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.

by Bill Bonner
London, England

We have spent the last few days holding back tears…

Michael Jackson! Robert MacNamara!

And now our heart goes out to Nantucket Island. Word came this morning that
the rich are not living it up like they used to. The New York Times reports
that it’s the slowest summer on Nantucket locals have ever seen. There are
over 600 properties for sale – and none of them are selling. Even at discounts
of up to a third off! Restaurants and bars are offering discounts too – anything
to lure in the customers. (more…)

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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Why Gold Is Destined To Rise Significantly In The Next Few Months

by Chris Apicella

With all the failures in US economic policy, it is regretful that we must report that more, much worse problems are coming ahead which will result in not just the inevitable slide in the value of the dollar, but also continued and significant decline of the US economy as whole, and the failure of the current, ill-conceived government policy to stop the continued heamoraging of jobs and value from the US economy. The economy is destined to stay stuck in this rut until a new set of industry supportive policies takes hold in Washington. (more…)