What a day for gold. And what a day for gold bugs everywhere.

Gold prices up around $80, our gold stocks putting on 10-15% and some of our more speculative positions in calls options posted daily gains of up to 168%.

We think we speak on behalf of all those invested in precious metals when we say; its about time too!

Having suffered a severe correction that had our stomachs turning, feelings were reversed today and, as one of our readers put it, our feelings went from nausea to euphoria! (Excellently put David!)

Lets have a look at a snapshot of the crisis unfolding in front of our eyes at the moment:

Fannie and Freddie effectively been nationalized, along with AIG.
Lehaman Brothers bankrupt.
Merill Lynch rescued in a BofA takeover.
Morgan Stanley in merger talks.
Washington Mutual selling itself to the highest bidder (if any)
Lloyds TSB buying HBOS in another rescue.
JPMorgan paying off Lehman’s debt obligations, just to stop the whole derivative system falling apart…

…this is history in the making, a crisis of epic proportion.

It is also what anyone who has been investing in gold has been preparing for, and our preparation appears to have paid off today!

Here are our comments on the markets at present:

Financial concerns will undoubtedly continue, and will probably worsen, over the coming months. The money that the Fed are other central banks are recklessly pumping into the system in bailouts and as extra liquidity is adding to inflationary pressures, and even if these pressures are not showing up in CPI figures yet, they are certainly showing in gold.

This recent $80 jump in gold prices can be attributed to large amount of money fleeing to the yellow metal as a safe haven in these troubled times. Money had been moving from stocks and commodities into the US dollar, causing the recent rally in the greenback. However, events in the US financial sector this week have reminded people just how poor a state the American economy is in right now and, coupled with no rate rises from the Bernanke, has followed in a flight from the US dollar and US markets into gold and gold stocks.

Due to the fact that the gold sector is relatively small compared with other markets, the sudden influx of money has caused a dramatic spike in prices. This is a sign of just how serious this situation is, gold moves up when there’s trouble, and a big move up like the one we just witnessed, means there’s big trouble.

However, we suspect that only a small proportion of investor funds have been moved to gold so far, so expect much higher gold prices in the coming months as investors move out of almost everything else, and into gold.

Historically gold has been a safe haven in tough economic times, especially those where inflation is a serious issue, and the situation is the same today. This is a crisis of historic proportions and is propelling gold prices higher and higher as investors lose confidence in stocks, commodities and even cash, and flock to the strongest currency in the world, gold.

Technically gold was extremely oversold and was overdue a bounce above the $850 level. We expect gold to consolidate around $850 before making a new high over $1000 in early next year if not before

Note:
We would like to extend our recognition to guts that every gold investor has shown through this extremely rough ride, a big well done from all the team here to anyone who managed to hold on through the turbulence and a thank you for all the readers that stuck by us during the storm, this resilience is now being rewarded and will continue to be rewarded in the coming months, and gold moves back towards $1000 and beyond.