The just-concluded Group 20 (G20) meeting left us with a chorus of very “prudent” governments and central bankers singing the praises of easy monetary and fiscal conditions. So where can we take refuge when all the central banks in the world print money and governments run deficits in order to spend like drunken sailors? The answer is gold.

In the spirit of not suffering from confirmation bias, in today’s Notes we will try to make the bearish case against gold. So before you storm Notes HQ in Buenos Aires craving blood, hear us out. Many of our staff here love gold and have long term holdings.

Gold prices extended gains above $1,010 an ounce in Europe on Friday as the dollar index’s <.DXY> tumble to one-year lows fuelled interest in the precious metal as an alternative asset.

Barrick Gold (NYSE:ABX), the world’s largest pure-play gold miner, is about to make a very big bet on gold prices going higher. The company announced this week it will raise as much as $4 billion in a stock issuance and use the proceeds to pay off its gold hedges. In other words, Barrick is willing to give their shareholders the short-term shaft in order to rid themselves of all bets against gold.

Is gold ready to break out?

Rising gold and silver prices push our silver picks Coeur d’Alene Mines Corp. (NYSE:CDE), Silver Wheaton (NYSE:SLW), Hecla Mining Co. (NYSE:HL) well into the black.

As the equities market gyrates, gold bugs are getting their vindication. Better late then never, I suppose.

Gold prices rallied today, Thursday, to their highest level since February on strong investment demand amid caution ahead of key U.S. non-farm payrolls data on Friday (London GMT).

Gold climbed on Tuesday after data showed the U.S. manufacturing sector grew more than expected in August, lifting appetite for assets seen as higher risk, such as commodities, and boosting inflation fears.

Gold futures trimmed losses but still ended lower on Monday, as risk-averse investor sentiment and a tumbling Chinese equities market prompted selling in bullion and other commodities.