Gold Hits a new All time High of almost US$ 1,580.00 an oz

Dear PGM CAPITAL Blog readers,

In over night trading Gold hit a new all time High of almost US$ 1,580.00 an oz, after closing on an all time high yesterday, July 12th 2011 of US$ 1,565.00 an oz as can be seen from below chart.

Most of you are asking yourselves, what is the reason for Gold to appreciate with more than 480% during the last 10 years as can be seen in below chart?

Ladies and Gentlemen, Coal miners in the early days carrried with them caged canaries into the mine-shaft and tunnels to warn them incase there were poisonous gases such as methane, carbon monoxide, mercaptan or hydrogen sulfide. Because canaries are more sensible to poisonous and toxic gases, which would kill the canary before killing the miners, so that the mine workers have time to save them selves.

Gold is the canary in the coal-mine, it gives an early warning sign, of the disaster that lies ahead for holders of Cash and cash investments such as Bonds, CD’s and (most) pension plans.

Again for the sake of humanity we really hope and wish that we are wrong, but we believe that the West which is up to their eyeballs in debt, has no way out of this than destruction of their debt via creation of inflation. Proactively the smart money is moving now out of cash and cash-investments into the safe harbor of precious metals such as Gold, Silver, Platinum & Palladium.

Last but not least, please consider before investing your risk tolerance and investment horizon and keep in mind that the prices of Gold, Silver and other precious metals, as well as the stock of their producers can be very volatile and that sharp correction might happen in the short time.

Yours sincerely

Eric Panneflek
Chairman