Gaucho

Citigroup Sees Gold Reaching $2000

With the disconnect between physical gold and the NIMEX it is evident that the FED is manipulating the price via its banks and the paper market. But with China looking to expand its real holdings of gold it will be fun to watch delivery demand for tons of Gold that they currently do not have. I wonder if the FED is willing to let go of all of its fort Knox holdings.

Ian McAvity on the Economy and Gold

They mention the fact that Non-US countries are investing in gold in a huge way, but they imply that the US market movement will drive the price of Gold virtually alone. With the Non-US world being a bigger player in the gold market it will continue to move up due to $ inflation and inflation of other world currencies.

Bottom line get out of the market and buy gold.

Getting Out of Leveraged Gold

The author makes the assumption that the US is the only player in the gold game. At one time this was true then the rest of the worlds economies grew up. Many like China and India have excess reserves and their people tend to hold gold more than Americans.

China now has an inflation rate of over 7% and india is growing its money supply at over 20% and Europe is entering an inflationary period also.

Add to this the US dollar is falling like a rock and many people around the world are looking for a safe place to put their money.

No this is not a speculative bubble, but a long term trend based on world wide inflation and financial instability.