31
Dec
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.
