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To: blam
Print more money, and the price of gold falls? WTF?
2 posted on 10/31/2014 5:55:32 PM PDT by fhayek
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To: fhayek
Print more money, and the price of gold falls? WTF?

The price of gold is quoted in dollars, which is rising against the yen, and pretty much everything else. Gold should have gone up, if priced in yen.

For those surprised that the US stock market didn't crash in September and October, consider what is happening globally. Japan is crashing, China is a mess, Europe is a mess and breaking up, out of all the BRIC countries, only India is doing well. The US is holding up the world right now, and most currencies are falling against the dollar. This is why the stock market keeps climbing, and foreigners keep buying real estate here. The US is the cleanest dirty shirt.

5 posted on 10/31/2014 6:01:38 PM PDT by Vince Ferrer
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To: fhayek

“WTF?”

Here’s the short term answer; all that money is available to borrow for virtually zero percent interest. Therefore people will invest it in stocks, since interest investments aren’t paying anything. More money in the market drives up the price of stocks, which is bad for gold.


6 posted on 10/31/2014 6:01:58 PM PDT by Hugin ("Do yourself a favor--first thing. , get a firearm!",)
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To: fhayek

“Print more money, and the price of gold falls? WTF?”

That’s the phony price of paper gold, not the true value.


7 posted on 10/31/2014 6:05:50 PM PDT by ScottfromNJ
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To: fhayek
Print more money, and the price of gold falls? WTF? I'm wondering what happened too?
17 posted on 10/31/2014 6:43:15 PM PDT by MeneMeneTekelUpharsin (Freedom is the freedom to discipline yourself so others don't have to do it for you.)
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To: fhayek

The instantaneous response is *one* thing, the LT result/effect is probably something different.

Although I, myself, am completely neutral on gold/silver (as investments or as SHTF googahs) And I own plenty.

You/we have to admit, the central banks of the world have successfully repealed all known laws of economics, yes?


28 posted on 10/31/2014 9:41:27 PM PDT by Attention Surplus Disorder (At no time was the Obama administration aware of what the Obama administration was doing)
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