LazySusanFarms
Silver Member
Will gold rise in the future? Probably, but it won't be because investors and banks think that it wil save them. Gold goes up when inlfation expectations rise, that's all. Anyone's gold forecast should be based on their expectations for upward price inlfation, not some doomsday scenario even though many confuse the two.
If you expect prices to rise then buy gold. You should also buy oil and any other commodity not priced solely in dollars. For example, look at natural gas whose price has fallen all through this mess. The price for NG falls because it is a local commodity, not a worldwide commodity. It is produced in dollars, sold in dollars and bought in dollars.
Printing of money and fractional banking system creates speed in the money supply and inflation is the metric for which money speed is measured. Currently, becuase banks are not loaning money, money speed is practically zero. By printing almost 3 trillion dollars and giving it to the banks, the Fed has created the potential for great money speed but it has not occured yet because there is absolutely no demand for any services or goods in our economy. Money moves when banks loan money and results in inflation. We want inflation, not deflation. Deflation rips apart those who have ANY debt. The reflationary approach is always better for debt ridden society but it also has its downside for those less fortunate as prices soar.
Gold is just one of the things that will soar in price if inlfation regains its foothold. There are many other things that will go up. Gold is just the chosen investment because it doesn't hurt anyone. Oil hurts when it goes up. Food hurts when it goes up. Housing hurts when it goes up. There is nothing magical about gold. Wait until the world goes to a multi-country currency basket for its reserve currency. Gold may become just another metal with limited industrial use. Now silver is another story.
If you expect prices to rise then buy gold. You should also buy oil and any other commodity not priced solely in dollars. For example, look at natural gas whose price has fallen all through this mess. The price for NG falls because it is a local commodity, not a worldwide commodity. It is produced in dollars, sold in dollars and bought in dollars.
Printing of money and fractional banking system creates speed in the money supply and inflation is the metric for which money speed is measured. Currently, becuase banks are not loaning money, money speed is practically zero. By printing almost 3 trillion dollars and giving it to the banks, the Fed has created the potential for great money speed but it has not occured yet because there is absolutely no demand for any services or goods in our economy. Money moves when banks loan money and results in inflation. We want inflation, not deflation. Deflation rips apart those who have ANY debt. The reflationary approach is always better for debt ridden society but it also has its downside for those less fortunate as prices soar.
Gold is just one of the things that will soar in price if inlfation regains its foothold. There are many other things that will go up. Gold is just the chosen investment because it doesn't hurt anyone. Oil hurts when it goes up. Food hurts when it goes up. Housing hurts when it goes up. There is nothing magical about gold. Wait until the world goes to a multi-country currency basket for its reserve currency. Gold may become just another metal with limited industrial use. Now silver is another story.
