Monday 26 January 2009

Gold is back

Deflation or inflation? The gold price has spoken. It has reached $900 an ounce.

Meanwhile, sterling continues to slide.

It is all about supply and demand. There is too much supply of sterling and not enough demand.

3 comments:

Anonymous said...

Sterling will hit parity with the dollar soon and I believe it will hit US .70 cents soon after that. The UK has no value: once you strip away the froth, it is a dumpy European country with crappy houses and masses of social problems.

Anonymous said...

Anon: "it is a dumpy European country with crappy houses and masses of social problems."

Oooh!! Who's been sleeping in the knife drawer then?

You think we have masses of soical problems now, just wait 6 months.

Nick von Mises said...

My worst prediction of the past 2 years has been sterling not falling this far. Now I think it's being traded down, not falling due to fundamentals. Wait till all the plebs wake up to the Eurozone depression and the Asian collapse. It'll be a while mind, because they are still getting used to this deflation idea, and before that they thought oil was going to $400