it's going down the toilet, page-6

"Rumbles in the Bond Market Rattling Gold"

By Chris Puplava01/25/2013

http://www.financialsense.com/contributors/chris-puplava/rumbles-bond-market-rattling-gold

That is one of a number of explanations why gold is not doing so well. Another is that the momentum is now in dividend paying equities so traders (and others) are moving more money into that sector for now.

I am expecting inflation to pick up around the world from all the govt stimulus that is happening, especially in China and other developing countries, later this year. That should help gold, and hopefully, goldies. In the meantime, except for a very select few goldies, there does not seem to be much point in holding on to them in the short term. What seems to be cheap is likely to get cheaper, and those that fail to meet targets will continue to get hammered.

For now asset inflation is happening in the equities and real estate markets. It should eventually also spillover into gold like it did during most of the last decade, unless there is another market blowup before that can happen.

One possible source of future demand is Japan if they can actually stimulate inflation there. In recent times they have been a net seller (exporter) so a change there will be positive for gold. However, inflation in Japan will be negative for their bond holders and their govt which will need to pay higher interest rates to attract buyers of govt bonds, and require even more money printing to pay for the interest.

loki