Wednesday, September 17, 2008
We will see how things go from here, but, today may mark the day that gold bullion transitions from being just another commodity into something very different.
Despite what you may think after the previous post (it really is a catchy song), it is highly unlikely that what we are seeing today is the end of most of the world as we've known it, but, for Wall Street investment banks and the price of precious metals, change is certainly afoot.
As shown in the chart above, one of those changes (that may or may not persist after today but, at some point, most certainly will) is that people with money are becoming more and more distrustful about what the government has been doing lately and are starting to think of gold as more than just another commodity, which, is really all it has been since the beginning of the bull market in commodities about 7 years ago.
Call it a "safe haven" bid or a "flight to safety", it doesn't matter.
Call it fear of a financial market implosion or wealth preservation ahead of what will continue to be massive government intervention in an effort to ameliorate the current (and worsening) condition - peoples' opinions about the metal are changing.
Gold may no longer be "just another commodity" anymore.