rcwill

More On Rising Dollar, Declining Gold

With roughly 7 trillion in deposits and only 4.5 trillion insured by FDIC, people are scrambling to find a quick safe haven for 2.5 trillion. Since most people are not gold savvy the obvious place to try and preserve this amount of wealth is not to find a hundred banks and buy CD's but to simply buy treasuries. This drives the dollar up and gold down. If the FDIC limit is raised to 250k it may curtail the rush into treasuries and the rise of the dollar. This would be gold positive me thinks.