Fiat currencies will continue to decrease against gold as central banks continue to devalue their currency in 2013, according to Vince Lanci of FMX Connect. In this week’s edition of “RESET”, we examine the controlled descent of fiat currencies and take a look at how this may impact the gold market, as well as discuss Chinese gold demand, gold mining stocks and Vince’s trading ranges. According to Lanci, central banks do in fact want weaker, devalued fiat currency, although they don’t want fearsome headlines like “Euro circling the drain”; once they can tightly control the descent of their currencies, it will lead to a pronounced decrease in volatility, which he believes we have already begun to see. Despite his desire to shy away from making specific gold price predictions, there is one prediction Lanci is willing to make: he firmly believes that we have already begun the controlled descent “down the drain”, that fiat currencies will continue to decrease against gold, and that gold will see less volatile moves to the upside in 2013. Also discussed are the growing demand for gold in China and the Chinese government’s role in gold buying, as well as Lanci’s trading ranges. Kitco News, Jan. 9, 2013.
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