$1M a Bar

For the first time ever on Monday, the spot price for Gold surpassed $2,500 per troy ounce, making the typical gold bar (400 ounces) worth $1M. Understand that there is no set standard for gold bars and according to the London Bullion Market Association, an "official" bar can weigh between 350 and 430 ounces of pure gold, though 400 is normal. This morning, front-month futures for gold are trading around $2,560, up around 0.75% from Monday. I remain long physical gold, as well as the SPDR Gold Shares (GLD) and the Goldman Sachs Physical Gold ETF (AAAU). I do not have target prices on these ETFs. They are there to help balance my portfolio and act as a counter to the value of the US Dollar in the event a dark colored swan knocks on my door. Hedgeye Risk Management, who I lean on heavily for accurate macroeconomic modeling, still expects economic growth and inflation to decelerate through the current quarter, with a reacceleration for consumer level inflation (but not economic growth) likely for the fourth quarter.