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bubble boy!
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People buy this because they're scared of the Fed. Over the next several years, that fear will become more widespread as the U.S. monetizes its debt.
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Gold is neither an inflation hedge, nor a deflation hedge, it is a financial stability hedge. As long as the Fed keeps interest rates at zero and there is a threat of financial instability then gold will continue to rise.
To that point, over the past year the lack of effect of the stimulus, housing measures, and European debt crisis management measures have caused future expectations (expressed in the Fed Funds Futures) to fall throughout the year. For now, there is nothing but a bull market for gold.
Fed Funds Futures : See here on page 5 --> http://www.frbatlanta.org/documents/research/highlights/finhighlights/FH_090110.pdf
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The Dollar is going down.
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Gold what else needs to be said?
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A pure play etf on gold based in Switzerland.
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1st Gold ETF listed in US market to be backed by physical gold, located in Switzerland.
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