The article about Detroit residents desperately getting acquainted with Italian culture also provides a nice clue about the gold market.
Bloomberg: Oakland County has suffered, too. In 2000, it was the 20th- wealthiest county in the U.S., according to Commerce Department data. By 2007, the most recent year for which data is available, Oakland had dropped to 48th place.
Astreins, the jeweler, said that around March of that year he noticed a troubling change in his business. Customers began coming in to sell him their gold.
“In my 35 years in business I have only bought gold during the oil crisis in the ’70s and during the first banking crisis in the early ’90s,” Astreins, 57, said. Both times, the gold- buying business “faded when the economy rebounded,” he said.
Oakland county is probably one of the best representations of what the upper-middle class are going through these days. And they’re selling their gold to the jeweler, not buying gold as a hedge against a dollar collapse or rapid inflation.
We pointed out as such, this weekend, reponding to a WSJ article that talked about everyone lining up to buy gold bullion. Maybe the rich, people with lots of cash are, but folks with everyday needs don’t have the luxury of doing much else but buying dollars with their possessions.