- Ireland has bought gold for the first time in over a decade. Predictably, most voices in the gold community see this as a bullish sign. But what of the opinions of those who sold their gold to Ireland? Surely, these people believed the price will go down?
- One theory of what drives the gold price is changes to the consumer price index, also known as inflation. Consumer prices have been skyrocketing. But the price of gold has not. So is this a bullish signal?
- Whether rising prices are a signal for gold depends on the cause of the rise in prices. There are times when the prices of gold and consumer goods are rising together. But other times when one is moving up sharply, but not the other.
For further details see:
Inflation And Gold: What Gives?