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Gold Rebounds Despite Dollar Gain

Charles Kirtley Wrote: May 18, 2012 10:08 AM
Anyone who has bought groceries, clothing or gas knows there is real inflation in the country. The only thing that keeps the CPI down as low as it is, is the price of housing. Housing values make up 41% of the CPI. Once house values stop dropping, we will be in for inflation that will make us yearn for the good old days under Carter when it was 16%. Tangible assets like gold are looking better all the time.

Despite another surge in strength for the dollar against the euro, metals and crude oil prices were higher yesterday morning.

Gold was up $5.95 in early trading to $1,547.90 and silver was up $0.13 to $27.44, raising the silver/gold ratio to 56.4.

The run on European banks continues only it’s not just Greek bank customers withdrawing euros, but also customers of Bankia SA in Spain who have pulled out over a billion euros in just under a week.

Between the equity markets, bank runs and a sell off in precious metals, there is a huge amount of cash building up in the...

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