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Misery Index'
The ``misery index,'' a combination of the U.S. jobless rate and inflation, rose to a two-year high of 9.1 in December as energy costs climbed and the Federal Reserve lowered interest rates to avoid a recession. The correlation between higher gold prices and the misery index has risen in recent months, according to a Lehman Brothers Holdings Ltd. report yesterday.
``The combination of inflation and a decelerating economy is much more important to the gold market than inflation or deceleration alone,'' said Michael Widmer, head of metals research at Lehman in London who wrote yesterday's report. ``Deteriorating economic data in recent months really had an impact on the gold price.''
Investor demand is rising even as jewelry usage declines.