Wednesday, May 3, 2006

The Golden Barometer foretells a Storm Coming

Whiskey Bar: All That Glitters: "it's hard to look at that gold chart and not suspect a much bigger game is afoot. This may be the perfect storm for metal prices, but it's not that perfect. The 1987 stock market crash, the collapse of the Soviet union, Saddam's invasion of Iraq -- none of these events triggered a move even remotely close to what we're seeing now."

The world is awash with dollar liquidity -- kindling for a sudden, killer inflation, potentially, or a run on the dollar. The run-up in the price of gold -- and lots of other metals and commodities -- means something, and it is probably not good.

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