Gold makes a new… high?
Gold is making all time new highs against pretty much every major currency, except the US dollar and the Japanese Yen. Gold is not down, those currencies are up. So you have to ask yourself, is that sustainable? Is that move a result of a qualitative assessment regarding the relative performance of American assets compared to the world or a result of a technical condition (too many people borrowed too much money in those currencies to buy stuff abroad and are now liquidating their assets to pay back their obligations due to credit tightening). I have heard interesting arguments on both sides from people I respect, but over the long term does anybody really believe a dollar spent in America will yield the same growth prospects as a dollar spent in Asia? How much higher can the standard of living in the developed world rise relative to our financially challenged friends abroad? Just keep this in mind — one day dollars will be plentiful again, where will they be spent? |
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