expect gold to start heading to $2000...
Try $600. The world is in a deflationary spiral. Watched China lately?
“Try $600. The world is in a deflationary spiral.”
Did Bernake shut down the printing presses?
$2000 in current dollar valuation
if gold drops to $600, gas would drop from $3.80 to $1.90. I’m pretty sure that’s not happening any time soon
There can be no "deflationary spiral" till the world's central banks stop increasing the money supply. China has not -- what are you talking about?
Supply and demand for everything ultimately determines relative value. If necessary to prop up deflating bank asset values, central banks will print endless supplies of paper money whereas gold, silver, diamonds and other hard assets will remain scarce and tend to far out-value what streams from the printing presses over time. Every fiat currency over thousands of years has failed. The economic laws have not been repealed as digital fiat has replaced paper fiat.
China continues to increase oil consumption, while we use less oil. Oil has been running over $108 per barrel.