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What's Gold Saying Today
March 14, 2011

The severity of the earthquake and tsunami damage in Japan after Friday’s earthquake comes as a great shock.

Churches and charities are already raising money to help survivors. The world’s sympathies and help are being extended to the people of Japan.

What will the shock be to the world’s economy as one of its major players, the third largest economy in the world, rebuilds the damage?

The Tokyo stock market dropped by 6.3 percent in Monday trading, but I see gold has hardly budged, moving up just a tad, and oil has moved down just a tad.

Financial damage is much harder to measure than physical damage. The banking crisis and financial crash of 2008 still has many people suspicious because there was no physical evidence for them to inspect and to judge.

Now we have the reverse situation. The physical damage will be assessed and financial markets will react – or perhaps not react much at all.

Gold being the gauge of worldwide worry that it is, an inflation hedge and an asset, very often is the most sensitive barometer of the financial weather.

If trading this morning is any indication, Japan and will be able to focus on rebuilding and the world will not need to worry about secondary financial effects.

That may sound callous, but gold may be telling us that the rest of the countries of world will not have to worry about their own financial well being as they do what they can to help rebuild Japan.

Here is another reason to watch gold trading today.

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About the Author
David C. Harper has been a coin collector since 1963. He joined the Krause Publications editorial staff in 1978 and is currently editor of Numismatic News and World Coin News. He also edits two books annually, North American Coins & Prices and Coin Digest. He is the author of the Class of '63 column that runs each week in Numismatic News. His first bylined numismatic article appeared in the June 1971 issue of Coins Magazine and his various Krause Publications assignments included a stint as editor of the magazine 1980-1983. Harper received a bachelor of science degree from the University of Wisconsin-Oshkosh in 1977. He had a double major of journalism and economics.

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