Let's drag this subject back to the Gold Forum!
What does the change in living standards in the USA mean for the price of gold?
The Skol side of the debate would argue that things aren't that bad in America, so there isn't a great need for stimulus. The risk of inflation is low, so demand for gold will also be low and the POG likely to fall.
On the other side (and the side I tend to favour) is the view that lower-middle America is suffering and that unless something is done and done soon, America risks a generation of lost production, lost potential and concurrent social damage. To avoid this, US governments need to embark on spending programs that will create demand and soak up unutilised capacity (maybe to the point where there will be sufficient demand driven inflation to drive up the price of gold).
At the moment I think the Skol side "has the numbers", not because their view is correct, but because there is a lack of political will to embark of a meaningful program of stimulus (or any stimulus at all).
I see the POG as trapped in a sideways movement for the present. It is bouyed mainly by the hope of stimulus, but there is no cash behind the demand.
Your thoughts please.
- Forums
- ASX - By Stock
- GOLD
- standard of living in the usa is sinking ....
standard of living in the usa is sinking ...., page-18
-
-
- There are more pages in this discussion • 7 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add GOLD (COMEX) to my watchlist
The Watchlist
FHE
FRONTIER ENERGY LIMITED
Adam Kiley, CEO
Adam Kiley
CEO
Previous Video
Next Video
SPONSORED BY The Market Online