http://www.gold-eagle.

com/article/gold-price-exclusive-update-14

Peter Schiff: Inflation Is Good For Gold! Duh!

Peter Schiff

February 18, 2018

1
Inflation is back. So what does this mean for gold?
The consumer price index came in hotter than expected at 2.1%.
A CNBC report said the number "pushes the economy toward a potential
danger zone for inflation."
Analysts had expected January inflation to come in at 0.3, after being up
by 0.1 the previous month. Instead, the December number was revised
up to 0.2 and January came in at 0.5. As Peter Schiff pointed out in his
podcast, if you multiply 0.5 by 12 months, it comes to 6% inflation per
year.
"I think this is a trend. This is a horrible number."
Rich, pls post live video here: https://youtu.be/ApUTV40ufr8 (but w/o
all the side ads)
Gold initially sold off on the news. It fell about $12. Why? Because
everybody thinks rising inflation means the Fed will raise interest rates.
But as Peter said, so what?
"It's not going to stop inflation. They would have to raise rates
aggressively. They would have to move rates up faster than inflation is
increasing, and they're not. Nominal rates are falling."
Keep in mind, an interest rate is nothing but a price. It's the price of
money. When there is inflation, interest rates go up just like any other
price. Contrary to popular belief, this is not bad for gold. Quite the
opposite.
"But of course, this is all bullish for gold. Duh! Gold is an inflation
hedge. That's what it's for!"
As gold began selling off, Peter tweeted the following:
"Gold sold off on the much higher than expected inflation-numbers.
Traders still don't get it. Higher inflation is bullish for gold, especially
since the Fed can't contain it with higher rates, as the rate required is
higher than what Americas can afford to pay."
Low and behold, gold rallied. Peter later tweeted:
"Gold's $12 dollar selloff is now a $13 dollar rally. Maybe traders are
finally figuring out that inflation is good for gold. Wait until they figure
out that no matter how hot inflation gets, the Fed is powerless to put out
the fire!"
Gold was up as much as $25 as investors fully digested the inflation
news. It ultimately closed up $20 at just over $1,350 per ounce. Peter
summed it up on his podcast.
*********
ARTICLE NO 2
This article and another were written for Miles Franklin. Read them here and here. Since this article was written
in early January stock indices have bubbled higher. Some analysts have dreamed of a “melt-up” for stock
markets. Regardless, bubbles crash eventually.
The Dollar
Dream Gig: The Secret to Success
Across every business or industry, there are four universal drivers that can cause slow internet.
comcast.com
The Dollar Index dropped from 102.28 on December 30, 2016 to 91.82 on December 29, 2017, and further to
88.26 on January 25, 2018. The Index tracks the floating value of various unbacked fiat currencies against
other fiat currencies also backed by nothing but debt, politician promises and taxing authority.
The U.S. dollar fell this year against other paper currencies, the DOW, gold, silver, Bitcoin, crude oil, and more.
Who would have thought inflating the currency supply by creating $20.5 trillion in official debt and well
over $100 trillion in unfunded liabilities could become a problem? Yes, this is sarcasm, and sad, but
true.

Massive debt is a drag on the economy, creates consumer price inflation, and increases income inequality. The
debt will be addressed via default (Sorry, we’re not paying! Best of luck with your future investments!). Or more
likely, it will be paid with DEPRECIATING dollars that buy far less than in 2017, 2000, 1971, and 1913.
(From Alan Greenspan 1966)
The Economist Magazine cover from 1988 showed a new world currency would arise, like a Phoenix, in 2018.
It was an enigmatic cover that begged questions.

1. Did the Economist anticipate the inevitable decline of the U.S. dollar as the reserve currency used for
global trade?
2. Did the Economist expect the rise of the SDR (Special Drawing Rights), another fiat currency issued by the
IMF (International Monetary Fund)?
3. Was the Economist prescient on the rise of cryptocurrencies?
4. Why pick 2018? Why not 2008, 2010, 2020, or 2028?
5. Did the Economist choose 2018 based on these ideas? – link here.
From Gary Savage: The Surprise for 2018
“The surprise in 2018 is going to be the collapse in the US dollar. It will drive the bubble phase in stocks (it
already is), it will drive gold out of its basing pattern (I think it has begun), and inflation in general will start to
rise significantly next year (oil is already at $60 when many were looking for a return to sub $30).”
From Vladimir Putin in 2011:
“They [USA] are living beyond their means and shifting a part of the weight of their problems to the world
economy… They [USA] are living like parasites off the global economy and their monopoly of the dollar.”
The Russian retaliation against the dollar has several phases, including accumulation of gold bullion (in place
of U.S. dollars) and development of global trade payments based on gold, an alternative to dollar systems.
From Jim Rickards’ Strategic Intelligence (Subscription Service)
“Recently, and in a remarkable – but not unexpected – announcement, First Deputy Chairman of Russia’s
Central Bank, Sergey Shvetsov announced that BRICS nations (Brazil, Russia, India, China and South Africa),
are now working to create a unified system of gold trade.
In essence, this new gold-trade system will become a parallel, globe-spanning monetary system, in competition
with the current, dollar-based regime.”
From Peter Schiff: Pakistan Dumps the Dollar in Trade With China
“The United States uses the dollar as a weapon to keep other countries in line, but it’s becoming a less and
less effective strategy as other nations find ways to minimize their dependence on the greenback.”
CONCLUSIONS AND ACTIONS
The dollar fell against other currencies in 2017, as it has against most commodities for decades. Expect the
slide in purchasing power to accelerate in 2018 due to excessive U.S. debt, the rise of global competition to the
dollar as reserve currency, changing global financial systems, the rise of private and central bank issued
cryptocurrencies, and declining confidence in the U.S. economy.
Protect your savings and retirement by escaping the guaranteed destruction of dollars (euros, pounds, yen etc.)
by moving into something more real than a “high yield” checking account that pays 0.01% interest, a Ten Year
Treasury Note that pays less than 3%, or an over-valued stock market. Silver and gold come to mind.
WHAT ABOUT GOLD?
THE MEDIA TELLS US GOLD IS DANGEROUS AND UNSTABLE. We can’t eat gold or buy gasoline with it.
We can’t eat dollar bills or buy gasoline with Treasury Notes either. Gold has been money for thousands of
years while Federal Reserve Notes are debts (IOUs), not assets, issued by the Federal Reserve. The
purchasing power of those notes depends upon confidence in government, central bank “printing” policies, and
expected future inflation.
It requires real effort to mine gold, but Federal Reserve Notes, Currency Swaps, Guaranteed Loans,
Quantitative Easing Scams, and more Central Bank manipulations “create” dollars, yen, pounds, and euros by
the trillions from nothing.
Counterfeiting twenty dollar bills in your basement is illegal, but it’s perfectly acceptable if the Federal Reserve
prints them, which inflates the currency supply.
From Alan Greenspan: Gold and Economic Freedom (1966)
“In the absence of the gold standard, there is no way to protect savings from confiscation through
inflation. There is no safe store of value.”
Tom McClellan of McClellan Financial sees an eight year cycle in gold lows and thinks gold will move much
higher from here.
“McClellan Financial says an eight-year cycle for gold is about to start and the next five years will likely
be good ones.”
“As we head into early 2018, we have both the 8-year cycle and the 13 ½ month cycle in their ascending
phase. That means both horses are pulling in the same direction, and it should mean good things for gold
prices especially in the first half of the year.”
All fiat currencies devalue over time, so gold prices, consumer prices, and stock prices rise. Like Bitcoin, they
can bubble higher, such as gold in 1980, Internet stocks in 1999-2000, houses in 2006, and tech-stocks and
cryptocurrencies in 2017-2018.
Gold prices rise as currencies fall toward zero purchasing power. Other forces that will propel gold higher are:

