Replies to post #29886 on Golkor Inc (GKOR)

[hotdog1012]

do you seriously believe that the price of gold is ONLY tied to the US Dollar?

[john10204]

Imo,we are headed for a double dip recession fueled by commercial foreclosures...so things will get worse before they get better imo...gold is the best place to be. Some analysts have forecast gold to creep up to 2000.00/oz yet....Seems far off but seems like it wasn't all that long ago when folks said it would never reach 500.00. Time will tell..all speculation though.

[alj14]

Chloeb,

At the end of the day, to quote from the Kitco site, what we are looking at for spot gold was:

Gold Price Change due to Weakening of US Dollar +7.60
Gold Price Change due to Predominant Buying +8.10
Gold Price: Total Change +15.70

Not so shabby for one day's work.

It might be more accurate to say: "The treasury bond rush is over". When you talk of "no sighn of inflation" – should that be "No sighing"?

IMO, the inflation is all in the works and the printing presses are never idle. But it may take quite a while for that to become open and visible. In the meantime everyone is more aware than they were for years that fiat money (whether denominated in Euros or US dollars) guarantees its holders a loss in the longer term. What is going on in the West could be called competitive devaluation.

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In the meantime, if you really believe:

"As the Euro mess unfolds the dollar will gain strength sending gold lower. Also there is no sighn of inflation in the USA economy. The gold rush is over ladies and gentlemen. Time to rethink your options here."

as a long-term policy, then by all means continue to hold cash in dollars!