Supply and demand is never an outdated concept. The US isn't alone in the printing of their currency. The gold bugs that I have seen on here seem to forget that factoid. What is also lost in the mix is the improving balance of payments with our burgeoning energy boom. I am not saying this is going to bring down energy prices, but it will change the economics and fear premium (for the US at least) for years to come.
There will be some point down the road where the Fed will indicate they are either slowing down or stopping the QEs. I wouldn't want to be holding gold when that happens.
You are correct that the US had become a "safe haven" and this helped the greenback when Europe went into their troubles like we had. That strengthened the dollar. Now we have the domestic energy play helping.
Get ready for China's implosion to further help the dollar as they seek a safe haven for capital. I bet there are some serious discussions going on behind the Fed doors that they will ease up on the purchase of bonds and let the Chinese do it. This will be a quiet form of backing off the latest QE.
And who gives a flip if the Chinese own a bunch of our debt. We OWE them the money. Not the other way around. That is not to be construed as me supporting us being in debt, but the old saying goes "If you owe the bank a little money then you have a problem. If you owe the bank a lot of money then they have a problem."
