I recently enjoyed a nice return from a small squabble about the Fed... but this has not been the main event... as other governments begin to drop rates again, it'll be interesting to experience a new move of gold to $1500+... gold will shine past 2009.
Gold is the ultimate flight to quality when every meaningful global currency begins to lose its real value with what will likely be a second round of global central bank rate cuts in an effort to "support" the global order of credit( http://www.forbes.com/markets/feeds/afx/2008/04/12/afx4882810... ).
While we've already seen declining US home prices since our 2006 peak, England is predicted to peak in 2008, and begin its massive housing market correction later this year ( http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/0... , http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/0... ).
Ironically, Greenspan once wrote in 1966, "In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. Deficit spending is simply a scheme for the hidden confiscation of wealth."
Now... are you ready to rumble?
Gold v. Bank of England, Bank of Australia, European Central Bank.
Bring it on.
$91.31 (04/12/08)
