Daily Economic Comment- GOLD

And while we are on the topic of gold, Don Luskin, Chief Investment Officer of Trend Macrolytics also believes that investors should buy gold to counter inflation. Given the nature of stimulus packages, it is widely believed that we'll be staring at runaway inflation if central banks do not get their exit strategies right.

In his view, some commodities like gold and silver are inflation plays while some, like crude oil, are plays on the industrial cycle. Mr. Luskin believes that fiat currencies (i.e. whose value is based on the government's word) are impossible to control. In fact, no country has a good history of managing inflation. Thus, if it is inflation one is worried about, gold is the best bet. In fact, experts believe that the yellow metal is headed towards US$ 2000. It is not a question of 'if' but 'when'.