Monday, March 23, 2009

Gold buyers beware

Via Joe Weisenthal, Matt Stiles talks about why gold may not be a great hedge against possible inflation. In sum:
1) Money and Credit are similar, but not the same thing
2) Central banks control only a portion of the money supply
3) Demand for US Dollars should continue to exceed demand for gold

Previous gold warning here.

UPDATE: Eddy Elfenbein sums it up in a picture:
Posted by Caveat B at 9:06 AM
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