Don’t get me wrong, I hate Obama’s choice for Treasury Secretary in Tim Geithner, but it really helps gold prices. Geithner as Treasury Chief has had a boosting affect back when his name was first floated and again this week as his confirmation was pretty clear.

Gold Price Milestones and Tim Geithner

Back on November 21, 2008 when Obama announced his choice, Bob Pisani made note of the Geithner effect saying,

“Particularly strong throughout the day were gold stocks, including AngloGold Ashanti, Gold Fields, and Barrick Gold, each of which closed up 30% on the day. Gold stocks strengthened earlier on the heels of gold prices crossing $800 for the first time in a month.”

And here we are again…during the Senate confirmation hearings where it becomes clear Geithner will get confirmned…even with a strong dollar, gold prices hit $900 an ounce.

So it could be coincidence…or it could be that everyone knows a Geithner Treasury is going to be bailout happy. Since Obama will get all the funding bills he asks for through Congress, Mr. Geithner will have a lot of money to print so he can give it away.

And therein lies the cause of the gold price spikes…fear of inflation.

Geithner = Bailouts, Bailouts = Inflation, Inflation = Higher Gold Prices

Don’t miss out…buy physical gold while it’s still cheap.

Happy Investing!