Gold and Inflation
Arizona gold nugget
It seems to me that gold should have taken off to the $1200 level considering the drop in the stock market over the past month. In this deflationary environment, gold may be stuck in a trading range but is at least retaining value while other assets deflate.
I don’t think gold will jump until we see a whiff of inflation. Maybe that has already started as oil has moved up and so has copper. For inflation to spark, we need to see a glimmer of hope in the economy. Until the financial system is fixed, which is nowhere near happening, we are stuck in this holding pattern.
Arizona gold prospecting
Central Banks Buying Gold
Asia’s central banks seem have started to diversify their foreign-exchange reserves by buying gold. In the video clip below, Wall Street Journal economics reporter Alex Frangos speaks to the Heard on the Street Asia editor Mohammed Hadi about the potential demand for the yellow metal.
Gold Investments In Our Upcoming Socialist Scenario
Australian gold nugget
You shouldn’t mistake paper money for “money.” We have had a massive loss of “money” with this financial crisis, and it’s ongoing.
Buildings worth $50 million are now worth $30 million. Stocks worth $10 million are now worth $8 million, etc.
By printing money, the Fed is using its money to replace the lost “money.” It’s not all going back in the same places, of course. Much of it is going into commodity and overseas speculation.
The devious thing for US taxpayers is that much of the private debt that is no good because of the loss of “money” has been shifted to the US Treasury. The US will, accordingly, have less to spend (in the long term) for taxpayer entitlements, because it will eventually lose its unlimited fiat powers. It will then confiscate private wealth while claiming to remain non-socialist. Read more 
Spot Gold Takes A Huge Fall
gold nugget
Today, the U.S. dollar jumped to a three-month high after Standard & Poor’s downgraded Greece’s credit ratings on concerns the country will struggle to rein in its deficit. The dollar strength had an inverse action on the spot gold price. As I’m writing this the spot gold price is off $37.
The dollar rallied last year as the credit crisis mushroomed, driving investors to the perceived safety of U.S. dollars. Even as the credit crisis has eased this year, the dollar has still tended to gain on days the global economic outlook has worsened.
gold nugget prospecting
Buy Gold Now?
California gold
Two months ago or thereabouts the Chinese Government advised their citizens to buy gold. Now Hu Xiaolian, (why can’t these people have names we can spell or pronounce?) Vice-Governer of the Peoples Bank of China says gold is in a bubble and infers the Chinese Central Bank won’t be buying more gold? Read more
