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Theo's picture
Inflation Batters Vietnam

Here is an article in the WSJ today about Vietnam's inflation threatening to morph into a full-blown crisis.  What I find most interesting is that Vietnam was also the world's biggest gold consumer last quarter (even ahead of India).  It seems the Vietnamese are rushing to buy gold as a hedge against inflation.  Will this perhaps extend to the rest of the world eventually?

By Theo at 2008-05-29 12:25 | Other | Theo's blog


Gold inflation

Wouldn't this result in gold value becoming inflated? Since gold is just a commodity, it is ruled by supply/demand and if everyone in the world will start to look to gold as a holy grail w.r.t. inflation, then I don't see supply keeping up with demand.

I don't see any more value in gold vs. coal or oil or copper for that matter. Heck, the latter are more valuable in long term. Just see the value of platinum over last decade or two. Platinum was at par with gold and now it is much, much higher.


Regarding inflation and crises: see Zimbabwe.

By adam at Wed, 2008-06-04 15:51 | login or register to post comments