fundamentals are:

1. Downward pressure on the USD from Quantitative Easing
2. Downward pressure on the USD from the carry trade (The USD is the new favorite target)
3. Downward pressure on the USD for additional bailouts as firms are salvaged from losses in ALT-A and ARM resets
4. Downward pressure on the USD as foreign countries diversify out of dollars into other currencies
5. Upward buying pressure on gold from Central Banks
6. Upward buying pressure on gold from the Chinese Government
7. Upward buying pressure on gold from Chinese Citizens
8. Upward buying pressure on gold from retail investors globally
9. A continually declining production capacity in gold mines – no new mines being brought online due to low prices of gold making exploration investment less common
10. Gold ETF’s and Institutions buying tremendous amounts of gold, with no sign of letting up
11. Largest gold mining companies in the world are closing out their hedge books (buying pressure)
12. Continued concern over inflation causing positive sentiment towards gold
13. Competitive Devaluation will ensure the cycle from fiat to tangible assets continues
14. Common sentiment – Contrarian Investing basics – The common man still has no idea gold and silver are a good investment – when you see Bill Murphy from GATA as a regular guest on CNBC, you know the fundamentals are shifting.

If you wait too long to buy gold, or try and time a pullback, the train may have already left the station.

Dont be left behind here – this isnt just about investing, its about protecting what you have left.

This entry was posted on Thursday, October 8th, 2009 at 8:51 am and is filed under Archived. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.