Everybody seems to be wondering this these days.
If the government is printing dollars at the speed of light, doesn’t this mean we should have immediate inflation and gold surging?
Well typically, the answer to this would be ‘yes’, but this market is over the edge in terms of what to expect next. The main reason we have a rising dollar and declining gold price in the face of billions of new dollars entering the market is the hedge funds that are actually forced to sell their gold holdings because of their other losses.
Also, the price of gold in terms of dollars is pretty meaningless. Try buying gold coins on ebay. You will notice that many are marked up at a 50% premium! The true price of gold is far higher than what we’re told, simply because demand far outweighs supply at this point.
Gold has actually been the smallest loser compared with just about everything else.
Once things calm down a bit and there is a shake out in terms of investors in the market, you will see a steady increase in the price of gold. At some point (probably within the next year), we will see violent rallies in gold where it goes up 200-300 points in a day!
Don’t be stuck holding paper fiat federal reserve notes in 2009. Get even a little bit of gold today and protect yourself from hyperinflation that is almost inevitable.