Gaucho

Gold’s 'Grand' Illusion

The author is still thinking that the US is the only driver of gold prices. China and India each out strip the US demand for gold. This is where he is all wet. If the dollar continues to fall gold will be priced on a world demand basis not a US only bases. Many parts of the world are undergoing an inflationary spiral China India Europe etc. Many people in these countries will contune to hold gold as an inflationary hedge.
If the US does go into an inflationary sprial themn this will add fuel to the price of gold. You get a double impact of an inflationary US environment while the dollar continues to fall on a world basis.

Guys like the author can reason himself into a corner.