Gold Prices Hit All Time Record High
September 14, 2010 · Posted in Investing
Today gold bugs are happy as Gold Prices Surge, Top $1,270:
NEW YORK (TheStreet ) — Gold prices were popping Tuesday as investors turned to gold as safe-haven asset after a slew of disappointing economic data.
Gold for December delivery was adding $27.30 to $1,274.40 an ounce — a record high — at the Comex division of the New York Mercantile Exchange.
The article obligatorily drones on about the cause for the gold price surge now suddenly being inflation fears again, which is of course the purest nonsense as I outlined a while back.
These people try to fit in day to day events into their tiny mental box and spout out knee jerk platitudes as quickly as they possibly can, whenever they observe one isolated incident. Gold prices rising? Inflation! Economy not growing meanwhile? Stagflation! Interest rates dropping. Deflation! Prices not rising quickly enough? Disinflation! Dollar AND gold up?? How weird!!
Few people ever dare to go ahead and attempt to explain the big picture, that is why since 2007 Treasury yields and mortgage rates have moved near or BELOW historic lows, why the dollar is up, gold is up, silver is up, and soft commodities, stocks, and home prices are down, rents are falling, and why you can get a meal at Taco Bell for under $1 …
The answer is one word: Deflation.