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Originally Posted by woj
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...
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It doesn't matter, even with economic expansion in 2000, gold was rising fast.
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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?)
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There is no reason the stock market should be going up either. People trust Gold more, that's all.
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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...
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There's no real demand in the stock market either. It's all low volume trading and when the market goes down, it's a high volume of people that are getting out.