When I look at the policies that the Central Banks are adopting today, everywhere, I see an inflationary epidemic that is feeding on itself and confirming the bull market in gold.

Volumes of debt underwriting — he process by which investment bankers raise investment capital from investors — have fallen by more than $1.3 trillion in the US since the credit crisis kicked off last July.

According to an Oppenheimer research note picked up by Dow Jones MarketWatch: “As more than 80% of corporate funding came from the capital markets during 2007, we can’t help but believe that such a massive extraction of liquidity from the market will have a profound impact on the U.S. economy.

The Chinese are wild gamblers! We all know that! When it comes to gold, however, they seem risk averse. Gold futures were introduced on Shanghai’s Futures Exchange in January. They were only the second product – after zinc – on this new market.