* Friday gold prices jumped over 1% on a weaker dollar, higher oil prices and supply disruptions in So. Africa. Gold closed in NY up $11.80 to $918.20/oz., silver rose $.37 to $17.11/oz. Both precious metals gained over 1% this week.

* "Gold output this year may be 400,000 ounces lower than earlier forecast because of the electricity cuts, said AngloGold Ashanti Ltd., the world's third-largest miner of gold, reports Bloomberg.

* "I just think gold is going to explode.There is big fund buying in all months in the futures market," said Jonathan Jossen, COMEX floor trader in New York to Reuters.

* "Platinum prices rose above $1,880/oz. Friday as energy supply in South Africa has not improved substantially. We forecast another supply shortfall in 2008 and therefore keep our short-term price target at $2000/oz," said Michael Widmer, metals analyst at Lehman Brothers to Reuters.

Gold has rallied by almost three hundred dollars an ounce since the onset of the credit crunch last summer, with dollar weakness, rising inflation and safe haven buying proving to be the key drivers for the precious metal," reports CNN.

"We have heightened and consistent inflation not only in the U.S. but all around the world. Cash doesn't offer any solace when you have negative real rates. That's a huge part of why people are buying gold," said Ben Davies, CEO of Hinde Capital Ltd. in London to Bloomberg.

* Precious metals create investor confidence because they're not dependent upon Wall St., the Fed, nor any outside source to establish real value. The result is a continued flight to precious metals as the world's ultimate safe haven from economic uncertainty.

Recession Now!?

* American's confidence in the economy sank to the lowest on record in January, "amid heightened fears about shrinking job opportunities and the possibility the country is falling into recession," reports AP.

* "Stocks traded lower Friday afternoon, despite Amazon.com boosting the tech-heavy Nasdaq as more woes for the financial sector dragged on the Dow," reports CNN.

* "This could be a secular bear market in stocks that’s painful for a long time. There will be fits and starts upward, there will be rallies. But over the next five years, the market will be dramatically lower than it is today," says David Tice of Prudent Bear Fund, reports Moneynews.

"What began as a slowdown in the U.S. in the second quarter is now spreading, as both U.S. and Europe saw unexpected softness in January," said Richard Windsor, an analyst for Nomura International to MW.

"The average monthly consumer credit numbers are falling but delinquencies are rising. This is not the stuff that economic rebounds are made of. This is the stuff recessions are made of," said Kevin Giddis, of Morgan Keegan & Co.

"Rating downgrades for bond insurers pose risks that could match the U.S. subprime market collapse.It could be a tsunami-like event comparable to subprime," said Deutsche Bank AG CEO, Josef Ackermann to Bloomberg.

* Oil prices traded back up near $90 a barrel Friday despite a government report Wednesday showing supplies of crude rose more than expected last week. U.S. light crude for March delivery closed Thursday up $1.81 to $89.92.

"A growing number of top economists believe that the U.S. economy has now toppled into recession. Alarm bells were set off Tuesday by a grim report on service businesses, which make up the majority of the U.S. economy," reports CNN.

* "Currency worries are high on the G7's agenda is weekend. A weaker dollar is causing concern for European and Asian exporters, as well as creating inflation-related problems for Middle East countries that peg their own currencies to the dollar. Turbulent financial markets, a potential U.S. recession and fears of a widening credit crunch will give finance ministers and central bankers from the Group of Seven industrial nations plenty to talk about when they meet Saturday in Tokyo," reports MW .

"The freewheeling days of credit and risk may have run their course — at least for a while and perhaps much longer — as a period of involuntary thrift unfolds in many households. Credit counselors are now swamped by calls not just from people of modest means, but from professionals earning six-figure incomes," reports NYT.

"The Fed wants to drive the DJIA toward the 8,000 level, or below, in order to help create a deep recession which will have the effect of slowing consumption across the board and dampening the otherwise harmful effects of inflation," reports WND.

