dionysos

The Euro Shows Its Real Colors

Today's run up in gold reflects currency weakness across the board. Recent rise in US$ is not because of dollar strength, but other currencies relative weakness in perilous times. The market is realizing that gold is the only safe haven in the inflation that must come to stave off deflation. This is Bernanke's main goal: to prevent a repeat of depression by inflating. Gold stocks are currently very undervalued in relation to the price of gold and they will move up at a higher rate than GLD.