It's still undervalued in my opinion (and a lot of other people's) but with the premium on the spot right now it's going for somewhere in the $1925 range. I'm willing to wait to see what the scumbags at the Fed come up with at their Jackson Hole retreat in a few weeks.
If you can afford it, it's still a good buy. There have been some interesting developments over the past few days. Small news and big news which will get reported backwards (if at all) by MSM.
The small news that will probably make big news is that Chaves nationalized Nicaragua's gold industry. This will most likely get spun to play up the nasty commie lack of free market angles by the MSM.
What I doubt will get any play is that Nicaragua has 99 tonnes of gold stored outside the country. They are asking for it back (from the BoE initially). Now the thing with the gold market is, all this gold on deposit isnt really on deposit, it's all been leased, swapped, traded and leveraged (GATA argue, with a load of evidence, it's been naked shorted into the market to keep the price down). But where it might all start to get real interesting is:
What could well be a gamechanger is that according to an update from Bloomberg, Venezuela has gold with, you guessed it, JP Morgan, Barclays, and Bank Of Nova Scotia. As most know, JPM is one of the 5 vault banks. The fun begins if Chavez demands physical delivery of more than 10.6 tons of physical because as today's CME update of metal depository statistics, JPM only has 338,303 ounces of registered gold in storage. Or roughly 10.6 tons. A modest deposit of this size would cause some serious white hair at JPM as the bank scrambles to find the replacement gold, which has already been pledged about 100 times across the various paper markets.
Nothing in this is sure.. Theres a lot of guesswork.. But what seems is clear various governments and holders are showing very little faith in promises of stock or storage, and if these are leased / loaned / sold the covering of even small parts could be very very difficult in a tight physical market.
A much more interesting option is silver due to its price and it's poised to make a huge jump again. Silver has actually outperformed gold over the past year, going up around 900% compared to gold's 340% or so gains. There's heavy manipulation of silver which has kept it below $50oz but I can see it going up to around $200-300oz in the next 12 months once that manipulation is removed.
