Club Mulgoa

Thursday, September 22, 2011

Markets tumbling...

When markets tumble, usually POG holds. But it hasn't been. However, that does not bear logic. If Dow continues to fall, money has to be parked somewhere. USD can be printed. Euro is having problem due to lazy Greeks. And now the Italians are joining in the game. Japanese are caught up with the havoc from the natural disasters. And now China is slowing too.

So where do you park your cash? Retailers are not jumping with joy. And currencies can be printed or manipulated. There is not enough gold for central banks and there is not enough for investors either. I have no answer except to postulate that a gold bubble will surface.

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