San Diego Housing Market News and Analysis
Inflation equals Gold buying time, agree or not?
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Submitted by masayako on September 18, 2006 - 10:11am
Inflation equals Gold/Foreign currency buying time, agree or not?
Since the U.S. dollars is dropping in paper value, people tend to move into Gold/Foreign currency to protect their asset from losing face value.
If so, why is Gold dropping in the past month from $64 to about $57. Does it mean people think Inflation is long gone and it's time to jump right back to the stock/equity market?
I think the market has overreacted to Ben's pause of the rate hike. Though I believe the next Fed meeting will continue to pause interest rate(or even drop in rate, possibly), I don't think inflation is under control. Fed stopped the rate hike due to the potential meltdown of U.S. economy triggered by the housing bubble.
What do you think?
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