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If The Economy Really Is Improving...

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Then why is gold going up in price at the moment? Isn't gold meant to go up during a crisis and then come back down when the panic clears? If that's so then why when people talking about recovery, and things not being quite as bad as expected, is gold rising towards $1000 again?

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http://www.ft.com/cms/s/0/52c9f2a8-4e1a-11...?nclick_check=1

Investors sceptical on stock market rebound

By Peter Garnham in London

Published: June 1 2009 00:08 | Last updated: June 1 2009 00:08

.....

Six out of every 10 respondents believed that the recent rise in equities is a “bear market rallyâ€, indicating that global investors still have a large share of their funds parked on the sidelines in cash.

The survey revealed that 91 per cent of investors were running positions that were “light†or “average†in terms of their risk limit or capacity. This leaves just 9 per cent whose positions are “large†or “at limitâ€.

It's amazing how quickly the FTSE has recovered, but the economy remains the same and although short term gains from buying at the bottom are 30% or more

, long term it's down hill. So Gold and Cash make more sense to me, as well as protecting against inflation even though I'm a deflationist so it protects from that

as well.

Could also be a report from this morning,

Index of Commodity Prices

Release date: 1 June 2009

Preliminary estimates for May indicate that the index fell by 3.5 per cent (on a monthly average basis) in SDR terms, following a decrease of 12.8 per cent (revised) in April. The largest contributors to the fall in May were decreases in the estimated prices of coking coal, iron ore and steaming coal (see below). The prices of gold, nickel, sugar and wheat rose. In Australian dollar terms, the index is estimated to have fallen by 8.2 per cent in May, following a fall of 18.1 per cent (revised) in April.

http://www.rba.gov.au/Statistics/commodity_prices.html

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Then why is gold going up in price at the moment? Isn't gold meant to go up during a crisis and then come back down when the panic clears? If that's so then why when people talking about recovery, and things not being quite as bad as expected, is gold rising towards $1000 again?

Gold primarily is a hedge against inflation. The USD looks rather sad (note how all currencies in the below graph are stronger against it). Buying gold is a form of wealth protection. Its not the end of the world and house prices wont fall to 20p.

sg2009060129621.gif

post-21047-1243858497_thumb.png

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Gold primarily is a hedge against inflation. The USD looks rather sad (note how all currencies in the below graph are stronger against it). Buying gold is a form of wealth protection. Its not the end of the world and house prices wont fall to 20p.

I notice how much the dollar has fallen. Peter Schiff must be jumping. Need to look out for a new video.

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http://www.ft.com/cms/s/0/52c9f2a8-4e1a-11...?nclick_check=1

It's amazing how quickly the FTSE has recovered, but the economy remains the same and although short term gains from buying at the bottom are 30% or more

, long term it's down hill. So Gold and Cash make more sense to me, as well as protecting against inflation even though I'm a deflationist so it protects from that

as well.

Could also be a report from this morning,

Well I wish I bought gold last year, but I don't think I'll jump in at this level.

Just hope for deflation in the medium term instead.

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Huge gold bubble which you can trace right back to 1971.Gold_Price_(1968-2008).gif

Why is that now?

Point taken. So what next? Gold to $5,000 and beyond and then the collapse of fiat currencies?

I hope not.

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Point taken. So what next? Gold to $5,000 and beyond and then the collapse of fiat currencies?

I hope not.

The inflation genie is out of the bottle.

I don't see how people losing faith in fiat currency is a bad thing. It will topple governments and bring about change, which is good.

Maybe you disagree.

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gold is only going up in $ terms as the $ falls.

in sterling terms, gold has remained stable at around £600 for some time. It has actually fallen to £597 today.

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The inflation genie is out of the bottle.

I don't see how people losing faith in fiat currency is a bad thing. It will topple governments and bring about change, which is good.

Maybe you disagree.

I have a medical condition that may require an operation at short notice. A stable society is life and death in some cases. So while I might enjoy the prospect of revolution and a more equitable outcome at the other end, I fear I and many others might end up as collateral in the process.

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I have a medical condition that may require an operation at short notice.

An NHS suit may have another angle on that

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Then why is gold going up in price at the moment? Isn't gold meant to go up during a crisis and then come back down when the panic clears? If that's so then why when people talking about recovery, and things not being quite as bad as expected, is gold rising towards $1000 again?

Add to that, whys unemployment rising at 100,000 a month?

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Gold isnt going up, the dollars going down.

That is the other way to look at it. If gold is a constant currency then the $ is falling and £ is staying constant at its relative value to gold.

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If the economy was really improvong the BOE would be having a meeting to put up interest rates again. The fact that more QE is being discussed means that the economy is still toast and the "experts" all know it.

Don't be fooled by hype.

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