Asia Hand

Global Precious Metals Correction: Healthy and Overdue

There are some non relevant factors floating around out there regarding the price of gold. Two phenomena that I believe are unimportant: 1. Whether or not brides in India favor or disfavor gold as dowry. 2. The South African production quandry.

These two are absolute red herrings. The reason for gold's price increase should be and are related to the fact that that most powerful money making machine in the world is debasing the trust that people have in their currency, government and financial institutions.

It's almost like do you believe in the advertisement. I think (although I am an American I have not much to do with the country other than hold its passport) it comes down to whether or not you believe, "In God We Trust."

As for me, I really like America and its people, but the government and its financial institutions as currently structured are not building trust, unfortunately.

The author points out some very important observations other than the South African power crisis factor.