Bad Dog

Gold and the Worldwide Flight from Paper Currency

I guess that would be why gold is down today and the dollar is up? If you look at the rise in gold since it was around $300, it doesn't look like it has been responding to paper money supply. It really looks like a whole bunch of other factors are playing as significant a role. Gold bugs have an idee fixe. Everything that supports their belief is lauded; anything else is ignored. Ultimately, there can be no "major flight" from paper because it is an essential medium of exchange. Gold just isn't. So Gold may go up but that doesn't automatically mean that it's due to a flight from paper.