It is sad but interesting to observe how the world is taking the US rating downgrade by S&P. I might never know where the gold is heading. One thing for sure is happening : world's relationship with gold is witnessing a new dimension.... a dimension never thought of by most investors.
Today's surge in gold is a knee-jerk reaction to the downgrade and could prompt huge profit taking in the near future. But as long as the US congress fails to fix their figures, concerns of slowing economic activity in the US will continue to spark fear in the investment world . Diversification from US assets is surely going to happen. And when that happen, gold will shine further as the ultimate safe haven.
Beware, the Emperor has no clothes !