Well, many things happen almost at once. With US Debt Rating Downgrade lead to dropdown in stock prices all over the world and now as to counter the recession, Fed's Big Boss, Bernanke is already on the verge of decision to commence Quantitative Easing 3. And the hard truth is, QE3 might be the only plausible choice Fed have.
As of recent days, we see how prices of gold rises and just yesterday it breakthrough $1700 to $1739. Even in my country, the demand of Gold is very high, to the point that it leads to rarity.
QE3 surely will make Gold prices once again. Why you ask? SImple, as Fed print more money to buyback Long Term US Treasury, Dollar will lose its former value. Call it inflation. Sadly though, there is no rise in their income, meaning that their real income steadly decline eventhough there is no change in nominal Income. To protect their wealth, they want to put it in safe instrument with good liquidity and high value. Guess what?
Gold. I'm sure your highschool teacher at least have told you right, that if the quantity increase, so does the price.
As how about property. It is not the safest instrument especially for you westerner with how the Property Bubble nearly crash.
Well, it is still not too late to collect Gold. QE3 will rise it again for you.
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