Spiking gold prices, soaring debt, and other things that make you go hmmm

Grant Williams brings us the must read report of the weekend. With the Gold price surge we saw yesterday, you better read the report. On Gold, debt, the Euromezz and much more.

Gold stocks offer tremendous value and, while it is perfectly possible that they could get even cheaper in the next few months if fear leads to panic which in turn leads to indiscriminate sell- ing, at some point they will be appreciated for the value they offer and, if like everything else in the last few years, that realization dawns on

June’s meeting) the price of gold (and with it, the price of mining shares) will head for new highs once again.

Count on it.

But I will leave you this week with the words of a gentleman for whom I have a tremendous amount of admiration, Raoul Pal.

In a recent presentation entitled The End Game, Mr. Pal had the following to say about the next stage of the crisis:

We don’t know exactly what is to come, but we can all join the very few dots from where we are now, to the collapse of the first major bank…

With very limited room for government bail- outs, we can very easily join the next dots from the first bank closure to the collapse of the whole European banking system, and then to the bankruptcy of the governments themselves.

There are almost no brakes in the system to stop this, and almost no-one realises the seri- ousness of the situation.

Got Gold miners?

Chart TTMYGH

Full report Hmmm 02 Jun 2012.