The Dow finished with a monthly loss of 4.9% in January. The S&P lost 6.3% and the Nasdaq declined 9.9%.

"In the latest example that the U.S. dollar just ain't what it used to be, some shops in New York City have begun accepting euros and other foreign currency as payment for merchandise," reports Reuters . "The increasingly weak U.S. dollar, once considered the king among currencies, has brought waves of European tourists to New York with money to burn and looking to take advantage of hugely favorable exchange rates."

"It is hard to drown out the drumbeat of record bullion prices, but for a time, the news of the sale of an 1870-S silver dollar for $1.3 million proved that rarity, collectibility and desirability still have a place in the American coin market," reports Numismaster.

* "The Professional Numismatists Guild has selected the Long Beach Coin, Stamp & Collectibles Expo as the site to launch a series of "Share the Knowledge" consumer education programs. The debut program, "Collecting U.S. Gold Coins," will be presented by authors Jeff C. Garrett and Douglas A. Winter at noon Feb. 14," reports NumismaticNews.

"To help celebrate its 26th anniversary of inspiring America to rediscover gold, Swiss America has just released a 2008 updated edition of A RARE OPPORTUNITY: GOLD 101, a new television special available on a FREE DVD hosted by Pat Boone. GOLD 101 covers all of the basics investors need before buying gold, including: four types of gold worth owning, five steps before buying gold, and six major forces driving gold prices higher," reports PRNW.

* "Forget about graphs, charts and economic forecasts. Wary investors in Asia are turning to feng shui masters to tell them which way the markets will head in the Chinese Year of the Rat," reports Reuters.

* "The rat is a symbol of money to the earth industry ... Strong water element in the year indicates productivity and strong activity in the metal industries," said Raymond Lo, a feng shui master in Hong Kong who suggested investors put their money into property, mining and gold.

* "Lo predicts stock markets will be soft this year as the elements of earth and water, which he says are strong in the Year of the Rat, weaken the fire element that influences shares."

* [Blast from the past ... "I would like to suggest that every American take a lesson from the Chinese "Year of the Golden Pig" in 2007 by starting their own personal golden piggy bank."

* "Instead of viewing our homes as a piggy bank, we must diversify our resources into assets that will stand the test of time like gold and silver," said Craig R. Smith in December 2006. With gold prices rising 32% in 2007, it appears the Chinese were right on the money.]

"China became the world’s largest gold-producing country in 2007, replacing South Africa. In January 2008 China opened its first gold gold futures market in Shanghai, in response to its citizens’ zeal for gold," reports Forbes.

"Anything can happen from here"

"Gold has enjoyed a great run over the past few years, but it hasn't been a straight path. But if you do your research, you can act with confidence that even if gold dips lower than you're buying it, the upside potential is huge. My preliminary price objective for gold is $1,065 per ounce, and it could go a lot higher than that," reports Investo rs.com.

"Anything can happen from here, including a rocket shot to $1,000/oz. gold over the next few weeks, which I consider to be a very good probability. We already have lift-off. Get ready for the rocket shot," writes James Turk's Freemarket Gold&Money Report at MW

"The price of gold is likely to peak at just over $1,000 per ounce in 2008. Gold is dancing to its own tune and not just being influenced by a weaker dollar," GFMS Chief Executive Paul Walker to Reuters. Walker estimated that investor demand was 12 percent of total demand for gold in 2007.

"U.S. central banks may have less than half the gold they claim to possess in their vaults, charges GATA a watchdog group in an ad scheduled for publication in the Wall Street Journal," reports WND.

"The Gold Anti-Trust Action Committee (GATA.org) charges the U.S. government surreptitiously utilizes gold reserves to engage in international swaps and other market manipulations," reports WND. (listen to GATA founder Bill Murphy)

"The Fed is cutting rates to stimulate the economy, but times of crisis usually means investors head into gold," said Peter Hambro, founder of the second-largest gold producer in Russia to London Telegraph. Mr. Hambro expects worldwide stagflation to drive gold past the $1,000 barrier this year.