 The decline of the Petrodollar, and the rise of the Petroyuan and Petroruble will weaken the dollar. The
Petrodollar and the dollar’s reserve currency status will not disappear overnight, but both are threatened.
Gold will rise as the dollar loses its reserve currency status. Read Pepe Escobar on China’s Petro-Yuan
Bombshell.
 Gold has corrected from its 2011 high for over six years. Gold prices bottomed in December 2015, and
reached higher lows in December 2016 and 2017. All-time highs will occur in 2018 or 2019.
 Wars are expensive and inflationary. Congress, the Administration, and the Military show no sign of
restricting the “Defense” budget or curtailing military interventions. Reportedly the U.S. Military has troops
in 170+ countries.

 North Korea, Syria, Eastern Europe, and the Middle East are “hot spots.” We don’t know how extensive
these wars will become, but new or escalating wars will be expensive and create far more debt. Gold
prices will rise.
Gold prices bottomed in late 2015 and have risen since then. Expect gold prices to accelerate higher in 2018
and 2019 as currencies weaken, stock markets and bond markets correct, and a credibility crisis erupts
surrounding central bankers and governments that have mismanaged their economies and currencies.
Examine this log-scale chart of gold prices over 20 years. You can see gold’s exponential rise (straight line on
a log scale chart) as the purchasing power of the dollar has declined, particularly since 9-11. Gold prices are
tracking upward on the low end of their exponential hannel.
Prices could stay within the 25 year exponential trend channel, as drawn, and reach $5,000 by early next
decade. A “moonshot” as shown by the black dashed line connecting four major highs puts $10,000 in
play. Even higher prices are possible.
How high gold moves in the next decade depends on loss of confidence in the US dollar, the rise of other
trading currencies, such as Russian and Chinese supported gold backed trading units, and how rapidly The
Fed and U.S. government inflate the supply of dollars through uncontrolled deficit spending and other
destructive policies.
Silver: In my opinion silver is a better investment than gold. Read this article.
If you prefer the time-tested wealth preservation of precious metals instead of devaluing debt based currency
units, consider silver and gold.
Call Miles Franklin at 1-800-822-8080 to buy silver and gold. They will preserve the purchasing power of your
savings and retirement assets.
Article no 3
Gold Price Exclusive Update
Jack Chan

February 17, 2018

2
Our proprietary cycle indicator is down.

To public readers of our updates, our cycle indicator is one of the most
effective timing tool for traders and investors. It is not perfect, because
periodically the market can be more volatile and can result in short term
whipsaws. But overall, the cycle indicator provides us with a clear
direction how we should be speculating.
Investors
During a major buy signal, investors can accumulate positions by cost
averaging at cycle bottoms, ideally when prices are at or near the daily
200ema.
During a major sell signal, investors should be hedged or in cash.
Traders
Simply cost average in at cycle bottoms when prices are at or near the
daily 200ema; and cost average out at cycle tops when prices are above
the daily 50ema.

Gold sector is on major buy signal since early 2016.

Major signals can last for months and years and are more suitable for
long-term investors.
Speculation is in bull market values.

This is a massive bottoming pattern four years in the making.

GLD is on short-term sell signal.
GDX is on short-term sell signal.
XGD.to is on short-term sell signal.
GDXJ is on short-term sell signal.
Summary
Long-term – on major buy signal.
Short-term – on sell signals, a pullback is in progress.
Gold sector cycle is down.
COT data is supportive for overall higher metal prices.
We are holding gold related ETFs for long-term gain.
Disclosure
We do not offer predictions or forecasts for the markets. What you see
here is our simple trading model which provides us the signals and set
ups to be either long, short, or in cash at any given time. Entry points
and stops are provided in real time to subscribers, therefore, this update
may not reflect our current positions in the markets. Trade at your own
discretion.
www.simplyprofits.org
********
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Article no 4

20 Experts Give Their Views On Gold

Chris Vermeulen

January 29, 2018

19

How sensible is it to invest in gold? There is no blanket answer to this frequently

asked investor question. Much more depends on what you personally expect from
an investment in gold.
In this second part another 10 experts give their blunt opinion about investing in
Gold. They talk the pros and cons of buying gold, each from their own
perspective. Read part 1 here.

1- Physical Gold and Silver are like an “emergency kit”

By Chris Vermeulen – Chris Vermeulen is the founder of Technical Traders Ltd.
He is an internationally recognized technical analyst, trader, and author of the
book: 7 Steps to Win With Logic.
www.TheGoldAndOilGuy.com
There are really only a few short and simple answers to the question why you
should consider buying Gold? Investing in Gold provides a hedge against risk,
capital preservation and opportunity for returns.

First, Gold, historically, has been and will continue to be the basis of physical
wealth for the foreseeable future. Currently, Gold and Silver are relatively low cost
compared to other assets offering similar protection. As of right now, Gold and
Silver are nearing the lowest price ratio levels, historically, that have existed since
1990. This means, the relationship of the price ratio for Gold and Silver are
comparatively low in relationship to how Gold and Silver are priced in peak levels.
So, right now is the time to be acquiring Gold and Silver as a low price hedge
against another global crisis event or market meltdown.

