Monday, April 20, 2009

Gold Goes Goliath!

The three safe havens -- gold, treasuries, and the Dollar -- are sharply higher today. However, only one leg of this safe haven stool -- gold -- doesn't depend upon government. It is also sharply higher today. If the other two legs of the stool ever collapse, then gold will be the only one left. This could be a consequence of hyperinflation. When the U.S. government debt bubble pops, then gold would be the only safe have left. If hyperinflation occurs, I suspect we would also see other physical commodities take off higher also, despite soft demand.