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Gold hits new all-time highs

Gold is making new all-time highs today, as the dollar price for spot gold rises above $890 an ounce.

Strong fund buying since the start of the new year, momentum in the key Japanese gold futures price, and the launch of a new gold contract in Shanghai helped to fuel the rise, according to Reuters.

With the recent bullish action in gold prices, I've been planning a little wrap-up of some interesting gold commentary. We hope this post will shine some interesting light on the precious metal's bull run. Let's begin.

1. Financial Times - "Gold is the new global currency". FT seems to be gradually coming around to the idea that gold is, in fact, money. Yes, Virginia, gold has been money for over 2,000 years, and it will still be here when those banknotes you hold in your wallet are nothing but museum pieces (to paraphrase Richard Russell).

2. Bloomberg - "Gold climbs to records as investors seek alternative asset". Professional investors argue over the merits of buying and owning gold. Still, it's nice to own something that won't get cratered by unexpected defaults and faulty agency ratings.

3. Prudent Investor - "Gold hits a record - you would not know from the WSJ". Toni Straka makes some interesting observations on the mainline media's haughty attitude towards gold and honest money in general.

4. Finance Trends Matter - "Recent Gold Action". If you'll take a look at this article from April 7, 2006, you will notice mention of a negatively slanted story in CNN Money entitled "$600 gold: Want in? Think twice".

A very authoritative piece, which at that time, warned readers of the dangers of investing in an overstretched gold market. The only problem was, gold shot right through the dangerously unstable $600 level and zoomed right up to $700 in no time.

CNN Money then dusted off the same piece and tacked on "$700 gold" in the article title as a substitute. The link now points to an article with this revised title. Talk about your all-time dishonest mainstream media moves.

Since the originally titled article is no longer found on the web, except for reference in CNN Money related article footnotes, I had to search for another reference to the original article. You can find it in this post, at the Kontent Review blog.

You'll also find reference to the original $600 gold article in this Poynter Online article. Note the date of the article and original references to the $600 gold price.

Now you know the real story.

5. James Turk - "In 2008 gold should glitter". Article in the latest SFO argues for a continuation of the gold bull market.

Well, that should give you something to chew over. And if you'd like any bearish perspectives on the gold price, check out Marc Faber's recent call for an upcoming gold and commodity correction over the short-intermediate term (he is still long-term bullish on gold).

Or you could just go and read some old CNN Money articles.

See you on Friday, gang.

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