RE: It was also stated ....Yes....
Except you will need to wear your tin foil hat to swallow this one....
All silvers/golds are is complete lockdown mode as the government/Fed and their allies on Wall Street desperately try and hold this disintegrating paper empire together.
With the refusal of the Soveign Wealth fund of Dubai to infused the promised billion in to Citi saying - "All the money that they have will not help Citi" and Bank of American kiting a "private proposal for a government bailout of 738 billion (Ouch... nealy a trillion !!!) Citi and BoA both are both hopelessly insolvent.
When you get a glimse that the number 1 and 2 mega banks in a America are insolvent, and this is just the subprime phase of the meltdown, you can see where we are going and why the Fed in such terror.
We still have the alt-aa, prime mortgage, credit card and comercial real estage meltdown to deal with ahead. And if that is not enough we are verging on a quadillion dollars (1000 trillion - 20 time more than all the money on earth in a given year) in derrivatives. This toxic sludge is all interconnected and being poured on now make economic water to run uphill.
But, alas, all the kings horses and all the kings men - can only do so much.
So gold is the obvious wealth preserving asset class. The smart money needs to get in first and the herd must not be allowed to follow too soon. They will try to manage perception as usual to buy some more time but I do not think it will last that much longer.
But because this is an election year they could throw all caution out the window....
So in summary, not only does the emperor have no clothes, he also a bloody pulp that has no skin.... But the media is trying to pass this off as a sun tan !!