up or down today?, page-33

From the idiots that brought you the iron ore price crash last year,now bring you the gold crash of 2013.

Its like those crappy movie trailers that have the dramatic music in the background complemented by screen shots of the only two explosions in the movie.

The real blockbuster title here is - Government banks printing money like its going out of fashion vs a finite resource.

I don't think there is any success story in history of a country printing money to get out of debt. Meanwhile Japan launched the worlds most intensive stimulus with an open-ended asset buying which is indefinite and set to scale up - $1.4 trillion in the next 2 years ?

I honestly can not believe the experts that believe inflation will not rise, its surprising that some of them finished high school let alone university.

Here's one screen shot that has been repeated in history. No they are not gold blocks the little girl is playing with they are stacks of valueless paper money. The US can try to raise the value of the dollar all they want, it will cause a sharp decline in the gold price as a knee jerk but it will stabilize (as it is now doing) and keep creeping up.

Inflation has a lagged reaction, its like the annoying family member that decides to rock up a couple of hours late to every party.



And all the above forgoes to mention the physical retail demand for the stuff - India and China - billions of people who all like gold. Proof is in the pudding with stores sold out for weeks. It doesn't matter if they are buying the stuff for weddings or to plate their toilet seats,the importance is that globally and increasingly the value of gold is growing. Allot of demand considering that the amount of gold man kind has produced fits within a 25 meter cube. Whether retail demand is strong enough to influence the price in the near term is irrelevant, Gold has intrinsic value - that's the point for higher prices.