POG

The man has spoken but not too clearly.  The market thinks he will be starting his printing machine.  So gold price jumped.  AUD went up and market indices turned upwards.

As I said, don't buy a yo-yo, just watch POG!  With a rise to nearly USD$1700 per oz, my portfolio will certainly do well unless some other bad news springs up.  However, how can printing money improve world economy in the long run?  As RB says, this will cause a TEMPORARY improvement.

Gold differs from other metals because it has virtually no industrial usage.  Hence its trend follows a different logic.  It is also beyond my understanding but I know that if gold is worth USD$1600 per oz and it costs USD$1000 per oz to produce a 1 oz ingot, then the profit is USD$600.  Sadly, it is unbelievable how poor the profit statements have been from a lot of big gold producers.  These managements should be sacked for not comprehending simple arithmetic and producing the no-brainer outcome.