From Richard Russell of Dow Theory Letters:

Sophisticated investors are beginning to distrust ALL fiat or central bank-created "money." Moreover, they distrust a situation where central banks all over the world are creating huge additional amounts of their phoney money. Knowledgeable investors are starting to place all fiat money into a single class. And they distrust that class. They distrust it because they think of it as "junk money gone wild." Their reaction - turn in your junk money for the one type of intrinsic money that has represented wealth for 6000 years - gold.

I've written many times that gold seems to be imbedded into the DNA of mankind. Today, with the world in turmoil, rich men may be saying to themselves, "I don't know what's going on any more, and frankly, I don't know where I'll be in ten years. But if I own a thousand ounces of gold, I'll know I'm rich. I don't know what the price of gold will be when this whole mess is over, but I know I'll still be wealthy if I own a thousand ounces of gold." And that, to my mind, is some of the thinking behind the rising price of gold and maybe even of stocks.

Crux Note: Learn more about the excellent Dow Theory Letters here.

More from Richard Russell:

Obama and Wall Street just don't get it

"Americans have had enough of Obama and socialism"

The great Richard Russell: The bear market rally is topping out