Quick-fix economic stimulus?

The U.S. economy slowed sharply in the fourth quarter, growing at a 0.6% annual rate, the weakest growth since the economy was pulling out of recession in 2002, the Commerce Department reported last week to MW.

"Democratic and Republican congressional leaders reached a tentative deal last week on tax rebates of $300 to $1,200 per family and business tax cuts to jolt the slumping economy," reports AP.

"Most single taxpayers would get $600 and most two-wage households would get at least $1,200. The deal includes an additional amount of $300 per child. A total of 116 million taxpayers will receive checks of some size," reports CNN.

"Government fixes will be temporary until the underlying structural problems are addressed and strategies are employed to work through those problems. It is time to allow kids to be kids, adults be adults and markets to be markets. If our markets are truly 'free markets,' then let them be free and they will fix themselves," writes Swiss America CEO Craig R. Smith.

"It’s hard not to believe that the economy will pay a price for the speculative binge of the last two decades, either by going through a tough recession or an extended period of disappointing growth. As is already happening, banks will become less willing to lend money, households will become less willing to spend money they don’t have and investors will become more alert to risk," reports NYTimes.

"The worst housing financial crisis in decades is only going to get worse, a Merrill Lynch report said Wednesday. The investment bank forecasted a 15 percent drop in housing prices in 2008 and a further 10 percent drop in 2009, with even more depreciation likely in 2010," reports CNN.

"While millions of investors face a potential panic on Wall Street, those wise enough to have put themselves onto a personal gold standard by owning gold remained cool, calm and collected, knowing gold is the perfect safe haven during financial storms such as this," reports Craig R. Smith.

"Forget rate cuts and stimulus packages. In Wall Street's eyes, the recession is already here and the credit crunch is far from over," reports CNBC.

More than three in four Americans believe the U.S. economy is already in a recession, or will be sometime in 2008. Only 19 percent of 1,000 Americans surveyed believe the nation will avoid a recession, while 57 percent believe that there will be a downturn this year according to a Fortune Magazine poll," reports CNN.

Gold Rush '08

"A Reuters global poll of 50 traders and analysts forecast gold prices surging more than 20 percent this year and gold retaining most gains in 2009 as dollar weakness, market turmoil and inflation fears stoke investor interest.

"Further credit events and increases in oil prices can create a 'spike' past the $1,000 level in the near term," reports London Telegraph.

"Gold prices will test a record $1,000 an ounce this year, boosted by growing investment interest, safe-haven demand and strong market fundamentals, a Citigroup metals analyst said.

"We believe gold has entered a new investment-driven phase. Catalysts are rotating from safe-haven demand, to currencies, to the re-flation trade, as new buyers enter the market," John Hill, director, metals research, at Citigroup in San Francisco," reports Reuters.

"The big lure to gold continues to be its tendency to hold value when the rest of the investment picture turns septic. As it's done of late, with U.S. inflation measures hitting multi-decade highs, U.S. stocks starting off the year with their biggest drop in 30 years and the global outlook looking both inflationary and at risk of a slowdown," reports MW.

"I’m convinced that in 2008 the world will witness a gold price explosion, propelling the shiny yellow metal into the next and perhaps most exciting stage of this bull market," said Swiss America CEO Craig R. Smith.

"If you have not yet taken action in acquiring a position in gold, you now have a golden opportunity to buy high quality U.S. gold coins at a historically low collectible (or extrinsic) premium, relative to gold's melt (or intrinsic) value," reports Dr. Fred Goldstein, Sr. Broker at Swiss America.

"Craig Smith and Swiss America have accurately forecast future trends of gold, oil and stocks over the last decade, and I expect his 2008 forecasts will be no different. Put your family on a personal gold standard this year so you're positioned to be protected and to prosper!" said Michael Savage, host of The Savage Nation.

