re: But don't you think it is a little ironic that when we have the most screaming about inflation and money printing these last 2 years, gold has wiped out the last 2 years of gains?
My comment: No more ironic than the record high stock market in the face of a slowing economy. No more ironic than people making offers on RE above the asking price or builders holding lotteries for prospective buyers. It's all due to the Fed's actions and as you and I and many others have noted, it is not sustainable and there will be a huge price to pay. As for gold as an inflation hedge, I don't view gold as an inflation hedge in the current environment and have not since 2000. I see gold as a store of wealth and as a safe haven despite the desire by the Fed and the Bullion banks that have shorted gold to suppress the POG. I think the last couple of weeks have shown that their ability to do that is waning as the physical market is showing strong demand in the face of artificially low paper gold prices. It is quite easy for a stock investor to claim that he is successful when the Fed has his back, but it is also creating a very dangerous bubble and there will be nothing the Fed can do to counteract the consequences when it bursts. What is happening in the stock market now is not investing, but gambling on the Fed. How long can an economy have that kind of market without some dire consequences ? Even sovereigns are beginning to bet on their own game as they buy stocks.
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