RE:RE:New cornerstone … Hey Dale
We agree generally but if (when) Gold goes on another spike, I feel that the next high will be much higher than $2900
World debt levels significantly higher this go round. Printing fiat currencies like there is no tomorrow will be the path forward ( ie leading to future spikes in inflation) . Raising interest rates too high ( as in early 1980s) or for too long will prove to be too painful. In other words Govts, business and individuals will be unable to service debt levels without rerunning the printing presses full out .
So gold, being unprintable, becomes one of the few ways to preserve purchasing power. The Volker 1980 solution of raising rates will be unpalatable given out of control debt levels.
MM