Friday, May 11, 2012

Gold Prices dropping?

Gold prices are down 3%, but is Gold tumbling? Typically investors acquire Gold to hedge against the currency's depreciation. One of the signs of its depreciation is inflation. Of course, the "experts" state that inflation is low based on the CPI, but this index does not include all goods. Gold maybe down for now, but will the Fed inject another round of Quantitative Easing? If so, then Gold may increase in price based on more currency in the system.

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