wchanofalberta

Still No Inventory Reduction at GLD

David. So by the US economy tanking the US currency suddenly becomes something precious? This deflation argument really doesn't make a lot of sense to me. When the Stock market collapsed in 2000, we did not see deflation because the fed stepped in with cuts. When do you think the fed will allow deflation to take place? BTW gold was around $250 when the market collapsed in 2000. Wealth was destroyed but the metal keeps going up. This "collapse" of gold is temporary. It is tied to oil's fall. Unless you are betting on oil to continue to fall, don't bet against gold. China is IMO a really significant factor in all this, not because it is a big market for gold like India but because it is a big energy consumer. China's continued rise will guaranteed oil prices and that in turn supports gold.