Why The Spot Gold Price Is Rising
Iron meteorite
Gold is rising because (1) the globe is using mass-devaluation of currency as the game plan to try to deny their own insolvency; (2) investors are concerned about — not a second big stimulus but — a second leg down in the economy. We are IN uncertain times. Gold is purchased when people see a dark future instead of a bright future. Incremental gains in GDP are NOT going to stop the flow of money into gold funds. Even raising interest rates, which should be currency supportive, is seen by many investors to be the only road home but a road paved with bankruptcies, more unemployment, business collapses, with implications of social collapse.
The Fed has two choices: try to inflate, which will not work because you cannot inflate insolvency, not without bankruptcy first, but which is not stopping the Fed; or deflate, which is the correct path, but a painful path leading to a possible revolution/civil war and likely international hostilities….hence, gold is attractive.
stony iron meteorites
Very useful info. Longing to see more posts speedily!
Not owning gold is like skipping the fire insurance – it saves you a few dollars per month at the risk of losing everything. I wonder if anybody is getting it yet.
California Gold Nuggets
I am not an economist or anything even remotely related to such professionals. However, one thing which I cannot understand is why would the commodity prices (including Gold) will fall in the long run when every country has decided to print more currency and flood the banks with more currency. At some stage this currency will be in the hands of people who will use it to pay higher prices for the same goods we buy now, inflation will have to be high and under those conditions, all commodities will have to be high as well. Can someone explain why there can be deflation and falling commodities when trillions of dollars (and Euros and Pounds) will flood the system with paper money.
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