Gold Bullion move easily above $2,000

Struthers' Resource Stock Report editor Ron Struthers recently analyzed trends in the precious-metals markets in an interview with The Gold Report: 

Gold and silver often rally together and both are in short physical supply and highly leveraged -- the same ounce of gold or silver has been sold 50-100 times. We are in a currency war. Countries are fighting to keep the fast-moving money in their currency to prop up their huge debt loads; gold and silver are competing currencies.

The U.S. has intervened to keep interest rates low, trying to keep the system afloat and intervening to keep the stock market up, but commodities and gold lower. Europe is doing the same thing. Meanwhile, a lot of Eastern countries, with huge U.S. dollar and euro reserves, are trying to diversify out of these debt-ridden currencies into other currencies, including gold. Every month we see news of mostly Eastern central banks -- including India, China, Russia, and Korea, etc. -- buying gold. Physical gold is in short supply, but they know the price is being held down with intervention in the paper commodities market. We are seeing a continuous flow of gold from the West to the East, the same thing that sparked the big rally in the late 1970s to 1980. This will happen again; it just depends on when the West does not want to give up any more physical gold to the East, at least at these prices. In that case, we will soon see gold move easily above $2,000/oz, taking silver higher with it. .
[Silver] will hit resistance at $50/oz again, but eventually it will break through. If that does not happen on this next rally, it will on the next one. We are speaking in dollar-inflated terms; $50/oz was the high from 1980, and we still are not above that, but gold has gone up well above the 1980 high of about $850/oz.

More information can be found online at http://www.goldbullionadvisors.com