The big picture remains as detailed at length in the 100 page inflation mega-trend ebook (FREE DOWNLOAD) that ALL Central banks have NO option but to print money - ALL. Despite rhetoric from the likes of the Bank of England, U.S. Fed and up until very recently the ECB that they had either halted or would not print money. However there IS NO alternative, especially in the face of the global debt crisis.

The global debt crisis DEMANDS fiscal restraint, it demands governments to CUT public spending, the only response that governments have to prevent the resulting DEFLATION is Quantitative Easing i.e. to print money, to DEBASE their currencies as all fiat currencies compete with one another to devalue the fastest.

All of this ultimately FEEDS the Inflation Mega-trend therefore any correction in Gold and other commodities is temporary and in my view presents long-term buying opportunities for it is a case of ever increasing supply of fiat currency chasing after limited resources which means the price of the limited resources i.e. GOLD RISES

My forecast conclusion for Gold remains to hit $1,333 this year as of November 2009 and updated in the Inflation Mega-Trend Ebook (FREE DOWNLOAD). My next in-depth analysis for Gold will follow later this month.

For in-depth analysis of where markets are heading and the inflationary consequences of the debt crisis as it sparks money printing without end see the following recent articles:

16 May 2010 - Stocks Bull Market Hits Eurozone Debt Crisis Brick Wall, Forecast Into July 2010
11 May 2010 - E.U. $1 Trillion Bailout, Detonates Nuclear Option of Printing Money to Monetize PIGS Debt
09 May 2010 - Don't Blink Or You Will Miss The Stock Market Crash!
05 May 2010 - Greece Economic Depression Resulting in INFLATION NOT DEFLATION Surge
02 May 2010 - Greece Debt Crisis Storm Cripples Stock Market Rally Resulting Stock Price Churn
13 Apr 2010 - Britain's Accelerating Trend Towards High Inflation and UK Debt Default Bankruptcy

Source: http://www.marketoracle.co.uk/Article19647.html

By Nadeem Walayat

http://www.marketoracle.co.uk

Nadeem Walayat has over 20 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis specialises on UK inflation, economy, interest rates and the housing market and he is the author of the NEW Inflation Mega-Trend ebook that can be downloaded for Free. Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication. We present in-depth analysis from over 500 experienced analysts on a range of views of the probable direction of the financial markets. Thus enabling our readers to arrive at an informed opinion on future market direction. http://www.marketoracle.co.uk

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors before engaging in any trading activities.

Nadeem Walayat Archive

Comments

Jas Singh 20 May 10, 15:22	GOLD What about UK investors paying in sterling?
Nadeem_Walayat 20 May 10, 20:33	Sterling Gold sterling investors at the moment have about a 4% advantage as the british pound homes in on £/$1.37 target.

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