XSO 1.51% 3,000.6 s&p/asx small ordinaries

@paddington bearIt is noticeable that at times of crises there...

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    @paddington bear
    It is noticeable that at times of crises there is always capital flight (specially from emerging markets) into the USD which results in severe debasing of "peripheral" currencies (including ours) & severe dollar liquidity problem.
    The US on the other hand has a huge advantage.....it can finance humongous budget deficit by printing unlimited paper without debasing its currency.....Not fair ....but...
    So , it is a good sign for EMs to see a weaker USD.
    Gold will always behave as a liquid asset that keeps up with inflation.....If we expect asset prices (say house prices) to double within a certain time frame , we should expect gold to double in same time frame.......But there is no reason to expect gold to outpace inflation by a wide margin.
    PS: there is no return to the gold standard......The magic word is digital currencies.....I don't think this will affect gold much unless the move to digital currencies will put a lid on inflation.
 
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