Second, the fact that the Gold and Silver price ratio is historically very low
(meaning they provide a very good hedging opportunity at historically very low
price ratio levels) also means that cash can be traded for physical gold with very
limited risk and provide an excellent hedge for inflation, global market crisis
events and as long term investments. Taking advantage of the current market
conditions, one has to be aware that crisis events do exist and present a clear risk to
future equity investments. One could decide to risk further capital hedging with
options or short positions as risk becomes more evident, but these are inherently
more risky than a physical Gold or Silver investment. Physical Gold or Silver,
especially rare coins which include greater intrinsic value, can provide real capital,
real gains, real hedging of risk and real return – whereas the short positions or
options are only valuable if the trade is executed to profit.

Lastly, Gold and Silver are very limited in supply on this planet and, unless society
decides that Gold or Silver is absolutely worthless as a substance, will likely
continue to increase in value. News that China and Russia are acquiring hundreds
of tons of gold each year in preparation for a gold based currency are another set of
reasons that you should consider starting your own physical hoard of precious
metals. The most important thing for you to understand about owning physical
Gold and Silver is that it is a protective investment that can be liquidated or resold
at almost any time in the future. It can be traded, held, secured and transported
easily. You can physically take possession of your Gold and Silver and be assured
that through any banking crisis, global market crisis or major global event, you
have enough physical precious metal to operate in a crisis mode and likely attain
great wealth/gains in the process.

Think of physical Gold and Silver like an “emergency kit”. You hope you never
need it, but when you do need it, you had better be prepared and have set aside
some physical holdings before the crisis event happened. Out here in California,
we keep “Earthquake Kits” with emergency supplies, water, lanterns, food and
other essentials. Well, guess what is included in my Earthquake Kit? Yup – Gold
and Silver in proper quantities that I could barter and trade for items that are
essential.

The point of my post is that I can think of no reasons why anyone would not want
to attain some physical Gold and Silver at today’s prices to protect against known
risks, provide a hedge against inflation and crisis events and to protect wealth from
what we all know will happen in a crisis event – the banks will close or limit cash
availability (think of Greece). So, it is really up to you to determine if and how you
want to prepare for what could happen in the future. Will you have your
“emergency kit” and be prepared or not?

2- Diversification is key
By Ben Reynolds – Ben Reynolds is CEO at Sure Dividend. Sure Dividend is an
investment information and newsletter site dedicated to high quality dividend
growth stocks.
www.suredividend.com
For most people, the purpose if investing is building up a nest egg large enough to
live off in retirement. In a perfect world, your portfolio’s growing dividend income
would more than cover your expenses in retirement. In this ‘best case’ scenario,
there’s no need to sell holdings as dividends alone cover expenses.
Unfortunately, this is often not the case in the real world. When portfolio income
isn’t sufficient, you must slowly liquidate your portfolio. This presents a serious
problem – forced selling.
When you are forced to sell, you don’t get to pick when you sell. You sell to get
cash, not because it’s a good time to sell. This can cause selling at inopportune
times – like selling stocks in March of 2009.
To counteract forced selling, investing in uncorrelated assets is essential. If your
stock holdings are down big due to a recession it’s the worst time to sell. Instead,
you can sell an uncorrelated asset which might be up.

Again, reality makes things difficult. There are very few asset classes that are
uncorrelated with stocks. The two largest are long-term government bonds and
gold.
Interestingly, stocks, long-term government bonds, and gold are all uncorrelated
with each other – meaning you get big diversification gains from them. The
Permanent Portfolio best utilizes these uncorrelated assets to form an easy-to-
implement strategy.
Perhaps the greatest benefit of investing in gold is taking advantage of its unique
investment properties; namely, that it is not correlated with stocks or bonds. This
is especially important for investors who will be slowly liquidating their portfolios
as it provides a hedge against stock and bond market declines.

3- You should not invest more than 10% in gold

By Basavaraj Tonagatti – Basavaraj Tonagatti is Certified Financial Planner. He
shares tips about finance & investment funds in India on his personal finance blog.
www.basunivesh.com
When we look at historical price data, gold as an asset class can result in short-
term losses, but can counteract equity volatility as well. Hence, I will never invest
too much in gold. For reasons of diversification and as a hedge against price
movements of other assets, one should invest in gold no more than 10% of the
overall portfolio.
The problem with gold is that we Indians still try to invest in physical gold. We
hardly experiment with related products like Gold ETFs or other forms of gold.
Hence, to maximize your profits by investing in a gold product, you need to make
sure what returns to expect, take its volatility into account and you need to decide
for how long you want to hold your assets.
4- Owning gold takes away the need to predict the future
By Physical Gold Ltd – Physical Gold Ltd is one of the leading gold dealers in the
UK. The physical gold shop offers guidance, expertise and market leading prices
for coins and bars.
www.physicalgold.com
There’s a huge raft of benefits which can be gained from investing in gold.
However, there are two main reasons you should consider gold investment, above
and beyond all others.
As a store of wealth
This may not sound exciting but it’s one of the most important, yet overlooked
aspects of gold. For some time now, global interest rates have been near to zero.
The main consequence of this is the low interest rates we receive on our cash.
While cash in the bank has traditionally been seen as a prudent allocation of liquid
assets, it now loses value every day. That’s because the percentage you receive
falls well short of the inflation rate (which is on the rise). So every day your cash is
left in the bank, it is actually able to buy less and less.
Throughout history, the gold price has always more than kept pace with inflation.
So, switching money from low-interest bank and ISA accounts into physical gold
coins, will protect the value of your money from the erosion that inflation can
bring.
Portfolio Insurance
We’d all like a crystal ball to predict the next market crash, or even the lottery
numbers! But taking control of your future, rather trying to get lucky is the more
sensible and safe decision.
Owning gold takes away the need to predict the future. That’s because it has been
regarded as the world’s safe haven asset for hundreds of years. So whenever
there’s political or economic instability, demand for gold increases, pushing up its
price.
In other words, if Brexit turns out to be a huge problem, and other countries follow
the UK, then gold will benefit. If another banking crisis emerges or a credit bubble
builds, both a question of ‘when’ rather than ‘if’, then investors will flock to gold
in droves.
This means that owning gold now will protect you from market downturns in the
future, regardless of when they happen or how severe they are. Gold is known as
portfolio insurance as it rises in value when most other assets fall. This protects the
overall value of your pension or investment portfolio, and provides you with the
certainty you seek for your future.
How do I get started?
As market leading exerts in gold and silver investment, we reveal the 7 Crucial
Considerations before you buy gold or silver. Ensure to read this cheat sheet before
you buy gold or silver.

