Gold Notches All-Time High:
Why We're Still NOT Celebrating

We're very confident in the predictions we made for 2008 (click here to view our money predictions for this year), but we had no idea how quickly we would be proven correct!

We made the prediction in very early January that gold would pass $900 an ounce in 2008, and just a few weeks later gold closed at $901.60 an ounce. The first week of March saw gold surge past that to set a new record high of $991 an ounce. And now, it has finally hit $1,000.

We weren't celebrating back then and we're not celebrating this time around either. While we're always happy to be right about something, we are by no means popping the champagne cork. Instead, we are struck with the realization that our economy may be in even worse shape than we previously thought.

Gold, at its most basic, is a proxy for the rate of inflation. When it rises, the costs of goods and services are also expected to rise as witnessed by higher oil and grocery prices.

Unfortunately, this tide has not lifted ALL boats.

The warning signs remain ominous: The housing market continues to decline in both price and sales numbers. Retail sales continue to slow...now affecting even the high-end retailers such as Tiffany and others. In addition, consumer confidence grows even more somber with each passing day and job losses continue.

We now fear something that hasn't existed for 30 years... STAGFLATION. This is a period of stagnant economic growth coupled with surging inflation in consumer basics, namely, food and energy.

3 Moves to Make Now

You can be sure we'll keep a close eye on the economy, the market, the Fed and everything else in the coming weeks and months. We'll be there for you with our advice every step of the way. Right now, there are three smart money moves you should strongly consider making: