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Gold/Mining/Energy : Gold & Gold Stock Analysis -- Ignore unavailable to you. Want to Upgrade?

To: carranza2 who wrote (23073)	12/9/2010 1:24:29 AM
From: GST	3 Recommendations Read Replies (1) \| Respond to of 29622

It might be worth reflecting on the drivers for interest rates -- it makes a great deal of difference whether a rise in rates is due to a significant or unsustainable acceleration in economic growth(possibly China), or due to collapsing confidence in the solvency of a nation -- Greece and Ireland. In the latter case, there would be no reason to sell gold as the sovereign promise to pay comes under a cloud. On the contrary -- it would make sense to buy gold and avoid the troubled currency. In the US, we just set ourselves up for more printing of money and more reasons why even more money will need to be printed -- tax cuts and extended unemployment benefits, added to all the other trillions of reasons why we are racking up debt at a bizarro rate. So ask yourself, did rates bump up because a surge in growth is right around the corner? Or did rates go up because our current account deficit just had a big boost? If it is the latter, buy and hold gold. If it is the former, lighten up.