The majority of people in this country pay no attention to the fluctuations in the price of gold, but as gold bulls ahead to new highs, people instinctively know what that means. They intuitively know that new highs in gold are a warning that inflation is lurking around the corner and that means a loss of the dollar’s purchasing power. As the world reserve currency, the monetary reserves of every nation are primarily in dollars. As the dollar ultimately loses value, the cost of our imports will rise and inflation will become very visible in the US. Since virtually every currency is expanding, trying to keep a competitive edge with the rest, relative to “real” money, gold, every currency will fall, not just the dollar. This fact has not been lost on the Chinese, the Japanese, the Russians, the Indians and most of the oil producing nations, all of whom have been accumulating gold over the last several years. These nations see the handwriting on the wall regarding the major problems the dollar faces and they are quietly accumulating gold. They are doing this because gold (and silver) are the only form of money that will not be negatively affected by a dollar collapse.
“Follow the money,” and remember – gold is money. Don’t fight the trend, buy on the dips and get longer gold.