the idiotic FOMC appears to have chosen the “print money” approach to this economic crisis (and to the larger problem of America’s excessive foreign debt)
Correction.
FOMC chose to appear to print their way out of this economic crisis.
The runup of gold is not justified by the amount of money that was printed thus far (which is basically zero).
Furthermore, there are some substantial limitations to how much the Fed CAN print unless ECB agrees to print money too which they seem to be reluctant to do.
Finally, global recession will dampen the demand for gold jewelry. Especially in China and India, and jewelry demand is something like 60-70% of total gold demand.
I think it’s a good time to start reducing your exposure to gold. Today it’s at $905. If it hits $1000, I’m going to cash out completely.
