One minute gold is headed for $1275 an ounce - maybe even $1225. Then the next thing you know it's breached the $1350 mark. The situation in Cairo has been credited with gold's rise in price over the last few days. To that I say, why then did it not rise every day? And, should Mubarak step aside immediately, does that mean gold can settle back to previous projected short term lows, as though everything in the world is cop aesthetic?
Can we ignore Iran and their desires for nukes? Can we ignore North Korea and the pot shots they take at South Korea? We're still fighting two wars and let's not forget about European debt. Did somone pick up that tab never to be repaid?
And our own debt. It rises by the millisecond as we approach our current debt ceiling of $14.29 trillion dollars. If we fail to raise it - KABOOM! We've been warned this could cause default on certain government obligations. If the debt ceiling is raised? Kaboom again as new borrowed money floods the economy and fuels inflation. Either way, that's good for gold and that's a much better excuse for gold prices to rise than Cairo.
Yes, the situation in Cairo is serious, but at this point it's just insult to an injury that occurred two and a half years ago and can't heal. Just think of the geopolitical unrest around the globe. Recognizing the turmoil that pervades the world, the biggest gamble one can take with their own savings and retirement may be in not owning gold at all.