- 21 April 2006
So, if USD eventually goes back up, POG will decline?Well here's gold v us dollar until 2008 not that the US FED funds rates has moved yet and gold certainly should be north of that red line. I suppose if the chinese central bank moves their lending rate by 300 to 400 basis points over the next 12 months that may effect the value of gold. Either that or they look like getting monstered by inflation anyway.
This is not investment advice
I'm still learning
In that case, the gold bulls are betting on the US continuing their policy of printing money and they're not going to get out of this situation. It's just down hill forever until gold becomes a real currency again where you can trade a gold coin for some mixed lollies...
So, if the US/world sorts itself out, and we keep using 'paper' as currency, gold might go down?