When investors load up on Gold, one would say its time to hunker down. Inflation is coming. Not anymore, we are in a deflationary environment, we should see Gold collapse, but as Gold keeps rising, we can only say its a Macro play on continued US Dollar destruction.
I give you these articles on such Macro Plays
www.telegraph.co.uk/finance/economics/6146957/China-alarmed-by-US-money-printing.html
It looks like the Chinese are big buyers of Gold.
www.bloomberg.com/apps/news?pid=20601012&sid=ajJmIoz.nmLc
www.kitco.com/ind/Holmes/holmes_aug312009.html
www.latimes.com/business/la-fi-gold4-2009sep04,0,6581001.story
www.dubaicityguide.com/site/news/news-details.asp?newsid=25737
www.ft.com/cms/s/0/07c0bc30-9c56-11de-ab58-00144feabdc0.html
I can just see it now. Bernanke, Geithner, Blankfein, and Bill Gross all smoking cigars when the USD losses its reserve status. We finally did it! Congrats!
Sooner or later it all has to mean something doesn't it?
If so the FRBNY will just do another $10B in POMO.
tradersutra.blogspot.com/2009/09/institutionalized-manipulation.html
I just fear that one day we will wake up, turn on the TV, and their will be mass financial unrest, and the USD will be 1/2 what it was the day before. Bond Yields will explode higher taking Libor with it as well. You have spoken about Black Swan event like this happening, it seems more and more likely, I just cant figure out who is actually stupid enough to buy this market. I mean its ridiculous. How do you justify a 55% run up in such an environment. Reeks of fraud!
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