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Central Missouri | Yes very much so but there are a few more dynamics taking place in gold than grains...
1. Gold mine production is falling and gold price increasing hasn't stopped that.
2. There have been reports of severe dislocations in delivery on the London exchange where 90% of the big physical gold trade takes place.
3. Gold demand is down year over year but maybe readily available supply is also
4. The public worldwide is just beginning to buy gold.
5. Gold is historically a hedge against bad govt monetary policy. Man do we have a pile of that in the U.S. and worldwide. we aren't the only ones creating "money" out of thin air
6. If the dollar sinks stocks and commodities will go up.
7. As long as dollar interest rates are at zero the carry trade will continue whichs props physical commodities and stocks.
With all of that said the bullish concensus on gold was at 97% 2 days ago. Tat means we are due for a correction that is either fairly big in price or lengthy in time or both.
http://www.zerohedge.com/article/world-gold-council-provides-third-...
Edited by ehoff 11/19/2009 11:56
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Interesting Gold Numbers
