Cagey B: thomps: what is the reasoning behind gold decreasing because of currency instability?

IANA currency-talking-guy, but my assumption would be that instability in the membership of the Euro Zone weakens the euro, thereby making the dollar and other currencies appear more stable to international markets. The better the outlook for the dollar, the less need to live in a bunker surrounded by gold ingots, ammunition and cans of Dinty Moore.

That and its been a short term investment option for severals years that led to it becoming a bubble. The potential investors have been exhausted. When it's being marketed on late night tv and touted by cabbies and Lindsay Lohan, that's a good sign that they've reached the lowest possible investor and they are always the one left holding the potato.

thomps: what is the reasoning behind gold decreasing because of currency instability?

IANA currency-talking-guy, but my assumption would be that instability in the membership of the Euro Zone weakens the euro, thereby making the dollar and other currencies appear more stable to international markets. The better the outlook for the dollar, the less need to live in a bunker surrounded by gold ingots, ammunition and cans of Dinty Moore.