Re: Gold buyers beware ! Business depends on a very Conservative brand of talk radio.
I'm not speaking agains the idea of buy low sell high, I'm find it fascinating that diesel doesn't understand that when you increase the money supply by the trillions through government debt you won't get high inflation which is what is fueling the current gold buying spree. Gold has a good chance of crashing in the near future, but the value of the dollar is only getting a prop from the crashing euro. If the U.S. doesn't get its debt under control Gold may be the safest bet against some really bad inflation.
BTW, don't feel bad about your friend and losing his lottery winnings. Most people who win the lottery in this country file for bankruptcy within 5 years.
Yes, it's a situation I have never seen before.
The US is printing money, Europeans basically doing the same thing, and it keeps both currencies in check with eachother. (well , Euro down some).
If the crises in Greece wouldn't have started.. and the Euro gained on strength... you would have experienced inflation already.
And somehow, both the resource rich countries Austrailia and Canada, both noticed a decline in their currency as well. Even though those 2 countries have hiked interest rates, and their economies are growing at over 6%.
Basically, what is happening, countries and investors are dumping Euros for US dollars. Making the US currency stronger.
Gold, as many may think, is not a safe currency. It's treated like Oil and diamonds.
By "producing" more or less gold, that's what keeps in under control (for example : De Bears, only puts out enough diamonds to keep the price high, Opec reduces or expands oil production to keep prices at a compfy level).
South Africa (worlds largest resource of gold), has no longer the largest output of it.
What, I'm saying is, Gold is just as fake as paper money.
Besides, the amount of Gold we have on earth is abundant, and unlike Oil... Gold doesn't get burnt up. The amount of Gold on this planet will always be the same, (and plenty of it).
Why Gold has risen so high, is fear.
But, in reality, unrenewable commodities should have risen.
Can't believe I just witnessed a Goldline commercial as we speak. Odd, that when Gold was under $500 an ounze, they are promoting it, now.
That alone... is fishy..
Same like those Cash for Gold commercials.
But , back to your inflation question. As long as imported prices don't rise, and internal wages don't rise, and interest rates stay low, there is no inflation.
Somehow, they kept commodities low, besides Gold. Which , I don't get! Is not like the world is using less oil, the opposite is true.. with China and India, etc, driving cars now.
The whole money world involves around the stock market. It dictates how much a barrel of oil or an ounce of gold is worth, even how much our currencies are worth.
Really, I don't have an answer.
But you are right, printing more money will devaluate the currency. Gee, I even have a few old million and billion German Reichs Mark notes at home.
