Feb

10

 It certainly is an interesting "debate" being carried viz the precious metals. Two thoughts nag at me when I watch metal news or read analyses: (1) A lot of the people who argue that gold is a bubble right now seem to be people who traded gold back in the 80s and 90s, when the only people who traded gold were in Chicago, New York, London and Hong Kong (exaggeration, but you get my drift); and back then gold never did much, so any big move must be a bubble. Which leads to (2), that many common folk in Asia have decided they want a hard currency, whether their government provides them one or not, and that this de facto hardening is something the folks with the old gold-trading mindset have a hard time grokking. Excuse me, but that leads to: (3) "There is no inflation", but there is actually quite a bit of inflation, just not here. However. though China may be serving as a global inflation sink, they are *not* cut off from the global metals market.


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