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Message:: [QUOTE="mystery45, post: 804999, member: 19591"]Gold is more tied to inflation and currency price than anything else. Today big news as 2 more european countries might default on their debt.  there is a market called the forex market.  It is the foriegn exchange market for world currency.  I use to dable in it with a friend and got out of it because the volitility of that market is just way to much to handle. anyway.  Gold and the commodity market as a whole took a hit because people started selling euro's off and buying dollars.  which increased the price of dollars which caused people to dump commodities as well. commodities are used as a hedge against inflation and the devaluing of the dollar.  I think this is just a short lived thing.  Dewy is already threatening the US credit rating with harsher language unless congress starts getting the deficit down. overall the stock market took a beating and a half today.  268 points down because of europe and the over all job market.  People will return to gold and precious metals soon more so if the US gets it's credit rating dropped. if that actually does happen then you will see a surge in PM's.[/QUOTE]