I was glancing over the gold prices on 24hgold this morning and I noticed the large discrepancy between 1 ounce gold coins like the Eagles, Maples and Krugs and their 1/10 ounce counterparts. The one ounce coins have about an 8% premium over spot, while the smaller denominations have about a 25% mark-up.

This tells me that the smaller denominations are more in demand. Why? Because the average Joe that is buying gold is doing so because he is scared to death. He wants smaller denominations so that when the house of cards collapses, he has something small enough to barter with.

Joe Redneck is smarter than Wally Wall Street that thinks that we are back in a bull market, the bailout has worked, and the Fed never lies. LOL.

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Regarding the potential for gold, here is a recent observation by James Turk:

Back in 1980, when the yellow metal hit $850 an ounce – still the record in real terms [Adjusting for inflation, it takes more than $2,300 to purchase today what $850 purchased in January 1980, using the US government’s current CPI calculator. However, the US government has since amended its CPI calculator numerous times. Fortunately, www.shadowstats.com makes available the same CPI calculator used when the Carter administration haplessly watched the gold price soar nearly three decades ago. Using this Carter-era calculator,<> http://www.fgmr.com/real-gold-price.html<> it takes over $6,300 today to match $850 of January 1980 purchasing power.] – western economies were being squeezed simultaneously by the second oil crisis and record post-war inflation.