Reason "D" - all of the above!
Eric Fry was showing another voice of reason April 29th in his post for The Daily Reckoning. The article he wrote is entitled 3 Reasons for the Commodity Bull Market
Here’s the link
I found these salient points which are important to note:
“Greece and Goldman are both serious roadside hazards. Even though they have not caused any serious crack-ups yet, they have caused some serious delays. The stock market has gone nowhere for almost a month.
Commodities, by contrast, have gone somewhere. The CRB commodity index is up more than 8% from its February lows. Gold is up 10% since then. Why would commodities be rallying so noticeably, even when the stock market is not? Is the answer that the commodity market:
A)
Senses a budding inflationary trend in the US?
B) Detects the European Central Bank will implement inflationary tactics in response to the credit woes of Greece, Portugal, Spain...and a roster of profligates to be named later.
C) Anticipates credit woes in the US that will prompt an even more inflationary response from the Fed and Treasury.
D) All the above.
"D" would get our vote. And we suspect the bullish tone in the commodities pits is something more than what Jim Rogers calls a "jiggle." We suspect the commodity markets have re-awakened for good reason...and maybe for many good reasons.”
AND:
“We are bullish on inflation; bullish on gold; bullish on Goldman put options and most of all, bullish on volatility.
Buckle-up for safety!”
A volatile world - indeed. Today's gold news is interesting. Lots of issues shed light on that news. Gold demand and gold coins as an investment point to how a gold coin should be in your pocket!