5- Gold is a counterparty risk-free investment

By TaxGuru® – TaxGuru is an all-round tax service company and offers a
complete tax solution for C.A., C.S., ICWA, Tax and Finance Professionals in
India.
taxguru.in
Gold isn’t just a valued ornament but it’s also a very well-known form of
investment. Most of the people treasure gold for ages passing it to their generation
in form of asset. There are several benefits attached to investing in gold. Some of
the benefits include:
Simple and easy mode of investment
Gold has undergone centuries as a sign of wealth and the most of the benefits
attached to gold begins with for it is the simplest form of investment. It is
relatively scarce, indestructible and cannot be manufactured. Gold is the best
alternative to the complicated investment products available today.
Low volatility
There is a limited supply of gold in the world that generates exponential price rise
when the demand for gold increases. The gold production cannot rise simply for
meeting the increased demand, hence the demand for gold drives the prices higher
naturally. This also minimizes the risk of devaluation, since lower prices would
attract more demand for gold, which would again fuel the price rise.
No risk of counterparty
Gold in its physical form provides its holder a counterparty risk-free investment
option. It is specifically pertinent in today’s financial world, where money isn’t
safe even in bank accounts. It also eliminates the counterparty exposure which
subsists with gold stocks, options, and futures.

6- Gold is one of the best ways to diversify your investments

By Randy Kurtz – Randy Kurtz, MBA, BSBA, is the chief investment officer of
Betavisor, LLC. He has been profiled in Forbes, The New York Times, and The
Wall Street Journal.
betavisor.com
If you believe an asset will behave differently than your portfolio, the question is
“How much of it should I own?” rather than “Should I own it?”
Gold is a must in your portfolio, almost regardless of your goals. Historically gold
has had rather low, or negative, correlations to the U.S. stock market (which
comprises the majority of many investor’s portfolios).
Did you know that since 1970, a portfolio comprised of 50% in gold and 50% in
the S&P 500, rebalanced annually, would have had similar returns and less risk
than a portfolio 100% in the S&P 500, with less risk.
The whole point of investing is to diversify away as much risk as possible. Gold is
one of the best ways to accomplish this. Diversification is done through adding
assets with low correlation.

7- No way the price of gold will go down permanently

By Anand Vijayakumar – Anand has been blogging about banking and finances
for about 8+ years and works in Singapore as a full time IT professional.
anandvijayakumar.blogspot.in
Gold, the shiny yellow precious metal has been a popular avenue for investment
for Indians since the day we found it. Our forefathers saved up their life’s earnings
as gold and so did our parents. Considering the fact that there is only a limited
quantity of gold that the earth has and the demand in the global markets, there is
absolutely no way the price of gold will go down permanently – EVER…
Of course, based on global demands the price may fluctuate a little bit but the
constant upward trend in price will continue until the day some other item captures
man’s interest like this shiny metal.
In today’s world we can invest in gold bars, coins, jewelry, ETFs and even mutual
funds that invest in gold mining & related companies. I prefer the ETF route as it is
an inexpensive way of investing in gold without the risk of having to physically
safeguard the metal from loss. If you have access to safe keeping facilities or if you
are someone who doesn’t trust others you can buy physical gold bars and keep
them safe. Investing in gold via the jewelry route is inefficient as we usually end
up paying around 5-10% (sometimes even more) of the cost of gold as making
charges & wastage to the jeweller pretty much eroding whatever profits you could
potentially make in the next 1-2 years.
Either ways I would very much recommend you to consider gold to be around 5%
of your net investment portfolio considering all this – in whatever medium you feel
comfortable. In short term gold prices may go down which may impact immediate
liquidity hence the suggestion to limit exposure to 5%.
Happy investing…

8- Lyn’s golden tip: Generate income from your gold position

By Lyn Alden – As the founder of Lyn Alden Investment Strategy, Lyn provides
market research to individual investors and financial professionals.
www.lynalden.com
Gold is an asset class that doesn’t have significant correlation to equities or many
other asset classes. We’re eight and a half years into the third longest bull market
we’ve ever had, with the second highest stock valuations in U.S. history and
arguably the lowest volatility we’ve ever seen.
It’s not a bad time to have some money in asset classes that do well when markets
fall or when the perception of risk rises, because it’s important to be positioned for
what comes next rather than what’s happening now. Gold is still one of the best
investments for this purpose.
The drawback of gold is that it doesn’t pay dividends or interest, and there’s an
expense associated with owning it, whether it’s shipping, security, authentication,
or expense ratios for precious metal funds.
For this reason, I like to own shares of the GLD ETF, and then sell covered call
options on my shares to earn option premiums. This helps generate income from
my gold position while I own it.
9- Gold is a speculative investment not unlike Bitcoin
By Jason Howell – Jason Howell Company is an Investment Adviser registered
with the Securities and Exchange Commission in the State(s) of Virginia.
www.jasonhowell.com
Gold is a speculative investment not unlike Bitcoin or baseball cards. So
it can be a hedge against other kinds of investing but there is no real
worth beyond what other people think at any specific moment in time.
Caveat Emptor!
10- Gold is not the sole reason that makes you wealthy
By Derek Sal – After Derek got completely out of debt (house and everything) his
life has been amazing ever since. Now his main passion is helping you ditch your
debt and become ultra-wealthy!
lifeandmyfinances.com
Invest sparingly. Gold is incredibly volatile and typically is not the sole reason that
someone becomes wealthy. They become wealthy because they work hard and live
frugally – and then they invest their surplus into something that will generate even
more money – like rental properties or their own business venture. Gold is good,
but I personally keep it at 5% of my net worth or less.

