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
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The question is, how much of gold is a hedge against inflation, and how much of gold is just another commodity, subject to the same fate as all other commodities over the last few months? What is the percentage, and how do we calculate it? I’m sick of hearing about how the price of paper money is manipulated.
Crystalline gold nuggets
I grew up in Argentina in the 60′s, 70′s, 80′s–and for me it’s easy to see the writing on the wall (of course I’ve read it once before, albeit in Spanish). The U.S. Dollar is now in its LAST DAYS as it enters into the spiral of hyperinflation/maxidevaluation. In a matter of 2-3 years, if the dollar even still exists, you’ll be lucky to buy a decent meal for $10,000. The price of gold, in nominal terms, may be in the hundreds of thousands or even millions.
Gold Prospecting
I also agree with whomever said gold was a good hedge against inflation NOT recession. The hysterical chatter about an inflation time bomb going off is exactly that… I’d say gold has a greater chance of going down to $500 then does of hitting $2K.
Herkimer Diamonds