Leave a comment

I’m Not A Gold Bug

[picapp src=”f/3/f/9/Gold_Price_Hits_69a7.jpg?adImageId=7512103&imageId=5779533″ width=”380″ height=”253″ /]

Normally, the Financial Times sucks, but this article almost sums it up why gold is not “the ultimative investment”.

“Gold has been a great investment recently, but psychology rather than supply and demand are responsible.”

And whenever psychology causes big price increases, run as fast as you can!

Further, I would add that gold supply is stagnating because of political failure. South Africa’s shrewd economic policy certainly took its toll on gold production. China, world’s greatest gold supplier, may well be able to dig out more, if they like to. Now, they are certainly enjoying high gold prices as a hedge against a falling dollar.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: