-America's latest gold rush. When even reality TV fans are watching shows like Gold Rush, Yukon Gold, is that the signal that the bubble has burst? Forcenturies, investors have depended on gold as a safe store of value in the faceof rising prices, but now the precious metal's luster seems to be fading. Goldprice has down more than 20 percent since September. What's going on? And whynow? Is gold still a safe haven? Economic growth numbers out of China are raisingenough for investors to worry. Slow in the growth of world's second largesteconomy will mean lower demand for precious metals, with industrial uses, likegold, but someone are buying it.
-A lot of people are taking them as evidence the world is slowing, noinflation, commodities are dead, get out of gold. That is not the deal. This isthe real desperation on the part of the West. They set off some sort of panic,so no one would ever go near gold again.
The move out of gold would suit many central banks just fine, because lowergold prices imply higher confidence in their monetary policies. Right now, itcould be summed up in two words-- friend, money. That confidence may pushinvestors away from gold and into stocks, which are now trading near all-timehighs, but it can't last forever. All that extra money in the financial systemcould fuel inflation and that will make gold attractive again as a safe hedgeagainst rising prices.
-My suspicion is as gold is looking for a bottom either this month or next, youare likely to see a gold resume its uptrend in coming years.
Christine Romans, cnn, New York.
