Saturday, March 13, 2010

Gold In Worst Decline in 7 Weeks

Gold Prices

Gold prices would have been really down this week if it hadn't been for the last couple of days, where it helped prop it up some after a devastating week.

After the rebound of the euro, gold dropped about 2 percent for the week as safety hedges against currencies declined as concerns over the sovereign debt of Greece fell some.

This should only be a temporary lull, even though some are speculating governments will begin to pull back on stimulus programs, which has helped gold surge on inflation concerns and the dropping in value of currencies as central banks around the world continue to print money, which weakens their currencies and sets the stage for inflation.

The idea that this is a reality is far from certain, and I think we're far from this being over, and central banks and governments are ready to throw money at the problem at the drop of a hat.

So I wouldn't make any decisions about gold for a long time, and even if governments were to completely stop their stimulus programs, we have the money ready to spread across globe, and that will drive inflation, no matter what happens afterwards.

Gold should do well as a consequence of what has already transpired.

Gold Prices

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