GOLD RALLY CONTINUES AS DOLLAR DROPS ON JOBS DATA

Gold is extending gains on the New York Spot Market after a disappointing jobs report from the Labor Department, pushing the yellow metal to a three-week high. “If the Fed has to do something more accommodative to spur the economy, you’re going to see an explosive rally in gold,” said Frank McGhee, the head dealer at Integrated Brokerage Services LLC in Chicago. (Bloomberg, 8/6/10)

Stocks tumbled on the New York Stock Exchange after the government’s larger-than-expected drop in U.S. payrolls raised concerns about the economic recovery. "We've had a recent spate of soft economic data, but stocks were building a crescendo toward this jobs data," said Mark Luschini, chief investment strategist at Janney Montgomery Scott. "This payroll number gives investors a reason to pause." Investors had been hoping to see stronger growth in the private sector, which would off-set losses in temporary Census workers. (CNN Money, 8/6/10)

Economist and ShadowStats editor, John Williams, foresees a systemic collapse, a hyperinflationary great depression in an exclusive interview with The Energy Report. “The only option left going forward is for the government eventually to print the money for the obligations it cannot otherwise cover, which sets up a hyperinflation,” says Williams. He projects an economic crisis will occur “sometime in the next year,” with government moving to further devalue the dollar. On what assets investors should hold to preserve their wealth, Williams recommends precious metals. “Hold some gold, silver, precious metals. I'm talking physical possession. Preferably coins because coins, sovereign coins, are recognized as such. They don't have liquidity issues,” he said. (Mineweb, 8/6/10)