by Frank Suess, The Daily Bell:
The history of fiat money is little more than a register of monetary follies and inflations. Our present age merely affords another entry in this dismal register.” ~ Hans F. Sennholz, author and lecturer of Austrian Economics
As I started writing this Update, the USD spot price of gold stood at USD 1,373.40, up a little over 1 percent from Monday’s low of 1,350.80. Within a few days, gold has lost almost 14%. Year-to-date it is down 18.83%. The following graph sums up the radical and rapid move over the past few days. What is not shown here is that the fate of silver was even worse, and most commodities have seen sharp corrections.
The Gold Sell-Off – radical and rapid
It is critical to not lose sight of forest for the trees. This price move needs to be seen in a much larger context. As you know from my earlier comments, I do not believe in the economic recovery myth. The weaknesses of overall commodity markets are an expression of the slowing world economy. The common optimism may be sharply disappointed very soon… in equity markets, too.
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