Wednesday, October 13, 2010

Gold Vs Treasuries - Which Do You Believe? - SafeHaven.com

09:35CET

Any psychoanalyst looking at the behavior of investors today would see clear strains of schizophrenia in a comparison between the markets for gold and US Treasuries.

Currently, the 10-year Treasury yield is setting new lows on a daily basis. In the financial models all economists were taught at school, this would be an indication of an economy with low inflation expectations and a strong currency. But the dollar has fallen over 12% since June, and the price of gold continues to hit all-time highs. These results are completely antithetical. Bonds are flashing a warning sign of deflation, while gold and the dollar presage hyperinflation.

http://www.safehaven.com/article/18540/gold-vs-treasuries-which-do-you-believe

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