11- It is always advisable to hold some Gold

By Karan Batra – Karan Batra is a visiting faculty member at the Institute of
Chartered Accountants of India (ICAI). He is founder and CEO
of CharteredClub.com.
www.charteredclub.com
Gold is always considered as a safe-haven as there is no risk of Gold become
worthless in times of financial crisis or political uncertainty unlike fiat currency or
any other asset which bear a credit risk.
Due to safe-haven status of gold, it is always advisable to hold a proportion of
one’s assets in the form of gold. Gold can be held in various forms like Jewelry,
Gold Coins and Bars, Gold ETF’s, Sovereign Gold Bonds etc.
In case you are in India and you wish to get the maximum returns from Gold,
holding it in sovereign gold bonds is more advisable as compared to holding it in
any other form. Sovereign Gold Bonds are better than any other form of Gold
because of the following reasons:
First, there is no Tax on the sale of Sovereign Gold Bonds as compared to other
forms on which Capital Gains Tax is levied at the time of sale. Sovereign Gold
Bonds are not considered as a Capital Asset and therefore No Capital Gains Tax is
levied on the sale of these bonds.
Second, the Indian Government would also pay additional interest of 2.5% p.a.
over and above the price appreciation in the value of Gold.
Lastly, there is no Goods and Services Tax on purchase or sale of Sovereign Gold
Bonds.
The views and opinions expressed herein are the views and opinions of the author
and do not necessarily reflect those of InvestaWeb.
*********
Article no 5

Getting Bullish On The Gold Price

Rudi Fronk and Jim Anthony
January 8, 2018
34Share
Gold is up nine of the last 12 Januaries with an average gain of over 4%,
and the trend has continued in 2018 with gold reaching an intraday high
of $1,327 so far this year. From December 19 of last year, gold rose 10
trading days in a row. Is this another rally destined to disappoint
investors or the resumption of the gold bull market?
To make a reliable bullish case, gold must first break decisively over
$1,360 (the 2017 high) and then $1,375 (the 2016 high). So, the question
can't be answered yet. But there are some encouraging signs. Gold
posted a 14% gain in 2017, its best annual increase since 2010. In mid-
December 2015, gold bottomed at $1,051 per ounce. In mid-December
2016, it bottomed at $1,128 per ounce. For 2017, the bottom was on
January 3 at $1,162. That's a trend of "higher lows," which is a solid
indicator of a turn in the market.
Breaking out above the July 2016 high of about $1,370 per ounce would
generate a "higher high," a strong sign to us that gold is in a new long-
term uptrend.
Gold's long-term moving averages are in bullish alignment for the first
time since 2012. The last time the alignment structure flipped to bullish
was in 2002, which confirmed the beginning of a major gold bull
market.
Gold's net speculative position of 33% as measured by the CME's latest
COT report is not low but it's far from an extreme. The 2012 and 2016
price tops in gold corresponded to speculative peaks of 55%.
Furthermore, the U.S. dollar is rolling over. A falling dollar, especially
against the yen, has been good for gold most of the time. As the dollar
has weakened, commodities have strengthened, usually another good
correlation with a rising gold price.
One thing that can't be argued: Gold is at an all-time low against the
stock market and gold stocks are near all-time low against equities
generally. The balance of risks would now appear to favor gold stocks as
never before.
Here are some charts to illustrate:
Gold appears to be breaking out of a major 11-year wedge:

Gold has moved above its 50 and 200 week moving averages:

The Bloomberg Commodity Index has pushed above its 50 week

moving average (black line), supporting gold (red line):

Gold is at all-time lows against its most important investment

competitor:

And gold stocks are near all-time lows against equities:

*********
This article is the collaboration of Rudi Fronk and Jim Anthony,
cofounders of Seabridge Gold, and reflects the thinking that has helped
make them successful gold investors. Rudi is the current Chairman and
CEO of Seabridge and Jim is one of its largest shareholders.
Disclaimer: The authors are not registered or accredited as investment
advisors. Information contained herein has been obtained from sources
believed reliable but is not necessarily complete and accuracy is not
guaranteed. Any securities mentioned on this site are not to be construed
as investment or trading recommendations specifically for you. You must
consult your own advisor for investment or trading advice. This article
is for informational purposes only.
Gold-Eagle provides regular commentary and analysis of gold, precious
metals and the economy. Be the first to be informed by signing up for
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Article 6

Why Buy Gold?

JUNE 2, 2012 BY TIM MCMAHON 6 COMMENTS

Gold has been one of the best investments over the last decade going
from a low of $252 to a high of $1889. If you’re looking for a way to
protect against the effects of inflation, currency collapse or economic
instability, here are a few things to consider about why gold should be
in your portfolio.

Return to the Gold Standard

If you’ve been paying attention to

what is going on in the world these days, you know that the financial
markets have been in turmoil. Much of this relates to the basic
underpinnings of the economic system. In the United States, the
Federal Reserve is in charge of the money supply and interest rates.
Nothing is backing the paper money that is printed, other than the
credit of the United States government. So just like when a company
issues more shares of stock diluting the ownership of the existing
owners, every time the Federal Reserve increases the money
supply, it lowers the purchasing power of the dollar.

Since July 1944, when delegates from all 44 Allied nations gathered in
Bretton Woods, New Hampshire., the dollar has been the
reserve currency of the world. This gave it an advantage, because
other countries needed it in order to engage in trade with one another.
Prior to this countries traded gold with each other to settle their
debts. After Bretton Woods they could exchange Dollars instead and
the U.S. Dollar was supposed to be pegged at $35 per ounce of gold.
But the U.S. began inflating the dollar and before long all that was left
was an illusion that it was worth $35 an ounce. So wisely other
countries began calling the United States bluff and requesting gold for
$35 an ounce and eventually Nixon was forced to admit that we
couldn’t afford to sell it at that price any longer and he was accused of
“closing the Gold Window”

But Nixon still had one trick up his sleeve, in the early seventies the
US still was basically oil independent, i.e. it produced enough oil for its
own consumption. In an effort to protect U.S. oil companies against
foreign competition, it created imports restrictions. So, in exchange for
the lift of import restrictions, the OPEC countries promised they would
only accept dollars for their oil. This gave the dollar back the control it
lost when it gave up gold convertibility. Since the dollar was needed
to buy oil from the Middle Eastern countries (and everyone needs to
buy oil everyone needed dollars as well). In the last year or so, many
countries like the BRIC nations (Brazil, Russia, India, China) have
started to get away from the dollar as the world reserve currency.
Instead, they are trading in gold. What effect will this have on the
dollar and the United States? See Why (and How) China is Boosting
the Price of Gold for more information.

