Gold Rallies to 4 Month High Above $700

Gold Rallies to 4 Month High Above $700

I am not normally a huge gold bug. I do not own any gold in my futures account, but about a month ago I purchased the ETF GLD for my ROTH IRA. I may be a bit ‘old school’, but watching the Fed try to ‘liquidate’ its way out of the credit crunch really turned my stomach. And the Bush housing bailout is even worse. What ever happened to capitalism?

I feel like there must be ramifications for the ‘Bush/Bernanke put’. However, the supply/demand case for gold is not compelling compared with most of the other commodities. There is plenty of gold being mined. If you buy gold, you are betting on the failure of fiat currencies, buying some piece of mind, etc.

Because it is a commodity, I’ll cover it briefly from time to time. But I do not plan to buy any gold contracts in the near future – I’ll stick to simple supply/demand.

Gold rallies through 700 (Forbes)