Gold had a hard declining previous week, after Gold prices have surged in recent months, making some observers send clear warnings that inflation will soon turn sharply higher as it did in the late 1970s. Despite, the sharp decline of last week, some gold Contracts remain remarkably cheerful.

Last Friday the Gold spot went down an amount of $10.20 and closed at $1,052.80 in New York. This price was the lowest since October 30th. Gold has now completely erased the spectacular November rally which carried it over $1,200.

Today the Gold started trading at $1,067.50 recording so far a high at $1073.50 and a low at $1064.70.

Gold and gold shares did participate enthusiastically in the peculiar late Friday afternoon rally which brightened the general stock scene. NYSE Arca Gold Bugs and Phlx Gold Silver Index - in particular- both rose over 5%, far outpacing the general market.

No one really knows whether to take this seriously -- gold normally barely trades late on Fridays. The chart damage done last week was horrible. Martin Pring noted in his Weekly InfoMovie Report that gold "has completed an upward sloping head and shoulders pattern and has just violated the major up trendline...that suggests to me... a more protracted correction."

Of course, last week was a pretty bloodcurdling week to own anything. A market expert quoted that: "We hold what we hold out of fear of the future not out of love for gold"

From The Privateer's standpoint, gold will inevitably benefit after the short-term panic reaction – from the current rising worries of a new type of financial crisis - is succeeded by the long-term despair reaction.

"The Global Financial Crisis has come back, but this time, it is not the risk of banks going under - it is the risk of "sovereign nations" going under. Which sovereign nations? European ones, or more precisely peripheral European ones along the shore of the Mediterranean Sea.