Loading ...Simple thoughts…
….from a simple mind.
Inflation is not gold friendly in developed nations. It is a bubble pipe.
Deflation is gold friendly. It offers protection from the crumbling edifice.
It might be said the last gold bull ended in 1980 and that the next has yet to begin.
The Swiss said today what the Japanese have been saying for a very long time….deflation is unstoppable. They know it and so does the FED.
We ain’t in Kansas anymore.
chart from Ben Kramer-Miller at Seeking Alpha. Apologies for losing link.
deflation – falling consumer prices – tends to encourage governments to provide massive monetary inflation. i.e. QE. however, did QE REALLY CAUSE massive monetary inflation? NO! it’s the monetary inflation which causes the rise in gold prices NOT SPECIFICALLY “deflation” in itself. We are in a deflationary spiral and the recent QE efforts HAVE NOT provided the massive monetary inflation as many believe; thus, gold is not going up. Maybe in the future another QE effort will be implemented causing “monetary inflation”. not the case now. excellent article.
http://pragcap.com/why-didnt-qe-cause-high-inflation
Another note: I have been told watch for the bursting of the US bond bubble, when that happens, all bets are off and gold will go to the moon.