Rise In Gold Prices and Talks About Inflation

There have been talks about gold and gold prices recently in the commodities market.  An increase in the price of gold maybe the reason for these talks. Some reasons that possibly led to an increase in the price of gold are:

  • Weak Dollar
  • A Not So Great Financial System

With the dollar weakening and the financial system being in trouble right now, it seems that it is highly unlikely that jewelers have a high demand for gold. The fact that so much money is being pumped into the economy, there is a rise in commodity prices.

Could this lead to inflation? Possibly yes. Even though this may not be what the economists or Ben Bernanke are heavily talking about today, but I’m sure at some level this is their priority in order to prevent high inflation rates.

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