[eyedigress]

I believe the FED has decided to stop releasing money supply figures which are presumed to be way over the top. Inflation is a direct result of to many dollars in the economy. Gold is a hedge against printing money (inflation) and I belive this is the cause for the run-up.

[DebtAndDelusion]

I can't claim to be an economist but as soon as I heard the government was going to hide the money figures from the citizens I knew two things. I knew the media wouldn't report it and that gold would not like it.

Father and Gramps used to have some terrible arguments about gold. Gramps was an old Bryan supporter and made the cross of gold argument all the time with Father. Father said he would keep his gold just the same.

Unfortunately Father bought stocks on margin in 1929. When the crash came we had to move out of the city house onto the farm. If he hadn't had his gold I think we would have starved during the 30's.

Of course that experience taught some lessons about the goodness of the land and gold's ability to keep folks solvent during the depression.

Darn Islamics and Asians buying all the gold, and the government hiding the M-3 money supply figures from the public so they can print all the money they want to. The working man in this country is getting it from every end.

Oh well. Still got the farm, still got the gold and still have most of my teeth.

HG

[B.O. Plenty]

The real cause of the run-up in gold is the frenzy of speculation. When the demand goes down...gold will crash. It is a commodity, folks...nothing more, nothing less. It ain't no more a store of value any more than, say holding copper or .22 bullets.

As a matter of fact, I would argue that .22 bullets would be a better store of value in a general economic crash than gold. You can at least get some squirrels for supper with bullets.

[hubbubhubbub]

Strange how Gold has gone up almost every day since the Fed made that M3 announcement and Bernanke (drop $ from helicopters) was confirmed. I guess the markets aren't dumb after all.