It's inevitable but is it investible? Probably...there was a nice sell-down today to buy into...it was fake because oil soared...but the market masters are doing their duty and selling gold to hopefully get Bernanke off their asses...
But the central banks like to play with gold too...sort of as a proxy for how well they are doing in controlling monetary expansion... Gold has been winning lately.
For gold to "lose" might require the central banks to raise rates "too much" to flush the system of liquidity like what happen during most of the 1970's. But, the 70's was a much better domestic economy for American workers. Indeed, it was the high point for the union power in American economy.
Now there is another "evil one"...not the unions, but Wall Street Greed...like in the 1870's!
Worse yet, the central banks have the impression that they "figured out" how to keep the economy always on the upswing...THOURGH THE "MIRACLE OF ASSET INFLATION."
Well, it worked for a while, like all economic "brain storms," but now a "bad kind" of asset inflation is starting, inside the commodities markets...
But Hey when the investing classes feel the real estate market is too high...they'll simply move their money to another gaming table...they start playing the COMMODITIES GAME!
That's what the big gold spike was all about yesterday...and this Citigroup "upgrade" of the "metals"...no mention of gold...was a really scary "kiss of death" for all serious economic thinkers.
But fortunately, there aren't too many of them on Wall Street or in the Finanical media! There's always a "bright side" you know...
