I would like to apologize publicly for ever having mentioned that I encountered three or four defensive, nationalistic, francophone jerks during a visit to Quebec City, and nowhere else. Anyone who wishes to is free to come to where I live and meet a few racist rednecks.
Meanwhile, back on the topic of gold, I think that the price is more likely to get a boost from currency depreciation than from war fears. I have said "depreciation" rather than inflation, because every time one says "inflation", it provokes outcries that what we are facing is deflation, not inflation. But however you put it, the United States Dollar money supply, which was already rising almost as fast as at any time since the civil war, has gone up like a rocket since the WTC disaster. Central banks in other countries are afraid to let their interest rates and --in many cases-- money supplies get much out of line with the dollar. Gold may be a store of value against depreciating currencies. But a big wad of a fairly stable paper currency is better for most purposes than a sagging pocket full of gold, if you are a refugee. |
