Skol,A quote from your article:...

Skol,

A quote from your article: http://www.theguardian.com/business/2013/dec/01/gold-price-down-as-economies-improve

"Gold maintained its allure as central banks pumped money into their economies, raising fears of runaway inflation. But then the easing of fears for the eurozone, and signs of economic recovery in the US and other economies, steadied nerves."

So, how is the Eurozone doing now? Total Eurozone debt has increased. Eurozone youth unemployment is at 24.5%. Total Eurozone unemployment has improved, although it dropped to 12.1% in October. Greece's economy has shrunk by 4%, so far this year. Not to mention Cyprus, Ireland, Spain and Italy, which are all in a similar boat to Greece.

What about the US? They're up to 17 trillion in debt. Not to mention liabilities such as the student loan bubble. The Senate deadlock this year wasn't much of a big deal, at this stage the brinkmanship has been done to death, and last minute deals will always come through. So, markets haven't been terribly bothered.

Fundamentally, the global economic outlook isn't terrific. I'm sure even you'd admit that. What's happening is that, with no actual catastrophe being realised - no default type events - people are starting to think that it won't happen. The general perception is that the world economy is recovering - while world debt grows, growth is disappointing, continued stimulus and many other problems.

So, the case for gold comes down to is the global economy going to recover or collapse?