What Is Going On With Gold?
Many are surprised at the jump gold has made in recent years, increasing in value so fast that $1000 an ounce now seems likely.
Mish is offering an explanation for this:
The message behind gold is simple: Gold is acting like money because gold is money. In deflation, the value of money rises. Money is hoarded. Furthermore, in economic turmoil in general, gold is sought as a safe haven. Gold has both of those things going for it.
With leverage everywhere under attack however, there is a possibility of a sharp pullback. From what level such a pullback might occur is anyone’s guess.
Good news for those that have owned gold for sometime. Those that do not may find it a better and easier investment to simply payoff mortgage debt.
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