But a discussion of banking problems is not my main reason for bringing up the subject. A degradation of the banking system implies a disintegration of the monetary system. This has already been clearly illustrated by the weakness of the dollar and the transfer of international capital into other currencies. It takes billions of dollars to move the currency market to such a degree. This is not new money panicking. It is not old money being conservative. It is informed money taking a hike.

I find the banking crisis to be a far more dominant force that is likely to affect the longer term price of gold than all the political posturing about Iraq. From where I sit Saddam has proved a master political tactician. He has split the United Nations and especially the Security Council. He has split Europe. He has delayed and delayed until the 59th minute of the eleventh hour before destroying any missiles. He has played Western politicians for fools. How long he will be allowed to get aweay with it is another matter.

All I know is that gold is in a long term bull market and that we are almost ready for the shares to commence the upside breakout from he corrective phase that started last May. This is BUYING time. NOT panic selling time. Go for those gold shares.

Gold Bullion