Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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 : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: TH who wrote (9111)	6/18/2008 12:52:29 PM
From: RockyBalboa	Read Replies (2) \| Respond to of 71403

TH, I begin to accept that this is a demand issue; as many others stated this is a cool season for gold as opposed to the winter holiday time. Secondly many who bought are underwater or barely up and will at least hesitate before buying more. If, on average everyone had a plan to allocate some wealth into gold this might have occurred already. What is more important particularly for emerging countries is that raw materials or food inflation begins to "crowd out gold and metal inflation". People might beginn to sell gold instead of buying in order to raise money for living. It is tough to have purchasing power stored in a noninterest bearing asset which begins to deprechiate and otherwise inflation is rampant. It wont change a dime for the long term outlook and gold could cost not 1k but 2 or 3k as others stated but for now those are trying times. For example Gold at $750 and I would buy some in earnest. I would want to see some rate hiking done first, particularly in Europe and Asia. What is hard to guess is whether gold supply relative to demand is shrinking or not, particularly if new mines start to produce.