[qwas]

Even after taking into account the usual war jitters, the rise of gold can be attributed to many other fundamental economic factors that will make 2003 the year of the gold rush.

[Always A Marine]

Very interesting article. When Lord Rees-Mogg speaks, it is well worth listening.

[Rodney King]

I outlined my argument, that the dollar is still too high, that the US external deficit is not sustainable, that the European and Japanese economies are suffering from low growth, that the euro and the yen are attractive only compared to the dollar. I added that gold was making new highs, and that the preference for gold showed the lack of confidence in the main currencies.

I agree with all of those points. However, it is important to understand that Gold is only going to rise so long as the paper currencies are viewed as weak. I think Gold is still a good investment now, as the US has been printing money like crazy, and inflation will hit sooner or later.

My main concern that I wish to express, however, is that every time there is a rise in the price of gold, the gold bugs always herald it as a new era and that gold is going to be 800 bucks an once again. It's not. The chances of teh Dollar, yen, or Euro regaining confidence is high. So even I think that Gold is still a good investment, but don't let yourself be convinced that you should stake your life's savings on a long term resrugence of gold.

[Gritty]

Both the dollar and gold are telling us that a perilous adjustment in currencies and in real economies lies ahead.

A good article.

[Cicero]

Excellent article, in Lord Rees-Mogg's usual authoritative style. I was about to post this, because I missed it earlier, but a search caught it.