Quote:
Originally Posted by Vendot
Thats not actually true........ the US and other countries could print another trillion dollars tommorrow, and it could help the global economy boom but the massive increase in money printing means over supply of dollars which is in turn debasement of the currency and therefore bullish for gold.
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That's true in short term, but in longer term once economy recovers the central banks will raise interest rates and tighten money supply, creating downward pressure on gold...
the fact is there is really no reason why gold should continue going up... when oil for example was near 140 few years back at least the arguments were sound, that emerging economies needed oil to support growth, etc... (and what happened since then? oil is half of what it was few year back?)
with gold on the other hand there is really no increase in any real demand lately, the only demand comes from speculators and tin-foil-hatters hoping the world economy will crash and burn... the world economy is in fragile state now, so crash and burn is actually possible, but I wouldn't count on it...