How the fiscal cliff will affect gold prices?

This is How the Fiscal Cliff Will Affect Gold Prices

Economic fundamentals of supply and demand determine the prices paid for commodities, groceries and currencies. Politicians have shown that their primary policy for handling the fiscal cliff will be to print more paper money. This will increase the supply of the fiat currency.
Inflation results when more paper money is chasing the same amount of goods and services. The paper money loses its value. Individuals, businesses and governments will demand more money to make ends meet. Wise investors will purchase gold to protect against assets losing their value.

Handling the Slippery Slope

When people start to slide down a slippery slope, their first goal is the stop the decline. Likewise, the wealthy are purchasing gold to retain the value of their assets.
Gold remains a valuable, scarce, precious metal. It can be used in all countries and at all time. Gold has lasted as long as mankind.
The unresolvable fiscal cliff is increasing the price of gold because investors want to protect the real purchasing power of their assets.

If you were smart and invested in gold at low prices then today would be a profitable time to sell.
However ,gold is always a safe investment for reasons outlined above .

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