The Current FReepathon Pays For The Current Quarters Expenses?
If Europe crashes then precious metals priced in dollars may see a significant fall.
Gold does not really change very much in price at all, for hundreds of years its value has been pretty much constant.
It is the dollar that fluctuates, and goes down. There is no “bubble”. The only thing there is, is an inverse relationship between gold and the US dollar.
To answer the question what would make the price of gold go down in price in terms of US dollars, the answer is that the US dollar must go up.. What it would take, would be to elect somebody like Ron Paul who would cut spending by 1 trillion dollars in his first year.
Other than electing Ron Paul, then the value of the US dollar will continue to steadily decline and thus the price of gold in US dollars will continually go up forever.
Every time my mother-in-law starts telling me that gold is going to go down, I say, “I wish you would have warned me before I started buying at $700/oz.”
That always shuts her up.
Gold has fallen recently and briefly, like for a day, was considered in a bear market a week or so ago. That triggered a rally which has not stopped yet. After that fizzels out, it may sink back into bear territory.
I think Bernake is causing damage by keep interest rates too low, but he won’t tighten because doing so would devastate Treasury prices and blow the deficit up even more. In fact, thanks to the Fed, I think we are in a “Treasury Bubble”.
The Current FReepathon Pays For The Current Quarters Expenses?