Many experts believe that this will inevitably force the dollar and the
monetary system as a whole back onto a defacto gold standard
whether it is an official gold standard or not. When countries reject the
idea of the dollar as the reserve currency, they will need something to
replace it. Gold is a natural fallback because of its consistency and
inherent value. When the monetary system returns to a gold standard,
the value of gold will go up (or the value of dollars will go down).
Anyone who has gold, will make a nice return on their investment.
Buy Gold as a Hedge Against
Inflation
Gold also works as a natural hedge against inflation. It is a substance
that has had some kind of value in every society the world has ever
seen. Being a physical asset, it always has some value relative to the
currency. While paper money has come and gone, 2000 years
ago, under the Roman Empire, an ounce of gold purchased an upper
class Roman citizen his toga (suit), a leather belt, and a pair of
sandals. Today, one ounce of gold will still buy a man a suit, a leather
belt, and a pair of shoes.

From this chart we can see that inflation has occurred on a massive
scale and will only get worse under the current system. As inflation
increases, the value of the gold in your portfolio will continue to go up
as well.

Some experts believe that someday we will buy gold for $10,000 an
ounce. With all of the debts that the central banks and governments
have racked up, at the current price, there isn’t enough gold in the
world to pay them all off. So the price per ounce must jump up
significantly. If the world rejects paper and wants “real assets” to
settle their debts, anyone who has gold is going to do quite well.

Buying and Selling with Gold- No

Paper Necessary
Another reason that you may want to invest in gold is because you
can actually barter or trade with it. If you have gold coins, these could
be used as a way to trade if the monetary system collapsed or if some
other serious economic event occurred. While no one likes to think
about this scenario, it is possible. Every country that has ever used
paper money has inevitably crashed, and there’s no precedent to
make us believe that it won’t happen in today’s society as well. Just
because we figured out how to make iPhones and fly to the moon, that
doesn’t mean that our society is beyond a form of collapse at some
point. Anyone who owns gold is going to have a much better chance
of being able to thrive in that environment.

When to Buy Gold

Gold typically thrives when interest rates are low because the
“opportunity cost” of holding it is low. The opportunity cost is what you
have to give up in terms of another investment in order to hold
something. In other words what else could you do with your money ? If
the interest rates are high, you are giving up all that interest income.
But if interest rates are low you aren’t giving up much to hold a much
safer investment, so gold demand goes up. Head of the Federal
Reserve, Ben Bernanke has vowed to keep interest rates low for
years to come, so Gold has little competition from interest producing
assets.
Buying Gold
If you want to buy gold, there are a few different ways that you could
go about it. One of the easiest ways to invest in gold is to buy shares
of gold exchange-traded funds (ETFs) or Mutual Funds. This can be
done through your current brokerage account. Another option is to buy
gold stocks, i.e. of gold mining companies. Their profits are directly
tied to the value of gold. You can also buy physical gold locally, from
gold or coin dealers or even on eBay. The advent of independant
grading servicies like PCGS, NGC and ANACS have made it easy to
be sure you are getting genuine gold coins. Regardless of how you do
it, many advisors recommend holding at least 5% of your portfolio in
Gold as a hedge against catastrophe and amounts above that as
a hedge against inflation.

See Also:

 Why China is Buying Gold (and encouraging its citizens to do so

as well).
 Gold is a “Crisis Hedge”
 Its Weight in Gold: The Real Prices of Things
 Gold… the Timeless Inflation Hedge – More gold price
comparisons like 400 BC: During the reign of King
Nebuchadnezzar, an ounce of gold bought 350 loaves of bread.
Today, an ounce of gold still buys 350 loaves (or more).
 How to protect yourself against the ravages of Inflation?
 Gold the Timeless Inflation Hedge
 Gold is still Money
 How do Gold Stocks Perform in a Depression?
 How High will Gold Get?
 At $1000 is Gold Expensive?
 Can you Put Gold in Your IRA?
 Forecasting Gold and Silver Prices
About the Author:
Chris Keenan, a blogger for a new jersey home insurance company,
writes on a variety of topics from payroll financing to family financing
management.

About Tim McMahon

Connect
with Tim on Google+.
Article 6

DO GOLD PRICES CORRELATE WITH U.S.

INFLATION?
Cullen Roche - 08/17/2011
If you tell a hyperinflationist that their thesis has been entirely wrong over the last few
years (which it has) they inevitably respond in one way: “look at a chart of gold”. This is
a reasonable response. The only problem is, it hasn’t been entirely true over the course of
the last 10 years.

Since the early 70’s US inflation and gold prices have actually maintained a fairly high
correlation. Figure 1, which shows the year over year rates of change, shows that gold
prices have tended to track the CPI:

(Figure 1)

There has been a notable divergence over the last 10 years though. This is seen more
clearly in figure 2 where we clearly see that gold prices have soared nearly every year
during a period of stagnant economic growth in the USA that has generally been
characterized by low inflation (the low inflation is easily confirmed by dozens of other
independent variables including wages, bond yields, ISM price index data, ECRI Future
Inflation Gauge, etc).

(Figure 2)

So what gives? Why do gold prices continue to soar as the USA continues to suffer
through a period of low inflation and general economic malaise? The answer lies not in
the “central planning” of the US government, but everyone else’s favorite “central
planners” – China.

As we all know, China’s economy has roared to life over the last 10 years. Their
government has increased the money supply at a 17% annualized rate as they try to
sustain growth. Their inflation concerns are well documented.

Figure 3 shows the correlation between China’s CPI and gold prices over this period. As
you can see, it tells a dramatically different story than the US CPI data does:
 (Figure 3)

About a year ago I described three bullish trends in gold prices. The third trend was
explained by UniCredit:

CR: I think the previous two trends are largely unfounded (though that
doesn’t mean they won’t persist), however, the third trend is very real.
UniCredit cites China’s surging demand for gold:

Unicredit: “The Chinese government has encouraged consumers to

invest in gold, and with great success. In the last 12 months, demand for
gold totaled 532 tons. While jewelry demand is merely stagnating,
investors are increasingly discovering the gold market. While as recently
as 2008 only 17 tons of gold were purchased, in 2009 the figure was
already 73 tons. In the last 12 months, demand was even 143 tons!
Although China has evolved into the world’s largest gold producer in
recent years, the annual production of most recently 330 tons is by no
means sufficient to satisfy this demand.
China announced important gold market reforms at the beginning of
August. Foreign companies are now permitted to offer their gold coins at
the Shanghai Exchange, more banks are permitted to import gold from
abroad, and more domestic, gold-based investment products are to be
developed. As a result, demand of Chinese investors will increasingly be
felt on the global market. But the Chinese government also has an ever
greater interest in gold imports. In April 2009, China had reported an
increase in its gold reserves from 19.29mn to 33.89mn troy ounces.
Nevertheless, they are still at a very low 1.7% of the entire foreign
exchange reserves. If China is targeting a gold reserve of, for example,
10%, it would have to purchase 6,130 tons of gold or 2.4 times global
annual production. If China were to meet the demand only from
domestic producers, it would take 19 years to achieve this objective.
Since the gold market is per se only a very small market, further
increases in the price of gold are pre-programmed.”
This powerful trend can also be seen in the correlation between Chinese wages and gold
prices:

