gold heading to $4300, page-37

I agree, find8.

The countries like US and AUS will find the funding of public liabilities more difficult if economies retract and/or expenses increase (eg public health costs increasing - but a whole lot less that US private health costs).

I have argued for a long time that we in AUS (and US, UK etc) have been living well only because the Chinese currency has been undervalued. If and when currencies adjust to what fundamentals require (both US and AUS have been defying the fundamentals for too long now) we will be suddenly a lot poorer - but the government will be expected to keep us in the lifestyle we have become accustomed to!

The AUD dollar has dropped in comparison with USD, but the USD is still overvalued (in terms of the trade deficit). So I agree that USD has got to drop - but when is it going to happen. This year, next year or next decade. Who knows because the fundamentals have been saying it has been overpriced for a very long time. The same argument applies to AUD, but it is even worse than USD, and nothing much has happed with it.

So yes, in the longer term the price of gold may go up (in terms of USD - assuming USD falls). But will it change in terms of index value?