If you like gold now, wait til the European Banking crisis blows up:

Another crisis of historic proportions (that nobody could have seen coming) is moments away. If you think gold has exploded upward recently, just wait until this next crisis explodes:

From the Daily Telegraph:

Insurance on the debt of several major European banks has now hit historic levels, higher even than those recorded during financial crisis caused by the US financial group's implosion nearly three years ago.

Credit default swaps on the bonds of Royal Bank of Scotland, BNP Paribas, Deutsche Bank and Intesa Sanpaolo, among others, flashed warning signals on Wednesday. Credit default swaps (CDS) on RBS were trading at 343.54 basis points, meaning the annual cost to insure £10m of the state-backed lender's bonds against default is now £343,540.

"I think we are heading for a market shock in September or October that will match anything we have ever seen before," said a senior credit banker at a major European bank.

German Labor Minister, Dr. Ursula von der Leyen had this to say: "Rather than simply hand over further loans to Athens – money many Germans believe they will never see again Berlin should ask for collateral. Gold, preferably."

Of course the Greeks view it differently: "'The Nazis took our gold, they should at least thank us': Greek deputy PM's extraordinary attack on Germany over debt crisis

And this from analyst John Mauldin: "The list of country woes is long in Europe. Massive unemployment in Spain and Portugal. Credit spreads at French banks are blowing out. Deficits everywhere. Voting populations in both creditor and debtor nations are upset.

It is only a matter of time until Europe has a true crisis, which will happen faster – BANG! – than any of us can now imagine. Think Lehman on steroids. The US gave Europe our subprime woes. Europe gets to repay the favor with an even more severe banking crisis that, given that the US is at best at stall speed, will tip us into a long and serious recession.