For many years now I've been saying that Gold is a Crisis Hedge rather than an inflation hedge. But it is also a commodity and a monetary instrument. Thus there are a variety of factors affecting its price at any given time. Currently as the world economy continues rolling on people are less worried about catastrophe around the corner and they are beginning to believe that the FED is all powerful and can paper over any and all monetary problems with the stroke of a pen. So why worry? This has taken some of the edge off the urgency to buy gold. Plus as the stock market reaches new highs the "opportunity cost" of holding gold increases. So does this mean that gold is headed for the dustbin and … [Read more...]