Two charts and three measures of gold’s “real” price today…

With prices testing their record high of $1,033 an ounce set last year gold has again become the hot topic of conversation.

The dollar pushes back! FOMC plays battleship? Norges Bank meets this week…Precious metals give back too…And Now… Today’s Pfennig!

Let’s get this straight.

Household credit is shrinking…
Profits are shrinking…
Employment is shrinking…
Housing values are shrinking…
The wage base is shrinking…

But the recession is over!

Whoa… how is that possible?

This week, the big story was once again coming from the gold market. Mid-week, the yellow metal hit $1020 – but the rally was not of the usual variety. Generally, investors flock to gold when the dollar is weak and inflationary fears run high. But as we all know, inflation is not a problem right now – despite the Fed’s best efforts.

Former U.S. Federal Reserve Chairman Alan Greenspan said it was impossible to tell a bubble while you were in it. Well Alan, I’ve got news for you: We’re in one now.

Gold took off yesterday…closing at $1020. Here at The Daily Reckoning, we’re impressed. But we’re not that impressed. Gold, of course, is half of our Trade of the Decade, which we announced almost 10 years ago. We’re bullish on the metal…have been for a very long time. But recent comments in this space have made readers wonder what the Hell is going on…so we will spend a few minutes clarifying.

The commodities markets have been kicked into high gear. As America’s lenders change their mind, the world’s mining companies are on a surefire path to riches.

Currencies rally on Retail Sales! China likes investments in Canada…Big Ben the “inflation fighter”…Gold climbs to $1,018! And Now… Today’s Pfennig!

As gold once again breaks the psychologically important barrier of $1,000 an ounce, all the pundits are wondering if it will last.