Not all gold bugs wear tinfoil hats

Bloomberg/Jared Dillian

“We still don’t have very much inflation, and yet there is renewed interest in gold with prices reaching their highest since early 2013 at about $1,440 an ounce. There are a lot of reasons to like gold. One is that gold tracks fairly closely with budget deficits. The highs of 2009-2011 roughly corresponded with the large deficits that reached 10% of GDP during the Obama administration, which included the stimulus spending during the Great Recession and a sharp depreciation in the value of the dollar.”

USAGOLD note 1:  Below we post a chart favorite here at USAGOLD showing, as mentioned above, the strong relationship over the long run between growth in the national debt and the rising price of gold.

USAGOLD note 2: By the way, we know more than our fair share of gold owners. Though a good many are business owners and managers, doctors, dentists, nurses lawyers, scientists, teachers, stay-at-home moms and ordinary working men and women (to name a few gold-owner job descriptions), none has ever mentioned anything about a tin foil hat and only a handful have referred to themselves as gold bugs. . . .yet some in the media persist with this nonsense.  Gold owners, as we have said many times in the past, are a slice of Main Street America – nothing more, nothing less.

This entry was posted in Premium Bulletin Board, Today's top gold news and opinion. Bookmark the permalink.