SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 368.29+0.6%Nov 7 4:00 PM EST

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: TobagoJack who wrote (29480)2/14/2008 10:20:47 PM
From: carranza2  Read Replies (3) of 217580
 
I have quietly and mostly in private been preaching about the utterly obvious relationship between increased liquidity and the price of gold.

Gold is a value hedge against paper money. The more paper money is put in circulation, the higher the price of gold will go. Simple as that.

How many commodities cannot be consumed? How many commodities get stored in vaults?

I'll say it again: keep track of the money supply. The price of gold will keep pace with the growth of the money supply because it is a hedge against the lessened value of each additional unit of currency pumped into the monetary system.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext