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A Warning For Gold From Inflation, The Dollar, And Mining Stocks
Sy Harding replies in response to comments:
CPI has not been changed to exclude cost of food and energy. You are referring to what is known as the 'core rate'. My article refers to the overall CPI, which includes food and energy.
The U.S. Dollar Index measures the strength of the dollar against a basket of global currencies, and yes that includes the euro. As such a plunge or big rise in the index is a true measure of the strength of the dollar.
I made no mention of the Fed's balance sheet because it doesn't seem to be a factor. Gold has actually declined since the Fed added operation twist, QE3, and now QE4.
I did not say the Fed's policies and the government debt will not cause inflation down the road. I merely state the fact that inflation has not shown up so far, in spite of 12 years of such expectations, giving gold's almost 700% bull market plenty of time to have already factored it into prices.
Lastly, yes, gold is now used to trade. Exactly my point. I've been trading its ups and downs, and right now it looks like a time to be cautious and aware of the risk.
Dec 15 12:27 PM
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Consumers And Investors Confident Even As Global Recession Threatens Anew
But are corporations, hedge funds, corporate insiders not also forward-looking? And they are selling into the rally and hoarding cash.
Oct 16 12:15 PM
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