We are becoming even more bullish on gold. The main reason is that the global economic situation continues to deteriorate—most industrialized nations are now all in a horrendous fiscal mess, which is likely to get worse at a fast clip. The countermeasures instituted by various governments and central banks, meanwhile, border on the fraudulent. The U.S., Europe and Japan have lost their ability to raise interest rates without plunging their economies into even deeper chaos. These are fundamentally superb preconditions for a continued rally in gold.