GOLD MAKE A NEW CLOSING HIGH AS BULLION CLOSES OVER $2500 AN OUNCE - AND STILL NO US RETAIL BUYING:

This chart illustrates is the most dramatic shift in the gold market since the world shifted from Britain having the world reserve currency status pre World War II where gold was priced in brtish pounds to the US having the world reserve currency status post WWII where gold is priced in dollars.

The next seizmic shift in the gold market came in 1973 as Richard Nixon closes the gold window when certain European countries demanded to repatriate their gold and we didn't want to (or couldn't) pay.  This took the world off the gold standard for the first time since - well, sometime before 3000 BCE.  We don't know when because there is no surviving written language before then.

This also launched an era of unprecedented global debt accumulation as the debt no longer had to be converted into gold.

THen in 2004 the GLD ETF is launched and ever since every gold rally was led by US speculative interest in purchasing gold.

And each time gold was about to break out, the Fed and the bullion banks were able to manage the gold breakout by dropping untold throusands of futures sell orders on a thin market.

UNTIL NOW.

The great gold breakout rally has finally occured after years of the most talked about Cup and Handle technical pattern perhaps ever as gold formed this massive pattern that suggested a breakout the next time the US public got excited about gold.

But, instead, the breakout has come - without any particiapation of the US public.

And without the Fed having the ability to cap it.

How has this happened? 

Eastern Central Banks.  Led by China. And also led by the retail public in the Eastern countries where the central banks are both buying and promoting  private ownership of gold.

This has overwhelmed a basically thin market, taken the US retail buyer totally by surprise and overwhelmed the Fed's ability to control the market.

Clearly there is a massive divergence of views between East and West as to the ultimate - and near term - safety concerning the mountain of Paper Assets denominated in US dollars.  Largely because the debt component of these assets as roughly 35 trillion government, 20 trillion corportate, 17 trillion private, and additional 120 trillion in unfunded liabilities and a dollar denominated derivative debt market or about 4 qudrillion dollars (over the counter and unregulated).

The concern in the East is also very much caused by the recent weaponization of the dollar and the US swift system along with violent anti global rhetoric coming out of our political system.  And the coming election is most likely to intensify this violent rhetoric, and produce equally financially violent policy.

The altenative has been chosen.  And it is Gold.

Nobody here wants to see that yet.  And Americans are very good at burying their heads in Internet Nonsense.  We've become a country of internet ostriches looking for scapegoats, conspiracies and fastening on code words as outlets for frustration and hatred.

None of that will help us though.

What will help is seeing what is going on and finding a way to participate positively to protect yourself.

If we can't do it as a country it is up to each of us as individuals to make smart choices.

ANd the sooner we start the better.