Wednesday, December 28, 2005

The Great Gold Paradox (Part 3)


The Bond market is sending signals, reflecting a good chance for economic slowdown and lower Interest rates ahead. While some say gold reflecting higher inflation expectations. Forex traders are just trading this way today and that way tomorrow - You win some you lose some. Central banks however are walking on a thin line like a bunch of jugglers, very cautious not to hurt the fragile system. On one side they see Inflation fears and the slow but constant erosion of paper monies. On the other side they see the fear of deflation and the huge amount of debts all over the world especially in the developed world.

The system as it is today seems to work perfectly well but you cant ignore the huge imbalances between the east and west , the rich and the poor … under the hood it feels like all is done to keep the price of gold from going higher too fast, why is that ? could it be that gold is not important to the monetary system only if its price stay under a certain level ? What is the logic of fighting the forex of nature?

It remains a great paradox, If you ask me, central bankers are actually playing the biggest Poker game in the world, the managed Forex Casino.

The great Gold Paradox (Parts I + II)

1 comment:

Trip Ideas said...

Great inspiring article about the the great gold paradox. Also knowing the current market rates of precious metals, in particular "gold!" Who does not have at least some fascination with gold? It symbolizes wealth, luxury and sheer opulence.

It is available to make jewelry out of and since time began, rulers, kings & queens, the Egyptian Pharisees, warlords, anyone of power tended to hoard themselves with chests full of gold bullion. They used it as a symbol of royalty and power, lavishing themselves with a myriad of ornament and gift. This is the history I am most attentive to - thanks for writing these interesting posts.

This site came highly recommended by Debbie Reynolds who is considered one of North America's leading experts on gold futures and options. She mentioned and gave a link in her recent article on "investment gold."



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