(Figure 4)

I’ve built all of this into my reasoning for thinking that gold is entering an irrational
bubble. And I believe one of the primary drivers of this inevitable bubble is this
misconception that the USA and the Federal Reserve are the primary causes of inflation
and gold prices. The reason the hyperinflation theory in the USA has been so wrong
(aside from misunderstanding how the modern monetary system works) is because the
hyperinflationists have misunderstood the actual cause of their inflation worries. They’ve
no doubt been right (in terms of gold), but they’ve been right for the wrong reasons. In
my opinion, it is not the “central planning” of the USA that is causing this fear trade.
Rather, the true fundamental driver is the Central Bank of China.

The key for investors will be understanding the point where the gold market reaches
disequilibrium based on these misconceptions (the Euro crisis and the Fed contribute
significantly to this misconception) and undergoes the inevitable collapse that always
follows a bubble. I personally don’t think we’re there yet. In the meantime, when
someone points to the Fed, the US government and their “central planning” or “money
printing” as the primary cause of the surge in the price of gold and justification of their
USA hyperinflation theory, you might do them a favor and let them know that they’re
right about the flaws of “central planning” and excessive “money printing”. You just
might want to also let them know that they’re focusing on the wrong central bank.

Gold Is Telling Us Inflation Is

Finally Coming
Bryan Rich , CONTRIBUTOR Opinions expressed by Forbes Contributors are
their own.

Stocks have now opened the year up 6%. Global interest rates are
on the move, with the U.S. 2-year Treasury trading above 2% for the
first time since 2008. Oil is trading in the mid $60s. And base metals
are trading toward the highest levels of the young, two-year bull
market in commodities.

This all looks like a market that’s beginning to confirm a real,

sustainable economic recovery – anticipating much better growth
than what we’ve experienced over the past decade.

If that’s the case, we should expect a big adjustment coming in

inflation readings. And with that, we should expect a big adjustment
coming for global interest rates. We’ll likely have a 10-year yield with
a “3” in front of it before long. And that will have a meaningful
impact on key consumer borrowing rates (especially mortgages).

On the inflation note, we’ve talked this week about the impact of
higher oil prices on inflation and the impact it may have on the path
of central bank policies (most importantly, the speed at which QE
may be coming to an end in Europe and Japan).

You can see in this chart, the very tight relationship of oil prices and
inflation expectations.
Reuters

Now remember, one of the best research-driven commodities

investors (Leigh Goehring) thinks we may see triple-digit oil prices —
this year! This has been a very contrarian viewpoint, but beginning to
look more and more likely. He predicted a surge in global oil
demand (which has happened) and a drawdown on supplies (which
has been happening at “the fastest rate ever experienced”). He says,
with the OPEC production cuts (from November 2016), we’re
“traveling down the same road” as 2006, which drove oil prices to
$147 barrel by 2008.

Bottom line, this is an inflationary tale. If we had to search for a

market that might be telling us this story (i.e. inflation is finally
leaving the station), the first place people might look is the price of
gold. What has gold been doing? It has been on a tear. Gold is up
8% over the past month.

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How Inflation Does Affect Gold

Prices Economics Essay
PRINT

REFERENCE THIS

Published: 23rd March, 2015

Disclaimer: This essay has been submitted by a student. This is not an example of the
work written by our professional essay writers.
Any opinions, findings, conclusions or recommendations expressed in this material are
those of the authors and do not necessarily reflect the views of UK Essays.
"Inflation"- is derived from Latin word "Inflare" means "Blow up". Inflation is rise in
over-all cost. The price of goods and services increases, value of dollar will go down
because we won't be purchasing same amount as before. Annual inflation rate fluctuated
highly over half century ranging from zero inflation to 23% inflation. Federal Reserve
Bank tries to maintain specific rate of inflation which is usually 2-3% depending on the
situation.
The Indian economy went through structural changes in the post 1990s; it is likely that
the causes of domestic inflation too have undergone severe changes. The cause for
today's inflation is complicated. India's average growth rate, which was close to 3.5
percent in the fifties and sixties, went up to over 5% in the late 70's and stayed that way
for a decade. After the economic depression of 1991, growth picked up even more,
clearing the 6% mark on average and actually seeing a GDP growth rate of over 7 percent
for 3 consecutive years starting from 1994.
Chart - CPI inflation India 1991 (yearly basis)
Chart - inflation India 1991 (CPI)
The average inflation of India in 1991: 13.88 %
(Taken from the site "inflation.eu")
Fiscal crisis of 1991, Government stated sum of money is too small and devaluated
Rupee, That time inflation of 13.66% took place on Indian economy.

#.Fiscal Crisis: The unit of Govt will be

experiencing a budget crisis and will be
unable to borrow finance. It is mostly due
to large accumulated debt about its ability
to service that debt with combination of
rising public demand, failing tax revenue.
The new economic reform, popularly known as, Liberalization, Privatization and
Globalization (LPG model) aimed at making the Indian economy as fastest growing
economy and globally competitive.
Liberalization:
Liberalizing the Indian economy has given new dimension for India and it's billion plus
population. This period of economic transition had a tremendous impact on the overall
economic development of almost all major sectors of the economy, and its effects over
the last decade can hardly be overlooked. Besides, it shows the real integration of the
Indian economy into the global economy.

Privatization:
This period has also introduced a remarkable change in the mindset of Indians, as it
deviates from the traditional values held, such as self reliance and socialistic policies of
economic development, resulted in the isolation, overall backwardness and inefficiency
of the economy. Despite the fact that India always had the potential to be on the fast track
to prosperity.

Globalization:
India is in the process of restructuring her economy, with aspirations of elevating from
her present position in the world, the need to economic development is even more
obligatory. And having witnessed the positive role that Foreign Direct Investment (FDI)
has played in the rapid economic growth of most of the Southeast Asian countries, India
has embarked on an ambitious plan to emulate the successes of her neighbors to the east
and is trying to sell herself as a safe and profitable destination for FDI.

