Well, Bernanke came and went again – and for the second time in nine days, gold SURGED after he spoke.  Mind you, he said EXACTLY what was expected, and EXACTLY what he has been saying since February – that the Fed remains ‘vigilant, willing, and able’ to step in with further stimulus, in a decisive and timely manner, ‘when required.’

Since February, starting with the “LEAP DAY VIOLATION,” the Cartel has managed to successfully attack PAPER PMs EVERY TIME Bernanke has repeated these same words.  However, starting with the August 22^nd FOMC minutes release, followed by today, their tactics are no longer working.

Given that the PHYSICAL “buying season” is commencing, the fundamentals VASTLY more bullish than a year ago, and prices depressed, this could be the beginning of a run to new all time highs.  In my view, the biggest catalyst for U.S. gold will be when Euro Gold and Rupee Gold – currently just 2% and 3%, respectively, below their own all-time highs – breakout to new highs.

Andrew C. ("Ranting Andy") Hoffman, CFA

Marketing Director

Miles Franklin Ltd.

ahoffman@milesfranklin.com

www.milesfranklin.com

@SilverSeekWire