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| my guess is that gold is going to stay weak short term as investors rush to ride the rally. I also guess that this is a sucker's rally which should collapse under the weight of realism soon enough, at which time gold will shoot up again. longer term, gold should be a good bet as inflation begins to eat away furiously at the value of the USD ...
but that's just a guess. my educated opinion is that people who know how this really works quietly bet on the market (with as little of their own money as they possibly can) - they dont go blabbering on CNBC and they certainly dont tell you for free on the English Forum.  | |
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I totally agree that this is a sucker's rally. I believe that volumes are low so it doesn't take so much for movement. I have read (but not sure if I believe this one) that gold has fallen a bit because people have been selling gold to buy shares........Ba....Ba....Sheep Syndrome. A bit like the excuse was it for the COE of the UBS getting involved heavily in CDS because "everyone else was on the dance floor so he thought he should get up and dance as well".
I can't understand your inflation theory. Surely there will be no inflation. Certainly in the past, inflation is I would say caused by employment wage increase demands and there can't be much demand for pay increases because there will be plenty of unemployed people available to take their jobs.
I think the dollar will stay pretty much the same value against the Euro and Sterling (The Swiss Franc might go up a bit) but all currencies will fall against Gold.
The reason for my "heavy metal" stance would be because I am not sure if I would even trust the situation of these paper gold traders. The "Money is Debt" scenario.
Anyway, I am looking forward to meet up at this Financial Investment Meeting you mentioned on a thread whenever it is.