Types of Inflation:
Inflation causes:
Extreme imbalance of Global economy.
Fuel Price hike.
Higher international farm price.
High Labor rates.
5. Increase in indirect tax by Govt.
Inflation rate is based on:
1. Consumer Price Index [CPI]
2. Producer Price Index [PPI]

#. Inflation Rate=((PI for certain year-PI

for comparative year)/PI for comparative
year)*100
Inflation effects:
Production.{changes in routine of economic activity}
Income distribution.-{re-distribution of wealth}
Consumption and welfare.

How Inflation does affect Gold Prices?

Gold bullion increase in price per ounce whenever the price of the currency in which it is
denominated decreases in value. So, there is an inverse relationship between the price of
any currency and the price of gold bullion in the reserves.
The price of gold will go up because the price of gold is always related to a currency.
When the value of the currency goes down (as in inflation), the price of gold will go up,
to capitalize on this, experienced investors purchase gold coins and bars- Popular gold
coins which is recognized and traded world-wide.
In some currencies, the price of gold could be steady, while in others, the price of gold
could be moving higher. At present, the price of gold is moving higher versus all
currencies. Look at the 10 year chart for each currency and see how the price of gold has
increased. This is as a result of inflation.
If we look at prices of gold versus the U.S. dollar long term, we can see that when the
price of the dollar goes down, gold price increases and vice versa. Since the year 2000,
the average price of gold has been increasing in terms of U.S. dollars. The fact that the
U.S. and other countries are adding debt to debt to resolve their economic crisis.
Traditionally, the price of gold was seen to reflect monetary inflation, i.e, inflation of the
money supply. Because the fractional reserves banking system under the Federal Reserve
is inherently inflationary, the total amount of money in circulation tends to expand, at
times rather sharply. If monetary inflation exceeds real growth in products and services,
then the result will be price inflation, which is what is measure by government measures
of inflation such as the Consumer Price Index (CPI) and Producer Price Index (PPI). The
balance of supply and demand for gold tends to change relatively little every year, so, for
decades; changes in the price were attributed to inflation. Because rising inflation often
coincides with a booming economy, a rise in the gold price is sometimes coincident with
a strong economy.

How does inflation affect oil prices?

The cost of oil and inflation are often seen as being connected in a cause. As oil prices
will be varying, inflation also follows in the same direction. Because oil is a major input
in the economy - it is used in all major activities such as fueling transportation and
heating, homes - and if input costs rise, the cost of end products. For example, if the price
of oil rises, then it will cost more to produce steel, and steel company will then pass on
some or the entire price to the consumer, which raises prices and results inflation.
However, this relationship between oil and inflation started to deteriorate after the 1980s.
During the 1990's Gulf War oil crisis, crude prices doubled in six months from around
$20 to around $40, but CPI remained relatively stable, growing from 134.6 in January
1991 to 137.9 in December 1991. This detachment in the relationship was even more
apparent during the oil price run-up from 1999 to 2005, in which the annual average
nominal price of oil rose from $16.56 to $50.04. During this same period, the CPI rose
from 164.30 in January 1999 to 196.80 in December 2005. Judging by this data, it
appears that the strong correlation between oil prices and inflation that was seen in the
1970s has weakened significantly.

How does inflation affects dollar..??

The dollar value reflects the health of the US economy. In a floating currency system
where the dollar is only priced relative to other floating currencies, it is very difficult to
use currency movements as a measure of the economy. Still, gold is a very popular hedge
for large institutions against devaluation in the US dollar. As the value of the dollar goes
down relative to other major currencies, the price of gold tends to move higher, though
the correlation is not always perfect. The movements in the dollar, however, can be as
much related to changes in other national economies as in the US itself.
When the dollar is seen to be on the rise, investors tend to flee from gold, causing the
price to drop signaling a slowing of inflation.

Co-relation:
Crude oil prices continue to hit new peaks, and the correlations between the Canadian
Dollar, Euro, Australian Dollar, and US Dollar likewise trade near the top of their
historical ranges.
As long as US Dollar yields remain near record-lows, we may continue to see cross-
market correlations trade near historical strength across a broad range of raw materials
prices. This seems particularly true for high-flying Gold and Crude Oil prices.
Looking at market, there is no direct correlation between the 3 but an external relation
does exist.
Gold is an inflation Hedge. If inflation of any country increases, investors buy gold to
balance their port folio. So, Gold will move up.
Crude prices directly affect the oil import bill of any country. Increase in Imports Bill
will increase the Trade Deficit (Export - Imports) of countries. Higher Trade deficit
would hit the value of currency of the country.
This will affect the money circulation in the economy there by leading inflation. So, If
Crude price rises, Gold will also move up.
As you know most of the countries has got Foreign Reserves. And these reserves are in
form of Dollars. For example, India boasts about 140 Billion Dollars of reserves. If the
dollar looses value, the entire basket looses value. So, countries will look for safe heaven
i.e. Gold. If Dollar looses value, Gold will move up.
As quoted by Prasenjit Chakravorty
""Dollar is the backup currency worldwide. Price of commodities like oil and gold is
quoted in dollars in the stock market every day. So when the dollar weakens against the
rupee, imported items like oil, gold, etc, cost more dollars, and items we export earn more
dollars.-"That is how they are interrelated."
As stated by Tim Duraikannan Venkatraman
"Most of the stock market revolves around OIL price. So many metals prices are shifting
with Oil shares. Gold price is controlled by dollar value/reserve too. When shares were
falling GOLD was safe heaven for investors. Gold merchants always link gold with oil
price (a limit set) .I think soon or later GOLD will lose its ground (how long public will
buy 100dollars worth item for 400$? they will look for alternative"
#.Keynesian theory :
In the Keynesian approach potential
output serves only as the notional short
run maximum of feasible output.
Keynesian approach, also states the
excess increases in the total expenditure
(e.g., investment expenditure and
government expenditure) and the sources
of excess demand and hence inflation.
With Keysian Theory, the result is mixed. In short term there is no any clear cause and
effect relation which makes it almost impossible to state what happens to gold price when
dollar down wear away.
A long term trend analysis shows negative correlation between gold prices and the value
of dollar but gold price does not increase proportionately to the diminishing dollar.
As Keynes said at the later stage that there is no long term- I would go with the short
term result.

How Inflation can be controlled?

Inflation cannot be measured by single step. But following steps can help in handling
inflation. Those are:
Monetary measures
Fiscal measures
Other measures-To encourage for savings, Increase production, Provision of subsidies.
Monetary measure:
2.Fiscal Measures:
3. Other Measures.
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