Quote:
Originally Posted by TAXMASTER
gold is selling at an alltime high in other foreign currencies. it is priced relatively low in us dollars because the dollar is artificially pumped up. that is why there is a run on gold here. if you devalued the dollar to where it was in march, gold would be about $1200. if it was $1200 then there probably would not be the demand for it in the us. that explains some of the shortage. there are not equal supplies of commodities to match consumption all over the world so invariably there will be times when there are shortages geographically even when there is an abundance elsewhere. bananas are cheap and plentiful in south america but sometimes the stores in the us run out.
Namaste'
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Hi Taxmaster
For those of us in the UK I guess this is all a little bewildering.
The USD price of gold is dropping but so is the pound against the dollar so gold is actually going up now from 446 (london fix) to 451 today - so its more or less holding its value.
My question is that with the inflation expected in both the US and the UK, say the price of Gold in US will go up to $1200, so what about the currency differentials.
If the USD collapses the gold will rise to $1200 - but surely if the USD collapases then so will every other currency?
Actually looks like the pound is collapsing before the USD - from 1.71-1.51 this week.
There is alot of advice here to buy gold, but that seems now to have been directed at the US citizens. What would the advice be for those of us in the UK?
I am just trying to get my head around it.
Are there any forums like this one that are UK centric?
Thanks, t.
