Great post couch, but I feel you are a touch too early.The US...

Great post couch, but I feel you are a touch too early.

The US problems will morph from corporate/household debt issue to that of Sovereign debt. The US has a huge gov't debt issue on its hands and once this becomes front page the US$$ is literally toast.

Gold is into its most wild and volatile stage - It could well sell back to $1200, and rise in the same 12 month period to a +$2000 high. My rationale?? Well f the US does outperform as you are suggesting this will lead to HIGHER bond yields as investors seek a return on their money, not just return "of their money". What this means couchy is that borrowing costs rise = problem for the US govt. The only way out of this for the US is to keep their dollar low and competitve v's rest of the world.

Your thoughts are very sound, but my opinion is that you are a step or two behind the medium term curve.. Whilst short term gold is under pressure and likely will remain so - medium term it is going past +$2,000 in my view as the US keep rates on hold till 2017!!!

Cheers