Analysis: Gold price an inflation alarm

Hang on to your hat and watch your savings because if last night's sharp rise in the price of gold is an accurate guide, a long-predicted wall of inflation is about to break over the world.


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5 fold increase in price of gold in 10 years, at long last someone has the idea that inflation is real.see if the spinners can turn the ball the other way.

Now everyone repeat after me: Bubble. Gold as a commodity has little intrinsic value in any production stream, other than miniscule amounts in consumer electronics, unlike really useful commodities like iron ore, copper, tin etc. Its value therefore has completely dependent on its current demand as an investment vehicle and as such has the same risks associated with other similar investment vehicles or assets such as overpriced properties in the 00.s, .com stocks in the 90's or if you want to go back to where it all began Tulip Bulbs in Holland in 1637. At some point the bubble will burst, the price will peak, investors will want to switch investment vehicles and the price will plummet, leaving the last player to enter the market wondering how the $1000.00 gold bar they just bought turned into a $300.00 shiny paperweight.

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