It is expected that the gold market will soon break out to new highs. With this being said, much has been reported and written about the deflation and inflation puzzlement in the past. According to the Fed, there seems to be no sign of inflation. This goes to say that the Feds are more worried or concerned abut deflation instead of inflation. The markets can possibly keep going up in price and being overbought as well and can continue for a long period of time.

There needs to be more discipline of gold standard to keep bankers and financial institutions from keeping money at bay. Without this discipline of a gold standard, they can create debt and credit pyramiding within many years which causes financial institutions to bury themselves. Look at the extremes of the bailouts. The end result could be a lot worse when things begin to run out for them

If we are looking at deflation and inflation, the more likely choice a politician will choose is inflation. Why is this? Because deflation has large unemployment and distress and the possible insurrection. Inflation on the other hand creeps up on the population like a thief, at the same time no leaves themselves unable to organize their governments and dismissing their leaders.

The result of the inflationary/hyperinflationary road will result in ruins. That's because hyperinflation has already done its thing and the currency is now worth nothing while businesses activities have come to a halt and find themselves starting all over again. We are now a little more advanced and that leaves them to push toward the hyperinflation, to maintain liquidity and rid debt by lowering the currency and cheat creditors. Interest rates will hit the sky if any type of restraint is put on them and will cause debt default.

It is believed that people are buying gold because gold is going up. Many believe that you should not buy gold only to sell it later for more money but to buy gold as a hedge against economic or financial disasters. Even then, you should not invest 100% into the gold unless you are certain that the disaster will happen. Who can be sure of that?