But this whole economic debacle is a game of relativity. If you downgrade US credit rating then post downgrading how does it rate against hte rest of the options. Remember, most nations are competing with each other to reduce the value of their currency.
In the wash up the investment risk will increase across the board but hte options will remain the same roughly in the same risk rating order. Those with cash to invest have to accept higher risk, the price they pay for the economic delinquecy of various banking/ government institutions across the globe.
Gold will remain as is an alternative option. Inflows may increase or stay roughly as is, but, supply from selling existing above ground holdings will probably reduce. This is where the price gains are likely.
I hold and continue to accumulate but I don't simply because of the hyperinflation debate rather the expectation that supply/ demand curves will, as they have already, continue to favour an increased pricing of gold.
