Inflation, deflation, government borrowing or the plunging euro — you name it — the specter of these concerns has set off a dash to gold, driving the precious metal to new highs and illustrating how fears of economic turmoil have moved from the fringe to the mainstream.
via Worried About Their Dollars, More Are Turning to Gold – NYTimes.com.
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Could what is just now happening to coffee also happen to gold? This from the latest Financial Times:
“[Hedge] funds made money for two years betting on declining [coffee] prices, but last week they were squeezed out by a large commodities trading house. Traders said the unidentified company was holding a large number of future contracts and appeared to intend to take physical delivery of the beans when the contract expires next month.
Since the speculators do not have easy access to coffee beans, they would be unable to fill the contracts they have sold, so were forced to buy back their bearish bets, triggering an explosive and unexpected price increase. The contract for delivery in July at NYSE Liffe in London jumped 18.7 per cent over three days…”
Full article:
http://www.ft.com/cms/s/0/642da230-7702-11df-ba79-00144feabdc0.html?ftcamp=rss