With stock markets tanking around the world, and gold and silver soaring, today King World News interviewed one of the wealthiest and most street-smart pros in the business, Rick Rule. Rule lets KWN readers know why gold exploded today and also commented about the rise in gold by saying, “What took so long?” He also issued a warning about the fragility of the global financial system. Rule, who is now part of Sprott Asset Management had this to say about what is happening: “My temptation is to say, what took so long? The global macro news has been bullish for gold for some time. The markets response has been ‘out of the euro, into the dollar’ and since gold is denominated in dollars, this has led to gold price weakness.”
The long-term bull market in gold is now 11 years old – and, in spite of recent market stagnation, the latest phase of the rally appears to have just started.
My advice is simple: Prepare yourself. It still has a long way to go.
In the wake of very disappointing news on the U.S. labor market, the gold price today soared above $1,600 an ounce.
The long term bull-run in this yellow precious metal has been slow and steady. After Gordon Brown finished selling 60% of the U.K.’s gold reserves in 2002 at an average price of $275 an ounce, the market has never looked back.
Yet, until this morning, the price of gold has been basically unchanged since last year. Gold closed out 2011 at $1,566.80 an ounce. But at last glace today, thanks to the fact that the U.S. economy added only 69,000 jobs in May, far fewer than expected, the yellow metal had surged almost $60 to $1,621.77.
The gold price may even make another dip – but it will not remain at these levels for long.
Rob Arnott: Founder & Chairman of Research Affiliates – Rob’s firm RALLC manages and licenses over $100 billion. Rob sub advises the Pimco All Asset Fund and also sub advises mutual funds and ETFs for the Schwab Funds, Powershares and Nomura. Rob is a 5 time Graham & Dodd award winner, a global leader in innovative investing and asset allocation strategies. Research Affiliates did the original research on fundamental indexing and Rob is the author of “The Fundamental Index” (John Wiley & Sons, 2008). He is also a former editor of the Financial Analysts Journal. 
HOUSTON – As a courtesy to our blog readership, just below is a video update we shared with Got Gold Report Subscribers on Monday, May 28. The video deals mainly with the changes in the most recent CFTC Commitments of Traders (COT) report for gold and silver futures, including some exciting developments in the structure of the very low Managed Money (hedge funds, commodity trading advisors, etc.) net long position.