Gold has reached a new high today, trading at 1069.70, surpassing the previous high of 162.  When the gold futures markets closed, gold was up $7.50 at a near all time high of $1065 per ounce.

The gold rally is now gaining momentum, as realizations sink in that the dollar has become seriously devalued, and is no longer able to hold the distinction as the “reserve currency” for the entire world.

Of course the flames of the dollars decline have been fanned by the recent crash of the United States financial markets, and government policies that are having a negative effect upon the business climate.

As the strength of the dollar erodes, the value of alternative “safe” investment currencies and assets will increase, chief among them is Gold.

The questions now are how quickly and completely will the market for the dollar decline?  And what to do about the collateral damage that this will cause ?  It is unlikely that economic conditions will change for the better any time soon.

Noted precious metals and commodities expert Jim Sinclair has recently warned in his newsletter,  JSMineset that there is increasing “buzz” circulating in the precious metals investment field that many of the largest mints and depositories are facing severe financial troubles.  As a result, he is advising in his newsletter that anyone with a significant investment in precious metals take immediate delivery of their holdings.  You can read his comments below, and also use the link included to subscribe to his free gold investment newsletter

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Major Investors have begun a gold buying spree, tightening demand and raising the price of gold three weeks in a row.  The primary reason for the rise in the gold market is  the continuing concerns over the weakness of the dollar causing an upsurge in demand as investors are increasing turning to gold as a hedge against the weakness in the dollar and the economy. (more…)