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Thursday 14 October 2010

Gold

Gold is at an all time high

it is telling you one of two things:

1) It is the next bubble and will pop monumentally
2) We are about to see the start of a currency war

And what, I hear you ask, is a currency war?

Western countries have significant amounts of debt.  By devaluing their currencies (making them weaker) countries can effectively reduce the amount of debt they have to repay.  The next major candidate for this is the USA who is a gnats wing from engaging in a trade war (probably then followed by a conventional war) with China.

China has vast holdings of US debt.
The US devalues its currency in revenge for China's own currency manipulation.
China's holdings of US debt reduce in value, and their exports to the US increase in price making them less competitive.

But back to Gold.

Whilst not giving financial advice, I see Gold continue its monumental rise.

You might therefor want to raise your prices for any metal work you do in your practice.

Just a thought

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