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Quotable
“No gold-digging for me… I take diamonds! We may be off the gold standard someday.” – Mae West
FX Trading – The Short Case for Dumping Gold Here
I just love the Mae West quote above. Funny thing is that many gold bugs cling to the belief (any many marketers who should know better validate said belief) that someday we may return to a gold standard. Until politicians are willing to give back the power that flows to them from spending money created out of thin air, it is highly unlikely we will ever see a gold standard. Going out on a limb, odds of that happening are slim to none.
Speaking of the value of gold; we agree with Mr. Soros that it is in bubble territory, as reported in the Telegraph yesterday. Yield competition to us is the key. If interest rates go up, globally—gold likely gets whacked. I know what you’re thinking—rates ain’t going up. In the industrialized world that may be true, but if China doesn’t break it would seem the emerging world rates are going that way. Australia is expected to hike next Tuesday.
What might be a real wildcard is a rate hike in the US for “technical reasons.”
…..read more HERE.