I want to say that this is a stong sign that we're about to transition from JP's often-mentioned 'Skepticism' to 'Optimism'-- when institutional money starts to believe in the bull market. After all, Luskin's investment company has been a very mainstream institutional viewpoint for the last few years, which is why he's always on Kudlow. I will be interested to see if Kudlow (who hates gold with a passion) will have him on after he recommends gold on the air.

I would say we're on the verge of 'Optimism' but not there yet, and it will start more fully once we cross and stay above $1000 for a month or so.

Remember though that your average mom-and-pop Joe six-pack doesn't watch CNBC, doesn't even know that the dollar is no longer tied to gold, let alone know what gold is. I think the days of "Hottest Gold Stocks for 2011" appearing on the cover of Business Week are still waaaaaaaaaaaaay ahead of us. When people are dropping out of college and using their tuition money to trade gold stocks, we're near the end.

Hysteria