Gold Closes at New Record High of $833

Gold closed at a new record, but didn’t hit a new record. The actual “record” is $850 set in January 1980. But the highest close was $825, set on that same day as the all-time record. Gold closed $8 over the old record today.

Inflation adjusted, we’d have to be at around $2000 an ounce to actually be breaking a “new” record (the same way crude has to be at $101 a barrel to actually hit a new record.)

What does this mean for gold? Not much. Suddenly some people are starting to notice it. I heard it mentioned on the radio this morning before the markets opened. That’s a first. But it’s not like it’s on everyone’s breath- not yet anyway.

For gold investors, that’s a good thing. It’s still a contrarian play (despite its big run-up.) The mainstream investing public has no clue that gold has been on a tear. They’re starting to hear more about it- but they’re still not investing in it. Not yet.

But eventually- they will.

Gold is moving higher as the dollar gets crushed. This is not a surprise. Gold is also an inflation sniffer. When it sniffs it, it goes higher. The smell must be pretty darn strong right about now.

I suspect we’ll see quite a few more “record highs” before this commodities bull is done running.

Hang on for the ride!