gold prices go where if us debt ceiling not raised?

gold prices go where if us debt ceiling not raised?

If the ceiling isn't raised then $ from spending cuts must be used to pay the interest on the debt.

The debt stays where it is because $ debasement has stopped.

No more new $'s are created so there are the same amount of $'s in the world.

Those in the US are decreased by domestic spending cuts to pay the interest on the debt.

Those outside the US are decreased by international spending cuts for the same reason.

Less dollars are available, inside and outside the US, for purchases, especially for discretionary items.

People will sell discretionary-item stocks first to pay for non-discretionary items.

Gold and silver investments are non-discretionary to those advised by their brokers to hold the traditional 10-15% in gold and/or silver, but billions of people in Asia and Africa want to invest in gold and/or silver as a traditional store of value and/or use them for for currency.

So I see an increase in supply but one far exceeded by an increase in demand.

However, the timing could be tricky.

August 2nd, 2011 is almost 2 months before the new Pan-Asian Gold Exchange opens to billions, assuming it opens at the beginning of the 4th quarter, October 1, 2011.

But China itself wants to buy over 300 tons of gold during 2011.

But has it already bought all of it?

This might be a good time to hold back some cash for upcoming dips and wait for a big dip after August 2nd, 2011 which isn't that far away.

Anyone, everyone, please tear this to shreds if it deserves it.