I always believed as a child that at the end of a rainbow you could find a pot of gold. I learned quickly that this was not the case. There was always a central banker who took the pot away by the time I arrived. And they hid it in their vaults.
But as we watch our monetary system dealing with the worst credit crisis ever, we think it will not last too long before gold will regain its luster. As long as the creation of money has not the desired effect to grease the wheels of our economy, deflation will be the talk of the day. But once the velocity of money is picking up again and increasing, the reaction of these same central bankers will be slow and too late. And inflation will rear his ugly head. As we never witnessed before.
Watch the dollar.
Is it possible that the gold price is already anticipating ?
Or is it just the seasonal uptick?
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