We have fallen off a deficit cliff—one so steep and deep that it makes the massive deficits deployed to escalate the economy back out of the Great Recession look like half-pints.
Data from the People's Bank of China shows it bought gold again in September. Gold reserves rose by 26 tonnes, boosting reported net buying to 181 tonnes so far this year.
Hoye says, "In the post-bubble deflation...gold's real price could double." Gold mining stock prices can move dramatically on gold's real price and on gold discoveries.
One of the ‘supports’ for the gold price was the release of FOMC minutes yesterday, something that once upon a time would have done a bit of a number on the price of gold.
With inflation rising, and gold traditionally used as a hedge, you would expect gold prices to rise; but the gold cartel is keeping the price of gold depressed.
