The hidden crisis in the gold business
This chart on American Gold Eagle Coin Sales illustrates a point I made over the weekend in response to a question from JFT about gold as a deflation hedge. As you can see, the demand for American Gold Eagles, a bellwether for international physical demand, grew significantly in the period 2008 to present — a disinflationary period marked by widespread concern over the health of the financial system and the banks. Note too that the late 2012, early 2013 period bears some similarity to late 2008, a time when weaknesses in the financial system became all-too apparent to the investing public.
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