Gold matching record high

Using the generic futures contract on Bloomberg, gold is rallying to match its all time record high at $1,257ish. With very little industrial use and with zero yield, the only reason to own gold is for jewelry and as a currency and over the past few years, the investor demand for another currency outside of the US$, Euro, etc… has of course predominated. The record high in gold is a direct indictment of the Fed’s monetary policy in terms of its dollar debasement and also fears that the ECB will be forced to get further into the money printing game if European sovereign issues become more troublesome from here. People don’t own gold because they want to, they own it because they feel they have to. It’s called self defense.

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