"Keep in mind the price of gold would have to climb well above $2,100/oz. just to reach an inflation-adjusted new high. Therefore, gold has a long way to go. Suddenly the calls for $1,000/oz. gold now are almost a given," says Mr. Smith.

"We don't see any reason in this cycle why gold shouldn't reach its real all-time high, which is actually about $2,200 an ounce," said David Garofalo, CFO of Agnico-Eagle Mines, adding the time frame of three to five years." (Read 46 other experts forecasting $2,200 gold)

"The price of gold tells us a lot about ourselves. It holds up a mirror to the way we are governed, our economy and its prospects. It reflects not only the physical dangers of floods, famine, terrorism and war, but also the financial perils of systemic addiction to debt and budgetary incontinence," reports London Telegraph.

"Now that the inflation arm of stagflation is appearing through the political camouflage, gold is in strong demand and people are jumping aboard the golden coach. Gold provides an insurance policy against catastrophy. Therefore, stay with a high asset allocation to gold and buy on dips," reports John Browne at Moneynews.com.

"Ross Norman, director of TheBullionDesk.com, said the world faces a new era of "peak gold" in which discoveries become rarer, leaving the market starved of the metal just as demand in China and emerging Asia begins to gather pace. Mr. Norman, the top forecaster for the London Bullion Market Association over the past four years, said gold would reach $1,200 an ounce this year," reports London Telegraph.

"In the Middle Ages gold fetched nearly $3,000 an ounce in real terms. The price fell to nearer $550 when Spain flooded the world with Aztec and Inca riches, and there it hovered for three centuries. But the modern era has been an aberration. Supply is exhausted. Perhaps we should now regard the Middle Ages as the proper benchmark price. One thing is certain: Gold will outperform paper as long as governments keep increasing the global money supply 15 per cent a year," reports London Telegraph.

"When measured in 'hard money' terms, the U.S Treasury’s 10-year Note lost 20% of its value compared to an ounce of gold since August 2007. Wouldn’t it make better sense to park excess cash in gold, rather than U.S Treasury IOUs, during periods of double-digit money supply growth and soaring commodities?" asks Gary Dorch, editor of Global Money Trends.

"It is very encouraging to see such a positive start to the gold market in 2008," said James Burton, chief executive of the World Gold Council: "It is evident that gold’s unique investment attributes as an effective safe haven and dollar hedge have resonated with investors during this time of financial uncertainty," reports FT.

"With the US facing a possible recession, economists have voiced growing concern about the threat of stagflation - where weak economic growth is twinned with out-of-control inflation," reports London Telegraph.

"Americans are falling behind on their credit card payments at an alarming rate, sending delinquencies and defaults surging by double-digit percentages in the last year and prompting warnings of worse to come," reports AP.

Market analysts warn that more U.S. businesses are likely to hang "going bankrupt" signs on their doors next year as the twinned blows of slower economic growth and pricey commodities force the weakest companies to seek refuge from creditors," reports MW .

"Just as the U.S. dollar has farther to fall, so do the commodities have farther to rise. On that point, JP Morgan forecasts that of all the commodities, they expect precious metals to be the strongest in 2008, followed by agricultural products, base metals and energy," reports Goldseek.

"Experts say they expect gold could surge to above $1,000 an ounce in the next 12 months on continued weakness in the dollar and robust investment demand," according to a broad cross-section of professionals interviewed by TheStreet.com. James Turk says the next leg of the bull run should mean a rally of 30% next year. (See Swiss America survey of 47 experts)

"The rise in gold prices to this point has been steady and sustainable. For much of its rise, gold has been in a stealth bull market. But the gold price advance is no longer stealth. The chart says it wants to go parabolic," reports DailyReckoning< /a>.

"Can anything be as mesmerizing as gold?" asks Barron's in "Golden Opportunity?" back on 12/26/05. "Commodities are an asset class for the first time in history", says Barrons Roundtable member Mark Farber, who "thinks the price will eventually exceed $3,000."