If seems that every which way we look, evidence continues to mount in support of economic growth. We have our suspicions as to why this is happening but to be honest these suspicions are of little significance. What's important is simply that it is happening.

Note how the US Treasury market is behaving. TIPs are on the verge of breaking out against non inflation protected treasuries and long dated US Treasuries (20 & 30 yrs) are trading at multi-week lows.

Josh Lipton points out:

The American Enterprise Institute for Public Policy Research (AEI) published a paper indicating that “by all relevant debt indicators, the US fiscal scenario will soon approximate the economic scenario for countries on the verge of a sovereign debt default.”

Gold

Gold dipped slightly overnight but found support at $1,084/oz in the early hours of yesterday morning. It has since recovered and is currently trading at $1,090 /oz. In EUR and GBP terms gold is trading at €735/oz and £659/oz respectively. The US Federal Reserve has signaled that a return to higher interest rates will not be based solely on economic recovery, but dependant also on an increase in inflation and a recovery in the employment market. They remain committed to keeping interest rates “extremely low for an extended period of time”. Meanwhile all eyes and ears will be focused on the Bank of England’s Monetary Policy Committee meeting announcement today as well as the ECB rate setting announcement and subsequent press conference. Although no changes in interest rates are expected the rhetoric will be keenly analysed for any signals of their future intentions.

Coeur d'Alene Mines Corporation (CDE)

Q3 2009 Earnings Call

November 5, 2009 1:00 PM ET

OM Group, Inc. (OMG)

3Q09 (Qtr End 9/30/09) Earnings Call Transcript

November 05, 2009 10:00 ET

I argued the bull case for gold in my posts over the past few months (see “Gold bullion - regaining its shine?“, “Gold bullion glitters bright” and “Gold bullion - challenging $1,000“. With the gold price scaling fresh peaks and closing in on $1,100, it would certainly seem as if renewed interest in the yellow metal is being stirred up, especially subsequent to the purchase by India’s central bank of 200 metric tons of gold from the International Monetary Fund.

As printing presses are running at full speed to produce ever-increasing quantities of fiat money as governments engineer the greatest asset price reflation in human history - and the U.S. greenback is heading South - the longer-term fundamental case for the yellow metal is arguably positive.

The Reserve Bank of India in an off market transaction purchased 200 Metric Tonnes of Gold Bullion from the International Monetary Fund (IMF). Several things made this both interesting and market moving.

First, the magnitude of the purchase was surprising. Second was that they were not expected to make the purchase at all, analysts expected a large buy from China and the rest sold in market to the regular IMF Affiliate Banks. Lastly, they paid for it not in SDR’s or Special Drawing Rights as is the common practice when dealing with the IMF but in Hard Currency.

On October 07 The Gold Report conducted an interview with me just after gold broke out to new news above $1030. During that interview I made the case for $1300 gold by spring next year and advocated to be invested in high quality juniors which are poised for a multi year bull run that could even surprise the staunchest junior investors. This piece is an update on that interview and shines a light on how to approach investing in junior gold mining shares.