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

To: ecrire who wrote (25817)	9/5/2011 3:00:21 AM
From: GST	5 Recommendations Read Replies (3) \| Respond to of 29622

<the defining measurement of what investors are willing to pay for Gold is inflation> The investors that matter for the future direction of gold prices are central bankers. Central bankers in Asia are bizarrely underweight in gold. I post on it constantly. You act like the future of the world hinges on silly press releases each morning -- but it doesn't. Central bankers in the US have reached their own conclusion: they have concluded that they must risk the greatest debt and currency bubble seen in mordern times -- and they must do it with the worlds reserve currency despite the consequences this holds for global prices and the fate of the dollar. What matters is that the decision makers with the greatest impact on currency and other related markets have reached two unavoidable conclusions: (1) Gold must now play a role in Asian central bank reserves more closely resembling the role of gold in Europe and the US. China, the worlds largest gold producer, has an appetite for gold that it cannot satisfy -- both the general population and from here on out its central bankers as well -- ditto the rest of Asia, and of course India. (2) Global markets must adjust to global inflation that is already upon us. The global economy is indeed already caught in the throes of runaway inflation. Inflation in China is soaring out of control as a result of the loose policies in Washington. The answer to their inflation will include a sharp increase in the value of the yuan versus the dollar, and a sharp increase in gold purchases. Get your head out of the sand. The garbage you see on your TV each morning is not what is moving global markets. Day traders like you are not moving the market. The market is inexorably following global fundamentals -- and they point to very stark conclusions about the dollar, gold and treasuries.